FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and theworld’s largest express transportation company, has announced theresults of its second FedEx SME Export Report Conducted by HarrisInteractive, it surveyed 4,500 European small and medium sizedenterprises (SMEs) and included Belgian SMEs for the first timethis year. The main findings from this report, focused on SMEs whocurrently export, show that mobile and social media commercegenerate almost as much revenue as traditional e-commerce. BelgiumSMEs are the most optimistic among their European counterpartsregarding future revenue growth from e-commerce and exports.
Belgium: 3rd most popular export market in Europe
Being at the heart of Europe, with its central location,Belgium has always been an important player in global exportactivity. According to the report, more than half (52%) of thetotal revenue of Belgian exporting SMEs is generated frominternational trade. With 33% of European exporting SMEs tradingwith Belgium, our country is the 3rd most popular market forintra-European exports, just after Germany and France.
When it comes to transportation, Belgium’s well-developed roadconnections make ground transportation the most popular exportchannel (89%), followed by train (40%). For Eric Uljee, vicepresident Ground Operations Benelux, road transportation is key tothe Belgian market, making the FedEx acquisition of Expressespecially relevant for Belgian SMEs: “Last year’s acquisition ofExpress is adding a remarkable European road network to the worldclass air network FedEx Express already operates in Europe andaround the world, creating even more possibilities for Belgian SMEsto export both in Europe and beyond.”
For Belgian SMEs, the future of commerce is social
E-commerce has changed how consumers shop, but it alsotransformed businesses around the world. Belgian SMEs are not anexception to the rule. According to the report, 85% of Belgianexporting SMEs generate revenue from e-commerce via desktopdevices, representing 16% of their total revenue. Belgium appearedto have the highest percentage of B2B e-commerce transactionsamongst all exporting SMEs from countries surveyed around theworld, representing 67% of their revenue (compared to 34% only forthe European average).
However, the most surprising finding is that the revenuegenerated via social media and mobile devices is getting very closeto the share of revenue generated by e-commerce (16%), accountingfor respectively 13% and 14% of the total revenue of SMEs. Intotal, 79% of exporting small and medium sized businesses inBelgium (vs. only 65% on average in Europe) are currently sellingtheir products via mobile applications and the same percentageoffer customers the option of making purchases via social mediaplatforms.
The Belgian SMEs interviewed are aware of the crucialimportance of this shift and of the choice of a reliable and solidlogistics provider. According to the report, 55% of Belgian SMEsinterviewed who report an increase in e-commerce business requirefaster delivery services with 39% indicating they are willing topay a premium for this.
Future growth of exports: Belgian SMEs are the mostoptimistic
Amongst all countries surveyed, Belgium appeared to be themost optimistic regarding the future of export growth. 53% ofexporting Belgian SMEs believe that the export revenue withinEurope will increase, compared to only 34% of European SMEssurveyed. Belgian SMEs seem to share the same enthusiasm regardingthe growing importance of digitalization.
“It is positive to see the European SME community remainsoptimistic about their exporting prospects and growth”, statesDavid Binks, president, FedEx Europe, and CEO of . “The FedEx SMEExport Report has emphasised SMEs recognise the importance ofexporting to grow their revenues with e-commerce playing a crucialpart of this. The merging of digital networks and physical networkshas meant the world has become even more connected presenting morepossibilities to export – contributing to SMEs growth, whileboosting global competitiveness.”