FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express transportation company, has announced the results of its second FedEx SME Export Report Conducted by Harris Interactive, it surveyed 4,500 European small and medium sized enterprises (SMEs) and included Belgian SMEs for the first time this year. The main findings from this report, focused on SMEs who currently export, show that mobile and social media commerce generate almost as much revenue as traditional e-commerce. Belgium SMEs are the most optimistic among their European counterparts regarding 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 export activity. According to the report, more than half (52%) of the total revenue of Belgian exporting SMEs is generated from international trade. With 33% of European exporting SMEs trading with Belgium, our country is the 3rd most popular market for intra-European exports, just after Germany and France.
When it comes to transportation, Belgium’s well-developed road connections make ground transportation the most popular export channel (89%), followed by train (40%). For Eric Uljee, vice president Ground Operations Benelux, road transportation is key to the Belgian market, making the FedEx acquisition of Express especially relevant for Belgian SMEs: “Last year’s acquisition of Express is adding a remarkable European road network to the world class air network FedEx Express already operates in Europe and around the world, creating even more possibilities for Belgian SMEs to export both in Europe and beyond.”
For Belgian SMEs, the future of commerce is social
E-commerce has changed how consumers shop, but it also transformed businesses around the world. Belgian SMEs are not an exception to the rule. According to the report, 85% of Belgian exporting SMEs generate revenue from e-commerce via desktop devices, representing 16% of their total revenue. Belgium appeared to have the highest percentage of B2B e-commerce transactions amongst all exporting SMEs from countries surveyed around the world, representing 67% of their revenue (compared to 34% only for the European average).
However, the most surprising finding is that the revenue generated via social media and mobile devices is getting very close to the share of revenue generated by e-commerce (16%), accounting for respectively 13% and 14% of the total revenue of SMEs. In total, 79% of exporting small and medium sized businesses in Belgium (vs. only 65% on average in Europe) are currently selling their products via mobile applications and the same percentage offer customers the option of making purchases via social media platforms.
The Belgian SMEs interviewed are aware of the crucial importance of this shift and of the choice of a reliable and solid logistics provider. According to the report, 55% of Belgian SMEs interviewed who report an increase in e-commerce business require faster delivery services with 39% indicating they are willing to pay a premium for this.
Future growth of exports: Belgian SMEs are the most optimistic
Amongst all countries surveyed, Belgium appeared to be the most optimistic regarding the future of export growth. 53% of exporting Belgian SMEs believe that the export revenue within Europe will increase, compared to only 34% of European SMEs surveyed. Belgian SMEs seem to share the same enthusiasm regarding the growing importance of digitalization.
“It is positive to see the European SME community remains optimistic about their exporting prospects and growth”, states David Binks, president, FedEx Europe, and CEO of . “The FedEx SME Export Report has emphasised SMEs recognise the importance of exporting to grow their revenues with e-commerce playing a crucial part of this. The merging of digital networks and physical networks has meant the world has become even more connected presenting more possibilities to export – contributing to SMEs growth, while boosting global competitiveness.”
