Driving global and local change NISSAN Breaking down trade barriers DAVID CUNNINGHAM E-commerce and the new middle class KAREN REDDINGTON Whats powering the regions growth RAJESH SUBRAMANIAM S P E C I A L A S I A- PA C I F I C E D I T I O N Chun Xi Lu shopping district Chengdu China FROM FEDEX A REVIEW OF ECONOMIC OPPORTUNITY Ideas Trends and Policies Shaping the Asia-Pacific Region If APEC is to realize the full potential of global e-commerce it must continue its efforts to streamline the movement of goods across borders. David Cunningham Bangkok Thailand ACCESS 1 ACCESSSPECIAL ASIA-PACIFIC EDITION THERE IS NO MORE DYNAMIC ECONOMIC REGION in the world now than Asia-Pacific and it will remain so for years to come. APEC economies are embracing open trade and reforming their economies to free up the entrepreneurial spirit and energy of their people. And the power of the internet to connect people ideas goods and services is transforming global and regional supply chains at head-spinning speed. APEC is where many of these ideas and trends are formed debated and ultimately implemented. At FedEx we see APEC as a forum for consensus-building around the best policies for inclusive and sustainable economic growth. APECs non-binding nature is its strength. It allows countries to gradually socialize new ideas while constantly moving toward closer economic integration and greater openness. And given the recent slowdown of international trade APECs pledge to resist protectionism becomes even more relevant. E-commerce is one bright spot on the trade horizon. Global e-commerce will soon be a 2 trillion market and it is growing at double-digit rates around the world. The Asia-Pacific market is leading the way. We see e-commerce growth rates as high as 50 percent or more in some APEC economies. That spells opportunity for Asian-Pacific small and medium-sized enterprises SMEs which make up the bulk of economic activity in every APEC economy. While cross-border e-commerce is still a small portion of total online sales it is growing quickly. In fact FedEx recently commissioned a Forrester survey of 9000 independent consumers around the world and found 82 percent of them had purchased something online from another country. We see the huge potential of e-commerce to help a small business in the Philippines such as Human Nature sell consumer products around the world. The potential rise of these micro-multinationals may be the global economys single biggest change since the invention of the shipping container. Helping SMEs such as Human Nature expand their business internationally is what FedEx does best. Our unparalleled global delivery network enables FedEx customers to compete for business regardless of where their consumers are located. We develop innovative solutions to make e-commerce simpler for both sellers and consumers and provide capacity-building to help SMEs expand their international business. We conducted an export seminar specifically for Philippine SMEs last summer in Makati City and we are planning similar events across the region. THE FUTURE If APEC is to realize the full potential of global e-com- merce it must continue its efforts to streamline the movement of goods across borders. That is why we need to find creative solutions to simplify the collection of duties and taxes for low-value shipments. APECs trade facilitation goal to make trade easier faster and more reliable by 10 percent by 2015 was the right one. New initiatives such as the A2C2 program in which APEC funds are available to help economies implement concrete trade facilitation measures such as pre-arrival clearance can have an even larger impact. We also need to ratify the WTO Trade Facilitation Agreement. That agreement will improve customs performance around the world and help lower trade costs by up to 14 percent for many developing countries. The World Economic Forum has calculated that improve- ment of trade facilitation can produce six times the economic impact of eliminating all duties. In addition the conclusion of the Trans- Pacific Partnership TPP negotiations is a landmark achievement. All 12 TPP partners which account for 40 percent of global GDP are also APEC members. The TPP supports APECs goal of greater economic integra- tion among its 21 member economies and will help embed 21st-century trade disciplines and standards within APEC. It can be an important building block toward APECs goal of an Asian-Pacific free trade area. All of these initiatives will help ensure that the Asia-Pacific region continues to lead the world in economic growth and opportunity. Finally I want to extend my congratulations to the Philippine people on hosting an outstanding APEC year. FedEx is honored to have served the Philippines for more than 30 years. Our services continue to connect local companies to global customers which helps make the Philippines more competitive around the