A small output of high quality wine, or a river of low quality wine? What are the South African farmers to do? Make some more good wine I hope. Insipid wine does not just leave a bad taste in the mouth; it is also difficult to continuously get rid of at a decent price.
The next step is finding a proper way of telling the emerging middle class (Black Diamonds) about it. Yes, exports are all well and good, especially with the current rate of exchange, but it is always better to have a strong home base.
With all the international awards that the local wine industry is raking in, there certainly is a lot of talent around (not just winemakers, but also viticulturists and marketers), plus some terroirs that have achieved prime stature, even if not situated in France.
It seems quite straightforward to me that if you produce a superior wine, there will be sufficient buyers wanting to enjoy it. The proviso is to put it into a bottle with a label that is comparable to that quality. Then of course, you need to spread the word by means of advertising, publicity, tastings plus perhaps introductory or promotional offers to get the consumer to believe your message and wanting to share your history. As in all things, balance remains the key.
Everyone enjoys excellent quality, loves a good story, and most people are prepared to pay handsomely to enjoy greatness and share the status that such a label accompany.