From bazaar stalls to borderless sales – how MSMEs can conquer the dynamic world of cross-border trade
Delhi’s open-air market ‘Dilli Haat’ is a treasure trove of passionate small businesses. Numerous stalls in the market sell intricately embroidered textiles, hand-crafted jewelry, and charming home décor items, among various other ethnically creative products. The unique pieces sold here hold immense potential to enthrall consumers from around the world.
India’s handloom exports stood at approximately $1,802 million in April – March 2024, and its textile products, including handlooms and handicrafts, are exported to more than 100 countries. The strong contribution of Micro, Small, and Medium-sized Enterprises (MSMEs) to the country's exports highlights their potential to further boost cross-border trade (CBT) and play a significant role in shaping the future of Indian commerce.
While a significant 45.56% of India's exports during April-September 2023 consisted of MSME products1, many small businesses still hesitate from venturing into CBT. This perception often stems from the misconception that CBT is the exclusive domain of large corporations with ample resources. Fortunately, the internet revolution has dissolved geographical barriers, creating an unparalleled opportunity for MSMEs to evolve from local enterprises to global players in the borderless world of commerce.
Here are a few recommendations that will help MSMEs realize their full potential and smartly navigate the exciting and evolving world of CBT.
Understand the Target Market
Getting to know target markets and their cultural nuances are crucial steps that businesses cannot miss. Firstly, start with thorough market research using tools such as Google Trends for market analysis and industry reports that provide insights on consumer trends and demand patterns. Understanding these factors helps businesses tailor their products and marketing strategies to meet specific market needs. PayPal is helping businesses know their consumers as never before by working to leverage AI to unearth consumer insights that weren’t previously possible. This will be instrumental for businesses to engage more deeply with consumers through highly personalized shopping experiences.
Build Your Global Storefront
Effortless Setup: Establishing an online presence breaks geographical barriers, allowing businesses to showcase their unique products to international markets. Setting up a professional online store has become a breeze today, thanks to e-commerce platforms that offer user-friendly solutions without the need for technical knowledge. A global storefront also facilitates seamless transactions and enhances trust among consumers through secure payment gateways. Utilizing digital marketing tools can help businesses effectively target and engage global audiences.
Seamless Payments: Offering reliable, secure payment gateways helps businesses build trust and credibility, assuring consumers that their financial information is protected. Efficient payment processing reduces transaction delays and disputes, enhancing the overall consumer experience. Managing international payments can be complex, but partnering with a reliable payment solution provider simplifies the process. PayPal handles transactions in approximately 200 markets around the world and supports 25 currencies, enabling businesses and consumers worldwide to seamlessly transact using their preferred payment methods in their local currency.
Reaching the Audience: Social media is a powerful tool for MSMEs, with its ability to target international audiences through engaging content, influencer collaborations, and targeted ads. To excel in this space, mastering skills like creating captivating videos, leveraging live streaming, and effectively interacting with a global audience is crucial. About 68%2 percent of consumers say the primary reason they follow a brand on social media is to stay informed about new products or services. Moreover, 75% of Gen Zs and 48% of millennials are making purchase decisions influenced by social media ads.3 These numbers make a strong case to utilize social media platforms like Instagram and Facebook to showcase products and target potential consumers globally. Moreover, businesses can also rely on active social listening to gauge consumer sentiments and identify market trends.
Build Trust and Standing Out
The global marketplace is brimming with established brands. Businesses are now operating in a space where they must make their mark not just among competitors in the homeland, but also those in the international arena. Two elements would prove to be key here. First is to embrace your uniqueness. Consumers worldwide are increasingly seeking out niche products and specialty brands. Highlight the story behind product creations, the artisanal techniques used, and the heritage that the products embody. The second element is to offer exceptional customer service. In a crowded online space, exceptional customer service can be a powerful differentiator. PayPal strives to reimagine commerce by shaping its innovations around a deep-seated understanding of consumers’ needs to deliver innovative experiences that make shopping simple, personalized, and secure.
Scaling International Boundaries
Embracing the opportunities of cross-border trade allows businesses to tap into new markets, increase revenue, and achieve sustainable growth. Indian MSMEs, particularly those in the handicraft and artisan space, can transform into globally recognized brands, bringing the rich cultural heritage of Indian craftsmanship to consumers around the world. PayPal is committed to supporting MSMEs in their cross-border trade endeavors by empowering them to connect with consumers worldwide, ensuring a smooth and secure transacting experience.
If you are a small business looking to tap into international consumers, click here for tips and insights.
1 MSMEs contribute 45.56% of total exports in April-September ‘23 - IndBiz | Economic Diplomacy Division | IndBiz | Economic Diplomacy Division
2 https://sproutsocial.com/insights/social-media-marketing-strategy/#:~:text=Social%20media%20marketing%20involves%20using,a%20brand's%20values%20and%20story
3 Social Listening Market Comprehensive Study Explore Huge Growth in Future | LinkedIn