Despite global trade woes, 70% of SMEs see robust Christmas sales
Despite persistent global trade headwinds, more than 70 percent of small and medium enterprises (SMEs) in the Asia-Pacific (Apac) region expect stronger sales this Christmas season, according to a survey by international shipping firm Federal Express Corp. (FedEx).
The study, which polled 850 SMEs across 13 markets, also found that extended holiday celebrations in the region and the continued rise of e-commerce are driving cross-border demand.
“In Asia Pacific, the festive gifting season stretches well beyond Christmas and into Lunar New Year, creating one of the world’s most dynamic windows for cross-border commerce,” said Salil Chari, senior vice president for marketing and customer experience at FedEx APac.
The trend is particularly apparent in the Philippines, where holiday preparations begin as early as September.
“The Philippines celebrates one of the world’s longest holiday seasons, from September through the New Year—a period that, combined with our fast-growing e-commerce ecosystem, creates tremendous opportunities for cross-border trade,” said Maribeth Espinosa, managing director at FedEx Philippines.
“More Filipino MSMEs (micro and SMEs) and e-tailers are connecting with international customers, while local shoppers increasingly embrace global purchases,” she added.
Europe showed even greater optimism, with 80 percent of SMEs expecting increased sales, based on responses from 1,200 businesses across nine European countries.
Online holiday shopping
The survey also noted a shift toward online holiday shopping, with 88 percent of consumers saying they plan to make at least a quarter of their holiday purchases through e-commerce platforms.
Major shopping events such as the 11.11 sale, Black Friday and Cyber Monday have become significant drivers of that shift, with 83 percent of consumers saying these promotions influence their buying plans.
SMEs are responding too: 91 percent of Apac businesses and 83 percent of European businesses said e-commerce shopping festivals were crucial in capturing holiday demand.
Considerations
Nearly nine in 10 surveyed consumers said efficient shipping is a key factor when buying holiday gifts online.
More than half, or 53 percent, said they would be more likely to buy products from Europe if shipping costs were lower. Meanwhile, 50 percent said faster delivery times would influence their decisions.
Despite the pressures of peak-season demand, 85 percent of businesses across Apac and Europe said they were confident about meeting their holiday delivery deadlines.
The Apac markets included in the study were Australia, New Zealand, China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.
