In today’s interconnected world, global brands have the opportunity to expand their reach and explore new markets. However, brands must undergo a localisation process to succeed in these markets. Brand localisation involves adapting a global brand to a local market’s specific cultural, linguistic, and regional characteristics.
What is Brand Localisation?
Brand localisation refers to adjusting a company’s products, services, promotional techniques, and overall brand reputation to align with a specific market’s tastes, demands, and cultural nuances. It involves tailoring different aspects of the brand to connect with the target customers in a particular geographic location. Brand localisation aims to develop a meaningful and authentic relationship with local consumers, enabling the brand to stand out and thrive globally.
Factors such as language, culture, customer preferences, market trends, compliance with local laws, and competitive landscape must be thoroughly researched during the localisation process. It requires a deep understanding of the local market dynamics and balancing maintaining global brand integrity and achieving local relevance. By adjusting and customising brand components such as product attributes, presentation, packaging, advertising, pricing, distribution methods, and customer engagement, brands can create a localised brand experience that resonates with the target market, establishes credibility, and fosters customer loyalty.
The Importance of Brand Localisation
In an increasingly interconnected world, more than a one-size-fits-all strategy is needed to reach targeted consumers. This is where brand localisation comes into play.
■ Building Cultural Relevance: Brand localisation is vital in developing cultural relevance. By recognising and appreciating the distinct cultural characteristics of various regions, brands can deepen their connections with local consumers. For example, during Ramadan, Coca-Cola’s localised ads and packaging designs resonate with Muslim consumers, honouring the cultural significance of the holy month and forging a more robust cultural connection.
■ Enhancing Consumer Engagement: Brand localisation enables businesses to tailor their product offerings to local consumer tastes, increasing credibility. Starbucks effectively localises its drink selection in China by introducing flavours such as matcha and red bean, attracting Chinese consumers and fostering a stronger brand-consumer relationship.
■ Overcoming Language and Communication Barriers: Language localisation is essential for effective brand communication. Google offers localised versions of its search platform, including search results and a user interface in different languages. This customised user experience reflects Google’s commitment to serving diverse linguistic communities, promoting inclusivity, and strengthening the brand’s relationship with consumers.
■ Gaining Competitive Advantage: Brand localisation provides a competitive edge by addressing local demands. L’Oréal customises its skincare products for individual markets, gaining market share and increasing brand presence. By tailoring offerings to local preferences, brands become the preferred choice for consumers seeking culturally relevant items.
■ Nurturing Long-Term Relationships: Developing lasting connections with local customers involves brand localisation. IKEA’s retail localisation initiatives, which consider local preferences, living environments, and design sensibilities, have resulted in a loyal customer base recommending its products to others. Engaging in localisation efforts builds long-term relationships and brand advocacy.
Key Considerations for Brand Localisation
Successful brand localisation requires a well-researched, comprehensive, and effective strategy. Here are some key factors to consider:
■ Understanding Local Market Dynamics: Mastering the target audience’s behavioural patterns, tastes, and cultural specifics is crucial for effective localisation. Conducting thorough market research and analysing demographic data helps gain insights into regional habits, perspectives, and objectives. By personalising offerings to local expectations, brands can develop effective marketing strategies.
■ Adapting Brand Identity and Values: Striking a balance between global brand consistency and local relevance is crucial when enhancing brand values and identity. Brands should identify universally appealing brand features while remaining adaptable to local cultural guidelines, beliefs, and preferences. This balance allows brands to maintain their global reputation while connecting with local customers authentically.
■ Customising Products and Offerings: Sustainable brand localisation involves tailoring products to local preferences and consumer behaviours. Adjusting product features, packaging concepts, and sizing enhances appeal and relevance in the local market, resulting in higher customer satisfaction and acceptability. Incorporating local tastes, components, or variants creates a unique and engaging consumer experience.
■ Crafting Localised Brand Messaging: Localizing the brand’s message requires translating and transforming promotional material into the target consumer’s language while maintaining clear communication and engagement. Appropriate translation, cultural sensitivity, and context-specific adjustments are essential for effectively communicating the brand’s message across languages while preserving brand integrity. Collaborating with local representatives can significantly enhance brand credibility and relevance in the local market.
■ Developing Channel and Distribution Strategies: Local partners contribute valuable market information, established networks, and local business experience. By leveraging their knowledge and building strategic relationships, brands can overcome challenges, identify opportunities, and access local resources and distribution channels more efficiently. Identifying the most effective distribution channels in the local market is crucial for successful brand localisation, encompassing physical stores, e-commerce platforms, distributors, and local marketplaces.
