The six-month turnover of the Omniva Baltic parcel business formed a record 49% of the group’s turnover in the first six months of 2020 (37% in the same period in 2019). The six-month turnover of the Latvian and Lithuanian subsidiaries made up more than a fifth of the entire group’s turnover this year.
“The company’s long-term strategy is working and the investments made in recent years have been justified,” Arumeel noted. “The largest parcel machine network covering the Baltic states, the rapidly growing Latvian and Lithuanian business units, a new logistics information system and new logistics centres have ensured the company’s capability both in the face of soaring volumes during the state of emergency and in the longer perspective.”
According to Arumeel, the success of parcel services in Latvia and Lithuania considerably fortifies the entire group. “The great results of the Baltic parcel business help the company to continue providing sustainable postal services in Estonia,” Arumeel added.
E-commerce boost in spring increased the trust of Estonian clients
“Regardless of the record-level parcel volumes and complicated conditions we did not have to make major sacrifices in quality,” said Arumeel. “Client feedback praises our operations during the state of emergency and the convenience provided by the outdoors location of parcel machines during the virus pandemic.”
According to the Estonian e-Commerce Association, Estonians ordered nearly 700,000 more parcels over the two summer months than were ordered last year. In spring, when physical stores were closed, parcel volumes in one month were larger by nearly one million. According to the Estonian e-Commerce Association, nearly 50% of e-commerce parcels in Estonia are moved by Omniva.
“By now,” said Arumeel, “cities are covered with dense parcel machine networks, thus, from now on, we will focus more on developing e-commerce options in rural areas. We want our network to have a closer reach to even more clients.”
Lithuanian market share is booming
According to Arumeel, the Lithuanian parcel service market shows the most rapid growth in the Baltic region. “The shift in consumer behaviour where people are starting to prefer parcel machines, which has already happened in Estonia and Latvia, is currently underway in Lithuania,” Arumeel said. “We have been significantly expanding the Lithuanian parcel machine network since last year to support this change and be closer to clients. Therefore, we are undisputedly the service provider with the largest network both in the Baltic region and in each country.”
According to the Communications Regulatory Authority of the Republic of Lithuania (RRT), Omniva owned the largest market share in parcel and courier services with 28.5%. In one year, Omniva has increased its market share by 12.4%, and compared with the last first quarter by 3%. The next largest market shareholders are DPD with 26.2% and Lithuania Post with 21.4%.
In Lithuania, the parcel volume on the entire market has increased by 66.6% compared with last year and nearly 20 million parcels were delivered to clients on the Lithuanian market in the second quarter.
Start-up image and a place among favourite Latvian brands
Although official parcel volume statistics have not (yet) been collected on the Latvian market, Omniva has been recognised as the 8th favourite brand among the most popular brands in Latvia. The image of an innovative and rapidly developing company has made Omniva the most loved postal and parcel service brand for two years in a row.
“We were the first company to launch parcel machines on the Latvian (and Lithuanian) market,” Arumeel explained, “and over the nearly 10 years, we have substantially changed the consumer behaviour in the society. Just like in Estonia, the majority of Latvian people prefer parcel machines to receive goods purchased online. Elsewhere in Europe, outside the Baltic states, the trend is still inclined towards courier services.”
The most popular brands are measured using an aggregate rating consisting of an assessment of the brand’s quality, uniqueness and usefulness. Altogether, 16% of respondents considered Omniva among their favourite brands and showed a clear preference for using the service. In its field of activity, Omniva was awarded a score twice as high as the average in the postal business (8.4%).
AS Eesti Post, which uses the Omniva brand, is a state-owned company that belongs under the domain of the Ministry of Economic Affairs and Communication. The company provides postal business, parcel business, information business and international business services. In addition to parent company AS Eesti Post, the group includes AS Maksekeskus, Lithuanian subsidiary UAB Omniva LT, Latvian subsidiary SIA Omniva and related company OÜ Post11.