world. We look forward to continuing to grow our investment in the Philippines for years to come. TRADE AND TRANSFORMATION David Cunningham Executive Vice President and COO FedEx Express on how APECs commitment to open borders has helped energize the region and how to continue the momentum. DAV I D CUNN INGHAM At FedEx we see APEC as a forum for consensus- building around the best policies for inclusive and sustainable economic growth. David Cunningham 2 ACCESS ACCESSSPECIAL ASIA-PACIFIC EDITION The Japanese corporation has come to rely on its Mexican operations as a key driver of its worldwide growth. In the process it has also made deep and lasting changes in a local community. UPON FIRST INSPECTION its not immediately evident that this is the future of global auto manufacturing. Step inside the auto body plant at Nissan Mexicos A2 factory a few miles outside the city of Aguascalientes and you could be in a semiconductor clean room. The floors are spotless. The space is brightly lit. And its quiet the main sound is the muffled faraway thump of the plants high-speed metal press. Then you turn onto the production floor and see the robots. There are hundreds of them. Across multiple lines bright-yellow bots spot-weld Nissan Sentra body frames with lightning-quick precision. Overhead Z-shaped arms lift side panels high into the air swivel around and lower them onto waiting carts. In between hard-hatted line employees move about double-checking welds smoothing down rough spots with air-powered grinders pressing doors and fenders into place. The process is repeated throughout the 21-million- square-foot plant and at a nearby facility. The two plants employ more than 8700 workers. They run 23 hours per day six days per week turning out a new car every 38 seconds. Factor in additional plants in Cuernavaca and you can see why Nissan Mexico has an annual production capacity of 850000 vehicles. Those numbers also make it easy to understand how Nissan Mexico has emerged as a key component in Nissans overall operations helping push the Japanese corporation to record global sales throughout Building NISSAN ACCESS 3 Manuel Velzquez above left and Rol de la Rasa Villa fit side panels to a Nissan Sentra body in a synchronized process. the Futurethe first half of 2015. Theyve also made it a leader in the booming Mexican car market. We have 25.7 percent market share in Mexico says Nissan Mexico President and Managing Director Airton Cousseau adding that the company also exports cars and parts to more than 50 countries. At the same time however Nissan and Nissan Mexico have made an equally profound impact on Aguascalientes and its people. DIRECT IMPACT Aguascalientes sits on a high desert plateau 300 miles northwest of Mexico City. Nissan opened its first plant which initially produced engines and powertrains there in 1982. It then added an auto production line in the early 1990s. But the real change happened in 2013 with the opening of the A2 plant which added 3000 jobs. The project also included an industrial park thats home to three Nissan parts suppliers those companies contributed an additional 9000 jobs. The Monterrey Mexico Institute of Technology and Higher Education estimates the project has created between 58000 and 74000 jobs in and around the region. Those figures reveal how the local presence of Nissan Mexico has helped lift up the region. But they also illustrate how a global corporation can make a tangible positive impact on a community more than 6000 miles away from its corporate headquarters. The growth and investment do beg a question however Why Aguascalientes Government incentives are one reason. Location offers another. Aguascalientes sits in the middle of the country. Mexico has a well-developed highway system and three national railways intersect in the city. The result Its easy to transport vehicles and parts around the country and to coastal ports for export. Another factor is the presence of a young workforce. Approximately half of Aguascalientes 1.1 million residents are under 24 and Nissan Mexico is a powerful draw. Luis Urban joined the company in 2007. Nissan gives you a tremendous opportunity if you 4 ACCESS GIUSTINIANO PORCU HAS A CHALLENGING JOB. As director of aftermarket sales for Nissan Mexico he oversees an operation that distributes parts throughout Mexico and to 57 countries around the globe. On an average day his team sends out close to 2400 parts to destinations around the globe. While FedEx plays a major role in Nissans global supply chain it is also central to its on-time repair parts deliveries. If a car breaks down in say Australia and the dealer lacks the replacement part Porcus team calls in FedEx Express. Its quite a sensitive issue when a customer has a car that is immobilized and the needed part does not arrive on time he says. Thats why our relationship with FedEx is paramount in importance. FedEx fulfills our