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FedEx research reveals the rising importance ofsustainability in Hong Kong’s e-commerce industry
The growth of e-commerce during the COVID pandemic acceleratedas consumer concerns over the environment continue to grow. For asignificant number of consumers, the future of the planet is verymuch on top of their minds. However, commercial growth is notalways friendly to the environment, and last-mile delivery demandsare in conflict with sustainability. Among the 11 AMEA markets, ina scale that focuses on lead time and sustainability, Hong Kongconsumers are ranked second in lead time, thus placed second-lastin sustainability, just ahead of Taiwan. Conversely, consumers inVietnam, Thailand and South Korea place greater priority onsustainability over delivery speed.
In Hong Kong, long delivery lead-times stood out as theconsumers’ biggest pain point (46%) with 67% of online orderstypically taking over 3 days to arrive. While the majority (71%) ofHong Kong consumers believe delivery remains the top priority intheir shopping experience as they have been in sustainableshopping, 62% of consumers are more likely to buy goods fromcompanies with an ESG policy. However, two-thirds (66%) of SMEsbelieve that customers are more interested in the cost of deliverythan participating in sustainable e-commerce, resulting insustainability being put on the back burner altogether. Only 22% ofSMEs have had an ESG policy. There is an opportunity for logisticsproviders to take the lead in working with SMEs to deliver in amore sustainable and efficient way with the lowest cost.
“Sustainability is no longer an optional extra for SMEsinterested in expanding their e-commerce businesses. Consumersincreasingly see it as an essential and non-negotiable part oftheir decision-making process,” said Kawal Preet, president of AsiaPacific, Middle East & Africa (AMEA) at FedEx Express. “SMEs canmake an immediate difference by thinking about the logisticsconnecting their supply chain all the way to the end-consumer. AtFedEx, we’re already taking tangible steps to mitigate the impactof delivery on the planet.”