Selling or setting up abroad is a decisive growth driver for the Swiss economy. Three experts present the strategies available to SMEs for internationalization.
In Switzerland, where highly specialized sectors account for a significant share of the economy’s added value, even the smallest companies are expanding internationally. "This is particularly the case in high value-added services. Micro-enterprises active in fast-growing fields such as cryptocurrencies or fintech naturally find attractive business opportunities in distant economies such as the United States or Singapore," notes Pascal Wild, Director of the School of Management Fribourg.
For manufacturing companies, successful internationalization first requires a clear understanding of how their segment operates in the target country, supported by market studies. "Industrial firms can then adopt one or more of three export strategies," explains Johan Lindeque, researcher at the University of Applied Sciences and Arts Northwestern Switzerland. "They can opt for aggregation, which means selling the same product in similar markets to increase volumes." A company might, for example, decide to sell its Swiss chocolate in the German or Austrian markets. "If this option is not feasible, the company can turn to adaptation," the expert continues. "This method requires adjusting the product to the needs of the destination market." The safety standards of a machine, for instance, must be adapted to those of the United States, which differ from those in Switzerland. "Finally, there is also arbitrage, which consists of leveraging the differences between domestic and foreign customer segments, such as Switzerland’s reputation for quality." The goal here is to command higher prices abroad.
First Europe
In most cases, internationalization starts with markets that are geographically, culturally, economically and administratively close to the company’s home country. According to the Swiss International Entrepreneurship Survey 2023–2024, 84% of Swiss exporting SMEs are active in Western and Southern Europe, 37% in North America and 26% in China. Companies then tend to move into markets where demand for their products already exists. "Breaking into a completely new market ex nihilo (developing a market where there is not yet any demand or access) is a complex process that requires significant resources," says Professor Pascal Wild.
International trade fairs, which bring together players from the same sector in one place, are often the preferred gateway for entrepreneurs aiming to export or establish a presence in a new market. "These events put exporters in touch with potential partners or distributors, who can be valuable allies in creating fruitful synergies," emphasizes Pascal Wild.
From online trade to local presence
E-commerce enables a growing number of companies to export. "This channel is particularly useful for testing how distant markets respond at relatively low cost," says researcher Johan Lindeque. "If interest in the product is confirmed, the company can then consider larger-scale exports." "E-commerce is mainly suitable for brands that deliver directly to consumers (B2C)," adds Alain Graf, senior consultant, Asia-Pacific at Switzerland Global Enterprise and specialist on China. "Industrial firms working in partnership with other companies will find it hard to rely on it alone. They will need to work with local distributors and cultivate those partnerships. For distant markets, this often means creating dedicated positions to handle business in a specific country or region, with frequent travel to meet customers and partners."
Most often, companies start by exporting their goods through a distributor and eventually establish themselves in the destination country by setting up a subsidiary if sales volumes justify it.
Diversifying markets
Global trade can at times be volatile. This is why experts recommend diversifying export markets. But is it really possible to replace one market with another, for example, if a country introduces very high customs tariffs? "This is not a parameter that can be adjusted according to the economic climate. Moreover, a company that is highly dependent on a single market will not necessarily be able to transfer all its sales to another," explains Alain Graf.
To soften the impact of possible customs duties, the specialist advises exporting companies to offer rental services instead of sales. "A company can, for example, send a machine to the market concerned. It will have to pay customs duties once, but can then rent the machine to several customers. As a service, rental is not subject to customs tariffs. This makes it possible to limit the payment of customs duties once the machine is in the importing country. However, it should be noted that this method is subject to strict conditions and is by no means a quick or one-off solution."
On the theme
The issue of intellectual property
Any company that wants to internationalize must ensure its intellectual property is protected through patents or trademark rights. According to Professor Pascal Wild, "intellectual property infringements remain a major risk for exporters today." In Europe and North America, protection regimes exist and laws are generally enforced, notes Alain Graf of Switzerland Global Enterprise. "There is also legal protection in Japan, South Korea and Singapore, which is not necessarily the case in other Asian countries. But the situation is evolving. China, in particular, has established courts dedicated to intellectual property issues in recent years." Nevertheless, protection remains a challenge in that country as in other markets, especially for highly specialized SMEs whose competitive advantage often depends directly on their know-how.
In discussion
Last modification 01.10.2025
