Southeast Asia Emerges as Top Growth Market for APAC Region, According to New FedEx Survey
FedEx
Express (FedEx), a subsidiary of FedEx Corp. (NYSE: FDX) and one of the world’s
largest express transportation companies, today
released findings from its latest research report conducted in partnership with Forbes Insights, which aimed to identify key international
growth trends for small and medium sized enterprises (SMEs) in the Asia Pacific region over the next three
years. The survey identified growth opportunities for small businesses as well
as challenges to international cross-border commerce.
A key finding was that 68% of respondents see the greatest potential for growth in Southeast Asian countries such as Thailand, Vietnam, and Indonesia. Economic growth, cultural affinities and improving regional trade deals are fuelling optimism around ASEAN markets according to the report. While 88% of those surveyed said that they were planning customer base expansions globally over the next three years, APAC business leaders find it harder to do business with partners, suppliers, and customers in markets like Europe and North and South America.
Challenges remain for truly realizing cross-border opportunities even within the APAC region. When asked about barriers
Enhancing the customer experience was the most highly ranked business priority for SMEs (57%). While small businesses typically invest only 5% of total revenue of annual IT budget on digital transaction capabilities, digital technology was seen as instrumental in tackling customer experience challenges by applying analytics, machine learning, AI, real-time tracking and visibility solutions and technology training to upskill employees. Although the potential of technology is clear, nearly three quarters (71%) of respondents stated that developing or implementing digital strategy was their biggest challenge, followed by mitigating security threats (65%) and the cost of upgrading existing systems (64%).
“The
latest FedEx survey presents valuable insights and opportunities for businesses
in the Philippines to better serve their customers and tap into new markets. As
SMEs and e-merchants continue to build and optimize their capabilities, FedEx
remains a trusted logistics provider, delivering innovative solutions and
expertise to enable cross-border growth and success. With FedEx by their side,
Philippine businesses can seize the opportunities of the global marketplace and
achieve sustainable growth in the digital age.” Said Maribeth Espinosa, Managing Director at FedEx
Express Philippines.
Where specialized skills and costs are prohibitive, digital transformation can be simplified by choosing partners that have their own digital tools and platforms they can use or incorporate into their own.
The full FedEx research report is available at fedex.com and offers more data on trends to guide Asian SME strategies for success.
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