close
Tuesday February 11, 2025

Why Pakistani businesses struggle to compete globally

By Mansoor Ahmad
January 18, 2025
A representational image of a flag of Pakistan fluttering among American flags hoisted by students and staff from Pepperdine University in Malibu. — AFP/File
A representational image of a flag of Pakistan fluttering among American flags hoisted by students and staff from Pepperdine University in Malibu. — AFP/File

LAHORE: Marketing remains a significant challenge for many Pakistani enterprises striving to expand their exports. Limited branding and visibility of Pakistani products hinder global competitiveness, as these offerings often lack strong international appeal essential to attract buyers.

Most businesses rely on outdated marketing techniques and traditional methods, with little to no investment in digital marketing strategies that resonate with modern consumers. A lack of understanding of target markets, cultural preferences and consumer behaviour exacerbates the issue, leaving Pakistani businesses struggling to compete.

Pakistani products often suffer from quality perception issues. Inconsistent standards and limited certifications lead international buyers to view these goods as inferior. Transparency, a cornerstone of consumer trust, is not only a state responsibility but also an essential practice for businesses. Adopting transparent policies, offering hassle-free return options, and providing detailed product descriptions, high-resolution images, and third-party certifications can help instil confidence in both domestic and global markets.

While some SMEs have adopted modern technologies, their digital presence remains inadequate. Many fail to invest in professional websites, social media campaigns or tools like live streaming and video content to showcase their products effectively. Enabling customer reviews and ratings on websites is another untapped opportunity that could significantly boost credibility and consumer trust. Global buyers often look for trust signals such as internationally recognized certifications like ISO and CE. These certifications not only assure quality but also enhance marketability. Displaying them prominently on product packaging and digital platforms can help Pakistani businesses compete more effectively.

Customer support in Pakistan is often insufficient. Few businesses offer 24/7 support, and even fewer address customer complaints promptly. Technologies such as chatbots and dedicated helplines can enhance response times, while policies prioritising instant resolution and hassle-free replacement of defective items are crucial. Payment practices also deviate from global norms. In most countries, buyers can inspect products before payment or return them if they do not meet expectations.

In Pakistan, requiring upfront payments before allowing customers to open consignments erodes trust. Adopting escrow services or enabling payment upon delivery after inspection could encourage repeat purchases and improve customer satisfaction.

Competing economies like India, Bangladesh and Vietnam have surpassed the country in marketing their products on the global stage. India has established global brands such as Tata through aggressive marketing, leveraging digital platforms, e-commerce, and soft power tools like Bollywood, yoga, and cuisine to enhance product visibility. Bangladesh excels in textile marketing by collaborating with global brands like H&M and Zara, meeting quality and compliance standards, and using certifications such as WRAP and BSCI to position its products as ethical and sustainable. Vietnam has marketed itself as a reliable manufacturing hub for electronics, textiles and footwear. It attracts international buyers by emphasizing efficiency, high-quality standards and cost competitiveness, leveraging digital advertising and e-commerce partnerships to expand its reach.

For Pakistan to catch up, businesses need to embrace modern marketing approaches, focus on niche strengths, and actively participate in global trade forums to enhance visibility and trust. Adopting customer-centric practices, transparent policies and flexible payment and return options will not only instil confidence among consumers but also build a loyal customer base. By aligning with global norms and leveraging its potential, Pakistan can position its industries to compete effectively on the international stage.