Localization Strategy For International Growth

It’s no secret that both retail and eCommerce businesses eventually decide to expand internationally as a part of their growth strategy. Exploring new markets and a new consumer base in a different country is simply a logical thing to do. 

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After all, we’re all connected via the Internet, so all you have to do is adjust to the new market and ensure your company can let down its roots. Sounds simple enough, but it’s far from it. 

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What business owners need to understand is that expanding internationally isn’t just about opening a store or a production line in another country. 

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The fact of the matter is that it’s so much more than that. You’re targeting a new market, new audience and competing against new competitors in a completely different setting. 

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In other words, you can’t use the same strategies and approaches as in your local market. Instead, you have to start from scratch, and in order to do that, you’ll need a solid localization strategy. But what exactly does that mean? Let’s have a look then.

What is a Localization Strategy?

Technically, a localization strategy is a market approach to translating content offers and messages and adjusting them to the new market with cultural differences, linguistic barriers and other relevant factors in mind. Your content must sound and feel local so that your new audience can accept it more easily.

Why is a Localization Strategy Important?

As you may already know, the key to business success is appealing to your target audience. That rule is the same in every country. 

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That said, analysing your customers’ behaviour and purchasing habits allows you to craft your marketing strategies that will appeal to your audience and convince them to convert into paying customers. 

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Now, when you expand to an international market, you have to do the same for the local audience in the country you’ve expanded to, right? However, you have to communicate with the local audience on their own terms and in their native tongue. 

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Well, this is where the localization strategy comes into play, but it’s not designed to translate your content word-for-word. Instead, its purpose is to adjust your content for the local culture and language. 

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But how? By paying attention to details, that’s how. Here are a few examples of what localization does compared to literal translation:

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• Localization factors in idioms and slang used in your content that may or may not be appropriate for the local culture.
• Localization adjusts symbols, icons and slogans that are present in your content.
• Localization modifies currency, time and date formats to the local environment.
• Localization restructures your content. For example, articles in English are read left to right. Restructuring it for Japanese would mean adjusting the article so that it can be read from top to bottom and right to left.
• Localization maintains your brand’s tone of voice despite the adjustments.   

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As you can see, localization is a more delicate approach to penetrating a foreign market. That said, it can also be applied to other business operations and not just content marketing. 

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For instance, you will now have to account for international logistics, not just the local one in the country your business has originated from. 

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It goes without saying that different countries have different laws and regulations regarding foreign trade. But they also have different customs and holidays that affect how they operate. 

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Therefore, localization helps you adjust to everything the foreign market has to offer, even establishing proper contact with local suppliers and manufacturers.

How Can a Localization Strategy Help Your Business Thrive in a Foreign Market?

Expanding internationally doesn’t mean you can barge into a foreign market and expect to be welcomed with open arms. 

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Things simply don’t work that way. Instead, you need to be more subtle and ease your way into the hearts and minds of the foreign audience. 

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That’s why you should have a localization strategy to begin with. So, how exactly does localization help you thrive in a foreign market? Here are a few examples:

1. Understand the Local Market

Localization helps you truly understand the machinations of the foreign market. It helps you communicate with the local audience, understand their preferences, needs and expectations, as well as helps you understand what sort of products or services they’re most interested in. 

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As a result, you can expand your reach and provide the audience with relevant content that will make them interested in what you have to offer. 

2. Create a Positive Sentiment

Reputation is everything in today’s business world. That said, you can build your reputation for years and lose it all in a matter of seconds if you’re not careful enough. Through localization, you show willingness and effort to adjust to the needs of the local audience. 

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No one expects you to nail it down on the first try, but don’t think that your foreign prospects won’t notice. When customers see that you’re trying, they’re more willing to give you a chance and will certainly appreciate what you’re doing. 

3. Boost Your Speed to Market

The faster you adjust your business endeavours through localization, the sooner you’ll be able to penetrate the market and start selling your products. More importantly, you’ll present yourself to the local audience faster. 

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The general rule of thumb for every market, foreign or otherwise, is that every new business is potentially more interesting to consumers than well-established companies those consumers are already familiar with. Call it curiosity if you will, but consumers do enjoy fresh new ideas and different experiences that new businesses offer. 

