The Supply vs Brand Dilemma: Which Export Business Model Truly Scales?

In exports, founders often face an early fork: build a brand or build a supply engine. Both can scale but they require very different strengths and timelines. Here’s how to decide which path fits you.

Feb 05, 2026

This article is written in collaboration with Sapan Karia, a cross-border commerce and growth capital specialist with over 8 years of experience spanning investment banking, fintech, and international trade.

A former entrepreneur and investment banker, he brings a rare blend of founder empathy and technical depth across due diligence, regulatory frameworks, and global supply chains- helping brands successfully expand into MENA and Western markets.

For decades, the playbook for B2B exports looked almost identical across industries.

Visiting a trade fair, calling up friends and cousins, finding a niche known buyer and building a relationship, etc., is the way to solve for revenue. On the backend, it is built on factories and/or the ability to procure goods at a rate unmatched by others in the market. Let’s call this a Chinese way of Exports for analogy!

Then a very different kind of exporter emerged.

These businesses didn’t start with factories. They started with the customer. They are obsessed with design, storytelling, positioning, and brand. They understood who the end consumer was, what they valued, and how to reach them directly through digital platforms. Instead of competing on cost, they competed on perception, experience, and connection. Let’s call this a European way of Exports for analogy.

The point here is that both businesses are different, and only a handful of founders (if any) can crack both. In fact, they too eventually pick one side - brand side or the supply side to go for their next phase of growth.

Which leads to a compelling question for modern businesses: Which business model is truly built to execute and scale successfully- the one that owns the supply, or the one that owns the customer?

Building your export Business: Brand or B2B?

Traditional B2B exporters resemble the long-standing China playbook- relentless manufacturing efficiency, razor-thin margins, and buyer relationships built on trust and consistency. Export brands look more like the European playbook- distinctive products, compelling stories, and direct consumer relationships.

Neither approach is better. They simply solve different problems. And your personality, skills, and instincts will naturally pull you toward one.

From the outside, both businesses look the same: products going overseas, foreign customers, export paperwork. That’s where the similarity ends. The real question isn’t which path is correct.

It’s the question of which path is right for you.

Choose the brand path if you’re building a business where:

Product differentiation, storytelling, and marketing are core
You manage customers, logistics, returns, and consistency
Constant iteration occurs without losing brand identity
The founder’s mindset leans toward the CMO
Rewards creativity and product thinking
Customer acquisition costs, lifetime value, and retention metrics determine survival

Choose B2B if you’re building a business where:

Cost-efficient procurement/manufacturing is the edge
Buyer relationships drive revenue
Margins are thin, and cash discipline is critical
Quality, certifications, and predictability matter
The founder's mindset leans toward the CFO
Rewards operational excellence and relationships

How to fund B2B vs. Brand?

Funding a Brand: Equity

Export brands usually begin as equity-heavy journeys. Early money goes into product development, brand building, and customer acquisition, long before meaningful returns materialise. You are investing to create demand, not just fulfil it.

Debt typically enters much later through invoice financing, revenue-based lending, and eventually bank credit. Government schemes become relevant once you’ve demonstrated traction.

Your finance lens must go beyond balance sheets. Metrics like CAC, LTV, and AOV matter as much as revenue and costs. Growth often precedes profit, and capital efficiency is tested every single month.

Funding a B2B: Working Capital

B2B exporters can start with far less equity because the business runs on working capital discipline.

You have clear entry paths:

Broker: Lowest capital, highest learning. You get paid to understand the industry by connecting buyers and sellers.
Trader: Start small, even with a single container. Equity funds inventory and receivables.
Manufacturer: Higher capital requirement, but greater control over quality and margins.

Profits may appear earlier than in D2C, but cash flow remains tight. Receivables and inventory cycles dominate your financial life. This is a business that runs on liquidity discipline.

The Rs. 25 Lakhs Experiment

Say you have ₹25 lakhs to start. The mistake most founders make is trying to decide the model in their head. The smarter move is to see where you naturally feel at home. Ignore what looks glamorous. Ignore what LinkedIn and Twitter are celebrating. Focus on what you can actually execute without feeling forced.

Test the Brand Path

Set up a simple Shopify store.
Choose a product you genuinely believe in.
Order the lowest possible quantities and run limited ads.
Notice how you respond to the creative and analytical side of marketing.
Get answers to the questions like: Do you enjoy refining messaging, visuals, and customer feedback loops? Or does it feel draining?

Test the B2B Path

Attend a trade fair in a sector you understand.
Observe what sells, what buyers ask, and where suppliers struggle. If possible, try brokering a small deal.
Notice how you respond to relationship-building, negotiation, and the slower pace of B2B sales. Does it energise you or bore you?

These low-cost experiments will quickly tell you which game you are wired for. Because the truth is- you’re not choosing a business model. You’re choosing the kind of problems you want to solve every day.

And you’re not locked in forever. Many great suppliers become brands. Many great brands move into manufacturing. Both paths work. Choose the game you can play for the long run and play it exceptionally well.