Glocalization: Blending Standardization and Localization
International expansion is a common business growth strategy, but success hinges on deeply understanding the target market’s needs and desires. You need to ask questions like whether your product or service can be standardized or needs localization to resonate with local consumers.
Fortunately, a third option leverages the benefits of both standardization and localization: glocalization. This strategy allows global companies to maintain their brand identity while adapting specific elements to suit local markets.
Real-World Example
Many large companies have successfully implemented this strategy. A prime example is Apple. When launching its "I’m a Mac, I’m a PC" ad campaign, Apple realized the confrontational tone of the English version didn’t resonate with Japanese culture. Instead of simply presenting a product opposition, the Japanese version adjusted its approach, portraying the PC as a work option and Apple as a solution for weekend leisure activities.
Benefits of Glocalization
Glocalization allows brands to:
-Maintain brand identity: You can preserve core values and brand image while adapting to local needs.
-Strengthen consumer connection: By understanding and adapting their message, brands can forge stronger connections with local consumers.
-Optimize costs: Combining standardization and localization saves on product development costs and time while ensuring market fit.
Glocalization is a powerful strategy for global brands striving for international expansion. By combining the benefits of both standardization and localization, companies can thrive in a competitive global business environment.
Glocalization: Combining Global Strategies with Localization
Glocalization, as the name suggests, is a blend of "globalization" and "localization." This term reflects the interplay between global standardization and local cultural adaptation. Simply put, glocalization is the process of combining global strategies with localized strategies to better connect with consumers in each region.
Why is Glocalization Important?
-Optimizes Consistency: Helps brands maintain a global identity while remaining relevant to local needs and preferences.
-Enhances Connection: Brands can more easily engage consumers by tailoring products and marketing campaigns to suit local culture and consumption habits.
-Expands Market Reach: Creates opportunities for brands to increase their global presence without sacrificing their identity.
How to Implement Glocalization
-Market Research: Understand the needs and desires of local consumers.
Product Adaptation: Customize products or services to suit local tastes and consumption habits.
-Marketing Strategy: Implement communication campaigns that are culturally relevant to each region.
Glocalization not only helps brands to thrive but also fosters deeper connections with consumers worldwide. By adopting this strategy, companies can optimize business efficiency in an increasingly interconnected world.
5 Companies That Found the Balance Between Global and Local
The following international brands have successfully combined globalization and localization strategies to build a strong global market presence.
1. Whirlpool: Adapting Products for Different Cultures
Whirlpool, a multinational American home appliance manufacturer known for its washing machines and dryers, adapted its washing machines in India with a special agitator to accommodate saris, the prevalent clothing. Additionally, Whirlpool adjusted washing machine designs in East Asia with floral patterns to enhance aesthetics and align with local preferences.
2. Coca-Cola: American Brand Succeeding in China
Coca-Cola has employed a glocalization strategy to strengthen its presence in China. The company altered its advertising messaging to incorporate local culture, such as in its 2017 Lunar New Year campaign, utilizing folk art and celebrating family values. These adaptations have helped Coca-Cola build a strong customer base in this market.
3. Prowly PR: Breaking into the US Market
Prowly PR, a Polish software platform, faced challenges entering the US market due to a lack of media database. To compete, the company added this feature to its product and developed SEO strategies, leading to success and ultimately its acquisition by Semrush in 2022.
4. Garaventa Lift: Marketing Global Accessibility
Garaventa Lift, a Canadian company providing elevators and wheelchair lifts, promoted global accessibility by building a brand message based on its core story, while adapting it to fit local cultural perspectives and legal requirements. This helped them better connect with each target market.
5. Baker Hughes: Local Partnerships to Simplify Logistics
Baker Hughes, an energy technology company, uses a local partnership model to improve logistics in over 120 countries. The company builds relationships with local partners to optimize delivery processes, saving customers time and costs.
These brands demonstrate that combining globalization and localization strategies creates significant value. By understanding local market needs and desires, companies can optimize their products and services for more effective customer engagement.
Developing Your Own Globalization Strategy
Building a successful globalization strategy requires considering many factors to ensure your product or service meets local market needs and desires. Here are key steps:
1. Research Your Target Market
Customer Segmentation: Understand local customer consumption habits, preferences, and needs.
Competitor Analysis: Consider how competitors are operating and adapt your product accordingly.
2. Define Products and Services
Standardization vs. Localization: Decide whether your product should be standardized or adapted for each market.
Special Features: Consider adding special features or services to meet specific regional needs.
3. Build Your Brand Message
Respect Local Culture: Adapt your advertising message to fit the culture, language, and aesthetics of each market.
Use Local Language: Ensure all communication materials are accurately translated and contextually appropriate.
4. Establish Local Relationships
Find Local Partners: Build partnerships with local businesses to facilitate market entry and gain deeper customer insights.
Engage with the Community: Participate in community activities to build brand awareness and trust.
5. Evaluate and Adjust
Track Performance: Use KPIs to measure the effectiveness of your globalization strategy.
Make Necessary Adjustments: Use data and market feedback to adjust your product, service, and marketing strategy.
Developing a globalization strategy is more than just expanding into new markets; it’s about building relationships and understanding local cultures deeply. By following these steps, you can create a strong global brand that remains relatable and relevant to each local customer.
Conclusion
Developing a successful globalization strategy is a journey requiring deep market understanding and customer needs. Successful brands like Whirlpool, Coca-Cola, and Prowly prove that combining global standardization and localization—through glocalization—is an effective way to expand reach and gain acceptance in new markets.
To achieve this, you need market research, defining suitable products, building compatible brand messaging, and establishing relationships with local partners. Monitoring performance and adjusting strategy based on market feedback is crucial.
Ultimately, a strong global brand isn’t just a logo; it’s a story that connects with consumers across diverse cultures. By understanding and respecting that diversity, you can create sustainable value for your business internationally.