emergency orders in 24 to 48 hours or less. Getting a part to its destination on time and getting a customers car back on the road can really help determine if the person will remain with or leave our brand. FedEx helps us deliver on our promises to our customers. Leading the Aftermarket FedEx helps Nissan fulfill a key part of its brand promise. want to take it he says. I moved up from a trainee to an engineer quickly. That has been a very big change for my family. I can take care of my mother. I have even been able to help my sister finish her university studies. Gustavo Reyes Garcia a senior production supervisor at the A2 plant echoes Urbans sentiments. Working here changed my life he says. Everyone my parents my sons and my brothers has benefited from me working at Nissan Mexico. Cousseau smiles when he hears that. If you go to our manufacturing line you will feel that we are not only building cars. We are making dreams come true for the Mexican people. Buying a car is the second biggest investment of a Mexican persons life. First is a house and second is a car. And that makes you put your heart passion and feelings into your work. QUALITY MATTERS More changes lie ahead. Nissan and Germanys Daimler AG are building another new plant in Aguascalientes that will manufacture Mercedes and Infiniti autos. When complete in 2017 the 1.4 billion joint venture could push Nissan Mexicos total annual output past the 1 million mark. To Urban the project offers a vote of confidence in his company and city. Ten years ago some people knew about Aguascalientes he says. But now when you talk about Aguascalientes they imagine the big manufacturing complex. It even happens when you go to other countries and people ask where you are from. When you say Aguascalientes they ask You are with Nissan right For an inside look at Nissan Mexico and its impact on Aguascalientes see the video at fedex.comaccess. Nissan Mexico has emerged as a key component in Nissans overall operations helping push the Japanese corporation to record global sales throughout the first half of 2015. ACCESS 5 ACCESSSPECIAL ASIA-PACIFIC EDITION THE RIGHT FIT Christy Ng has tapped local Malaysian artisans and the power of cross-border e-commerce to build a global brand from scratch. Have you heard of Christy Ng If not youll know the name before long. The 27-year-old Malaysian entrepreneur has created a womens shoe and apparel company thats emerging as a global brand. You can find her products at ChristyNg.com on Amazon and Etsy and at her store in Jaya One Malaysia. All remarkable stuff. But whats really astonishing It all happened in a little more than five years. Ng then fresh out of college took a job with a Swiss pharmaceutical company in 2010. Around the same time she uploaded a few of her shoe designs to Facebook. The response was swift people wanted to buy the shoes. That was the spark she needed. Ng used her savings to launch her e-commerce site and began working with local artisans to create products. Id always wanted to be a shoe designer but I never imagined my dream could materialize she says. When we saw people from other countries ordering our shoe designs we knew we were onto something. Ng now has customers throughout Asia and as far away as Brunei and the U.S. Given the different sizes of products they buy she uses FedEx packaging that works particularly well for the garment and fashion industry. She also relies on FedEx International Economy service for less urgent shipments. ChristyNg.com is now up to 12 full-time employees including seven shoe artisans who create all of the companys shoes. The next goal Expand e-commerce sales in the U.S. Singapore and Australia with Europe and Japan to follow. FedEx is again proving to be a valuable ally. There are many different customs procedures in each country especially in terms of product classification and taxes says Ng. FedEx helps me clear products through customs quickly and with minimum cost. A CARING FORMULA Manila-based Human Nature has found the recipe for converting aggressive global business growth into vital local development. Start with a healthy all-natural product. Add global growth fueled by e-commerce. Finish with rising profits that pour back into commu- nity development. If only someone could bottle such a formula. Turns out Manila-based Human Nature has done just that. Human Nature is the Philippines largest brand of natural affordable personal care cosmetics and home care products. Founded in 2008 by Dylan Wilk Anna Meloto-Wilk and Camille Meloto its wares are made in the Philippines with local ingredients like lemongrass and coconuts. The farmers who produce the ingredients are trained and paid above-market-value wages thanks to Human Nature. The company has grown rapidly. Its international business is doubling year over year with international orders now available on its online store through FedEx International