New research commissioned by FedEx Express, one of the world's largest
express transportation companies, shows that small- and medium-enterprises
(SMEs) that embraced e-commerce during the COVID pandemic are underestimating
the importance consumers now place on sustainability in their purchase
decision-making.
90% of SMEs surveyed in the Philippines said their customers are
more interested in receiving their goods as quickly as possible than in
sustainable shopping. While 85%, thought that receiving
goods as cheaply as possible is more important to customers. The research shows
that the reality is different.
While the majority of consumers agree that delivery
speed matters, they also value sustainability as an important consideration.
According to the same survey results, 90% of Filipino consumers expect
sustainable e-commerce from companies they buy from. Concurrently, SMEs with
ESG policy in place is a clear differentiator in e-commerce with 4 in 10
consumers indicating it as an important purchasing factor.
“As more Filipino businesses begin to expand their
footprint to the global market, FedEx continues to innovate and offer
sustainable logistics solutions and technologies to empower their growth while
minimizing their ecological impact. Sustainability is everybody’s business and
FedEx is leveraging its worldwide network to make positive change wherever we
go,” said Maribeth Espinosa, acting managing director at FedEx Express
Philippines.
The What’s Next
in E-Commerce
survey polled SMEs and consumers in 11 markets in the Asia Pacific,
Middle East, and Africa region (AMEA) in July 2022. The poll explored the
continuing evolution of e-commerce in the region and identified trends that
could fuel their future growth.
Key
Finding: Consumers want both sustainability and speed
The accelerated growth of e-commerce during the COVID-19 pandemic
occurred as consumer concerns over the environment continued to grow. For a significant
number of consumers, the future of the planet is top of mind, and they do not
want to compromise – they want both sustainability and speedy delivery. Across
the region, 67% of those surveyed expressed as much interest in receiving their
goods quickly as they did in the sustainability of the online shopping process.
Consumers in
Vietnam, Thailand, and South Korea placed the greatest priority on
sustainability over delivery speed. Conversely, consumers in Taiwan, Hong Kong,
and Malaysia are more likely to focus on delivery lead time.
The research
shows that eight out of 10 consumers in AMEA expect the e-commerce companies
they buy from to pursue sustainable business models. Seven out of 10 prefer to
buy from companies with an effective environmental, social and governance (ESG)
strategy in place – but only 29% of SMEs actually have one. SMEs acknowledge
that consumers expect them to run sustainable businesses, but many (68%) either
fear the associated costs or are unconvinced that any investment in this area
will produce a return.
Taking
a more sustainable approach to delivery
“Sustainability is no longer an optional extra
for SMEs interested in expanding their e-commerce businesses. Consumers
increasingly see it as an essential and non-negotiable part of their
decision-making process,” said Kawal Preet, president of Asia Pacific, Middle East
& Africa (AMEA) at FedEx Express. “SMEs can make an immediate difference by thinking about the
logistics connecting their supply chain all the way to the end-consumer. At
FedEx we’re already taking tangible steps to mitigate the impact of delivery on
the planet.”
FedEx is following a multi-track path to reduce carbon emissions in the
delivery cycle with a goal of achieving carbon neutral
global operations by 2040. This includes investing in
electric vehicles for last-mile deliveries, and digital solutions like FedEx
Ship Manager® Lite that allows
consumers to fill out their shipping information using their mobile device to
quickly generate a label supporting our ultimate goal of zero paper air
waybills. Additionally, FedEx is implementing solutions like reusable packaging
to help reduce waste in the shipping process.
For any SME, creating an effective ESG strategy is the sum of multiple,
individual wins. More than 80% of the total greenhouse gas emissions made by a
typical consumer-facing enterprise emanate from outside their internal
operations, largely coming from manufacturing and elsewhere in their supply
chains. As connectors in the chain, logistics providers have a role to play in
helping to lower the possible impact on the planet to help align to consumer
expectations.
Post a Comment