As more and more companies explore the global marketplace, brands realize that English content alone isn’t enough to penetrate foreign markets and international audiences. Glocalization, localization, international expansion. It’s the talk of the town. And if you don’t know what we’re talking about, this article was created with you in mind! But if you don’t, you might be wondering what is glocalization!
With up to 70% of foreign market consumers refusing to buy products and services that aren’t marketed in their local language and with their culture in mind, the language and cultural barrier can halt brands from expanding if they don’t deploy tactics like glocalization.
Why Not Just Localization?
Localization is a great way to help brands conform to local culture and preferences. This process sees materials and information localized, so it effectively addresses the consumers in their local language.
Localization goes beyond translation, where the focus is merely on written content.
This process also adjusts brand colors, layouts, images, fonts, currency, date and time formats, and other design elements, so it conforms to the culture of a region.
After a product or service has been localized, the brand can offer its audiences a truly global product. However, localization is not the answer for businesses across the board.
Enter: Glocalization
What is glocalization, you ask? Sociologist Roland Robertson explains that glocalization is a term coined by Japanese economists which describes their global marketing strategies.
As the name implies, it’s a combination of localization and globalization, which are two different processes. Although the term was first mentioned in a 1980s Harvard Business Review, it was popularized by Robertson.
In essence, glocalizing is about particularizing and universalizing a service or product from local businesses, which suits contemporary social settings on local and regional levels. It’s about adapting the product to the local culture or locality of foreign markets and is suitable for services or products developed for global distribution, altered to fit local consumers.
With glocalization, products and services are marketed globally but tailored and adjusted to the preferences of local consumers, so they adapt to local customs and laws.
Glocalization in Local Markets and the Global Market
Glocalization tends to work better in businesses with decentralized management structures and brands that compete in different cultural settings on a global scale.
Yes, it is a significant investment, but it also offers an impressive ROI. It also affects global business in different ways.
Local events can impact the global market in the same way that international events can be very significant in local markets.
So, there’s an interconnection between markets on continental and global levels. Glocalization, and consequently glocalism, pushed the services and products to the global and regional consumers simultaneously.
With globalization, you’re attempting to reach all your audiences at the same time, offering them all a product or service that meets their wants and needs.
What is Glocalization and How Does it Differ From Localization?
Although they’re similar in nature, glocalization and localization are not one in the same thing. Instead, they’re like two interdependent economic systems.
With localization, we address local cultures and linguistic barriers on a global level. We also adjust the product or service based on market research for the target markets.
In glocalization, the product is altered and technically enabled so that it can be localized. So, in essence, the commonality between localization and glocalization is that both adopt a brand’s offerings on a continental and global level.
Here’s a more straightforward explanation of the steps involved in the process:
Translation
Translation transforms the message from the source language into the target language.
Localization
This is a process that revolves around transforming the nonverbal items like music, sound, videos, graphics, and textual components like fonts, color scheme, and layout to ensure everything appeals to local customers and their circumstances.
Glocalization
Glocalization promotes the influence of prevailing cultures and languages via translation, but localization promotes the status of smaller cultures and languages by enabling them to vie against the major languages. Glocalizing is a type of community organizing where multinational corporations market their offerings to different countries, each with adapted marketing strategies on local level.
Examples of Glocalization in Action
Many multinational companies have used glocalization to establish their brand in local markets. Here are some great examples of how glocalization works:
#1 – Coca-Cola
Coca-Cola used glocalization to reach its global audience. In 1990 the company realized that its international marketing campaign wasn’t showing enough ROI and subsequently decided to establish its global brand strategies.
They even went as far as modifying their beverages according to local tastes. From new packaging and distribution methods, they tailored their products in every market so it would feel more like a local product.
#2 – McDonald’s
The food chain McDonald’s effectively rolled out its glocalization campaign by replacing their famous beef burgers with Mcaloo Tikki burgers in India to cater to the local market.
Similar to this trend, the KFC food chain also sells spicier chicken in India compared to their offerings in other countries around the world.
#3 – Google Pixel
Google Pixel Phones have shutter sounds that users can choose to disable. But in India, the law requires all camera phones to make a clear shutter sound when taking photos.
To cater to this requirement, Google’s glocalization campaign for Pixel saw it modifying its phones according to the Indian government’s regulations. The result? It could sell its phones on the Indian market!
What Are the Advantages of Glocalization?
Expansion in foreign markets, that’s the aim of the game! The first and most apparent benefit of the process is that it helps businesses expand in international markets.
Increased sales
This is another apparent advantage. You’ll be able to increase your sales by glocalizing your product according to the needs of the local market.
Global brand recognition for local businesses
By glocalizing your brand, you’ll become a recognized name in local and international markets. This increases sales and increases brand popularity across the world.
Employment opportunities within the local market
Companies that glocalize their products and services often enter the foreign markets and hire a local workforce. By doing this, they’re also creating job opportunities in the local market, which further drives brand awareness and loyalty.
To Glocalize or Not? That Is the Question!
Many brands are still wary of glocalization since it requires significant investment. There’s also the risk of being unable to realize location economies or failure to transfer core competencies to foreign markets.
Plus, implementing a glocalizing strategy to target audiences around the world in different countries can be very tedious. Why? Well, because it requires extensive knowledge and experience in the field.
If you’re ready to explore what glocalization can bring to your proverbial table, get in touch with Day Translations today.
Our team of experts can assist you with determining whether it’s the right strategy for your business and its long-and-short term goals!