Economy shipping. FedEx helped us simplify our customer experience through online checkout says Human Nature International Business Development Head Dia Lacaba. This has increased business. FedEx also provides consulting workshops to deliver shipping and regulatory policy insights for Human Nature. FedEx helps us evaluate our services and ensure were offering competitive rates and satisfying our most urgent orders says Lacaba. As it grows Human Nature hires more employees from underprivileged communities. It also recently opened a plant in Laguna whose workforce is composed mostly of area residents. In 2012 Human Nature was recognized by the World Economic Forums Schwab Foundation as a Champion for Social Entrepreneurship. To learn more about the company go to humanheartnature.com. Small-Business profiles Two companies on the growth track Christy Ng and Human Nature 6 ACCESS Pacific Possibilities Rajesh Subramaniam with Singapores iconic Marina Bay Sands Resort hotel in the background. In 2009 Asia was home to 28 percent of the global middle class.Sometime in the next decade it willbe home to 66 percent of the worlds middle- class population. Rajesh Subramaniam ACCESSSPECIAL ASIA-PACIFIC EDITION ACCESS 7 Rajesh Subramaniam FedEx Executive Vice President Global Strategy Marketing and Communications on one of the biggest economic transformations the world has ever seen. Over the last several years economic development has continued at a furious pace in the Asia-Pacific region. While turbulence in the Chinese economy has helped slow down that growth a bit it cant mask the regions remarkable rise something most observers predict will continue. We sat down with Rajesh Subramaniam Executive Vice President Global Strategy Marketing and Communi- cations FedEx Services for his take on the developments. Subramaniam has special connections to the region. He previously led Asia-Pacific marketing for FedEx and remains a frequent traveler to that part of the globe. ACCESS Recent slowdown aside the Asia-Pacific region has flourished in the last decade. Can you provide a sense of perspective on that growth RAJESH SUBRAMANIAM Without question the situation in China is creating uncertainty throughout the region and the world for that matter. But heres a big-picture figure to consider Last April the World Bank noted that Asia-Pacific will account for one-third of global economic growth in 2015 which is twice the combined contribution of all other developing regions. In other words it remains the worlds fastest-growing region. That growth hasnt only come from China either. For instance Malaysia has averaged 5.7 percent GDP growth since 2010. Last year Vietnams economy expanded by nearly 6 percent a figure that was fueled in part by a rise in exports. And the Philippines is on track for a similar level of growth thanks in part to its strong electronics and high-tech manufacturing sectors. ACCESS What are some of the factors behind that R.S. Innovation is a huge reason. Each year Bloomberg ranks the worlds most innovative countries. In 2015 Asian countries accounted for nine of the top 50. Whats driving the innovation Numerous elements. The costs of operating a company tend to be lower in Asia-Pacific than in Europe or North America. A recent Microsoft study found that small and medium-sized businesses in emerging Asia-Pacific economies have been quick to leverage platforms such as mobile and the cloud which helps make them nimble and productive often on limited budgets. And governments in the region tend to provide high levels of support to business. Singapore offers a great example of that support. Its government has created hubs for aerospace healthcare biotech and more. The results have been remarkable. For example the aerospace hub has attracted more than 100 companies including airline engine makers such as Rolls-Royce and Pratt Whitney. As a result Singapore is now a global aerospace leader it handles 25 percent of the Asia-Pacific regions aircraft and component mainte- nance repair and overhaul work. The same goes for its healthcare hub which the country began developing in the early part of the last decade. The IMD World Competitiveness Yearbook has noted that Singapore now has the worlds fourth-best healthcare infrastructure and major corporations such as Medtronic have established a presence in the country within the last few years. ACCESS What are some results of this growth and innovation R.S. The most striking is the rise of the regions middle class. In 2009 Asia was home to 28 percent of the global middle class. Sometime in the next decade it will be home to 66 percent of the worlds middle-class population. In other words we are now in the midst of one of the biggest economic transformations the world has ever seen. The result will be game changing. We will see a new wave of consumers with considerable purchasing power. The balance of geopolitical