FedEx survey shows APAC optimism for holiday sales

FedEx has released a survey indicating a robust sense of optimism among businesses and consumers in the Asia Pacific (APAC) region regarding the upcoming holiday sales season.

The survey, conducted in October 2024, gathered responses from 200 small and medium-sized enterprises (SMEs) and 300 consumers across 12 APAC markets. The findings indicate that 70% of SMEs are expecting year-on-year sales growth this festive season. Nearly 80% of these businesses are projecting that the majority of sales growth will come from within Asia, especially Southeast Asia, where e-commerce has seen double-digit growth.

This growth is reflective of wider trends, with intra-Asia trade projected to exceed USD $13.5 trillion by 2030. Southeast Asia's increased digital adoption and cross-border trading are significant factors in these trends.

The survey identified that over half (57%) of consumers prefer shopping on e-commerce platforms. The drivers for this preference include significant festive discounts and promotions, with 70% of consumers motivated by these offers. Free delivery continues to be pivotal for consumers, influencing their shopping choices and preferences.

Kawal Preet, President of Asia Pacific at FedEx, stated, "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."

The survey also highlighted the crucial role of e-commerce platforms in driving sales, with 87% of SMEs using third-party platforms to expand their customer reach and sales. Major online shopping events such as Double Eleven, Black Friday, and Cyber Monday are driving consumer engagement during the holiday season.

To maximise their reach, e-tailers are employing personalisation strategies, including live streaming for product demonstrations and robust social media promotions. Reliable shipping, competitive pricing, and digital tools are essential for SMEs, with 48% seeking additional logistics support to manage peak volumes.

FedEx has introduced comprehensive e-commerce solutions to assist e-tailers. The integration of its Ship Manager platform with marketplaces such as Shopify and BigCommerce enables businesses to manage shipments directly from online orders, streamlining the busy festive period.

The survey observes that delivery is integral to consumer satisfaction, with 65% of consumers indicating that free shipping motivates purchase completion. Late deliveries are a significant issue for 54% of consumers, highlighting the importance of reliable delivery services. Additionally, 60% of consumers expect delivery within two to three business days, with 45% prioritising convenience.

FedEx's International Connect Plus service aims to meet these expectations by providing a cost-effective shipping solution across the APAC region and beyond, typically delivering shipments within one to three business days.

Recognising the importance of last-mile delivery, FedEx has established a network of around 260,000 smart lockers throughout the APAC region. This development ensures secure delivery even in the absence of customers at home. Last-mile delivery options, direct messaging, and tracking tools further enhance consumer assurance.

The survey suggests a growing demand for sustainable practices in e-commerce, with 88% of consumers seeking more sustainable options from businesses. Moreover, 77% of consumers are willing to pay a premium for sustainable packaging, showcasing the increasing importance of eco-friendly products and practices.

FedEx provides tools like the Sustainability Insights platform, assisting businesses in measuring their carbon footprint to make more informed, sustainable choices for their supply chains.