Business diversification and cross-border cooperation are the key to the success of the postal industry

More than 90 CEOs and senior executives gathered in Paris, France, to discuss the challenges and opportunities facing the postal sector at the International Postal Corporation (IPC) 2024 Annual Conference.

According to IPC, express and parcel shipments now account for more than a quarter of total postal service revenues, with international operations accounting for more than 20%, underscoring the importance of the growing cross-border market.

As letter volume continues to decline and impact profits, delegates at the annual conference discussed how the Postal Service can adapt its business model to be more diverse in a positive and profitable way.

Leaders explored investment opportunities in sectors that rely on core capabilities and expertise, such as e-commerce logistics, retail financial services and digital communications. The CEOs also stressed that cross-border e-commerce is growing and that it offers many opportunities for posts, but requires even closer cooperation between posts to create an efficient and seamless network.

Holger Winklbauer, CEO of IPC, commented: “As mail’s share of total postal industry revenues has declined over the past five years and now accounts for less than 28% of postal service revenues, diversification is a key priority for mail worldwide. The annual IPC conference provided an opportunity to exchange posts on key market trends and strategies.”

According to the IPC, postal workers and public trust were seen as key assets that the Post Office could build on in the future as it diversified into new areas, with digital services, digital signatures and online voting seen as key opportunities. Meeting the needs of an aging population was also seen as an area where facilities could play an important role, given their national footprint.