LOGISTICS
EXPORT 71 % 70 % BEYOND ASIA
LOGISTICS
Research shows 254 % increase in SME exports beyond Asia-Pacific
DRIVEN by the thriving digital economy , small and medium-sized enterprises ( SMEs ) in Asia-Pacific are accelerating their global reach , according to recent research from courier delivery services company FedEx Express .
Overall , the number of SMEs exporting to other regions is up 254 % over four years , with 71 % now exporting beyond Asia-Pacific . The research also shows that the patterns of imports and exports into and out of the region have changed with a significant increase in imports and exports within the Asia- Pacific region over the past three years .
Entitled Global is the new local : The changing international trade patterns of small businesses in Asia-Pacific , the research suggests a shift in international trade patterns . Trade within the region no longer dominates as it has in the past as the level of exports to other regions
A NEW WORLD OF SME EXPORTS
This year , for the first time , Asian SME exports beyond the region have exceeded those within the region .
71 % of SME exporters export globally beyond Asia , while 70 % export within the region .
SMEs ’ average annual export revenue now accounts for 71 % of total revenue , up from 60 % in 2016 .
Average export values now exceed US $ 1.2 million for all exporting SMEs .
62 %
26 %
2015 2018
Global imports are also growing . Among SMEs who import , 62 % import from regions outside Asia , up from just 26 % as little as three years ago .
( 71 %) is reaching a similar level to that of exports within the Asia-Pacific region ( 70 %). In addition , among the Asia-Pacific SMEs who source materials from other markets , 62 % are sourcing from other regions , which is a significant increase from 26 % in 2015 .
The company added that contents of imports and exports by SMEs in the region are evolving as well , with professional services and designs now making up a considerable proportion , which suggests an increasingly prevalent borderless online marketplace today .
“ The global footprint of APAC SMEs is bigger than ever ,” said Karen Reddington , president , FedEx Express Asia-Pacific . “ This growth momentum is expected to stay as majority of APAC SMEs believe that they will continue to or increase their exports and imports beyond the region in the next 12 months . We are pleased to see that more SMEs are growing their business beyond
EXPORT 71 % 70 % BEYOND ASIA
US $ 0.903m average x71 % = US $ 0.641m
More SMEs are growing their business beyond Asia-Pacific with an increasing need for more sophisticated logistics solutions , according to FedEx .
EXPORT WITHIN ASIA
US $ 0.808m average x70 % = US $ 0.566m
Asia-Pacific with an increasing need for more sophisticated logistics solutions .”
According to the study , the thriving digital economy is one of the key factors driving business growth among SMEs in Asia-Pacific . In fact , businesses in this region are more enthusiastic and optimistic about how the digital economy will benefit their business ( 61 %), than about the overall economic outlook ( 41 %). In addition , both mobile and social commerce are now more widely used in driving growth compared to a few years ago .
Another key business driver is new technology as SMEs in Asia-Pacific are harnessing new Industry 4.0 technologies to expand their business with a number of them widely adopted by businesses . There is optimism among regional SMEs about increased adoption of these technologies — including mobile payments , big data or advanced analytics , and software automation — in the next 12 months . Some 66 % of Asia-Pacific SMEs indicated that their main motivation to adopt these new technologies is to drive efficiencies in supply chain and distribution channels , thereby driving business growth .
As more SMEs are looking to import and export further afield , common challenges in the form of customs clearance , foreign currency exchange and logistics issues continue to be the obstacles to SMEs building their business internationally . Across the region , the consensus among SMEs is that logistics providers can do more to support SMEs as many indicated that exporting and importing is becoming increasingly difficult . Specifically , SMEs have reported that they are looking for different shipping options including slower , deferred shipments travelling over ocean ( 70 %), in addition to express shipments travelling by air ( 62 %).
“ As a company committed to helping SMEs go global , there are significant opportunities for us to help meet the demands and needs , as well as address the challenges SMEs face in this region ,” added Reddington . ra
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