Are you planning to expand your business into a new market? Congratulations! That means you’re doing great! But there are some risks: one of the most common reasons companies struggle abroad is failing to adapt to the cultural, linguistic, and regulatory expectations of their target audience. That’s where localization comes in, ensuring that your product, services, and brand message are tailored to fit the unique needs of each market. Before diving into a new market, building a localization strategy before entering a new market is critical to your long-term success.
We already know how good could bring a localization strategy. It can increase the brand trust, improve customers experience, help to connect with local users. But what could be the consequences of not having a Localization strategy ?
The RISKS
A good localization strategy is vital to ensure an expansion. What are some of the danger or the risks of not having a good plan ?
- Lack of cultural understanding and adaptation due to poor Market research
Understand the culture is vital before entering a market. Because it helps understand the needs of the new customers and meet them. It also avoids miscommunication and misunderstanding.
Let’s illustrate this with an example!
Question : If You have to plan a trip in a different country or city, what app comes to your mind for choosing a place to feel at home, while not being at home ? You guessed it right! Airbnb.
Airbnb is well known around the world as the to-go app to help you feel at home. In Africa, America, Europe and Asia.
But back in 2016, Airbnb tried to expand in China. 6 years after, its business was fully shutdown, closing more than 150,000 short-term rentals properties. It’s true, 150,000 properties is nothing for the giant brand Airbnb. But it helps us understand what can happen to a company if the proper steps are not taken.
What happened ?
Among the potential reasons, let’s mention 3:
- Local competition: One of the reasons may have been the presence of cheaper Chinese alternatives with greater local knowledge.
- Market differences: Running a business in China is likely to be very different to doing it in the West, and Airbnb may have found it too complex and expensive.
- The pandemic: Over the last few years, the Chinese government has implemented several lockdowns and travel restrictions to stop the spread of COVID-19. These will have made business difficult for Airbnb, which relies on people traveling and needing temporary accommodation.
Studying the market is mandatory before an expansion, although the case of Airbnb shows that unexpected situations may happen (Like the Pandemic), a solid plan, helps face those.
In contrast to that, what are the actions that need to be taken in order to succeed in a new market ?
Guide to Building a Localization Strategy
Let’s talk about the 9 elements that can guide us to ensure the smooth expansion of a company
- Conduct Market Research
It helps the company to understand the languages, the cultural norms and values, the local mentality but also to know who are the competitors. - Define Localization Goals
Can help narrow the area of expansion. Working smart, not hard. Asking for example: What contents need localization ? What could be the budget and timeline ? What market should we prioritize ? - Build a Localization Team
Include native speakers, cultural consultants and legal advisors - Audit Your Content
- Choose the Right Tools
TMS (Translation Management System), Style guides and glossaries, LQA Tools - Adapt Design and UX (Use Experience)
Consider the differences from English to Arabic for example. English is read from left to right, Arabic however, is right to left. Consider the text expansion and the cultural preferences in terms of layout. - Ensure Legal Compliance
Check the product labeling laws, advertising regulations and Data privacy standards - Test and Validate
Create Linguistic and functional tests, Focus groups, Pilot campaigns - Monitor and Optimize
Some elements to track are Engagement metrics, Conversion rates and Feedback loops
A good example of expansion will always be Netflix! In order to improve their global reach, the brand hires local directors and produce region-specific contents. Think of “La nouvelle école” in French-speaking countries of Europe. Or “Lolo and the Kid” for the Philippines.
Conclusion
Are You thinking of an expansion ? If yes, Congratulations, it means you’re being successful. But expanding requires a lot of work, a lot of studies to understand the market, to know how to reach the hearts of your customers by speaking like them.
But You don’t have to do it alone, Etranslation is your trusted partner, ready to help you reach a global audience. Message us at info@etranslation.com and let’s discuss your expansion plan
Arthur William Eyango
Learn More
In this episode of Global Voices, discover how creating a Localization Strategy helps you to build trust with your customers
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