FedEx report: SMEs targeting emerging markets for fast revenue opportunities
A FedEx report has shown that small and medium-sized enterprises (SMEs) are looking to emerging markets for rapid revenue growth, as economic recovery in Europe remains “slow”. FedEx Express today (Tuesday) revealed the findings of the new study it sponsored with the Economist Intelligence Unit (EIU): New horizons: Europe’s small and medium-sized companies look to emerging markets for growth, surveying the views of over 600 European SME executives.
SME executives are noting that due to the “over-subscribed” and congested nature of the European marketplace, “emerging markets have been fertile ground for SMEs seeking above-average returns”, the report says.
Almost 90% of the European SMEs surveyed are already doing business with emerging markets, and more than half expect to increase their involvement in 2011 and 2012.
Furthermore, over half (55%) of the SMEs believe that the traditional BRIC countries of Brazil, Russia, India and China will be crucial to their business in the coming year, with nearly half (48%) of the SMEs singling out Brazil for improved perceptions of the country, bolstered by a smooth transition of political power and better infrastructure in the run-up to major sporting events.
David Binks, senior vice president, Operations, Europe, FedEx Express, said: “Globalisation, e-commerce and free trade has opened up new markets to SMEs across the EMEA region. As a pioneer of reliable and flexible global transportation solutions, we’re able to give our customers a meaningful edge as they enter uncharted territory and sell to new consumers. We understand that different businesses have different needs, so we have a suite of services that can meet the speed and cost needs of SMEs on a global scale.”
FedEx said that its investments have “cultivated greater economic sustainability, growth, enablement and access to a global marketplace for people and businesses in these countries”.
Jason Sumner, senior editor at the EIU and editor of the report, added: “Emerging markets are seen as crucial to the growth strategy of many European SMEs. And SME executives believe they have some advantages when compared with larger rivals – they can respond more quickly to changing conditions, have closer relationships with customers and can better target niche markets.”
