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Craft a Powerful Localization Strategy

Mastering Multidomestic Might: The Ultimate Guide to Crafting a Powerful Localization Strategy

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.    

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Understanding Localization and Multidomestic Strategy

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:

  • Food and beverages. Culinary preferences, ingredients, and dietary habits vary widely across cultures. Food and beverage companies can tailor their offerings to suit local tastes and dietary requirements.
  • Fashion and apparel. Clothing styles, sizes, and fashion trends differ from region to region. Apparel companies can adapt their designs and marketing strategies to cater to local fashion sensibilities.
  • Entertainment and media. Content preferences, censorship rules, and cultural sensitivities influence media offerings’ success. Customizing content can make entertainment more relatable to local audiences.

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.

The Building Blocks of a Successful Localization Strategy

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:

  • Understanding the local culture and context. Effective localization begins with an understanding and respect of cultural nuances. You can prevent cultural missteps by learning about local customs, beliefs, and traditions.
  • Customer needs and preferences. Analyze local market trends, customer behaviors, and preferences before launching a product or service. This will help you adapt the user experience and/or product functionality to fit local norms.
  • Effective translation and linguistic quality. Professional linguists can ensure the consistency and accuracy of localized content. Consider partnering with a language service provider (LSP) that specializes in your industry and target market(s) to develop a strategy.
  • Legal, tax and regulatory compliance. Ensure compliance with local laws, regulations, and standards. This includes adhering to local data protection and intellectual property laws.

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.

Benefits of a Localization Strategy: A Multidomestic Perspective

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:

  • Cultural relevance & Brand authenticity. Customers are more likely to select a brand if they consider it authentic compared to competitors. A multidomestic strategy helps you enhance authenticity by recognizing the local market’s unique characteristics.
  • Customized products and services. Adapting products and services to local preferences enables you to better meet the needs of each market. Customization increases the perceived value of the offerings and increases customer satisfaction and loyalty.
  • Enhancing customer engagement. Engaged customers are more likely to interact with your brand, participate in promotions, and provide useful feedback. A multidomestic strategy allows you to tailor your approach to each market, maximizing engagement.
  • Better insight and innovation. A deep understanding of the local market will help you come up with innovative ways to meet customer needs. And these market-specific offerings can help overcome unique challenges.
  • Increase revenue through international sales, with minimum increase in costs. See Amazon case study
  • Increase ROI from content created & campaigns as they are adapted to each market, which is much easier than reinventing the wheel. See marketing agency case study for more information
  • Increase the efficacy reach of self service and customer service channels, without increasing overhead costs. See customer service case study for more information.
  • Hyperpersonalise the customer journey See ecommerce page for more details
  • Reduce returns through accurate product descriptions Hyperpersonalise the customer journey
  • Reduce returns through accurate product descriptions
  • Increase diversity & inclusion – as per Microsoft’s Customer Experience Case Study

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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Case Study: Successful Implementation of Localization Strategies

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.

Crafting Your Localization Strategy: A Step-by-Step Guide

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.

Step 1: Define your goals.

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.

Step 2: Identify target markets.

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.

Step 3: Conduct market research.

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.

Step 4: Develop a localization plan.

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.

Step 5: Select localization tools.

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.

Step 6: Collaborate with local experts.

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.

Step 7: Test and Quality Assurance.

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.

Step 8: Monitor results.

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.

Conclusion: Embracing Localization for Global Success

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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