Distribution organization The delivery companies for unaddressed advertising have regrouped. Since the mid-1990s, a good dozen private distribution companies for unaddressed advertising have been operating as Swiss Mail - the private postal service. In competition with Swiss Post, but also with its subsidiaries Direct Mail Company (DMC) and Epsilon, they serve around 85 percent of all households throughout Switzerland. However, Swiss Mail (SM) is in a state of upheaval - and with it the entire direct mail market. The website www.swiss-mail.ch illustrates this: It has been inactive for two years.It would now be wrong to conclude that the SM partners are also inactive. They are merely in the process of being resurrected in a new guise - namely under the label Swiss Direct Mail (SDM). SDM is more than just a name change,
It is a seal of quality for distribution organizations. "Standard delivery quality" is the subtitle.
What is new is that not only the SM partners sail under this label, but also their competitors DMC and Epsilon. This loose but contractually regulated cooperation between the 16 distribution companies has existed since 2002. There is no SDM office, only a cooperation committee that monitors the label and common interests. As a result, Swiss Mail disappeared from the scene, with each individual distribution company acting on its own and also offering nationwide distribution under its own name. The SDM homepage, which will be launched in January, will also not contain any rates, but primarily links to the individual companies.
The background to this cooperation: when Swiss Post acquired a stake in DMC in the mid-1990s and thus entered into the distribution of unaddressed advertising, there were areas in which letterboxes were targeted by both Swiss Post and its subsidiaries DMC (Swiss Post share: 50 percent) or Epsilon (66 percent) as well as by the SM partners.
However, because the direct marketing market (CHF 2.3 billion per year) is too narrow for three players, cooperation talks were initiated on all sides. In agreement with the Competition Commission (ComCo), cooperation was agreed within the framework of the SDM, but this required territorial agreements. In a process lasting a good two years, German-speaking Switzerland was therefore divided up in such a way that DMC, which operates on a regional basis, no longer came into conflict with the local SM partners - and vice versa.
Orders were splitThe same thing happened in French-speaking Switzerland between SM and Epsilon. The consequences: fewer households per company and split orders. Distriba, for example, a subsidiary of Basler Zeitung Medien (BZM), used to distribute the entire circulation of the BZM free paper Baslerstab, but now only serves Basel and a handful of surrounding communities. The rest of WG 31 and thus also the Baslerstab contract is entirely in the hands of DMC.
Despite territorial agreements among the SDM partners, the term "territorial cartel" is rejected out of hand. "We remain competitors at local and even national level," says Markus F. Hof, CEO of DMC. Each company offers according to
own tariffs, and these are
The cooperation continues to be very different, at least for the services upstream of distribution (delivery, depot). And René Bill, Director of AWZ Bern and President of the SDM Cooperation Committee, emphasizes that the Competition Commission has not raised any objections to this cooperation either.
Territorial agreements, but no cartel: The delivery companies for unaddressed advertising have agreed on selective cooperation.
SDM replaces Swiss Mail and also integrates DMC and Epsilon.
The sticking point AZOOnce the painful territorial adjustments are over and the competition between the SDM partners is somewhat smoothed out, the
A new stress test for the 16 companies: They were invited by the Alternative Delivery Organization (AZO) project to submit an offer.
AZO, a project by Valora and various major publishers (see WW 26/04), is to take some of the magazines (an initial order volume of 150 million francs) out of Swiss Post's hands.
and sell them more cheaply from 2008 at the latest. A decision will be made on December 21 as to whether AZO will definitely be launched.
The AZO request poses a major test for the SDM partners. Firstly, AZO is keeping open the option of moving into the distribution of unaddressed advertising at a later date. This makes the project a potential SDM competitor. Secondly, AZO is targeting Swiss Post - something that DMC and Epsilon are facing.
problems. What's more, the SDM rows are by no means closed: One SDM partner, the Valora subsidiary Distriforce, has already dropped out and submitted its own offer to AZO.
No wonder: the overall AZO project manager is Wolfgang Schickli - and he is also the Managing Director of Distriforce. It is therefore not surprising that the SDM partners have mixed feelings about the matter. In any case, they have not yet been able to make a statement to AZO, let alone make an offer. (mk)
Markus Knöpfli