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2nd April 2018

Back in the early 1980's Royal Mail processed in the region of 8 billion letters through the postal system, volumes grew over the following two decades, fueled by the growth in direct mail, peaking at 20 billion items at the turn on the Century. In 2004 the first signs of e-substitution, the use of email rather than letters, started the decline in envelope volumes, this was exacerbated by the 2008 financial crisis. Volumes today stand at 12bn, a 40% decline from their peak, and forecasts predict they will continue falling returning to 1980 levels (8bn) by 2023!
  
Pricing in the market place was driven down during the 1980's & '90's on the back of the growing demand for high volume, low cost, standard envelope formats and favourable exchange rates that attracted EU manufactures to the UK market. The envelope market today is in a different place - the industry must recognize that to protect revenues in a declining market we must all start increasing pricing in the market.

We have chosen the route of adding value to the product, better quality papers, more print, increased customization and offering small volumes - What are you doing?






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