Top 5 Benefits of Business Localization

Business localization is the process of adapting a company’s products and services to the culture, language, and regulations of a particular area.

It involves localizing a variety of elements such as marketing, website content, email communications, and product labels, relying on professional translation services.

Ultimately, this approach can help businesses establish trust in new markets and foster an authentic connection with local consumers.

There are a variety of benefits of business localization, and these can help companies enhance their competitive advantage.

Benefits of Business Localization

Access to New Markets & Consumer Insights

Localization provides businesses with access to new markets, regions, and consumer insights.

Through localization, a business can bridge the gap between their product offering and their potential customers’ expectations by embracing local values and engaging with the local community.

Localizing a product or service for a specific cultural context allows companies to maximize relevancy and reach untapped markets.

For example, recently released video game “Super Mario Bros.” localized its product for Chinese audiences by introducing Chinese cultural elements into the game.

Through this approach, the video game reached a larger consumer base and gained international recognition.

Improved Brand Recognition & Customer Engagement

Business localization helps to establish brand recognition by creating a personalized experience for local customers. This can be achieved through changes in language, imagery, symbolism, and other elements.

Companies can create a deeper connection with customers and make an impact on their purchasing decisions by communicating to them in a local language and highlighting key attributes and benefits of the product or service.

For instance, high-end German-based automobile manufacturer BMW localized for the Indian market by launching a customized website for Indian customers.

This approach allowed BMW to establish a strong presence in the market and meet customer expectations.

Targeted Messaging & Advertising

Business localization enables companies to create targeted advertisements and messages that are tailored to local cultural themes and norms.

Companies can utilize native language, design, and overall aesthetic to appeal to local audiences and attract more attention.

This in turn increases the likelihood of converting a customer, as they will be able to relate to the advertisement and thereby feel connected to the products and services.

For example, Italian espresso company Lavazza used a series of localized advertisements featuring an elderly couple interacting on a terrace in Rome.

This approach allowed the company to access Italy’s expensive coffee-drinking population and increase their customer base.

Enhanced Multilingual Customer Service

A major benefit of business localization is the opportunity to create multilingual customer service. This may include providing customer service in different languages via telephone and online support, as well as other channels.

Companies may also offer localized customer service such as providing personalized assistance for local festivals and occasions. This helps to establish a brand-customer relationship and can lead to positive customer retention.

For instance, China-based ride-hailing giant Didi Chuxing localized its customer service for Japan by launching a multilingual service in Japanese and English.

Additionally, the company provided personalized services for Japan’s Golden Week holidays, resulting in increased customer satisfaction and loyalty.

Aligned to Local Thought and Culture

Finally, business localization helps to align products and services to local thought and culture.

This can be done by addressing and utilizing local beliefs, values, and preferences in the product, and ensuring they are reflected in the product or services being offered.

This approach can help companies establish a strong presence in local markets, build trust and loyalty, and increase brand affinity.

For example, leading American cosmetics brand MAC Cosmetics localized its product line for the Chinese market by introducing new shades of lipsticks.

The shades were created to suit Chinese aesthetic standards and reflect local values. This allowed MAC to connect with Chinese customers and remain competitive in the area.

Conclusion

Business localization is a powerful approach for companies to increase their reach, generate positive customer responses, and drive sales and profits.

By creating targeted campaigns and messages aligned to local thought and culture, companies can establish trust and foster relationships with local consumers.

Ultimately, businesses that utilize the benefits of business localization can increase their competitive advantage in the global market.

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