FedEx Survey Reveals Strong Optimism for Holiday Sales Surge Among APAC Businesses and Consumers

FedEx Survey Reveals Strong Optimism for Holiday Sales Surge Among APAC Businesses and Consumers

Singapore, November 4, 2024 – The holiday shopping season is already in full swing and Federal Express Corporation (FedEx), one of the world’s largest express transportation companies, shared insights from its latest survey on this year’s festive shopping season in the Asia Pacific region.

Conducted in October 2024, the survey[1] gathered responses from 200 small and medium-sized businesses (SMEs) and 300 consumers across 12 APAC markets, exploring their expectations, purchasing motivations, and concerns for the festive season, while identifying key trends shaping customer behavior during this time.

According to the findings, 70% of SMEs expect year-on-year sales growth this festive season, with nearly 80% forecasting this growth in sales from within Asia—especially from Southeast Asia. This optimism aligns with broader market trends, as Southeast Asia’s e-commerce market grew in double digits in 2024[2], driven by increased digital adoption and cross-border trade​. Additionally, intra-Asia trade continues its robust expansion, with projections indicating it will surpass $13.5 trillion by 2030[3].

The survey reveals key growth opportunities for SMEs:

  • Over half (57%) of consumers prefer shopping on e-commerce platforms, with 70% motivated by substantial festive discounts and promotions.
  • Free delivery continues to play a crucial role in shaping the shopping experience and driving purchases among consumers. Equally, consumers expect their orders to arrive within two to three business days, with convenient delivery options.
  • Consumers want to see businesses develop more sustainable online shopping practices and are willing to pay a premium for sustainable packaging when purchasing gifts, reinforcing the opportunity for businesses to differentiate themselves in the crowded e-commerce marketplaces by offering sustainable options.

“In the Asia Pacific region, the gifting season continues in the months leading up to Christmas through to Lunar New Year,” said Kawal Preet, president, Asia Pacific, FedEx. “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.”

More details on the survey findings:

 

To drive sales, SMEs must tap on E-commerce Platforms

E-commerce continues to capture an increasing share of retail spending. The survey reveals that over four-fifths (87%) of SMEs are leveraging third-party e-commerce platforms to broaden customer reach and enhance sales opportunities. Significant online shopping events like Double Eleven, Black Friday, Cyber Monday play a key role in driving consumer engagement during the holiday season. Notably, over half (57%) of consumers prefer shopping on e-commerce platforms, with 70% motivated by substantial discounts and promotions, highlighting the importance of these events for both e-tailers and consumers​.

To maximize their impact, e-tailers are innovating through personalized customer offerings, such as live streaming for sales and product demonstrations, alongside robust social media promotions. Survey findings reveal that SMEs consider reliable shipping, competitive pricing, and digital tools crucial for meeting international shipping needs during this busy period, with 48% of e-merchants seeking additional support from logistics providers to manage peak volumes.

FedEx’s comprehensive e-commerce solutions is supporting e-tailers to streamline order fulfillment. The company has integrated its Ship Manager platform, with leading e-commerce marketplaces such as Shopify and BigCommerce, allowing APAC e-tailers to create shipments and manage paperwork directly from their online orders. Such easy-to-use, friction-free services are crucial for e-commerce merchants, especially during the busy holiday season when order volumes increase significantly.

 

Delivery is Essential for Customer Satisfaction

In addition to festive discounts and promotions, delivery continues to play a crucial role in shaping the shopping experience for consumers. According to the survey, 65% of respondents indicated that free shipping options motivate them to finalize their purchases. However, late deliveries remain a significant concern, with 54% of consumers citing it as their top issue during the festive season. A significant 60% of consumers expect their orders to arrive within two to three business days, and 45% prioritize convenient delivery options to enhance their shopping experience.

To meet consumer expectations, e-commerce shipping services like FedEx® International Connect Plus (FICP) can assist e-tailers in shipping within Asia-Pacific, as well as to the US and Europe. This cost-effective international shipping solution typically delivers most shipments within one to three business days[4], aligning with consumer demands for speedy delivery.

Recognizing the critical importance of last-mile delivery, FedEx has built a network of approximately 260,000 smart lockers across the APAC region, ensuring a secure delivery location even when customers are not at home. Additionally, customizable last-mile delivery options, along with direct messaging and convenient tracking through digital tools like FedEx® Delivery Manager International and Picture of Proof Delivery, provide consumers with the assurance that their packages have been delivered right to their doorsteps.

 

Consumers Demand Both Sustainability and Speed

There is a growing opportunity for businesses to differentiate themselves in the crowded e-commerce marketplaces by offering sustainable options. While less than half (47%) of SMEs believe that customers seek a balance between sustainability and speed in their online shopping experiences, a remarkable 88% of consumers are saying that they want to see businesses develop more sustainable online shopping practices to stand out from competitors​.

Additionally, consumers are drawn to companies that prioritize sustainability, indicating that eco-friendly practices can significantly enhance brand loyalty. Over three quarters (77%) of shoppers are willing to pay a premium for sustainable packaging when purchasing gifts, demonstrating a strong readiness to support environmentally responsible choices​.

According to the survey, sustainability is no longer an optional extra for SMEs looking to expand their e-commerce operations; it has become an essential aspect of the decision-making process for consumers. SMEs can make informed choices by analyzing their supply chains and utilizing tools like FedEx® Sustainability Insights, which helps businesses measure the historical carbon footprint of their shipments[5], making emissions reporting more accessible and transparent.

[1] On the survey – please see |About the Survey| at the end of the press release

[2] eCommerce – Southeast Asia | Statista Market Forecast

[3] Intra-Asia trade could surpass $13T by 2030 | Air Cargo Next

[4] Availability of services and transit time may vary depending on origin and destination post code.

[5] Available for eligible shipments. Some exclusions may apply. Please visit |FedEx® Sustainability Insights| website for more details.