What Is Glocalization: Examples, Benefits, And It’s Important For Your Business Expansion

Glocalization is a combination of two business terms, “Globalization” and “Localization.” It is the business term used to define the product or service developed for global markets. The product and service are also adjusted according to the requirements of consumers in local markets. In simple words, it’s the creation of products or services for global markets adapting according to local markets.

Glocalization is a historical process where businesses develop cultural relationships in the global native market. Businesses take care of local traditions and government regulations for products and services. This helps them to expand in local markets worldwide.

In this article, we will understand what glocalization is? Examples of glocalization, its benefits, and more. So, keep reading the interesting article on glocalization.

How Do You Define Glocalization?

Glocalization is a business term that was first used in Japan in the 1980s. The term exploded in popularity the day the economists introduced it in Japan. It is originally derived from “dochakuka.” The Japanese word describes the localization of farming techniques in the global arena.

Later, the term “glocalization” was hijacked by global businesses. Social scientists in the western world soon adopted the amazing term. Roland Robertson further popularized it. At present, the term is popular among professionals worldwide to refer to the community, education, and business techniques.

Literally, the term “glocalization” effectively combines the global and local aspects of products or services. However, the term has many descriptions. International businesses understand you can’t have a “one size fits for all” in global marketing strategy. It requires global localization and needs to consider the variables of every native market.  

Glocalization offers to implement effective global strategies and act locally. That helps companies to go beyond social justice or environmental impact. Startups start thinking according to the local requirements. However, the global approach benefited from the more balanced growth.

Let’s understand the basic difference between globalization vs. glocalization. This will help you to understand both terms more clearly.

Difference Between Globalization vs. Glocalization

Globalization is the standardization of products according to the global market. It does not take about the local market requirements. Cell phones and laptops are common examples of globalization. The company can sell these products in any country with similar specifications.

Globalization results in cultural homogenization. For example, Americanization. The culture partly developed in various countries. The spread of American products is also responsible for this.  Also, you may be interested in learning about the 10 most commonly spoken foreign languages in the USA. It has a huge impact on their culture.

At the same time, glocalization is the reverse concept. However, both strategies target the global market. But in glocalization, the taste and requirements of local market consumers are given importance. 

McDonald’s is the best example of glocalization. The food chain operates in global markets and almost in every country. But McDonald’s doesn’t have a standard global menu. The company develops its menu considering the local tastes. You will never find the same menu of the company in two different countries.

We hope now you understand what is glocalization and globalization? Now, let’s understand the process of glocalization. But before moving ahead, let’s discuss some more important business terms of global markets.

This will offer you a more precise insight. You can efficiently and effectively differentiate the popular business terms and understand the glocalization definition. 

Comparing Glocalization With Other Similar Terms 

The localization industry has many terms that sound oddly similar. Every global company and startup goes through some essential business terms. Let’s understand these terms as given below:

Translation

It is simply taking texts from one language and translating them into another. It can be performed through machine translation. Automatic translations, Google translation, or robotic translation are examples. However, to get good results, human translators must be preferred. The localization and translation companies offer language translation services.   

Transcreation

It’s also a kind of translation that takes care of the target market. The content is changed significantly to make it culturally appropriate as per the target market. Let’s Chevy Nova when sold in Mexico, a completely different term is used. As the term, Nova has unfortunate ironic connotations with it. Transcreation has opened the way for full-scale localization services in the last few years. The businesses looking for transcreation except for high-quality, culturally adaptive translation.

Internationalization

It is the technical process to make the software function in other countries. It involves coding all the texts to make it possible for the UI to accommodate various languages. Some apps are designed to keep internationalization in mind from the start. It’s a great idea to work on internationalization before investing in software translation services.

Localization

Full-scale localization services provide a high-quality human translation. Moreover, it also offers back-end services that make internationalization easier and continuous localization possible. The localization platform helps your company submit content strings through fully-customized CLI or API integrations. You can have them translated and enter them automatically into the live environment. It offers end-to-end solutions to businesses looking to take their product, website, app, or multimedia content to global consumers.

What is The Process of Glocalization

Glocalization is the concept where business enters the global market in various countries. Simultaneously, the offerings are adapted according to the local consumers’ needs and preferences. It helps the company to attract consumers in every country with its offerings.

Glocalization is not always suitable for every company. The strategy works best with the companies having a decentralized management system. This offers more flexibility to business units to make decisions and develop strategies. These companies can market better and compete efficiently in each country.

The glocalization can be expensive and resource-intensive. The business needs to set up a subsidiary to reach a market of other countries. The business also has an option to acquire an existing company in the target market. Other options are joint ventures, franchising, or licensing. Let’s understand the process of glocalization:

1. Analyzing Local Market and Competition

The companies must gather information about the tastes, preferences, requirements, culture, and local consumer values. Moreover, the businesses should also analyze the potential competitors and their strategies. It will help companies to develop effective product and marketing strategies.