power could completely shift. And global trade patterns will no doubt look far different than they do today. We are already beginning to see the effects of this expansion. For example airlines expect the number of passengers to double over the next two decades. And Boeing has projected that global airlines will need more than 38000 new planes just to meet the demand. ACCESS How does the presence of FedEx help the Asia- Pacific region prosper R.S. Well weve had a presence in China and Singapore since 1984 and we have arguably the best transportation network in the region. In 2009 we opened our Asia Pacific Hub in Guangzhou China. It operates 144 flights each week and anchors our intra-Asia business. In 2012 we opened our South Pacific Regional Hub in Singapore which is the countrys first and only express transportation facility. Its a regional consolidation point for trans-ship- ments in and out of Australia New Zealand and Southeast Asia countries such as Laos and Cambodia. And it houses our air ground and clearance operations under one roof. Those clearance operations are critical. The hub is also the only one in Singapore that allows for on-site facilitation of cargo shipment clearance by Singapore Customs and the countrys Immigration and Checkpoints Authority. The end result is faster and more convenient customs clearance for FedEx customers. FedEx is committed to the Asia-Pacific region. With e-commerce and global trade increasing demand for our services weve recently expanded our freight forwarding and supply chain capabilities. Weve already been here for more than 30 years. Were looking forward to continuing to provide customers with the services they need as the region continues to grow and evolve. Q A 8 ACCESS ACCESSSPECIAL ASIA-PACIFIC EDITION Construction Equipment Paper Scientific Equipment Consumer Goods TextilesAgricultural Equipment Aircraft and Parts Now 100 Percent Duty-Free Automotive 2017 Footwear Leather and Travel Goods GUESS WHAT COUNTRY HAS THE SECOND-HIGHEST GDP in Asia behind Japan If you guessed China guess again. South Korea is among the fastest-growing markets in the world and a few years ago it got a major boost that will propel its growth even higher. In March 2012 representatives from the United States and South Korea signed the U.S.-Korea Free Trade Agreement KORUS. The agreement instantly opened a powerful market that was previously a challenging and expensive one to navigate. This is a gold standard agreement because its so good for our companies says Tami Overby president of the U.S.-Korea Business Council and vice president for Asia at the U.S. Chamber of Commerce. Just two decades ago South Korea was closed to trade from other countries. As it began to open tariffs were so high they prohibited most organizations from doing business there. Things like popcorn had a 600 percent tariff on them Overby says. Opportunity is still waiting. The KORUS agreement leveled the playing field for small businesses Overby says. If youve got a good product or service youre going to find a willing market of educated sophisticated buyers in South Korea. Overby sees opportunities in several sectors but notes that American products are very competitive in processed foods agriculture and consumer goods. To find out if American products and services are duty-free visit export.gov and search the FTA Tariff Tool or visit ustr.govuskoreafta. South Korea OPPORTUNITY AT A GLANCE GOING DUTY-FREE The U.S.-Korea Free Trade Agreement requires the two signatory countries to eliminate 95 percent of tariffs on industrial and consumer goods within five years. All sectors include a large percentage of products that are now duty-free. See the chart below to see when 100 percent of products within sectors will be duty-free. Source U.S. International Trade Commission and Office of the United States Trade Representative YOUNG HIP PLUGGED IN South Korea is a country dominated by young technology-savvy urbanites. 1Has been ranked the most app-crazed country in the world by Google 1Has the worlds fastest internet speeds according to Akamai Technologies 98 of people ages 25 to 34 have graduated from high school 64 have higher-education degrees Source CIA World Factbook and Organization for Economic Cooperation and Development South Korea is a mecca for business owners looking to import or export into this fast-growing consumer-oriented culture. ACCESS 9 This port city has the 5th-largest seaport in the world. Source Bloomberg BUSAN 3.439MILLION PEOPLE In 2014 Incheon International Airport reported that 45.5 million passengers 2.5 million tons of cargo and 7 million transfer passengers traveled through the airport. Source Airports Council International Center for Aviation and Incheon International Airport INCHEON 2.838MILLION PEOPLE Home to a booming fashion and textile industry where designers go to test their designs on the hip inhabitants. Source