Top tips on global expansion for Hong Kong eCommerce and SMEs
In the past few years, the retail and eCommerce landscape has seen a sea of changes, with fintech and smart logistic solutions playing increasingly important roles in ensuring a company’s long-term success.
Amidst this rapid development, Airwallex and FedEx have come together to support local Hong Kong SMEs in navigating the sweeping changes. The two companies are offering local businesses up to 80% off FedEx international shipping, plus an extra 10% cash rebate when they spend with their Airwallex Borderless Card.
In this fireside chat, Arnold Chan, General Manager, Hong Kong and Southeast Asia at Airwallex, is joined by Anthony Leung, Managing Director, Hong Kong and Macau of FedEx Express, to discuss the latest development in retail and eCommerce, as well as strategies for taking your business overseas.
Understanding the key eCommerce trends that are leading the way
How has the local business landscape evolved in the last few years?
Arnold: Since the pandemic, I’ve noticed two major changes in Hong Kong SMEs. First, the acceleration of digital transformation where more businesses are going from offline to online; second, a shift in how businesses manage their payments and the rapid uptake of fintech services.
Anthony: One of FedEx's main growth priorities lies in the eCommerce sector. With an extensive global network, FedEx provides customers with the best-in-class cross-border logistics solutions. As eCommerce businesses have grown rapidly since the pandemic, the logistics industry saw the emergence of three significant trends. First, the shift of the supply chain model from "just-in-time" to "just-in-case"; second, the increased customer demand for a one-stop service experience; third, constantly changing customer expectations from B2B and B2C clients.
Top tips for Hong Kong businesses expanding overseas
Which markets have Hong Kong eCommerce businesses been targeting when they expand overseas?
Arnold: When going global, many Hong Kong businesses look towards the Southeast Asian market, especially Singapore. According to research, 78% of online shoppers in Singapore have bought from international eCommerce sites in the past. Aside from Singapore, the market penetration rate of eCommerce businesses in Indonesia, Thailand, and Malaysia are also expected to be on the rise.
Anthony: Many Hong Kong businesses have been using FedEx’s services to import specialty products from Japan and even reselling them to overseas markets like Southeast Asia and the Middle East.
What are the most important tools that an SME should obtain when considering global expansion? Do you have any tips?
Arnold: Having the right payment gateway is essential for all online businesses. More Hong Kong businesses are starting to sell to Southeast Asia, where many customers use familiar local payment methods. It is important for them to pick a fintech tool that allows them to accept these local payment methods. This fintech tool should also help businesses manage their foreign currencies and pay their overseas suppliers more efficiently.
Anthony: eCommerce businesses need to deliver their products to their customers in a timely manner, therefore they need to find a quick and reliable logistics tool to help them achieve that. Many customers also like to track where their packages are, so your logistics solutions should come with a tracking tool.
Helping local SMEs with the Airwallex and FedEx collaboration
Arnold, can you share an example of how a local company has benefited from Airwallex and FedEx’s collaboration?
Arnold: One of our clients is a local fashion brand. Using Airwallex, they are able to seamlessly connect with their Shopify store and accept customer payments; also to enjoy quick and affordable global payment to their overseas suppliers. By using the Airwallex Borderless Card, our client can easily pay FedEx to deliver their T-shirts to their customers.
Join the Airwallex x FedEx collaboration
To succeed as an SME in today’s competitive eCommerce market, you need to have access to innovative fintech solutions and logistics providers that facilitate quick, seamless global transactions.
From now until 31 December 2022, open a new Airwallex business account to join a special collaboration between Airwallex and FedEx –– which aims to provide further support to local businesses as they continue to recover from the pandemic. Enjoy up to 80% off FedEx international shipping by opening a FedEx corporate account, plus earn an extra 10% cash rebate when paying your FedEx bill with Airwallex Borderless Card*.