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FedEx study reveals optimism among Asia-Pacific businesses amid growing e-commerce trends

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FedEx study reveals optimism among Asia-Pacific businesses amid growing e-commerce trends
Policy
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Richard W. Smith President and Chief Executive Officer Airline and International | FedEx

FedEx has released a new study on the shopping season in the Asia-Pacific region, revealing optimism among businesses and consumers. Conducted in October 2024, the survey involved 200 small and medium enterprises (SMEs) and 300 consumers from 12 markets in the region. The research aimed to understand expectations, motivations, and concerns related to the shopping season.

The findings show that 70% of SMEs expect sales growth during this period, with nearly 80% attributing this growth mainly to Asian markets, particularly Southeast Asia. This optimism aligns with broader market trends as digital technology adoption and cross-border trade drive double-digit growth in Southeast Asia's e-commerce market for 2024. Intra-Asia trade is also rapidly increasing, projected to exceed $13.5 trillion by 2030.

Key growth opportunities for SMEs include consumer preferences for online shopping platforms and significant discounts during shopping festivals. Over half of consumers prefer e-commerce platforms, with 70% motivated by discounts and promotions. Free shipping remains a crucial factor in enhancing the shopping experience and influencing purchasing decisions. Consumers also expect delivery within two to three business days with convenient options.

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Consumers are increasingly seeking sustainable online shopping methods and are willing to pay extra for sustainable packaging when purchasing gifts. This trend allows businesses offering sustainable options to stand out in a competitive e-commerce market.

Kawal Preet, President of FedEx Asia Pacific Division, stated: "The gift-giving season in Asia Pacific extends from Christmas through Lunar New Year over several months. Cross-border e-commerce continues to grow rapidly as sellers prepare for the holiday sales peak, especially SMEs aiming to boost sales."

E-commerce platforms are essential for SME sales growth as they collaborate with third-party platforms to expand customer bases and increase opportunities. Major online events like "Singles' Day," "Black Friday," and "Cyber Monday" play critical roles in attracting consumers during peak seasons.

To attract customers further, e-commerce sellers innovate personalized services such as live streaming and product showcases on social media platforms. Reliable logistics providers, price advantages, and digital transport tools are crucial for meeting international shipping demands during peak seasons.

FedEx supports e-commerce sellers by simplifying order fulfillment processes through integrated solutions with leading platforms like Shopify and BigCommerce via FedEx Ship Manager™ (FSM). This streamlined service benefits sellers facing increased orders during peak seasons.

Delivery speed significantly impacts consumer satisfaction alongside discounts and promotions. Sixty-five percent of respondents indicated that free shipping influences their purchase decisions; however, delivery delays remain a primary concern for 54% of consumers during peak seasons.

To meet these expectations, services like FedEx® International Connect Plus (FICP) help deliver goods efficiently across Asia-Pacific and Western markets within one to three business days.

FedEx recognizes the importance of last-mile delivery with approximately 260,000 smart lockers across its Asia-Pacific network providing secure drop-off points regardless of customer presence at home. Additional digital tools offer customizable last-mile delivery options ensuring convenience while maintaining tracking transparency through services like FedEx Delivery Manager International or Picture Proof Delivery.

Sustainability is becoming an integral part of consumer decision-making processes alongside transportation speed preferences among nearly half (47%) surveyed SMEs who believe customers seek balance between sustainability initiatives offered by companies they engage with online shopping experiences enhanced by eco-friendly practices supported by environmental efforts fostering brand loyalty among more than three-quarters (77%) willing-to-pay-extra-for-sustainable-packaging gift buyers indicating strong support towards environmentally conscious actions taken by businesses operating within highly competitive electronic commerce environments where offering sustainable choices presents unique advantages available today

For SMEs looking forward expanding into electronic commerce space sustainability now considered indispensable component shaping consumer decisions enabling them make informed choices evaluating supply chains utilizing digital tools such as FedEx® Sustainability Insights assisting calculating historical carbon footprints shipments facilitating access emission reports promoting transparency throughout transportation processes ultimately benefiting both companies themselves customers alike

This online survey conducted Milieu Insights October covering twelve major markets including Australia China Mainland Hong Kong Indonesia Japan Malaysia Philippines Singapore South Korea Taiwan Thailand Vietnam involving two hundred cross-border trading engaged active online shoppers respectively

Organizations Included in this History
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