Inside FedEx's Findings as APAC SMEs Prepare for Europe

Asia-Pacific (APAC) small and medium-sized businesses (SMEs) are sharpening their focus on Europe. 

According to a new survey commissioned by FedEx, 85% of APAC-based SMEs plan to either begin or grow trade with Europe over the next two years. 

FedEx, one of the world’s largest express transport companies, polled 850 SMEs across 13 APAC markets and more than 1,200 in nine European markets to better understand this two-way trade lane.

The study, conducted by Milieu Insight and Mortar Research in September 2025, shows that 76% of APAC businesses already trading with Europe have increased their export volumes in the last year. 

The UK (42%), Germany (40%) and France (38%) top the list of European destinations driving this growth. This upswing in trade reflects demand from European consumers, improved pricing from APAC exporters and strategic expansion plans. 

More than two-thirds (68%) of respondents link trade growth to these reasons. APAC companies are also using strategies such as competitive promotions (42%), localised product offerings (38%) and enhanced customer service (34%) to attract European customers.

Seasonal e-commerce peaks like Black Friday also play a large role. Among SMEs, 91% in APAC and 86% in Europe say these events are essential to hitting their holiday targets. 

On average, internationally-active APAC businesses expect more than 36% of their seasonal sales to come from European customers. Meanwhile, European SMEs anticipate similar sales volumes from international markets.

Digital tools boost confidence

It’s not just APAC that’s expanding outward; European SMEs are also warming to APAC markets. 

The survey finds that 87% of European SMEs are either shifting more trade to Asia or keeping volumes steady. China (55%), Japan (36%) and South Korea (24%) rank as the leading Asian markets for near-term growth.

Turkey, however, emerges as a particularly active European market trading with APAC, with more than 10% of surveyed customers based there.

European companies are prioritising marketing spend (33%), better fulfilment and delivery (33%) and promotional strategies (34%) to capture cross-border demand. Like their APAC counterparts, European businesses place importance on ecommerce calendar events to maximise sales.

Holiday season expectations are high across the board. In total, 71% of APAC and 81% of European SMEs expect stronger sales than last year. Meanwhile, 84% of businesses across both regions feel confident about hitting their delivery deadlines during the seasonal peak.

To meet growing expectations and facilitate faster trade, FedEx is scaling up its own operations. It now runs 26 weekly flights linking APAC with Europe, including five new flights added this month. 

Enhanced connectivity from Vietnam has shaved a full day off delivery times to Europe. Its network supports fast, reliable delivery to major European destinations in as little as 48 hours.

“Amid ongoing shifts in global trade, it’s encouraging to see APAC and European SMEs demonstrating strong confidence in expanding along the Asia–Europe trade corridor,” says Salil Chari, SVP for Marketing and Customer Experience at FedEx, Asia Pacific. 

“At FedEx, we’re helping our customers unlock their next phase of growth by bringing together the reach of our global network, the power of digital innovation, and our deep trade expertise, helping them trade smarter, more efficiently and with greater confidence.”

Trade barriers persist

Despite high confidence levels, SMEs face operational hurdles. 

For APAC businesses, logistics costs stand out as the biggest barrier, cited by 57% of respondents. European SMEs point to regulatory changes, customs complexity and market volatility as obstacles to growth. Altogether, 86% of APAC and 78% of European SMEs say these concerns are affecting their ability to conduct cross-border trade effectively.

To tackle these issues, SMEs are turning to new solutions. Around 30% of APAC and 41% of European respondents want better digital tools to track shipments, improve supply chain transparency and cut delivery times. 

Additionally, 27% of APAC and 41% of European SMEs say they need more customs knowledge to keep pace with shifting regulations, reduce delays and control costs.

FedEx offers a range of services designed to help. These include digital customs processing through Electronic Trade Documents and real-time shipment updates with the FedEx Import Tool. 

The FedEx Go-To Europe Hub offers on-demand access to trade guidelines, local insights and media resources to support APAC firms aiming to grow in European markets.

Its European logistics infrastructure is anchored by major hubs in Paris and Liege and spans more than 550 pick-up and delivery stations across 45 countries and territories. This network handles more than two million parcels a day.

SMEs on both sides of the corridor see a clear path forward. While logistics challenges remain, there is growing demand, digital support and trade know-how to keep Asia-Europe commerce moving with confidence.