For the ninth year in succession, Hermes posted a positive business year in 2012. The enterprise's 12 Group companies rendering retail-related and logistics services worldwide grew overall revenue by 7 percent year on year to 1,928 million euros compared to 1,800 million euros in the prior year. With over 452 million consignments shipped in Europe and a 7.5 percent growth in parcel volumes, Hermes continues to participate in the boom in e-commerce. In 2013, new sites are planned in the EU, Asia and the USA. In addition, the current financial year will see the enterprise set up a Supervisory Board.
"The strategy Hermes has been rigorously pursuing of internationalising its varied service is a proven success. As a consequence, we expect our positive trend to continue and to achieve revenue of over 2 billion euros for the first time in 2013," says Hanjo Schneider, Member of the Executive Board Otto Group with responsibility for services and CEO Hermes Europe. "Our aim is to offer small as well as large retailers all the solutions they need to tap new markets in Europe, Asia or in South America. This is why we are looking to set up new sites worldwide and expand our sales structure."
Global full-service provider for retail
Hermes is the only company worldwide to offer all the services along the value chain under a single umbrella brand. Retail companies of all sizes can outsource all the services required to Hermes – from the procurement of goods in Asia through to delivery to the customer. As such, internationally renowned fashion labels such as Escada, Bombay, Arqueonautus, H.I.S. and Wolford put their trust in Hermes to manage their e-commerce activities. Hermes NexTec, specialists in setting up and managing online shops for fashion and lifestyle brands, also offers their services in Russia, the USA, China and Brazil providing local client support to European retailers, or, in the reverse direction, working as an enabler for national brands looking to tap into the European online business. Here, there are also a multitude of attractive synergies for retailers wanting to make use of other Hermes services such as in fulfilment or in transport logistics.
Investing in locations and sales structures worldwide
To strengthen its position as a partner for global retail, Hermes will develop its infrastructure significantly in 2013. In quality control and certification, the company will open additional sites in Hong Kong, Shanghai and at production sites in India. In terms of sourcing, 2012 saw market developments boosted in Bangladesh, Myanmar and Cambodia. In the coming months, relations to producers will be established in Taiwan and Indonesia in particular. With additional sales offices in the USA, France and the Benelux countries, services of Hermes companies are to be offered increasingly to international expanding retailers represented in these markets.
In Germany, Hermes is pushing ahead with the expansion of regional-based sales offices, thus intensifying business in the European road transport segment for small and medium-sized clients. The German parcel unit is opening a depot in Wilhelmshaven in the country's north-west in May 2013, the last of 18 depots built in the last two years for a total of 120 million euros.
European parcel business continues to grow
Hermes parcel companies in Germany, the UK, Austria, Italy and Russia transported 452 million parcels in 2012, an increase of 20 million parcels (or 4.5 percent) over the prior year. The parcel unit included 417.1 million parcels – an increase of around 7.5 percent on the 389 million parcels delivered in the prior year. Thanks to a number of new clients, non-Otto Group third-party business rose 13 percent year on year. Hermes is now generating around 70 percent of its overall parcel volumes outside of the Otto Group. In Germany, Hermes is the market leader when it comes to deliveries of bulky goods - furniture, electrical and household appliances to the end customer.
Service offensive for the German parcel business
For Germany, Europe's largest national parcel market, Hermes is currently developing new services that will be ready to market in 2014. The heart of this service offensive lies in fixed time bands for deliveries. This web-based solution offers the customer a more comfortable all-round delivery service. This includes time-banded deliveries to alternative addresses, as well as the short-term re-routing of parcels. In strict compliance with data protection law, customers will be able to compile their own profile and store their personal preferences for deliveries.
Corporate responsibility
The certification of all general contractors Hermes cooperates with in its parcel deliveries, which was carried out for the first time last year in collaboration with SGS, TÜV Saar GmbH, proved extremely successful and is scheduled to be repeated in 2013. This year's certification process kicked-off at the end of March. This checks compliance with employment conditions and monitors the quality of processing. As part of the 2012 certification process, Hermes successfully pushed through a minimum wage of 7.50 euros per hour at all general contractors. This is already higher in many regions, with contractors offering as much as 10.50 euros per hour.
Hermes to be monitored by a Supervisory Board
Given the economic development of the Hermes Group of companies, the decision was taken, in conjunction with its parent the Otto Group, to set up a Supervisory Board for Hermes Europe. This will work as a control body for all Hermes companies comprise equal numbers of employer and employee representatives. "By appointing a Supervisory Board, we are creating transparency in our corporate developments and also opening ourselves up to external experts. Moreover, we are also complying with a request from our works' councils to accept greater corporate responsibility," explains Hanjo Schneider.
A designated member of the new Hermes Supervisory Board is the TV producer Sabine Christiansen, herself is committed to social matters, among other things, by founding and chairing the Sabine Christiansen Kinderstiftung for UNICEF and as Board member of the Laureus Sport for Good Foundation Germany. As a member of the Hermes Supervisory Board, Sabine Christiansen will actively represent issues relating to social and ecological sustainability. In September 2013, Hermes will furthermore publish its own sustainability report for the first time.