Glocalization is a word which combines the world “globalization” and “localization.” The term is often used to describe a service, product or business model which is developed for distribution globally but can also be customized for users of a specific market. The process may involve tailoring the product or service to conform to local consumer preferences, culture, local laws, and customs. Research shows that goods or services which are glocalized draw much more attention by the end user.
How does Glocalization help businesses?
Glocalization for all intents and purposes is a term which is best applied to companies. Many businesses like retailers, can benefit from globalization. For instance, if a retailer were to expand their operations, they would also be under pressure to keep things local. So, the business would need to balance both being a global business and also to be local enough to attract attention. One of the keys to glocalization for businesses is to make sure that their staff, the website, and even the business communicates with the end buyer or the customers in their native language. It is for this reason that the first step is to always translate the regional website and marketing materials into the local language.
It goes without saying that many people trust big businesses. The larger and more popular the business the more people trust it, but they have a hard time connecting if it’s not localized. The connection can be in the way of feeling secure, excellent customer service, fulfilling their expectations, respecting their traditions, understanding their religion, etc. If the business can do all of what is expected by consumers, it attracts attention and finds itself mentioned in a positive light.
The challenges posed by Glocalization
Companies need to understand the culture, history, and customs of every country or territory they enter. That said the process could be successful if a comprehensive study is conducted of the target market. But it’s important to keep the following challenges in mind:
- Many traditional societies have a unique heritage, different value system, and very different cultures. Since many countries have multiple levels of management through with a decision needs to be approved, it can take time. Add to that, pre-existing concepts which make things even harder. An instance of this type of system is Japan and China.
- Rational societies like Germany have a valued inspired history which they run in accordance with existing policy So, a business will need to understand the fact that they are open to ideas but only if it’s presented in a particular manner.
- Postmodern societies like those of New Zealand and Western Europe are more open to ideas. They are more open to global companies, and so not much in the way of glocalization is required.
It is interesting to note that glocalization works best in decentralized sectors. Countries which have reinforced cultures and which have much harder modes of adaptation can be much more challenging. But the challenge in most cases is worth it for a global business looking to capitalize on opportunities in the local market.