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You’ll often hear people raving about the perceived necessity of businesses ‘going global’ in the 21st century. It’s easy to see their reasoning. Global brand recognition is a powerful force – people like to stick with what they know and trust, and as such will often welcome a Starbucks sign amidst a street full of unknown coffee shops.
There’s also the fact that going global often means having overseas factories or offices where production costs and salaries are low. Consequently, the more international the brand, the more likely it is to offer customers the most competitive prices.
In other words, there’s no denying that an increasingly connected world of business brings fresh challenges to localized companies with largely unknown brands. It is of course possible to experience success without taking your brand abroad, and expanding your market is certainly not right for every business.
However, if going global might be right for your brand, then here are some things to consider.
International competition and compatibility
A winning business formula in one country does not always equate to equal success in another. Take Uber, for example. The phenomenally popular app-based taxi service has transformed the way people use transportation in cities. Uber has experienced great success in multiple countries to which it has extended its business – but not in all of them. In China and Brazil, Uber has been the subject of countless protests from taxi drivers and transport lobby groups who are angered by how the global brand is bad for local cab driving businesses. In this case, Brazil and China are hostile to Uber because it is an international company. In other cases, however, countries might simply be uninterested in the product or service you are bringing to their land.
In Sweden, a popular mobile payment system called ‘Swish’ has become immensely popular. In an almost cashless society, it’s not surprising that the Swedes have developed numerous digital payment options for consumers to choose between. As such, international digital payment options such as Skrill have to compete with local businesses, often failing to woe the Swedish consumers for whom services such as Skrill are hardly ground-breaking. Similarly, eBay struggled to compete against the local ecommerce equivalent, TaoBao, when moving into the Chinese market.
Finally, it’s worth considering how compatible your service or product is with the local society. If your brand is specialized in providing high-end fashion to young women, then it would be unwise to open shop in a low-income area where young women don’t typically have as much expendable cash. It is also important to be sensitive to tradition and customs. For example, McDonalds may have plenty of pork-based meals on their American menu, but the mega fast food brand does not serve pork at its outlets in Islamic countries, as pigs are considered unclean animals by Muslims, and eating them is ‘haram’.
In summary, it is vital to factor in how a deeply-rooted social mind-set or business landscape can prevent your brand from enjoying the same degree of success in different countries. A great deal of market research and local expertise is required to prepare for such potential obstacles.
Brand appeal and advertisement
It’s not just what you have to offer, but how you choose to market it, which can present challenges abroad. Most of us have at some point, either when abroad or scrolling through humorous images online, seen an unfortunately named product or brand which made us giggle. The Iranian washing detergent ‘Barf’ means ‘snow’ in Farsi, but is slang for something not typically associated with cleanliness in the UK. Does your brand name and imagery translate well into different languages?
In some countries, certain types of adverts are forbidden. Take Pokerstars, one of the world’s most popular poker sites. Their expensive, stylish commercials feature celebrities like Cristiano Ronaldo and Neymar Jr – but PokerStars are not permitted to air these commercials in countries where TV gambling ads are forbidden. Thus, PokerStars can’t expect the same conversion from their ads in all countries they operate within, and the brand must therefore adapt its marketing techniques based on each country’s’ applicable advertising laws.
Consider also that what we openly discuss in one culture might be a social taboo in another. Hygiene and sanitary products, for example, are often advertised openly in the West – whereas in other countries, such a free discussion of products pertaining to private matters would be inappropriate.
Laws and regulation
Lastly, but most importantly – consider the legal framework of taking your business abroad. Different countries will require you to operate under different licenses as well as abide by different production, marketing and employment policies. It’s a logistical nightmare unless you have done your research and have local contacts to help provide you with the necessary references, paperwork and information. Everything from employment laws to tax regulations differs from country to country, so prepare for a business-based culture shock.
These are just a few examples of why globalizing your brand is rarely as simple as merely implementing the same business model abroad. In summary – globalizing your brand can mean reforming more aspects of your business than you might have initially thought necessary. The payoff can be amazing if you globalize correctly – which could involve months of scrutinized preparation and planning.
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