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Business / Industries

FedEx chief unveils new strategy

By SHI JING (China Daily) Updated: 2015-10-19 08:53

"The Internet has exerted a huge impact on the global market," Chan said. "A large number of smaller companies can now move faster than the bigger ones as soon as they have a new idea or product. If our customers develop faster, it will definitely benefit us."

FedEx is well positioned in this marketplace with a flexible international network. While micro-multinationals are good at dreaming up the right products for consumers, they lack the expertise to navigate through different customs regulations and tax rates. This is where FedEx's experience comes in.

"Despite their huge size, dinosaurs eventually became extinct because they could not fit into a changing environment," Chan said. "But smaller species survived because they were more flexible and could cope with those changes.

"FedEx has a vision. We can always tell who will be the stars of tomorrow," he said.

Even China's economic slowdown does not faze him. Instead, he points to history, which runs in cycles and trends. "There are companies doing an excellent job at a relatively bad time, and vice versa," he said.

As for FedEx, the company reported operating income of $545 million for its global business in the first quarter, up 45 percent from the same period last year.

While there are no detailed figures for the company's China operation, it now employs 9,000 workers here and has a fleet of 2,800 vehicles.

On the whole, Chan is upbeat about the future and is convinced there are still major opportunities out there, despite China's slowing economy.

With customers counting every penny, FedEx has come up with different solutions tailored for its clients. For example, they will go over orders carefully and occasionally suggest a slower, but much cheaper, delivery date for non-perishable packages.

"I am confident about China's economy," Chan said. "First of all, it is now the second-largest economy in the world, and holds a relatively small amount of foreign debt. Secondly, the government has a long-term plan for the economic development."

This includes the "Made in China 2025" national policy and the "Belt and Road Initiative", which will help upgrade the country's economy.

"That is what we have in China, a strong but flexible business operation ready to support China's market, whatever direction it takes," Chan said.

Eddy Chan

2005-Present: Head of FedEx Corp's China operation and senior vice-president of FedEx Express

2003-2005: Head of China operation and regional vice-president, FedEx Corp

1999-2003: Regional vice-president for China and Asia Pacific operations in FedEx

1996-1999: Managing director for FedEx's operation in Taiwan

1985: Joined FedEx in Hong Kong as an account executive

Source: FedEx Corp

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