5 april smb world asia online exports boost growth of singapore's sm_bs during tough economic times
Client : PayPal Country : SingaporePublication : SMB World Asia Section : InternetDate : 5 April 2013Topic : Online exports boost growth of Singapores SMBs during tough economic timesViewership : 1,092 (daily)URl: : http://www.smbworldasia.com/en/content/online-exports-boost-growth- singapores-smbs-during-tough-economic-timesOnline exports boost growth of Singapores SMBs during tough economic timesBy SMBWorld Asia Editors | Apr 5, 2013Cross-border trade through e-commerce continues to see high growth rates in Singapore andprovides SMEs with new revenue streams in a wide range of online export categories, according toPayPal, which has released data underlining Singapore’s success and potential in trading online withthe world and identifies online exports as an effective channel for local small and mediumenterprises (SMEs) to reach millions of consumers overseas and sell to the global marketplace.PayPal data showed that PayPal merchants in Singapore grew their businesses significantly faster byusing cross-border e-commerce to export to Asia Pacific markets in 2012. For example, local PayPalmerchants increased their online export sales on average by 68% to China and by 55% to Hong Kong,showing the growing importance of trade to the Greater China region. In addition, demand forSingapore-made goods remained strong in the larger Asia Pacific markets as online export sales viaPayPal’s platform grew on average by 22% to Japan and 20% to Australia.Non-oil domestic exports (NODX) in Singapore rose marginally by 0.5 per cent in 2012. With over154,000 SMEs accounting for 90% of all businesses in Singapore, they are expected to contributesignificantly to the country’s export trade flow. With total trade volumes from traditional exportchannels in 2013 expected to remain flat, SMEs will need to find new sources of business growthespecially when faced with rising business costs.While travel, computers and accessories and electronics are the top online export categories forSingapore, entertainment and media, vehicles and accessories and toys and hobbies are also popularcategories and present new online export opportunities for local SMEs. As shopping on mobiledevices becomes more mainstream for consumers worldwide, fashion and jewellery are the mostpopular categories for overseas mobile shoppers buying from Singapore PayPal merchants.
The high growth of online exports in Singapore can be attributed to savvy local small businessescreating products and services which are in high demand for an international audience atcompetitive prices, and offering the convenience of selling online to global buyers with securepayment transactions. As we see the rise in the purchasing power of the Asian consumer, there is aclear call to action for Singaporean SMEs to take advantage of these trends, and position Singaporeas an e-commerce trading hub in Asia.More than simply enabling Singapore businesses to sell to an international audience, PayPal alsogives Singapore consumers the opportunity to shop online with PayPal merchants around the world.Even though Singapore’s total imports saw a 3.2% growth in 2012, PayPal data reflects anacceleration in overseas online shopping by Singaporeans in the past year. With a strong Singaporedollar, local PayPal users continue to love shopping in the USA (14% growth) and China (15%growth). However, the fastest-growing overseas shopping destinations include Japan (35% growth),UK (32% growth) and Australia (32% growth), showing that savvy Singaporeans are willing to shoparound the world for the best deals online.“Our data and insights clearly show that Singapore SMEs have a fantastic opportunity to reach out tomillions of consumers globally and aggressively expand into overseas markets through cross-bordere-commerce,” said Faraz Ahmed, General Manager, PayPal Southeast Asia and India. “Furthermore,with recent government initiatives geared at supporting SMEs looking to expand beyond Singapore,we believe there is no better time for them to capitalize on the high-growth online export channel,especially during these tough economic times.”Merchants like Manek-Manek Beads are leading this online exporting trend, making significantheadway around the world through cross border trade.“What started as a hobby during retirement to share my passion for beading with everyone has nowgrown to an online business that caters to customers from all over the globe. Almost 90% of ourtransactions are made outside of Singapore,” said Helena Tang-Lim, The Manek Lady at Manek-Manek Beads. She continues, “Today’s international customers demand convenience and speedwhen purchasing online from a merchant they can trust. With PayPal as our globally-acceptedpayment platform, we can confidently provide customers with a reliable and secure online checkoutexperience, no matter where they are in the world.”