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The Philippines is among the most positive markets in AMEA, FedEx Express survey shows
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Asia Pacific, including India, China, Japan and Korea, will see e-commerce revenue reaching US$2.09 trillion this year as 57% of the region’s population shops online
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65% of e-tailers struggled to handle growing orders as talent search was challenging. A further 73% said they saw very high resignation levels over the past 12 months.
A research on the latest e-commerce trends commissioned by FedEx Express shows both small and medium-sized enterprises (SMEs) and consumers expect future growth, with the Philippines among the most upbeat in the hemisphere.
The survey also found out SMEs are bullish on innovations in digital technology.
Consumers in the region are looking for innovations in personalization, “shoppertainment” and payment options that enhance their experience while making it easier to discover new brands and purchasing more convenient.
With shopping festivals aplenty on the calendar, consumers seek more seasonal offers.
These findings show plenty of fertile ground for e-tailers to experiment with new approaches to help build their customer base, the research entitled What’s Next in E-Commerce says.
The survey carried out in July queried SMEs and consumers in 11 markets in the Asia Pacific, Middle East and Africa (AMEA) to explore the continuing evolution of e-commerce in the region and identify the trends that could fuel their future growth.
“COVID has accelerated our lifestyles to a pivot point where shopping online has been normalized across all demographics, and there’s no going back. E-commerce is set to take a growing proportion of total consumer spend,” said Kawal Preet, president of AMEA at FedEx Express.
He said with more shoppers online, consumer preferences get more sophisticated. As SMEs and e-merchants evolve their online sales platforms, opportunities for players to capitalize on what consumers want emerge, he added. He said customer experience is driving how e-tailers engage buyers and how to innovate shipping solutions.
With an expanded portfolio specially developed for e-commerce businesses, FedEx is well positioned to support the changing expectations of consumers and continuation of e-commerce growth, Preet said.
Asia Pacific, which includes the world’s biggest e-commerce markets like India, China, Japan and Korea, will see revenue from e-commerce sales reach US$2.09 trillion this year as 57% of the region’s population shops online.
SMEs and consumers are maturing in e-commerce use and both agree the pandemic-driven use of e-commerce is here to stay. Eight in 10 SMEs believe e-commerce will grow in importance to them in the next 3 years and 9 in 10 say they are well prepared for the challenge. Some 80% of consumers say e-commerce had taken a greater share of their total purchases over the past 3 years while 71% see further increases ahead.
SMEs in India, Malaysia, Philippines, and Vietnam – where e-commerce is less than 6% of total retail sales – were among the most bullish about their e-commerce growth in the next three years. SMEs and consumers in Japan and South Korea see the least potential for significant future growth.
The survey data reveals a significant 10% gap between how SMEs rate their own e-commerce customer experience and how consumers view it. The biggest gaps were in having an efficient returns service, at 13%, and access to customer support, 11%.
Deliveries taking too long is the No.1 pain for consumers, at 53%, followed by handling returns, 42%. Consumers expect delivery in 3 days to a week, but want at least more reliable if not faster delivery. This is most pronounced in Malaysia, the Philippines and Singapore.
While the future looks bright, 65% of e-tailers were struggling to handle the increasing orders they received as talent recruitment proved challenging. A further 73% had seen extremely high levels of resignations over the past 12 months. Some 62% said there were too few people for too many jobs with e-commerce marketing and sales experience being most in demand.
“The research reveals the evolving needs and expectations of consumers and FedEx is well positioned to support SMEs to take advantage of new opportunities,” Maribeth Espinosa, acting managing director at FedEx Express Philippines, said.
“We continue to bring new solutions that empower entrepreneurs …and cater to their customers more efficiently, and recently launched day-definite e-commerce delivery service in the Philippines, enabling e-commerce growth. ”
