IPC: Diversification is a key priority for facilities around the world

More than 90 high-level representatives from over 30 positions around the world, including 20 CEOs, met in Paris for the IPC 2024 annual conference on May 23-24. The theme of this year’s annual IPC conference, hosted by La Poste Groupe, was “Diversifying the Postal Business Model.”

Holger Winklbauer, CEO of IPC, says: “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 postal services worldwide. The IPC Annual Conference provided an opportunity to exchange posts on key market trends and strategies.”

Parcels and express deliveries now account for more than a quarter of total postal service revenues. Post offices are driving growth by investing in sectors that rely on core capabilities and expertise, such as e-commerce logistics, retail financial services and digital communications. In addition, more than 20% of postal revenues come from international activities.

As the share of letter items in postal revenues declines, the main challenge for the Postal Service is to adapt its business model to be more diversified in a positive and profitable way. To respond to growing cross-border e-commerce, it is important that postal operators around the world cooperate.

The Directors-General stressed that cross-border e-commerce is growing and offers many opportunities for posts, but requires even closer cooperation between posts for a smooth and seamless network.

Postal workers and public trust were seen as key assets on which the post office could base its operations in the future as it diversified into new areas. While all facilities are at different stages of their diversification strategy, several opportunities have been highlighted, such as digital services, digital signatures and online voting. Meeting the needs of an aging population was also seen as an area where facilities could play an important role, given their national footprint.

The annual conference began with a keynote speech by Matteo Pacca, senior partner at McKinsey, on diversification models and job opportunities. The remainder of the conference consisted of four executive panels that focused on regulations and the universal service obligation, diversification (beyond letter and parcel delivery), company culture and cross-border deliveries in the future.