Small- and medium-size enterprises in the Asia-Pacific region are bullish about the growth potential of exports within the region, according to a research study conducted by FedEx Express.
The results showed that 47% of the companies who participated in the study predict that their revenue from intra-regional exports will grow in the next 12 months. The average level of growth predicted was 22%.
“This highly incisive research reveals that, despite challenging global economic conditions, Asia-Pacific SMEs are sustaining their businesses by tapping into other Asian markets for growth opportunities,” said Karen Reddington, president of FedEx Express Asia Pacific. “What emerges is a broadly optimistic picture, with SME exporters in the region planning to embrace technology and the digital economy to help overcome a wide range of business challenges, from higher production costs to increasing competition.”
Part of the optimism is being driven by e-commerce, with 80% of the SMEs already leveraging e-commerce to sell to other markets and 44% foreseeing growth in e-commerce revenue in the next 12 months.
Increasing competition from international players was seen as the top business challenge, having been cited by 38% of SMEs.
The participants also recognized the value of an efficient supply chain, with 91% having said that logistics plays an important role in their export business. About 66% of SMEs involved in e-commerce said that they are willing to pay a premium for faster delivery services.
“This research study confirms our long-held view that, for SMEs, technology and supply chain solutions dramatically level the playing field in competing with larger players,” said Reddington. “Increasingly, SMEs are investing in technology and looking to their logistics providers to help them adapt to their customers’ evolving needs, penetrate new cross-border markets and ultimately ensure their businesses remain competitive and sustainable.”
The independent study was conducted by Harris Interactive and included 9,000 senior executives of SMEs from 17 markets across the world, according to FedEx.