Korea Tourism Organization DAEGU 2.467MILLION PEOPLE The capital of South Korea is a bustling metropolis thats home to a quarter of the countrys population. Source CIA World Factbook SEOUL 10.01MILLION PEOPLE FAST FORWARD South Korea is a stunning example of how a combination of trade education and technology can skyrocket a countrys place in the world. In the 1960s the country had a GDP per capita of only 100. Today its 24600. Source World Bank Chemicals Electronics Instrumentation and Information Technology Products Infrastructure and Machinery Lumber and Wood Medical Equipment Shipping and Transportation Equipment 2027 Fish 2022 Building Products Metals and Ores SOUTH KOREA 10 ACCESS ACCESSSPECIAL ASIA-PACIFIC EDITION Karen Reddington oversees a region that includes more than 30 countries and territories and more than 18000 FedEx employees. Reddington began her career with FedEx Express in 1997 as an operations research advisor in Hong Kong and most recently served as the regional vice president of FedEx Express South Pacific. ACCESS You work with a wide range of FedEx customers and government officials throughout APAC. When you speak to business leaders who live and work outside of the region what are they most surprised to learn from your perspective KAREN REDDINGTON One thing is that people often talk about Asia-Pacific as a single entity. But it really consists of distinct markets many of which are in completely different stages of development. Perhaps the most interesting and most challenging thing about the region is its diversity of business and cultural practices. Customs regulations duty and tariff regulations are also changing all the time. So we encourage local innovation from team members to keep up with the pace of change. A good example recently occurred in Vietnam which has complicated customs regulations. When a customers shipments got delayed there a FedEx operations specialist took the initiative to design a new process and then persuaded customs officials and terminal operators to implement that process. The customers shipment was released and delivered on time. Another thing to consider is the wide variations in connectivity. For example New Zealand and South Korea have 94 percent and 92 percent internet coverage respectively. But Thailand is struggling to get to 30 percent. There really is no one-size-fits-all solution. ACCESS Despite Chinas slowdown Asia remains the worlds fastest-growing economic region. What are some of the effects of that growth K.R. The biggest change Ive seen over the years is that Asia has moved from being the worlds factory to being the home of some of the biggest consumer markets. The region now has a very strong middle class. You hear a lot about that in the context of China but its equally true elsewhere. Singapore for example is traditionally ranked as the regions most developed market and it is now the worlds third-richest country. Malaysia has averaged 5.7 percent GDP growth since 2010. And we are also seeing healthy growth in the Philippines and Vietnam. Current estimates point out that Asia will have around two-thirds of the global middle class population by 2020. One result of that expanding middle class is a big growth in inter-Asian trade it now represents about 25 percent of total Asian trade which is at 6 trillion per year. Asia now has its own supply and demand ecosystem with end-to-end production-to-finished-goods manufacturing. So the landscape here is changing dramatically. ACCESS And e-commerce has been another growth area for the region too. K.R. Yes. The developing middle class and the emergence of a massive consumer class are part of the momentum. But there are other factors including rapid consumer adoption of mobile technology and improved access to credit. Were seeing that Asian consumers shop and spend online more than the global average. As a result were now seeing the emergence of companies such as Taobao.com. Its only one of Alibabas companies and it uses a similar business model to eBay. But it has approximately 800 million product listings and claims about 80 percent of the Chinese C2C market. ACCESS What challenges does e-commerce pose and how is FedEx responding to them K.R. Last-mile delivery is one big challenge. Weve addressed that in part by establishing key partnerships rather than by only building from scratch. For example in Australia were working with Australia Post. We have the advantage of our global network and customs clearance capabilities. Weve married those up with Australian Post to fulfill last-mile delivery for us. But with e-commerce its not just the network or delivery that needs to be tackled. Its also what we call the software of regulations and procedures. A lot of countries have not established the regulatory environments to support e-commerce. It can be difficult to move personal shipments across borders into some Asia-Pacific