Royal Mail's price rise to affect U.K. businesses and direct mail, prompt reduced mailing volumes, accelerate move to digital communication; volume, revenue generated by businesses make up 87% of all mail: DMA

NEW YORK , February 22, 2011 (press release) – The impact on mail volumes is likely to be far greater than Royal Mail estimates, according to the evidence the DMA has gathered from its members and submitted to Postcomm. The volume and revenue generated by business post (accounting for 87 per cent of all mail) underpins the provision of mail delivery services for every UK household, otherwise known as the ‘Universal Service’. The price rise will jeopardise this service and the future of the industry, creating uncertainty which will prompt businesses to revert to other forms of communication or significantly reduce their mailing volumes. The DMA also believes that for those businesses where mail is the only option, this price hike is unacceptable in the current operating climate.

Chris Combemale, executive director of the DMA, states:

“Royal Mail’s decision to raise funds at the expense of businesses is counter-productive and, while the effect might not be immediate, it will be irreversible. This price rise will accelerate the move to digital and experience has shown that once a company has migrated to other media they don’t come back. This loss in volume and revenue will be a massive blow to both the Universal Service and the mail industry as a whole.”

About the Direct Marketing Association

The Direct Marketing Association (DMA) is Europe’s largest and most influential professional body to serve the multi-billion pound direct marketing industry. Through its unique suite of services and programme of activities, the DMA promotes the business interests of its corporate members and drives the growth of the direct marketing industry as a whole.

The Association supports the professional and commercial development of its members through offering a range of business services, including: networking and knowledge-sharing events; cutting-edge industry studies and research; updates and analysis on the latest political and legal developments; business support tools; and specialised legal advice.

On a wider scale, the DMA UK works to maintain the industry’s self-regulatory framework by developing industry standards of best professional practice; engaging with government and other policymakers on legislative matters that affect the industry; and producing industry standards that guide the sustainable development of direct marketing. The DMA also provides thought leadership for industry, and raises its profile through an active PR programme and ongoing community initiatives.

All of the DMA’s activities are directed at engendering political, commercial and consumer faith in the value of direct marketing.

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