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Globalization

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Globalization, New Challenges for Brands

Globalization is not a new trend, but it remains relevant because of its impact on the way businesses and consumers interact with each other. Globalization has been present around the globe for a long time, and many brands strive to use it to their advantage. 

Making your brand global is not an easy task. While many successful brands have been able to become globally recognized, the process is not easy, and it doesn’t come without challenges. 

Besides these challenges, the new globalization is here. The fourth industrial revolution, geopolitics, and the escalating effects of climate change are the three primary forces propelling a new chapter in the history of globalization. 

According to an expert panel held by The Drum, these three things have all happened in the past, just not at the same time. As a result, companies are now figuring out strategies, markets, and how they position themselves. 

With the new globalization comes the need for speed. This makes sense because the NOW generation is all for instant gratification, and when it comes to growing a brand in a global market, how fast can it approach new consumers on a local scale.

Digitalization is also taking a big part in this new era of globalization. With the numerous products available to your market, brand culture, lifestyle, and behavior habits are the most helpful in reaching your consumers.

From a consumer point of view, depending on where they live,  people worldwide consume the same products. However, through social and mass media, people find similarities between their consumption habits and those of people on the other side of the globe. This is called glocalization. 

Glocalization is the ability to penetrate various global markets while meeting the needs of each local geography. Even though it is not a new concept, not all businesses with global aspirations have mastered the art of glocalization. Therefore, companies must excel at integrating local resources, modifying procedures, and implementing global technologies to create effective glocalization strategies.

Entrepreneur India shared in an article the importance of acclimating brands to global growth. According to their article, success at glocalization comes from being sensitive to local culture, social norms, and consumer habits. Basically adapting to the area where your brand is arriving.

Even major brands have struggled to bring their business to a new location. “One size fits all” doesn’t apply in globalization. Brands need to consider that the need for their product in different places may not be the same. 

This may be accomplished; many companies have successfully arrived in new markets and tropicalized their brand to the local market. For example, big food chain brands have noticed that just bringing products they already sell and not incorporating anything local to their menus is not as successful as adding an item with a local taste for the consumer. This is how you can glocalize your business.

Another way businesses can adapt to a new culture is by hiring local professionals. Local associations within your company will help your brand access specific insight on a microeconomic scale while remaining globally relevant. This is a big step because once you know the culture, you can find better ways to approach the consumer and provide them with what they need.

Globalization is not about completely changing your brand but about being flexible and willing to adapt to your consumer’s culture. The need to grow is a constant in the current global business environment. However, growth in a globalized world would not be possible without learning from the NOW generation.