Philippine SMEs Optimistic for Holiday Sales Growth

Philippine SMEs are expressing strong optimism for increased sales this holiday season, with nearly 70% of surveyed businesses expecting year-on-year growth, according to a recent FedEx survey. The survey, conducted in October 2024, included responses from 200 small and medium-sized enterprises (SMEs) and 300 consumers across 12 Asia-Pacific (APAC) markets, including the Philippines.

A significant portion of this growth is anticipated to come from within Asia, particularly Southeast Asia, as the region’s e-commerce market has surged due to widespread digital adoption and cross-border trade. FedEx noted that over 87% of SMEs are leveraging third-party e-commerce platforms to expand their reach, capitalizing on major shopping events such as Double Eleven, Black Friday, and Cyber Monday.

“Over four-fifths (87%) of SMEs are leveraging third-party e-commerce platforms to broaden customer reach and enhance sales opportunities,” stated the FedEx report.

Delivery remains a key factor influencing consumer purchases. The survey showed that 65% of respondents are motivated by free shipping options, but 54% expressed concerns about late deliveries. Furthermore, 60% expect their orders to arrive within two to three business days, indicating that fast and reliable delivery is crucial for consumer satisfaction. To address this, FedEx has introduced solutions such as FedEx® International Connect Plus (FICP), which facilitates deliveries within one to three days across APAC, the U.S., and Europe.

“In the Asia Pacific region, the gifting season continues in the months leading up to Christmas through to Lunar New Year,” said Kawal Preet, president, Asia Pacific, FedEx. “As cross-border e-commerce continues to surge, e-tailers—particularly small and medium-sized businesses—are gearing up to maximize sales this festive season.”

Sustainability is also becoming a vital differentiator for businesses. While only 47% of SMEs recognize the importance of balancing sustainability with delivery speed, a notable 88% of consumers demand that businesses adopt more eco-friendly practices. Additionally, 77% of shoppers are willing to pay a premium for sustainable packaging when purchasing gifts, showing a strong consumer trend toward environmentally conscious shopping.

To support SMEs in adopting sustainable practices, FedEx offers tools such as FedEx® Sustainability Insights, which helps businesses track the carbon footprint of their shipments. This aligns with consumer expectations for transparency and environmental responsibility.

The survey reflects how SMEs can strategically harness e-commerce platforms, focus on fast delivery, and integrate sustainability to boost holiday sales and meet evolving consumer demands.