Why Localization is This Year’s Smartest Investment

It is a continuously changing and fast-paced world. For maintaining the competitive advantage you need to have systems in place in the commercial market for scaling and adapting as necessary. More than 50% of the global merchandise trade in the year 2018 was focused around 10 localized economies. One significant fact to note here is that the developing countries have significantly raised their ranking in the list of the world’s top importers and exporters. One of the major players in the global market is the e-commerce industry with a whopping $3.5 billion worth. The e-commerce businesses stand to win big if they localize their sites by translating the content and adjusting their messaging and tone for targeting the local markets. Here are some compelling reasons to invest in localization.

Need for localization

Although localization has the potential to raise brand relevance and improve growth, the actual approach will defer for every business in every market. You need to first decide whether you need to localize the brand. Many times there is a different culture in the new market along with a different value system and this leads to a competitive landscape that will not yield the benefits you are looking for or are not even relevant. These benefits may even have another meaning. For instance, an investment company called T. Rowe Price makes use of a tagline, “Invest with confidence” all over the world.

However, the meaning of confidence changes around the world. In Hong Kong people feel confident when they have access to some exclusive information while in Japan people are confident when they are reassured that everything is alright and are as they should be. So, this is a problem for the company to communicate and deliver on the promise because it may not be tailored to the local market.

In real cases the businesses localize certain areas of the market, however; this may not be practical. You need to set your priorities for specific markets and the segment of consumers within the market. Localization is critical in these circumstances but you need to be clear about who you are targeting in various areas. Have you understood the difference in attitudes of various groups of people within markets and the implications of this attitude for your brand? It is crucial to have a robust fact-base about the customers for identifying possible differences. One of the major players who were successful with localization is Budweiser. They used a similar brand positioning but targeted the various audiences in a way that fitted their lifestyle. They targeted a younger and premium market in China. Therefore, they developed fresh digital and retail activations that were aimed at the audience for drawing them into the brand experience.

1. Successful cross-border communication

What is common among successful brands? Well, two things. First, they always expand their services to the huge and diverse global market and second is that they are great communicators. These successful brands employ great storytelling that develops an emotional connection between them and their clients. They are successful at resolving the pain points of more than 4 billion internet users. But a significant figure is that just 25% of these users of internet users speak English. There are more than 200 languages used for communication in Europe alone, apart from more than 6000 languages spoken all across the globe. Therefore, for becoming a successful brand or for supporting a performing brand needs investment in localization. It ensures that the brand is never shut out from the local market opportunities.

2. It is key for entering new markets

Localization of content is necessary so that it can appeal to the native language of the customers. It also shows respect to their contextual and cultural norms and makes it simpler for the clients to obtain information required for making smart buying decisions. This way all your clients are motivated to relate better and engage better with the essence of the brand. More significantly they are likely to return to you for future purchases. Keep in mind that it takes five times more effort for acquiring new customers than to retain the existing ones. It is crucial to foster brand loyalty for any brand to remain positive in terms of ROI.

3. Provides a customer-centric approach

It is a fact that around 86% of localized advertising campaigns by using mobile phones have been more successful than similar English language campaigns in terms of click-throughs and conversions. This can be attributed to a cyclic process where the clients learn about the brand and at the same time, the brands are learning about their clients and learning how they wish to be served. Therefore, there is a competitive advantage provided by the investment in localization. You are providing a customer-centric approach by giving native language support, knowledge base, FAQs, etc. It leads to better customer satisfaction and raised profits.

4. Capture the rising requirements of markets away from home

There has been a rising rate of expansion internationally in the last few years. It is reaching new heights across several markets. For capitalizing and adapting to this trend various global companies are making use of smart investments and strategies for capturing different great opportunities available in the overseas market. For instance, leading global businesses are launching campaigns that are localization driven for gaining a majority share of domestic markets from across the world. You can observe a great wave of meaningful localization strategies employed by these brands for recognizing the benefits of the method.

5. Relevance due to localization

Keep in mind that an obsessive concentration on the clients to fulfill their needs is one of the key elements of building the relevance of a brand and driving growth. Research indicates that the stronger brands around the world are continuously relevant in their approach. Everything they do such as investments, manufacturing, and marketing brings to the market something significant to the needs of people’s lives. Due to this reason their products or services are indispensable to people.

If you take a closer look at companies that are performing well on the brand relevance index you will find names such as Amazon, Nike, and Samsung. You can also see how they are using localization as a strategy for developing their brand further. If it is done properly localization can provide a lever for growth even in the era of rising disruption. Localization is responsible for creating greater relevance for the people in more markets.

You can truly be customer-centric only when you have localized your services. It is only by understanding consumer needs and by providing products and services that will cater to the local values and requirements; a brand can connect with the people deeply. It is a stepping stone for going beyond acceptance and reaching the level of being loved by people.


The crux of the matter is that various brands looking to outperform the competition and make big money have to find the right localization partners and take up the “go native” slogan seriously while communicating with potential and existing customers. Apart from this, the fact that more than 80% of the localized drives managed to get more conversions than the English counterparts points to the importance of localization. For the various businesses looking to make this significant investment, you need to use the localization services available such as translation services as it can be a smart step for global expansion. Keep in mind that these companies will face some challenges that all businesses face when they begin their localization drive into a specific market.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of All China Review.


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