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Ecommerce has made going global easier than ever. With low upfront costs, you can quickly launch an online store and reach customers worldwide. Yet that doesn’t mean every brand or product will appeal to buyers in every country. That’s why you need to research the target market to determine the most effective way to launch.
One popular approach is a localized or multidomestic strategy, which involves developing country-specific brands based on local needs and preferences. It can be a key component of a localization strategy for adapting products, services, and marketing to the target locale. This combined approach allows you to take advantage of unique opportunities in each market and better respond to competition.
Before you can create a localization strategy, you need to understand how localization fits into your business goals. Some products and services require only minor alterations, while others need to be reimagined for the target market to attract local customers. Identifying how much localization is necessary will help you determine which strategy to use.
Multidomestic strategies are effective for products and services that require high degrees of localization to satisfy cultural, regulatory, or market demands. Some examples include:
Taking this “local-first” approach offers several advantages, including better brand recognition, higher engagement rates, and increased customer loyalty. It also provides a great opportunity to showcase unique and creative ideas, which help you stand out from the competition.
As you can see, a localization strategy can be as unique as the market it’s targeting. However, all successful plans share some fundamental elements. These include:
Take a look at our webinar on accelerating your speed to market for more insight into the whole localization strategy and logistical elements.
Integrating these elements will help you create a solid foundation for a successful global launch.
Now that you know the basics, let’s look at how a multidomestic strategy can enhance your localization efforts. Here are five advantages to using this approach:
In short, adopting a multidomestic strategy as part of a broader localization plan can help you better reach, engage and serve customers in each locale. This leads to increased market share, brand loyalty, and overall business success.
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Yet we understand that this is all hypothetical so far. To help you visualize what a powerful localization strategy can achieve, let’s look at a real-world case study.
Amazon, as the world’s largest eCommerce retailer, with a passion for customer centricity developed a comprehensive ecommerce localization strategy that includes:
Personalized shopping experiences. Their recommended products elements in their website revolutionized cross-selling and set the benchmark for years to come. Language options, local currency displays, and region-specific promotions ensure a seamless and personalized online shopping experience. The ability to harmonise and deive Amazon University and Amazon Selling Central has drive partner sales to new industry standards.
Region-specific collections. Amazon features region-specific collections and exclusive online offerings based on local tastes and trends. This approach enhances customer engagement and drives online sales.
Efficient fulfillment and delivery. The Amazon vast distribution network is optimized for each market, service and distribution become boundaryless. Fast and reliable delivery options, as well as efficient return processes, enhance the overall online shopping experience.
Multichannel integration. The seamless integration of online and offline channels allows Amazon to provide customers with an easy way to order online and pick up in-store.
As a result, Amazon’s groundbreaking technology and marketing have generated global dominance.
Now that you’ve seen a successful localization strategy in action, let’s explore how to develop your own. Here’s a brief overview of the steps you need to take.
Do you want to increase sales, improve brand awareness, enhance user experience, or something else? Make sure the goals are measurable and achievable. See our eCommerce page for some challenge suggestions.
Determine which markets to target and why. Consider factors such as cultural, linguistic, and economic differences, as well as potential demand for your product or service.
Research will help you tailor your offerings effectively. Become familiar with local customs, preferences, buying behaviors, and competition, and use this information as a guideline.
Outline what you intend to localize, the required internal and external resources, costs and timeframes, intended outcomes, and key performance indicators. This will help you stay on track and ensure the localization process is as efficient as possible.
Invest in localization resources, including localization software, content management systems, and collaboration platforms. Using these tools will help you streamline the process and ensure consistency.
Partner with local experts, such as translators, cultural consultants, and native speakers, to ensure accurate and culturally sensitive localization. You should outsource the localization process to an LSP that understands your industry and target market.
Test your localized content or products to identify and address any issues. Always conduct usability testing, linguistic reviews, and functional tests to ensure a seamless user experience.
Measure key performance indicators (KPIs) such as sales, engagement, website traffic, and customer feedback. You can use these metrics to refine your strategy and improve your results.
Follow these steps, and you’ll be well on your way to becoming a world-renowned brand.
Localization is a cornerstone of any international launch. Instead of taking a one-size-fits all approach, it allows you to tailor the customer experience to meet local preferences. And combining localization with a multi-domestic strategy can further increase brand recognition, engagement, and sales in each market. By developing country-specific brands, you show customers that you care about their needs, values, and unique culture.
Ready to go global? Contact Jonckers today to take your localization strategy to the next level.
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