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Every manufacturing unit starts as a micro enterprise. 98.4% MSMEs in India are under the micro category (revenue $< INR 5 crores). With time, resources and brilliant strategies, any manufacturing unit can grow into a medium to large enterprise. If you are looking at expanding your growth capabilities, then you must consider expanding to the global market. It may be unfamiliar territory with new challenges, but rewards upon succeeding are also exceptional.
The global market is quite different from the local market. While you may have faced many challenges in the domestic and local markets, you will face many more internationally. Given below are a few of these challenges for MSMEs in India -
One of the first concerns when shipping to another country is logistics. How will you transport your product to a different country? What is the cost of transportation? Can your products survive the transportation process? What are the additional precautions you need to take to ensure that your product reaches its destination intact?
You need to find answers to these questions before deciding to enter the global market. You also need to plan for shipping delays and complications at the customs clearance. Fortunately, finding a reliable third-party logistics provider can solve most of these issues.
When you sell your products in a country, you have to abide by their laws. Additionally, you must ensure that you can conduct business in the country while also looking into its tax laws.
When you are planning to expand your business to various countries, it can become tiring and confusing to keep track of the legalities associated with them. In this case, hiring legal counsel might be your best option.
One of the biggest challenges for MSMEs in India is setting up a right payment channel. When a MSME is operating within its borders, it only has to set up payment channels for the domestic market in the local currency. However, many of these may not work in the international market.
The enterprise has to find out the payment methods that work in the global market and ensure that it can leverage them for its operations.
While your production and quality capabilities might be well-known within India, you might be unheard of in a new country. Gaining customers in a country where people are hearing your name for the first time can be difficult, as people usually prefer sticking to procuring from recognized manufacturers they’ve known for a long time.
An ideal MSME marketing strategy should take this into account and make it a priority to utilize all the available marketing and sales channels to establish your brand as a credible alternative.
The global market comes with global competition. Setting yourself apart from the competition is one of the toughest challenges for MSMEs in India. When there are already many others offering similar products, how do you attract customers?
The key is to develop a sales strategy that convinces customers to choose you over your competition. Highlight everything that you offer that your competition doesn’t, to attract more customers.
Are you worried about the challenges of expanding your business in the international market? Showcase your products on Lal10 to gain a global audience without the global challenges.
Lal10 offers integrated payment methods for local as well as international payments. It also suggests reliable third-party logistics that can ship the products to their destination. Since Lal10 is a well-established platform, you do not have to worry about brand recognition. So what are you waiting for? Vanquish the challenges being a MSMEs in India and take over the global market now!