GLOBAL
VS
Local
WHAT DOES IT TAKE FOR GLOBAL BRANDS TO WIN IN DIFFERENT CULTURES?
GLOBAL
VS
Local
In order to get a different take on this familiar topic we spoke to a broad range of experts with diverse backgrounds and experience, from awardwinning photography, futurology, languages, and exploration to global franchising, economics and journalism. Here are some of the key themes that emerged during the course of the conversations…
No Blueprint For Success: • T here is no fixed blueprint for a successful market strategy. This is particularly true in a market as massive, complex and diverse as China, for example • T raditional models aren’t necessarily the answer - the advantage that foreign brands have in being perceived as higher quality than ‘local’ counterparts is rapidly being eroded • T here is a risk of consumers feeling alienated by big foreign brands - often one of the most successful strategies is to acquire a local brand rather than impose a generic global brand into an independent culture • D ifferences in local cultural context are crucial and constantly changing - high-end global brands in China have traditionally succeeded by emphasising their ‘Westernness’, whereas more mass-market brands have succeeded by emphasising their understanding of and relevance to local consumers and tastes
Think of Human Communality, Not Countries: • D on’t think of markets or ‘global’ - think of bands of human communality; not consumers, but people with rich and diverse backgrounds and cultures - and decipher what passions drive those people • G eneralising consumers into markets for the sake of internal business structures leads to weakened impact among those we are trying to connect with • D rive connection at a human level regardless of & beyond culture. We are all human beings with relatively common needs: understand the basic needs and how these could be met or enhanced through global products. Connect at a human level, and your global brand will make local impact
Find a Common Language: • L anguage is a good first step to explore the nuances of a culture. Exploring, understanding and testing out how everyday words are expressed locally can guide you as to how to express your own core messages • B e careful - translating your brand to another language doesn’t mean the connotation of who you are and what your message is has been captured • N on-verbal ‘languages’ can be more powerful ways of communicating across different markets/ cultures than others, such as dance or the power of an image – is it possible for global brands to find such a common language?
“Leave the Compound” & Engage Locally • I t pays to have as deep an understanding of the markets and consumer segments you are targeting as possible, and that requires genuine local knowledge. One expert referred to the Western business leader ‘leaving the safety of their Western compound’ to immerse themselves fully in the local culture • G o granular - take the time to understand and study the nuances of a market. For example, SubSaharan Africa is not one but many markets, with stark differences in behaviour and preferences between different generations of consumers within a single city – and even more so between provinces or regions • I f there is a local tradition or value that appears to be an obstacle, delve deeper to understand more about it. Ask questions locally to find out how else that tradition or value could be met, and explore possible options which would be accepted as meeting with or complying with the tradition or value • T ake care to test out and separate out personal opinions given locally from what are genuinely the local cultures and values, especially if the personal opinion impedes your intended actions
Nuance is Everything • I f you hire for senior roles, it’s usually better to hire locally as they know the cultural nuances. The same is true of brands – knowledge of local nuances could be the difference between success and failure • T raditional research techniques can be dangerously misleading in cultures where negativity is avoided through social convention • G lobal brands can be meaningless beyond quality without a local framing. The decline of the global mainstream brand means local always wins at entry level • B e global but act local - global brands need to follow clear distribution guidelines and yet operating ‘locally’ requires such a high level of informality, so leverage local shop and market stall owners, making sure they buy into your product
PTO
Don’t Oversimplify: • W e tend to lump together whole countries with vastly different cultures, cuisines, passions, habits, values – how can we possibly create something that speaks to all these different voices when they’re so different? • B e wary of trends - they’re a good starting point but cultural shifts move faster than the reporting of them • B ear in mind that what we think of a region and what consumers think of a region are different things • Be market-led - often differences are defined by regions as opposed to country borders
Be Nimble But Pragmatic: • T he bad news is that by the time you’ve understood the market landscapes, it’s probably changed almost beyond recognition. So you have to be as nimble and adaptable as possible • T ake brand expansion step by step – rather than rolling everything out at once, try and see whether a product works first, refine, and then roll out
6th Floor 103-113 Regent Street London W1B 4HL Jonathan Williams +7734 563 541 jonathanw@mash.uk.com