Hong Kong SAR, China, November 16, 2022 – New researchcommissioned by FedEx Express, one of the world’s largest expresstransportation companies, shows that small- and medium-enterprises(SMEs) that embraced e-commerce during the COVID pandemic areunderestimating the importance consumers now place onsustainability in their purchase decision-making.
Seventy five percent of SMEs surveyed said their customers are moreinterested in receiving their goods as as possible ratherthan in sustainable shopping. A similar number, 73%, thought thatreceiving goods as cheaply as possible is more important tocustomers. Insights from consumers show the reality is verydifferent.
The What’sNext in E-Commerce survey polled SMEs and consumersin 11 markets in the Asia Pacific, Middle East, and Africa region(AMEA) in July 2022. The poll explored the continuing evolution ofe-commerce in the region and identified trends that could fueltheir future growth.
Key Finding: Consumers want both sustainability and speed
The accelerated growth of e-commerce during the COVID-19 pandemicoccurred as consumer concerns over the environment continued togrow. For a significant number of consumers, the future of theplanet is top of mind, and they do not want to compromise – theywant both sustainability and speedy delivery. Across the region,67% of those surveyed expressed as much interest in receiving theirgoods as they did in the sustainability of the onlineshopping process.
Consumers in Vietnam, Thailand, and South Korea placed the greatestpriority on sustainability over delivery speed. Conversely,consumers in Taiwan, Hong Kong, and Malaysia are more likely tofocus on delivery lead time.
The research shows that eight out of 10 consumers in AMEA expectthe e-commerce companies they buy from to pursue sustainablebusiness models. Seven out of 10 prefer to buy from companies withan effective environmental, social and governance (ESG) strategy inplace – but only 29% of SMEs actually have one. SMEs acknowledgethat consumers expect them to run sustainable businesses, but many(68%) either fear the associated costs or are unconvinced that anyinvestment in this area will produce a return.
Taking a more sustainable approach to delivery
“Sustainability is no longer an optional extra for SMEs interestedin expanding their e-commerce businesses. Consumers increasinglysee it as an essential and non-negotiable part of theirdecision-making process,” said Kawal Preet, president of AsiaPacific, Middle East & Africa (AMEA) at FedEx Express. “SMEs canmake an immediate difference by thinking about the logisticsconnecting their supply chain all the way to the end-consumer. AtFedEx we’re already taking tangible steps to mitigate the impact ofdelivery on the planet.”
FedEx is following a multi-track path to reduce carbon emissions inthe delivery cycle with a goal of achieving carbonneutral global operations by 2040. This includes investing inelectric vehicles for last-mile deliveries, and digitalsolutions like FedEx ShipManager® Lite that allows consumers to fill out theirshipping information using their mobile device to generatea label supporting our ultimate goal of zero paper air waybills.Additionally, FedEx is implementing solutions like reusablepackaging to help reduce waste in the shipping process.
For any SME, creating an effective ESG strategy is the sum ofmultiple, individual wins. More than 80% of the total greenhousegas emissions made by a typical consumer-facing enterprise emanatefrom outside their internal operations, largely coming frommanufacturing and elsewhere in their supply chains[1].As connectors in the chain, logistics providers have a role to playin helping to lower the possible impact on the planet to help alignto consumer expectations.