Go Global Act Local - one of the commonly used terms probably all of us have come across. Yes, many will vote for it. But is it really as effective as we know? I have my personal observations on this.
In this hyper-connected world, a brand somehow goes global even if you don't want to. It is because someone somewhere looking for a product that exactly matches their needs. And we have social channels, search engines, classified ad sites, and so on. So, a brand has every potential to spread like anything. Now, what that brand really stands for is a different discussion all together and I'm not going into that. I think, products are already global from the very date of its production.
Then why do you act like a local brand while operating in a foreign market? In many situations, I have seen, customers prefer certain products for not being local. So, why pushing that? Moreover, people these days are smarter than ever before. They can tell why a brand desperately tries to act (I think ‘pretend’ should be the correct word) local. Have you ever seen an iPhone claiming/trying be local? Or, Gillette engaged/involved in any local agendas? I haven't. But please, don't get me wrong. Adapting local culture and acting local are not the same.
I have personally seen global brands suffering/struggling in my country only for acting local. 'মাছের রাজা ইলিশ আর বাত্তির রাজা ফিলিপস' - probably gave Philips some level of boost for some time; but look at this brand now. It is perceived as local brand; hence it's not considered as a powerful electronics brand. Some new Chinese brands are even doing better than Philips. Price is a factor; I do agree. But people not always buy Chinese products for the low price (monitory value). Customers these days are also buying Bangladeshi brands like Walton, but not Philips. It is because the desperate localization broke the backbone of this brand in Bangladesh.
Well, I initiated a discussion on price factor. Think about OPPO. Is it a cheap phone? It’s a Chinese origin brand, but not at all cheap. Yes, cheaper than iPhone or Samsung Galaxy 8 for sure. But compared to other phones, it's pretty expensive (at least to me). And trust me, there are high possibilities that many people in your circle cannot even tell that OPPO is Chinese brand. Now look at Singer; suffering from the same dilemma just like Philips. Bata, another global brand was also facing the same crisis in Bangladesh Market; and probably in some other countries as well. So, maybe that is one of the major reasons why they have changed everything (other than the logo). If you follow the communications of past 3-4 years and compare those with even older communications, you will easily find the difference. They have also introduced many new sub brands such as Hush Puppies, Marie Claire, Ambassador, etc. to address specific target groups. Good news is, Bata now gradually improving its market share. They are not local, and they are not acting/pretending as local.
When we operate in overseas markets, we sometimes ‘over do’ things. And trust me, it is the killer. So, after all these discussions, you may ask me this question “what Philips could have done?” Well, so many things. They could have positioned the brand in the premium section. Premium doesn’t mean only the price; it can be the design, quality, durability, serviceability, and so on. Or, they could have communicated how that brand is adding value to customers’ lives. Remember the equation of Value? "Value = Benefits - Cost". There are four types of costs i.e. Monitory Cost, Time Cost, Energy Cost and Psychic Cost. Philips could have explored and implemented these knowledge. Or maybe they could have promoted that Philips is a European brand. Hey, Europe is a far advanced country compared to Bangladesh in terms of technology. To address the lower segment customers, they could have introduced a separate brand (However, it’s risky too. This should be managed in a sophisticated way. Otherwise, it may dilute the core objective of introducing the economy brand).
Acting local means localizing the content so that general people of a specific market can understand what the brand is saying or what the brand stands for. It also includes how the brand is related/associated with customers’ lives. So, I suggest - ‘Go Global, Act Global’, and also show respect to the local culture. That's it!
In this hyper-connected world, a brand somehow goes global even if you don't want to. It is because someone somewhere looking for a product that exactly matches their needs. And we have social channels, search engines, classified ad sites, and so on. So, a brand has every potential to spread like anything. Now, what that brand really stands for is a different discussion all together and I'm not going into that. I think, products are already global from the very date of its production.
Then why do you act like a local brand while operating in a foreign market? In many situations, I have seen, customers prefer certain products for not being local. So, why pushing that? Moreover, people these days are smarter than ever before. They can tell why a brand desperately tries to act (I think ‘pretend’ should be the correct word) local. Have you ever seen an iPhone claiming/trying be local? Or, Gillette engaged/involved in any local agendas? I haven't. But please, don't get me wrong. Adapting local culture and acting local are not the same.
I have personally seen global brands suffering/struggling in my country only for acting local. 'মাছের রাজা ইলিশ আর বাত্তির রাজা ফিলিপস' - probably gave Philips some level of boost for some time; but look at this brand now. It is perceived as local brand; hence it's not considered as a powerful electronics brand. Some new Chinese brands are even doing better than Philips. Price is a factor; I do agree. But people not always buy Chinese products for the low price (monitory value). Customers these days are also buying Bangladeshi brands like Walton, but not Philips. It is because the desperate localization broke the backbone of this brand in Bangladesh.
Well, I initiated a discussion on price factor. Think about OPPO. Is it a cheap phone? It’s a Chinese origin brand, but not at all cheap. Yes, cheaper than iPhone or Samsung Galaxy 8 for sure. But compared to other phones, it's pretty expensive (at least to me). And trust me, there are high possibilities that many people in your circle cannot even tell that OPPO is Chinese brand. Now look at Singer; suffering from the same dilemma just like Philips. Bata, another global brand was also facing the same crisis in Bangladesh Market; and probably in some other countries as well. So, maybe that is one of the major reasons why they have changed everything (other than the logo). If you follow the communications of past 3-4 years and compare those with even older communications, you will easily find the difference. They have also introduced many new sub brands such as Hush Puppies, Marie Claire, Ambassador, etc. to address specific target groups. Good news is, Bata now gradually improving its market share. They are not local, and they are not acting/pretending as local.
When we operate in overseas markets, we sometimes ‘over do’ things. And trust me, it is the killer. So, after all these discussions, you may ask me this question “what Philips could have done?” Well, so many things. They could have positioned the brand in the premium section. Premium doesn’t mean only the price; it can be the design, quality, durability, serviceability, and so on. Or, they could have communicated how that brand is adding value to customers’ lives. Remember the equation of Value? "Value = Benefits - Cost". There are four types of costs i.e. Monitory Cost, Time Cost, Energy Cost and Psychic Cost. Philips could have explored and implemented these knowledge. Or maybe they could have promoted that Philips is a European brand. Hey, Europe is a far advanced country compared to Bangladesh in terms of technology. To address the lower segment customers, they could have introduced a separate brand (However, it’s risky too. This should be managed in a sophisticated way. Otherwise, it may dilute the core objective of introducing the economy brand).
Acting local means localizing the content so that general people of a specific market can understand what the brand is saying or what the brand stands for. It also includes how the brand is related/associated with customers’ lives. So, I suggest - ‘Go Global, Act Global’, and also show respect to the local culture. That's it!
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