FedEx unveils digital megatrends that will shape the future of e-commerce

As China continues to dominate the global e-commerce market, a new whitepaper from FedEx highlights the seven most significant digitally relevant megatrends occurring in the country, and how these are set to have a profound impact on e-commerce trend development across the Asia Pacific region and the globe.

COVID-19 has been a catalyst for e-commerce growth worldwide. Businesses of all sizes want to capitalise on it, but leaders in this space are reimagining new frontiers for e-commerce.

This whitepaper, called “E-commerce Megatrends to Watch”, examines the drivers behind the current shift in consumer behaviours and attitudes and reveals the trends that businesses should consider while mapping out their long-term e-commerce strategies.

Kawal Preet, president of the Asia Pacific, Middle East and Africa (AMEA) region at FedEx Express, said that their research showed the AMEA region will be at the forefront of e-commerce growth for many years to come.

“With rising disposable incomes, growing internet penetration, and emerging cross-border e-commerce markets, there is a huge amount of growth yet to be realised here,” Preet said.

“Logistics is the backbone of the e-commerce ecosystem. The simplicity of click to buy must be matched by the speed and convenience of delivery,” he emphasised.

“We continue to build robust networks that offer smart supply chain solutions as well as highly personalised delivery services to help businesses unlock new opportunities as the frontiers of e-commerce advance.”

He continued that just like consumers aspire to live their best lives through connected, immersive, sharable and engaging digital services, businesses are seeking to stay at least a step ahead of meeting those expectations.

“Logistics now sits at the intersection of this physical and digital world. This means we have a vital role to play in shaping the future of e-commerce, creating more cross-border options for consumers and SME businesses alike,” he concluded.

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E-commerce is expected to grow at an average of 47 per cent in the next five years globally, with the Asian market leading at 51 per cent, followed by Europe (42 per cent) and North America (35 per cent).

In the Middle East and Africa, the combined e-commerce market value is expected to reach to US$73 billion by 2025.

China has far eclipsed the rest of Asia in e-commerce growth, with sales reaching US$1.3 trillion in 2020. By 2025, its sales are projected to increase to almost US$2 trillion.

The promising outlook also creates vast opportunities for logistics companies to grow. The global E-Commerce Logistics market is projected to register the highest gains of approximately 6.6% year-on-year during 2021-2028, reaching US$118,847 million by 2028.

“We’re living in exciting times where the latest technologies are shaping human behaviour, ushering in the next wave of the e-commerce revolution,” said Salil Chari, senior vice president of Marketing & Customer Experience, Asia Pacific, Middle East & Africa (AMEA) at FedEx Express.

“Through enhanced connectivity, on-demand services, and shared economy, a new era of e-commerce is here – opening up new possibilities for even the smallest businesses to compete on the global stage,” Chari said.

“However, in order to win, businesses must continue to rethink and reinvent how and where they are engaging with consumers. This white paper is important as it signals where these opportunities lie,” he said.

Source: FedEx