Culture

Why MSME Brands Matter And What We Can Learn From Other Economies

By Shubhranshu Singh

Copyright republicworld

Why MSME Brands Matter And What We Can Learn From Other Economies

When the word brand is mentioned, the image that comes to mind is usually that of a global giant with a large marketing budget and widespread reach. Yet the true foundation of strong economies often lies elsewhere, in the smaller and more dispersed enterprises that drive employment, production, and culture.These are the micro, small, and medium enterprises or MSMEs. Too often, they are viewed only as suppliers or cost-driven producers. In reality, they too need to think of themselves as brand builders because branding is not the preserve of Fortune 500 companies; it is a strategy of survival and resilience for smaller firms.Why MSMEs Need BrandingBranding Opens New MarketsThe importance of branding has become clearer when placed against today’s global headwinds. Take India’s export basket. Textiles, gems and jewellery, and seafood together make up close to a quarter of India’s exports to the United States. These industries are now vulnerable because of tariffs and shifting trade rules. Within them, MSMEs are not minor players but the overwhelming majority, with their share crossing seventy per cent. This means the pressure of price-based competition falls directly on small and medium firms. In chemicals too, MSMEs are deeply embedded, accounting for about forty per cent of the sector. These figures reveal a simple truth. Whenever external shocks squeeze margins, it is the smaller firms that feel the greatest strain, and the absence of branding leaves them exposed. By contrast, a strong brand cushions against volatility because it secures loyalty and allows a business to retain value even when cost advantages are eroded. The lesson is not limited to exports alone. Branding also expands access to new markets because distributors, exporters, and digital platforms are more comfortable working with firms whose identity conveys credibility. An unbranded product may remain an anonymous cog in a supply chain, but a brand carries recognition, enabling direct relationships with customers and reducing dependence on intermediaries.Global Lessons: Germany to South KoreaGermany demonstrates how this can be achieved. Its Mittelstand firms have established themselves as leaders in specialised niches ranging from precision tools to industrial materials. These companies are not household names, yet their identity is strong because they are associated with reliability, quality, and steady innovation. The ecosystem helped too. Banks, trade associations, and export agencies opened doors, while the national “Made in Germany” label gave even small firms the glow of collective trust. Italy provides another model where regional identity has been used effectively. Clusters of small firms in Tuscany and Veneto gained global visibility by leaning on the strength of place-based branding that signalled heritage and craftsmanship. Japan and South Korea pursued another path. There, governments supported SMEs through certification, export promotion, and trust-building measures, enabling small firms in electronics, chemicals, and automotive supply chains to command credibility abroad.They need the tools and platforms to build identities, supported by an ecosystem that provides credit, training, and trade promotion. National and regional branding umbrellas can multiply the effect, allowing local firms to export not only products but also stories and culture.Ultimately, branding is not a matter of cosmetics or advertising; it is about long-term trust. For MSMEs, that trust is the bridge between being a nameless supplier and becoming a recognised name. The data from India’s trade composition shows how high the stakes are. In sectors where MSMEs dominate, global headwinds and tariff shocks are real threats. Branding becomes the defence. Countries like Germany, Italy, Japan, and South Korea have shown that when small firms are encouraged to brand themselves, they do more than survive, they anchor entire economies. It is time for more countries to embrace that lesson.Shubhranshu Singh is business leader, marketer and columnist. He was honoured as one of the 50 most influential global CMOs for 2025 by Forbes and serves on the board of the Effie LIONS foundation. Opinions are personal.Read More – Short-Form Video’s Rise: The New Attention Currency & Its Hidden Cost