TNT, Dutch-based provider of courier services, will continue to rely on international delivery services on the Romanian market, despite holding a top position on the internal markets in countries such as the United Kingdom, Italy, Spain, China, Brazil and India.
Internationally, TNT has completed acquisitions in several countries to secure a strong foothold on the segment of internal courier services, however, in Romania TNT is set to pursue organic growth and will continue to rely on international delivery services.
"TNT has made acquisitions in Spain, China, Brazil and India. In Romania, however, we are not targeting any domestic player," said Bogdan Zafiu, sales & marketing manager at TNT Romania.
In Romania, the company derives around 10% of revenues from internal courier services, while company representatives said the decision not to boost operations on this segment was made because of TNT Romania's reluctance to engage in a battle of low prices. "(...) The Romanian market of internal courier services has witnessed a price battle and although the situation has started to change, we believe international courier services will still hold a heavy weight in TNT Romania's turnover in five years' time," specified Zafiu.
However, the internal courier services segment continues to boast steady annual growth; a situation TNT has also noticed, therefore improving its services on this segment.
"International services have been, and are, our target, but we are also focusing on the domestic segment. In Romania, we have 50% more customers than last year(...)," specified Zafiu.
Overall, TNT has gained around 30% more customers this year, with annual turnover forecast to increase at a similar rate. Last year, TNT generated 25.7m-euro turnover and by the end of this year estimates to reach around 33-34m euros, according to ZF estimates, calculated from the growth rate announced by the company.
While turnover rose by 30% in H1, TNT Romania's income went up by 35%, which according to company representatives is a result of the large volume of deliveries.
The majority of Romanian parcels (80%) are delivered to EU states, while volume increased by over 48% in terms of weight in H1 and by over 30% in terms of the number of deliveries compared with the same period last year. The main European destinations were Germany, Italy, France and the United Kingdom.
Next year, TNT Romania forecasts similar turnover growth - 25%-30% on the international segment, and 30% for the domestic segment, with Romanian turnover expected to reach a similar level to the company's Polish unit within 5 years. "In terms of revenues, we can compare ourselves with TNT Hungary, we want to catch up with the Czech Republic, and in around five years with Poland," stated Zafiu.
TNT Romania
Will continue to rely on international delivery services on the Romanian market
Is set to pursue organic growth in Romania
Explained the decision not to boost operations on this segment by its reluctance to enter the battle for low prices
Overall gained around 30% more customers this year, with 2007 turnover forecast to increase at a similar rate
Income went up by 35% in H1 due to the large volume of deliveries
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