Written by Wayne Elsey, Founder and CEO
Wayne Elsey is the founder and CEO of Elsey Enterprises. Among his independent brands, he is also the founder and CEO of Funds2Orgs.
One of the primary benefits of a digitally connected world is that companies can find partners and customers worldwide. As a result, expanding beyond a nation's borders to become a global brand brings several challenges and wins. The benefits could outpace the minuses in that going global means a broader reach, increased revenue, and even brand prestige. If you're considering expanding your market, read on to see what you could face as you do it for your company.
Understanding the global brand concept
Creating an international brand, of course, goes beyond branding and design. It means considering other cultures and ways of thinking and transcending the challenges that come along. One brand that missed the mark was Starbucks when it sought to expand into Australia. Australia has a long culture of coffee, and Starbucks thought it could just expand its market share in that country as it did throughout the United States.
However, Starbucks failed to consider that coffee "to-go" wasn't a thing in Australia, where people went to coffee shops to socialize over a good cup of coffee. Further, Starbucks came to Australia, charging American prices for a cup of coffee. Australians weren't used to paying much for coffee, so they stayed with their local coffee shops. In short, Starbucks is an example of needing to improve on global expansion.
Strategies for building a global brand
For companies that want to expand overseas, it's essential to consider and develop cultural intelligence, among other things.
1. Market research and cultural sensitivity
The first thing a company wants to do to expand internationally is market research. It's essential to understand cultural nuances even in countries where people speak the same language. It's also vital to get a detailed understanding of consumer behaviors and market dynamics in the target countries. McDonald's, for instance, adapts to the culture of each country, reflecting the tastes of the locals.
2. Consistent brand identity
Another essential approach for global brands is to maintain their identity. That means ensuring that logos and color schemes are consistent. That said, while the core brand identity needs to stay memorable, a company has to be flexible enough to adapt to the local market. For instance, Coca-Cola’s “Share a Coke” campaign replaced its famous logo with the local names of people and even nicknames.
3. Localized business marketing strategies
Going local goes beyond translating your materials. It's about adapting a company's business and marketing strategies to the local culture. As a result, adapting messaging, advertising, and participating in local events may mean adapting messaging, advertising, and participating in local events. One of the best things any business can do to understand a local culture is to have its leaders and marketers visit and get to know potential partners and companies.
4. Leveraging digital platforms
Of course, a business should leverage its social media and online platforms to grow engagement with a new market country. Aside from spreading the news on social media channels, a company can seek out local influencers and partner with them. These local influencers will help a brand enhance its visibility and also bring prospective leads to the brand.
5. Building strong brand partnerships
When a brand goes global, localizing to the country's market is essential. For example, with our international brands, we have more than 4,000 partners in nearly two dozen countries who sell and repurpose sneakers and shoes. However, we don't get involved in advising them on how to operate their small businesses. They know their markets and how to advertise better than we do, and that's our approach to working with partners.
Challenges in building a global brand
So, what should any brand looking to go global consider before embarking on the journey? There are a few things to take into account.
Cultural differences. First, it's essential to remember that cultural differences exist. Finding locals to guide a brand makes sense so there are no misinterpretations or damaging misunderstandings.
Regulatory and legal hurdles. Countries and localities will have different regulations, including for marketing (e.g., GDPR). Therefore, finding local representation with business advisors will help a brand prevent pitfalls.
Economic and political instability. Every global brand should monitor economic and political stability and fluctuations. It must also be ready to adapt to unexpected events, such as trade restrictions or tariffs.
Brand dilution. Any company looking to expand overseas should consider the risk of brand dilution, which means that the core identity and operation could weaken. Therefore, alignment across a company is always essential.
A global brand requires a multi-faceted approach
When any company decides to go international, it's a time for great energy, vision, and inspiration. However, it's also a time when, in advance of going global, a brand has to consider how to do it well and thoughtfully. That means going through a strategic planning process, being culturally intelligent, and understanding global markets and regulations. Although it's a challenge, it's doable.
For a company that wishes to expand beyond its local and national boundaries, there are great rewards. Taking the time to travel and explore a new target market provides leaders with its flavor. Developing partnerships and hiring local professionals in advance of an expansion and upon execution is a great way to help ensure success. In sum, a global brand status is compelling, bringing benefits and more opportunities.
© 2024 Wayne Elsey. All Rights Reserved.
Wayne Elsey, Founder and CEO
Wayne Elsey is the founder and CEO of Elsey Enterprises. Among his independent brands, he is also the founder and CEO of Funds2Orgs. This social enterprise helps nonprofits, schools, churches, civic groups, individuals, and others raise funds while helping to support micro-enterprise (small business) opportunities in developing nations and the environment.
