If you feel like your company has hit a growth ceiling, it might be time to look into expansion. Several markets exist outside of the popular and competitive choices that are eager to explore new brands from international retailers.

Why Untapped Markets Are an SMB’s Greatest Opportunity

The U.S. is the world’s top spender. In 2023, consumer spending in the country reached $18.8 trillion — more than double the amount spent by China, the second nation on the list.

With over 33 million small businesses in the U.S., expanding your operations internationally can be a helpful way to diversify your income and differentiate yourself. It can be tempting to go for the most popular suggestions or follow in the footsteps of large corporations that choose emerging markets in developing countries. However, more developed nations are also viable options, even though they tend to be overlooked. The relatively stable economies and high consumer spending are especially beneficial for small businesses looking to grow.

6 Underrated International Markets to Explore

If you’re ready to find new opportunities abroad, consider these six countries to start your expansion.

1. Canada

It can help to start with familiar territory, and Canada, the U.S.’s next-door neighbor, can be the best candidate. The country has over 41.5 million shoppers spending around $2.5 trillion annually.

Canada has a diverse economy, from the tech-driven metropolitan centers to its natural resource-rich provinces, so small businesses would likely find a good home and audience here. Its distance also makes it easier to transport goods and resources, and there is more cultural and linguistic overlap.

2. Ireland

Ireland’s economy is small population-wise, but it is going strong. Economists estimate its gross domestic product (GDP) will increase by 9% in 2025. Its transparent regulations and competitive business tax rates make it even more attractive to foreign investors.

Dublin, its capital city, has grown into a major tech hub, hosting offices for companies like Google, Facebook and Apple. The country has a rich and skilled workforce, and it’s also a smart gateway into the broader European Union.

3. Luxembourg

Luxembourg is another country that might get overlooked due to its size. However, it has strong economic power and influence in Europe. It has the second-highest GDP per capita worldwide, indicating its strong consumer base.

Its location is also highly strategic — being at the crossroads between France, Belgium and Germany makes it an ideal country for establishing and growing a European audience. Its stable economy and government support can lead to long-term business growth.

4. Germany

Germany’s reputation for precision and quality, especially in engineering, extends to its consumers. Its high-tech innovation districts and busy ports have attracted numerous businesses in manufacturing, pharmaceuticals and other industries.

The country’s highly skilled workforce and strong logistics network make it ideal for growing a business. Investing in strong localization, such as through German-language content, can win lasting loyalty in this market.

5. Singapore

Singapore may be geographically small, but it is also one of the world’s most affluent countries. Its world-class infrastructure, low corporate tax rate and stable economy make it one of Asia’s strongest economic hubs. 

The country is a melting pot of multiple Asian cultures, with consumers open to international products and companies. Its strategic location also allows you to break into the Southeast Asian market, with easy access to countries like Malaysia and Indonesia. 

6. Japan

Japan has a strong reputation for being a leading player in engineering and technology. It has built a high-value economy based on its innovative products and companies. Japanese consumers tend to be selective, especially regarding product quality and brand credibility. 

However, they can also be open to foreign brands and products, especially if they come with a relatively low price tag. With thoughtful localization, such as through pricing, packaging or marketing, businesses can succeed in penetrating the Japanese market.

Tips for Preparing for International Expansion

Expanding into new markets can be highly rewarding for any small or medium-sized enterprise, especially if you approach this move strategically. Going global often requires you to adapt your operations and messaging to meet new expectations.

Here’s how to set your business up for success before taking that leap.

Perform Market Research

Start by examining your target market’s data and behavior in depth. Look at local spending patterns, cultural preferences and digital habits. Identify your key competitors and find out where they might fall short — that’s where your company can shine.

Use different sources. Aside from whitepapers and market statistics, consider collecting firsthand insights through surveys, interviews or social media engagement.

Understand the Process

Entering a foreign market means adhering to an entirely new set of laws and regulations. You’ll need to navigate import laws, taxation and local compliance standards. Building relationships with local legal and logistics experts early in the process can help you save time and money.

Choose Your Method of Expansion

You have a few different ways to enter a new market:

• In-house expansion: Establishing on-site offices or facilities
• Exporting: Working with international distributors, retailers and marketing agencies
• Partnerships: Mergers, acquisitions or working with a professional employer organization

Choose the model that aligns best with your brand’s goals and available resources.

Form Strategic Partnerships and Networks

Successful expansions depend on strong relationships. Establish local partnerships, such as those with marketing agencies, logistics companies or influencers. These relationships can help you move faster and navigate cultural differences.

Collaborating with local personalities or organizations also builds credibility. People are more likely to welcome your brand if someone they trust endorses it.

Beyond Familiar Borders

Untapped markets can mean thriving economies with consumers who are interested and capable of supporting new brands like yours. While larger competitors focus on saturated areas, you can establish a meaningful presence abroad through informed selection and strategies.