Deepak Agarwal's 5 Tips for Localizing a Global Business
ACCESS Newswire
4 min read
ATLANTA, GA / ACCESSWIRE / September 1, 2020 / In today's environment, scaling your business to a global level has become easier than ever. With the development of social media for business and the surge in popularity of ecommerce, companies can easily and efficiently reach consumers around the world to promote their products or services.
To help facilitate this global expansion, many large businesses open facilities and implement teams across the globe to help ease their way into the global marketplace. However, it is important to consider the nuances of conducting business in other countries. Failing to acknowledge these linguistic and cultural distinctions can quickly inhibit business success.
As a founder of several global businesses, entrepreneur and leader, Deepak "Dee" Agarwal, knows all about the challenges and obstacles that can derail global operations.
"Leading cross-continental teams is a bit of a balancing act," says Deepak Agarwal. "There is so much to educate yourself on as you enter a global marketplace. You have to think beyond your home office. Localizing, or understanding the way business is conducted in the areas where your business is present, can have a tremendous positive impact on your strategy for going global."
1. Language
"This is fairly straightforward, yet it is something I have observed countless times," says Dee Agarwal. "It is imperative to have proper, authentic translation to avoid seemingly small errors that could significantly impact the conversation rate of marketing efforts."
Linguistic nuances can lead to confusion or embarrassing misunderstandings that reflect poorly on your business. Be wary of using Google Translate to conduct official business. While it can be directionally accurate, small nuances in words are important. Think for example the difference between like and love in the English language; telling a customer you would love to meet with them could be misconstrued or seen as less professional.
2. Payment method
"A common or standard method of payment in one country may not be available or easy to use in another country. If you plan on participating in global business, you should make financial exchanges as simple as possible," explained Deepak Agarwal.
For example direct debit is popular in Germany, while RuPay is one of the primary payment methods in India. Platforms like Adyen, which are available in multiple countries, have a good multi-currency, multi-payment method solution, which can provide payment efficiencies for your business. Regardless of the market, find ways to accommodate local methods of payment to make transactions seamless and easy for everyone involved.
3. Price point & currency
Making sure that your pricing structure is aligned to the economic realities of each market is key to ensuring competitiveness and the ability to develop a consumer base.
"Be knowledgeable about the local per capita income and GDP of each of the areas in which you are conducting business, then establish the proper price point to reach critical mass," says Deepak Agarwal.
4. Shipping
Shipping across borders can be expensive and difficult due to customs and duties, which results in inefficient transit times. "The key is to set up local distribution," states Deepak Agarwal. "For example, the European Union is a tremendous market, because with just one distribution hub you have access to the entire European Union with a vast population of 741 million -- more than 2x the population of the US."
Zone skipping can be an effective way to mitigate shipping costs and improve shipping times when operating globally. Zone skipping is a strategy where businesses ship products to a carrier hub closest to their final destination -- allowing them to "skip zones'' to save the cost and time of multiple transfer locations.
Regardless of the shipping strategy you employ, capturing shipping efficiencies can make a significant impact on your ability to deliver your product in a way that makes you competitive in the global market.
5. Cultural nuances
Be sensitive to cultural distinctions that may hinder your ability to communicate respectfully and succinctly or that offer opportunities to authentically connect with that local community. "There is proper cultural etiquette that should be considered when participating in business across multiple countries. Adding that subtle cultural touch can signify your respect for the local lifestyle and have a significant positive impact on conversions," explained Deepak Agarwal.
For example, McDonald's varies their product offerings across the globe to reflect local culture and lifestyle. In Hong Kong, the fast food giant offers a Ham and Egg Twisty Pasta dish, while in Italy, diners can enjoy Tomato and Mozzarella Turnovers. Being mindful of their consumer base in different areas of the world, and reflecting that in their offerings, has in part led to their massive global success.
"Consistency and simplicity is really the name of the game when it comes to going global," notes Deepak Agarwal. "Rather than forcing local markets to bend to you, meet them where they are."