■ Incorporating Local Customer Engagement: Localizing customer service and support is essential for an excellent customer experience. This includes offering customer support in the local language, understanding local preferences and communication methods, and providing prompt and relevant assistance. Brands can foster loyalty and credibility by responding to customer inquiries and feedback in a localised approach. Active participation in local events, festivals, and online platforms also helps brands connect more deeply with the local community.
Successful Examples of Brand Localisation
McDonald’s: Customising the Menu
McDonald’s successfully localises its products by incorporating regional specialities while maintaining a unified brand identity. In India, where beef consumption is not typical due to religious beliefs, McDonald’s offers a variety of vegetarian alternatives, such as the McAloo Tikki burger and the Masala Grill Veg burger. Similarly, unique flavours like Teriyaki McBurger and Ebi Filet-O shrimp burger are available in Japan. McDonald’s has established a strong presence in various countries by customising its menu to local preferences.
Coca-Cola: Embracing Local Festivities
Coca-Cola engages in brand localisation by participating in local festivals and cultural celebrations. The company designs limited-edition packaging and promotions that resonate with local festivals, connecting with the local customer base. For example, during the Chinese New Year, Coca-Cola offers special bottles with traditional Chinese emblems and prosperity wishes. Coca-Cola develops brand loyalty and emotional connections with consumers by actively engaging in local events.
Airbnb: Tailoring Experiences and Localisation
Airbnb focuses on providing personalised experiences to travellers, recognising the value of cultural immersion. By encouraging hosts to highlight local culture and offering personalised guest experiences, Airbnb creates a sense of home for travellers. Whether a traditional Japanese tea ceremony or an Italian cooking class, Airbnb’s localisation efforts contribute to unique and interactive travel experiences.
Nike: Partnering with Local Athletes and Artists
Nike collaborates with local athletes and artists to define local culture and inspire communities. By incorporating their stories, designs, and opinions into marketing campaigns and product releases, Nike effectively communicates with consumers and demonstrates its commitment to local areas. Collaborations with notable basketball players in China and African artists have produced localised products that resonate with local sports and art enthusiasts.
Starbucks: Creating Unique Store Experiences
Starbucks is known for creating distinctive store experiences that combine the brand’s identity with local characteristics. While maintaining consistent ambience and menu selections worldwide, Starbucks incorporates local design inspirations, materials, and artworks into its stores. By respecting each region’s unique culture and aesthetics, Starbucks provides a sense of familiarity and relevance.
Future Trends and Challenges in Brand Localisation
Brand localisation is an evolving landscape as global markets become more interconnected. Some emerging trends and challenges include:
■ Leveraging AI and ML for better market insights: Artificial intelligence and machine learning can provide deeper market insights, enabling brands to make data-driven decisions in localisation strategies. Analysing vast amounts of data, including consumer behaviour and social media trends, helps identify new possibilities and real-time consumer preferences.
■ Adapting to changing consumer preferences and digital transformations: Technological advancements and social trends continuously shape consumer preferences. Brands must adapt to these changes to remain relevant. Localisation efforts should address changing consumer demands such as customised experiences, convenience, sustainability, and digital engagement, offering a competitive advantage in local markets.
■ Navigating complex regulatory frameworks and cultural sensitivities: Understanding local laws and cultural norms is crucial when entering new regions. Brands must comply with regulations while considering cultural nuances, beliefs, and sentiments. This requires an understanding of market-specific practices, traditions, and social standards.
■ Balancing local efforts with global brand identity: Balancing global brand consistency with localisation is challenging. Brands must strike the right balance by adjusting to local tastes while maintaining essential brand values. Consistency in communications, values, and visual appearance contributes to the growth of a powerful global brand while facilitating localised adjustments.
■ Anticipating and responding to geopolitical and economic shifts: Global events, such as geopolitics and economic trends, directly impact brand localisation strategies. Brands must stay updated and adapt to these changes. Trade policies, economic stability, and consumer sentiment influence market dynamics and behaviours. Proactively predicting and responding to these trends positions businesses to handle challenges and capitalise on advantages in local markets.
Brand localisation is a critical strategy for multinational brands seeking success in local markets. By understanding local market characteristics, updating brand identity and products, crafting localised brand messages, implementing effective marketing strategies, and engaging with local customers, brands can develop strong connections and expand their businesses. Successful examples from McDonald’s, Coca-Cola, Airbnb, Nike, and Starbucks pave the way for others, making brand localisation a promising approach in diverse marketplaces.
Author- Md Tazrian Sarker
