Business expansion is not just about making things bigger but also entering new markets and gaining new clients. For small businesses, operating in the digital age means you have the tools and resources to digitise your business and access international markets thanks to e-commerce technology.
Before you can start selling abroad, you need to know how to access international markets.
An international market is a market outside the international border of a company’s country of citizenship. A company is typically defined as a citizen of the country where it’s formed. It’s important for small businesses to get access to international markets to help with their growth and increase their revenue streams.
In this article, we look at how you can access international markets as a small business.
Benefits of International Marketing
International marketing does not only support the diversification of your business, but it also helps you reach a global audience. Some of the other benefits are:
Market Diversification
International markets enable you to diversify your business and reduce any dependence you have on a single market or region. This helps safeguard your business against economic uncertainty and domestic market fluctuations.
Brand Recognition
By marketing to international markets, you allow your brand to move beyond South Africa and achieve global recognition. This enhances your brand reputation and positions your business as a player on the world stage.
Better Sales and Profits
Successful international marketing efforts increase your customer base and drive-up sales. This means your business will make a higher profit, provided that the costs of reaching international markets are managed well.
Longer Product Lifecycle
Products can sometimes have a different lifecycle in other markets. If you have a product that has reached its maturity or decline in one market, it can still be in a growth phase in other markets. This prolongs the lifecycle of the product and reduces costs.
Innovation
By exposing your business to new environments and cultures, you can stimulate innovation and creativity amongst your team. This leads to the development of new products or services which are tailored to the needs of your international customers.
Competitive Advantage
Marketing your business internationally can help you gain an advantage of your competitors. International markets increase your brand recognition and market share which can help you establish a strong grip in new markets and compete on a global scale.
The benefits of international marketing are there to see. Think of brands like MaXhosa, Nando’s and Investec, and how they are home grown brands who have entered international markets successfully.
International Marketing Challenges
As much as there are benefits to joining international markets, you need to also know what challenges you will face. Some of the challenges include:
Cultural differences: Cultural norms differ throughout the world. Misunderstanding them can lead to potentially offending customers and damaging your brand reputation.
Language barriers: Language barriers can lead to poor communication which can distort your brand messaging or cause offence.
Regulations: Each country has its own laws and regulations regarding businesses. Not being aware of regulations can lead to hefty fines and legal issues.
Economic differences: Different economic conditions such as income levels and exchange rates. This can have a significant impact on your pricing, product demand and profitability.
Market saturation: In some markets, high levels of competition might make it difficult for your brand to stand out and achieve market share.
Logistical challenges: International marketing can involve issues in logistics like shipping, handling customs, managing international teams and coordinating multi-time zone activities.
Local preferences: You need to adapt your products, packaging and marketing strategy to meet the preferences of consumers in various countries which can be quite a complex task.
Tips to Enter International Markets
Below are some tips/strategies you can use to prepare your business for the international markets.
Tip 1: Exporting
Exporting is probably the easiest and most common way of entering international markets. You can produce your goods in South Africa and sell them to consumers abroad. Exporting is a great international marketing strategy because it’s low risk which is ideal for small businesses.
Tip 2: Licensing
Licensing means you grant rights to your intellectual property (patents, trademarks, copyright etc.) to a foreign company. In return, the international company pays your royalties. This allows you to use your intellectual assets abroad with investing in resources for foreign operations.
Tip 3: Franchising
Franchising as we know is used by brands such as KFC and McDonald’s. This strategy can give you access to international markets without the fuss of running the business. It allows for quick market expansion and entry, and leverages the local knowledge of the franchisee.
Tip 4: E-commerce Platforms
E-commerce platforms like Amazon South Africa, are a great way to enter international markets. These platforms have millions of customers on their platform and products come from sellers in various countries. You can gain an international customer base and new revenue stream by listing your products on e-commerce platforms.
These tips can help guide you on your journey to international success. Ensure you have a good understanding of the market you want to enter and prepare your business for more customers, sales and profits.
For more information on export markets, take a closer look at our Guide to export Markets. Get your tickets today for the 2025 SME SA Funding Summit!
