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New FedEx Study Reveals Logistics Services are Important Among 71% of the APAC Region’s Micro-Multinationals

February 4, 2016

TOKYO, February 04, 2016 – FedEx Express (FedEx), a subsidiary of FedEx Corp. (NYSE: FDX), announced that according to research results, 63% of micro-multinationals are currently achieving annual revenue growth, compared to 50% of small- to medium-size enterprises (SMEs) as a whole.

Commissioned by FedEx, Harris Interactive conducted the study in September 2015.  It examined trends and characteristics among micro-multinationals—a subset of SMEs that either have a presence in multiple markets from the start or have leveraged online business platforms and the increased openness of the global economy to expand into overseas markets[1].

The study builds on an earlier 2015 study that revealed the greater potential for business growth among SMEs that export goods to overseas markets compared to those that do not. Taken together, the two studies paint a compelling picture of the business benefits offered by export markets, whether businesses simply export goods to those markets or, like the micro-multinationals in the latest study, choose to establish a more direct presence.

Another key finding was that APAC micro-multinationals show a marked preference for markets within the region when it comes to choosing expansion to external markets.  Other APAC markets make up six of the top eight overseas markets targeted by APAC micro-multinationals, with China topping the list of markets where APAC micro-multinationals have a presence.

In addition, the study found that APAC micro-multinationals value logistics for their businesses.  Within six target APAC markets, transport services ranked first among the “important external services” in five markets (Japan, Korea, China, Hong Kong, and Singapore). Also, 71% of APAC micro-multinationals rated “logistics services important”, and of these, 21% called them “vital”.  The top three capabilities expected of transport service providers are first and foremost, “Rapid and reliable delivery service,” followed by second, “Time-saving tools” and third, “Different shipping options and “Experience in customs and trade regulations”.

 

The study exposed an even bigger gap in growth rates between micro-multinationals that export goods to overseas markets versus those that do not: a whopping 58% of exporters are achieving annual revenue growth, compared to just 36% of non-exporters.  Unsurprisingly in light of this finding, 59% of APAC micro-multinationals believe that having a presence in multiple markets makes it easier to sell goods across borders.

“We’ve long believed that businesses need not be big to be global, and this study confirms that small businesses with an established presence in other markets are seeing a substantial pay off with this strategy,” said Masamichi Ujiie, regional vice president, North Pacific, FedEx Express.  “At FedEx, we’re delighted to find that these micro-multinationals view logistics service providers as a valuable resource that they rely on for their business needs.  We continue to strive to meet their expectations by offering a variety of innovative shipping solutions to support micro-multinationals as they expand their businesses globally.”

 

About the research study: Micro-multinationals and Cross-Border Growth

Harris Interactive used a mix of telephone and online interview methodologies to conduct interviews with 595 senior decision-makers in micro-multinational companies, defined as companies with 1-249 employees that are based in more than one country.  The research was conducted in 12 global markets across four regions: Asia Pacific (China, Hong Kong, Japan, Singapore, South Korea and Taiwan); Europe (France, Germany and the United Kingdom); Latin America & Caribbean (Brazil and Colombia); and the Middle East, Indian Subcontinent & Africa (India).

[1] Mettler and Williams, The Rise of the Micro-Multinational, The Lisbon Council 2011

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