With the holiday shopping season underway, Federal Express Corporation (FedEx) has released findings from its October 2024 survey, highlighting strong optimism among businesses and consumers across the Asia-Pacific (APAC) region. The survey polled 200 small and medium-sized businesses (SMEs) and 300 consumers in 12 APAC markets to capture their outlook on holiday spending, key motivations, and emerging trends impacting e-commerce and customer behavior.
The survey reveals that 70% of SMEs are expecting year-over-year sales growth, driven mainly by increased demand from within Asia, especially Southeast Asia. This aligns with regional e-commerce growth and the expansion of intra-Asia trade, projected to surpass $13.5 trillion by 2030.
E-commerce as a Sales Catalyst
A key finding of the survey indicates that over four-fifths (87%) of SMEs are leveraging third-party e-commerce platforms to reach more consumers. Major online shopping events like Double Eleven, Black Friday, and Cyber Monday play a pivotal role in engaging consumers, with 57% indicating a preference for shopping on these platforms. Among the top incentives for consumers are festive discounts and free delivery, with 70% citing these promotions as crucial motivators for their purchases.
To maximize their holiday season impact, e-tailers are exploring innovative customer engagement methods such as live streaming for product demonstrations and targeted social media promotions. Furthermore, 48% of SMEs are seeking additional logistical support from providers like FedEx to efficiently handle increased order volumes.
Delivery and Last-Mile Convenience Remain Key
Timely delivery continues to be a decisive factor for shoppers, with 65% of survey respondents saying that free shipping motivates them to complete their purchases. However, late deliveries remain a concern, with 54% of consumers identifying it as a key issue. To meet rising expectations, FedEx has expanded its FedEx® International Connect Plus (FICP) service, which provides delivery within one to three business days across APAC and key international destinations.
FedEx is also enhancing last-mile delivery convenience with a network of 260,000 smart lockers and advanced tools like FedEx® Delivery Manager International, enabling customers to track shipments and receive real-time delivery updates.
Growing Demand for Sustainable Practices
The survey underscores an increasing consumer focus on sustainability, with 88% of respondents advocating for more eco-friendly practices in online shopping. Over three-quarters of shoppers are willing to pay extra for sustainable packaging, a trend that 47% of SMEs believe can enhance brand differentiation.
FedEx is supporting these efforts through tools like FedEx® Sustainability Insights, which allows businesses to measure and report the carbon footprint of their shipments. According to Kawal Preet, President of FedEx Asia Pacific, “In the Asia Pacific region, the gifting season continues in the months leading up to Christmas through to Lunar New Year. As cross-border e-commerce continues to surge, e-tailers—particularly small and medium-sized businesses — are gearing up to maximize sales this festive season. Through our extensive network and smart, intuitive digital solutions, we empower these businesses to deliver exceptional customer experiences, streamline holiday shipping, and thrive in this competitive landscape.”
This survey, conducted by Milieu Insight in October 2024, covered 12 APAC markets including Australia, China, Indonesia, Japan, Malaysia, the Philippines, and others. It collected responses from SMEs engaged in cross-border e-commerce and consumers who actively shop online.
FedEx is a global leader in express transportation, offering time-sensitive deliveries to over 220 countries. With an extensive network and digital solutions, FedEx is well-positioned to support APAC e-tailers and consumers during the holiday season, ensuring a seamless shopping experience.