Using product localization strategies to expand global reach

When you’ve successfully launched a product within your home market, you’ll inevitably begin to consider expanding to new territories to continue your growth. However, not every country values the same things, even when they speak the same language. Because of this, you might need to adjust your product to suit local needs.

Product localization helps you do that. This article covers the basics of why you should localize your product, how you can introduce a product localization strategy, and the challenges you might face when you do so.

What is product localization?

Product localization is the process of adapting a product to meet the specific language, cultural, and functional requirements of a particular market or region.

Localization is more than simply translating content into a new language and can involve modifying design elements, adjusting marketing strategies, and ensuring compliance with local regulations.

What are the benefits of product localization?

You should consider product localization mandatory when launching products within non-local markets in order to maximize the chances of success, delivering benefits such as:

• Enhanced customer experience — Localized products resonate better with local users, which encourages usage and, in turn, leads to greater satisfaction and engagement
• Improved brand loyalty — When customers feel understood and valued by a brand, they’re more likely to remain loyal to the brand and share this loyalty with their network
• Higher conversion rates — Adapting marketing strategies and product features to match local needs can lead to increased sales and conversions as approaches resonate more with the audience
• Competitive advantage — By localizing offerings, you can differentiate your products from competitors that perhaps don’t customize their products for the market

How do you introduce a product localization strategy?

Whenever you’re planning to launch within a new geographical market, consider the following key steps:

1. Market research — The first place to start is with market research that allows you to understand the target audience, cultural nuances, and the local market. You can use your research to inform the steps that follow
2. Define objectives — Once you’ve completed your market research, set clear goals for the localization process, such as market penetration, brand awareness, or user engagement
3. Create a localization plan — After this, create a localization plan, which outlines the scope of work, including timelines, budget, and specific tasks for each element of localization
4. Content adaptation — For many new markets determine which content may need cultural adjustment. These could be images that are acceptable in one culture but not in another, videos that may not show the target audience in the new market, or colors which may have alternative cultural significance in some markets
5. Language translation — Language-based content needs to be translated, not just to address the specific language difference, but also to consider idiomatic expressions and local terminology
6. Legal compliance — As a final step, all products should be reviewed and adapted to comply with local regulations, including consumer rights, data protection laws, and financial regulations

Examples of product localization in practice

Famous examples of product localization efforts include:

Netflix

Netflix effectively localizes its content for different markets by not only providing subtitles or dubbing but also by producing original shows tailored to local culture; for example “Money Heist” in Spain and “Sacred Games” in India.

This approach has significantly expanded its subscriber base globally, as viewers find content that resonates with their cultural backgrounds, leading to increased engagement and satisfaction.

Pepsi

In the 1990s, Pepsi launched a campaign in China with the slogan “Pepsi brings you back to life.” The literal translation implied that Pepsi could bring ancestors back from the dead, which was culturally insensitive and misunderstood.

The campaign faced backlash, and Pepsi had to re-strategize its marketing approach in China, highlighting the importance of understanding local culture and nuances.

These case studies highlight the critical role of cultural understanding in localization. Successful localization can lead to greater market acceptance and growth, while failures can result in misunderstandings and negative perceptions.

Challenges with operating a product localization strategy

Product localization can present several challenges that need to be overcome. Some of the most common ones are:

Cultural differences

Navigating cultural nuances and sensitivities can be complex, as what works in one market may not resonate or may even offend in another. It takes knowledge of the local market to be able to identify and successfully address these differences.

Technical limitations

Adapting products to support multiple languages and format of currency or measurements can be technically challenging and resource-intensive. Where designs might cater for short words in one language the same word in another language might be considerably long.

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For example, the English word beef is Rindfleisch in German and the word sink in English is lavamanos in Spanish.

Consistency across markets

Maintaining a consistent brand voice and messaging while adapting to local needs can be difficult. Many products have changed names to maintain global consistency, while others continue to operate with local variations.

In 2000, the name of the cleaning product Jif was changed in the UK to Cif to match other European countries, while in the Philippines and India, the global brand Domestos is actually called Domex.

Feedback and iteration

Gathering and integrating user feedback from diverse markets can be challenging, especially when addressing varied customer expectations. If you’re looking to maintain a consistent global brand but one market prefers blue and another red, you’re faced with a difficult decision on how to best incorporate feedback.

Addressing these challenges requires careful planning, skilled teams, and a commitment to understanding and adapting to local markets.

In summary

Ultimately, there’s no easy approach to launching products in multiple countries. The globalization of your product opens up opportunities for growth, however, every new market comes with its own challenges and idiosyncrasies which need to be addressed and this can only be done with a thoroughly thought out product localization strategy.

Good luck, and comment with any questions.

Featured image source: IconScout

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