2. Appointing Local Talent

The companies should appoint local talent. It will help them gain local insight into business operations. It further makes them comfortable with the local laws and regulations. While some countries’ governments want global companies to hire local talents.   

Businesses can combine local talents with global skills to create synergy. Local insights help companies to have smooth operations in the target markets. This allows them to foster innovation and creativity in the business.

3. Taking Cooperation of Local Partners

While operating in various countries, the businesses need to synergize with the local companies. This helps businesses to have an efficient supply chain. Moreover, it helps them have other smooth functioning of other aspects. That includes logistics, distribution, media, financial institutions, and marketing campaigns.

4. Combining Global Competence With Local Processes (H3)   

Some business strategies can work better in home countries. At the same time, it may not be successful in target countries. The aspects like environment, political situations, demography, economic conditions, target market trends, regulations play a crucial role. The businesses should approach keeping all these aspects in mind. That’s why synergizing the best practices in the local and global market can offer success.

Related blog: 7 Major Benefits Of Localizing Your Fashion Website  

What Are the Benefits of Glocalization?

Glocalized products and services offer many benefits to businesses. It helps companies to expand in global markets efficiently. That’s the prime objective of any global company. Moreover, there are additional benefits of glocalization as given below:

Increased Sales

This is the most apparent benefit. The global companies increase their sales in international markets by localizing products and services according to local requirements.   

Global Brand Recognition For Local Businesses

Globalizing the brand offers companies much-needed recognition in local and international markets. That further increases the sales and popularity of the brand around the world.

Generate Employment Within Local Market

The companies with glocalized products hire local talents for the smooth functioning of their businesses. That creates job opportunities in the local market. It further helps companies to build brand awareness and loyalty.

Challenges of Glocalization

Glocalization is not an easy process, as it appears. There are various challenges associated with it. The companies devising glocalization for their brands may face many pitfalls. Some of these challenges are given below:

Increased Budget

The local-specific marketing campaigns can be costly. It requires a lot of research, tailored marketing efforts, and an impactful strategy that may cost huge money. In fact, a good glocalization strategy might sometimes be hard to notice by consumers. The financially strong brands smoothly manage the glocalization aspects.  

Conflicting Demands

Entering new markets increases your revenue if everything goes well. Launching a brand overseas suggests you are already successful at your home. However, this also offers a conflicting list of priorities. The companies may neglect the home market while setting up in the new global markets. Glocalization requires a proper combination of global standardization and local needs.    

Strict Government Regulations 

Many countries have rigid rules and regulations for global businesses to operate. Some countries might want you to hire more than ninety percent of local talent. Hiring the local talent more than the requirement may hamper the smooth functioning of the businesses. Moreover, other regulations can make it difficult for companies to operate overseas.   

What Are Examples of Glocalization?

Many global businesses have utilized glocalization to establish their brands in local markets. Let’s see some of the best glocalization examples you may have already heard about.

• Coca-Cola: The brand utilized glocalization to reach global consumers. The company realized in 1990 that its international marketing campaign wasn’t showing enough ROI. So they decided to establish their global brand strategies.

They modified their beverages according to local tastes. The company changed packaging and distribution methods. They tailored their products in every market to offer a feeling of a local product.

• McDonald’s: McDonald’s is a renowned food brand across the world. The company functions almost in every country. They utilized the glocalization process when replacing the famous beef burgers with Mcaloo Tikki burgers in India.

In the same way, the KFC food chain also sells spicier chicken in India, which is different compared to their offerings in other countries around the world. All these were done to cater local market.

• Google Pixel: Google Pixel phones come with the shutter sound. The users can disable them as per preferences. However, in India, the law requires the camera to make a clear shutter sound while clicking pictures.

Google’s glocalization campaign modified its phones according to the Indian government’s regulations. Obviously, now the company could sell its phones on the Indian market. Also, see What Languages Should You Translate Your Business Website.

Conclusion

Glocalization is one of the important aspects of taking your brand to foreign markets. However, many brands are in a dilemma to utilize glocalization or not? As it requires huge investment. Moreover, there is a risk of being unable to realize location economies. The failure to transfer core competencies to foreign markets is another issue.

Implementing a globalizing strategy worldwide in different countries can be very tedious. The entire process requires extensive knowledge and experience in the field. If you are ready to explore the benefits of glocalization for your brands? Visit RushTranslationServices.com! Our glocalization experts will help you with determining you take the glocalization approach or not. The team of experts also sets its long-and-short term goals for your business.