4. Higher ROI (Return On Investment)

The longer you spend trying to get a foothold in a foreign market, the longer it will take before you can make any sales. And, as you already know, expanding internationally is quite an expensive venture. You cannot simply afford to fumble in the dark while your competitors outrun you more each day. 

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A localization strategy can help you get that foothold much sooner than it would normally take, which means you’ll be raking in the profits in no time. This can mean the difference between successfully establishing your presence in the foreign market and declaring bankruptcy. 

5. Establish Relevant Connections

As mentioned before, a localization strategy can be applied to other business operations rather than just content. By adopting localization in other business endeavours, you’ll be able to establish meaningful connections in the local market. 

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That means finding the right employees, suppliers, manufacturers, wholesalers and so on. In other words, you’ll be able to set up your eCommerce logistics faster and more efficiently than without localization. 

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With the right connection and the right strategy, you'll soon be able to haul goods from the biggest ports in Europe and ensure that your business is operating on foreign soil as efficiently as it operates back home. 

How to Create a Localization Strategy the Right Way?

A localization strategy is not something you come up with on the go. As mentioned before, expanding internationally is expensive and if you want to succeed, you better do some research before you put things in motion. That said, here are a few tips that will help you utilise localization to its fullest potential.

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• Research the market you wish to expand to before you start moving there.
• Find localization experts to help you understand the local culture, people and their customs.
• Prepare content in advance so that you can launch a fully-developed marketing campaign as soon as you open your business in a different country.
• Find a way to set up your supply chain and logistics plan in advance.
• Research consumer preferences and procure goods they are interested in the most.
• Develop an execution strategy and monitor your progress from day one.
• Analyse results and adapt.

Localization Strategy Example

If you would like to see a good example of a localization strategy, look no further than Netflix. Although not an eCommerce business, Netflix is an international service provider, so their approach doesn’t differ all that much from an online store. But what are they doing right with their localization strategy? Here are a few examples:

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• From subtitles and dubs to customer support and user interface, Netflix places a lot of effort to accommodate the needs of their foreign customers in their native language.

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• Adhering to customer preferences is another thing Netflix does right. They actually analyse user feedback and data to present content recommendations more accurately. Moreover, they will prioritise subtitles or dubbed versions of content depending on what their customers prefer more.

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• To top it all off, Netflix pours a lot of resources into creating original content for their foreign audiences. They will work with local studios to create movies and TV shows specifically for their foreign audience and in their native language.

Successful Expand Internationally With Bezos

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Using a localization strategy to expand internationally is no easy task, to say the least. More often than not, businesses need help with establishing their supply chain on reign soil. Here at Bezos, we have a global fulfilment network that can be of great assistance in your expansion endeavours. 

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Not only can you use our network and top-notch fulfilment software, but we’ll also help you get your localization efforts in order. So, reach out to us today, and we will be happy to be a part of your company’s international growth. 

Conclusion: Ensuring International Business Growth With a Localization Strategy

Every time a company wishes to expand to a foreign market, they must start from the very beginning. After all, each local market operates differently, and every consumer base has its own preferences. 

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The only way to truly grasp the gravity of the new environment is through a localization strategy that will not only create a foothold for your company but also open new doors for your business to flourish in a foreign market. 

FAQ:

What is a localization strategy?

As mentioned before, a localization strategy is a company’s overall approach to adapting its content to the local language, culture and social norms, so that they can be accepted in the foreign market with relevant ease.

What is an example of localization?

A good example of localization is when an international brand adjusts customer experience in the foreign market using technology, culture and content, while maintaining their brand identity and tone of voice.

What is a localization method?

A localization method is a process of creating or adjusting existing products or services to fit the cultural, linguistic and other needs of a foreign market. In other words, you’re modifying your existing business strategies to fit the criteria of a new market. 

What is a localization strategy in translation?

A localization strategy in translation is how the company adapts their content offers and messages to a foreign language, not just translating everything word-for-word. Both the content and the messages must resonate with the foreign audience, which is why localization is required, to begin with.

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