SMEs in America in trouble when it comes to exporting: only 1% are ready to compete globally
RGX developed a study sponsored by FedEx Express in which it interviewed 1,200 SMEs from 12 countries of the Americas. The e-commerce gap is one of the determining factors which pushes this result.
Buenos Aires, August 31, 2020 – RGX, a leading company in the Business segment cross border, announced the results of its study “Export Competitiveness Index of the SMEs of America in times of COVID-19 ”. The analysis, sponsored by FedEx Express, a company a subsidiary of FedEx Corp. (NYSE: FDX) and the world’s largest express carrier, measures the competitive performance of small and medium-sized exporting companies (SMEs) in America.
The study includes interviews with 1,200 exporting SMEs with up to 150 employees in the United States. United States, Latin America and the Caribbean, and classifies companies according to a variety of key indicators such as: the diversification and complexity of the markets to which companies they serve, the ability to offer logistics and financing solutions, and the level of support to international buyers, as well as the availability of a website with the capacity to carry out transactions or receive orders online. These factors are important for companies compete successfully in an international ecosystem, especially in times of crisis.
After analyzing the ten key indicators, the study concludes that only 15 companies – or 1%, of the 1,200 interviewed- achieved a score that shows that they are prepared to compete at global scale. The full results of the RGX study can be viewed through the following link: www.rgxonline.com/ECI2020/
“While the world is asking to import mostly online, with shipping logistics solutions and product delivery at destination and with zero stock policies, this survey shows that 77% of the exporting SMEs interviewed do not have a website with capabilities transactions for e-commerce ”, commented Diego Frediani, CEO of RGX and author of the report. “Seven out of ten companies export their products without including shipping solutions or delivery to its international buyers, which warrants the urgent implementation of actions and active policies to reduce these gaps “, concluded the manager.
The importance of diversifying the markets these companies serve, as well as the ability to be able to offer robust solutions online has become even more evident during the current health crisis derived from the COVID-19 pandemic. Regarding this, the study supports the fact that there is a gap in cross-border e-commerce in the Americas:
➢ 46% of the SMEs interviewed have a website with information on their products and services, but without the possibility of receiving online orders.
➢ 8% of the companies interviewed do not have a website.
➢ 77% of the SMEs interviewed cannot generate electronic commerce transactions through their own website.
➢ 23% use B2B platforms to market their products, but 48% do not use Internet to carry out marketing initiatives.
Another factor of great influence on the competitiveness of an exporting company is the ability to offer logistics solutions (i.e. transportation to the destination market and delivery to the
final consumer). The study reveals that 14 of the 15 SMEs (which obtained more than 80 points out of 100 in the study) have logistical solutions.
Financing options were also ranked as important to attracting and retaining customers. In this category, SMEs from Brazil, Guatemala and the Dominican Republic demonstrated have a greater financing capacity for its clients. Likewise, it was found that 44 of each 100 companies interviewed do not grant financing to their international clients, which may be limiting their growth opportunities.