jurisdictions. So we work quite hard with governments on reforms. ACCESS What are some other trade reforms that are needed K.R. Nothing does more to speed up the movement of goods than regulatory reform. When barriers to trade are either removed or lowered the cost of doing global business decreases. Virtually every international business group wants to simplify border procedures and reduce trade barriers. One simple way to do this is to raise the de minimis value at which goods are assessed duty and taxes. According to the International Chamber of Commerce a global baseline de minimis value of at least US200 would generate huge economic benefits. ONE REGION ENDLESS OPPORTUNITIES Karen Reddington President Asia-Pacific Division APAC FedEx Express on the growth of the middle class and technological change within the region. K AREN REDDINGTON Q A ACCESS 11 ACCESSSPECIAL ASIA-PACIFIC EDITION The biggest change Ive seen over the years is that Asia has moved from being the worlds factory to being the home of some of the biggest consumer markets. Karen Reddington ShibuyaTokyo home of the worlds busiest intersection. 12 ACCESS ACCESSSPECIAL ASIA-PACIFIC EDITION AID RELIEF MAPPING New and highly coordinated use of technology is adding new efficiency to global aid work. DIGITAL CONNECTIONS are offering new ways for emergency workers to respond to natural disasters and outbreaks of disease. Take geographic information system GIS mapping. According to National Geographic it took less than 48 hours after the May 2015 Nepal earthquake for a global network of GIS-equipped volunteers to provide precise directions to relief workers on the ground. And during this years Ebola outbreaks healthcare workers used GIS systems to map and visualize outbreak locations casualties and fatalities. One of the most innovative users of GIS mapping is California-based Direct Relief. The medical philanthropy nonprofit maps and visualizes channels of supply distribution. Its goal Provide workers with an understanding of specific conditions on the ground and provide transparency and accountability to donors. Its an instance where digital technology can help make disaster-relief agencies more effective for both the people they serve and those who donate. 3 TRENDs Redefining Asia MEGA- CORRIDORS Big cities demand big connections. As it continues to urbanize and build its consumer economies the developing world is developing its own distinctive style of infrastructure projects. The most remarkable mega- corridors massive undertak- ings that link two or more megacities or regions. These are often transport-oriented developments designed to build and fortify trade connec- tions and stimulate new growth. The 46 billion China-Paki- stan Economic Corridor offers a cross-border example. It will physically link the two countries via a 2000-mile network of pipelines roads and railways. China also has plans to build similar connections to other markets in Asia and even Europe. Meanwhile several countries are expanding airports or building new ones. Two examples the new 13 billion Daxing International Airport in Beijing and the 32 billion expansion of Al Maktoum International in Dubai that will allow the airport to accommodate more than 220 million passengers per year. The region is in the midst of rapid change. Here is what to watch for. This is a preview of our annual trend list. Look for the full list in 2016 at fedex.comaccess. 2 1 Mega-corridors provide physical links between cities and countries. ACCESS 13 Nearly half of Asia- Pacific consumers have made purchases via smartphones. GLOBAL M-COMMERCE World trade in the palm of your hand. IN THE U.S. CONSUMERS TEND TO USE MOBILE PHONES AS SHOWROOMS. BUT GLOBALLY THEYRE INCREASINGLY SEEN AS HAND-HELD SHOPPING MALLS. Indeed the mobile channel outpaced desktop e-commerce throughout Asia-Pacific the Middle East and Africa in 2014. Want to see the m-commerce revolution unfold Head to Asia-Pacific. Nearly half of its consumers have made purchases via smartphone and mobile buying accounts for more than a quarter of e-commerce sales throughout the region. Not surprisingly e-commerce players such as Chinas JD.com and Alibaba are aggressively gearing up their mobile efforts often with remarkable results. By some estimates JD.com will expand its mobile sales by more than 150 percent in 2015. In short m-commerce promises to fundamentally change e-commerce in the developing world. Can the rest of the world be far behind 3 China has more than 200 million mobile shoppers. Mobile now accounts for the majority of all e-commerce transactions in Japan and South Korea. Thiscouldbethe connectionthat changeseverything. It could be a new energy-saving technology. Perhaps the next medical breakthrough. Or a priceless family heirloom rediscovered. When people access the world anything becomes possible.To learn more go to fedex.comaccess. FedEx. SolutionsThat Matter.