Glocalization: Making Global Ideas Local

Businesses may be able to connect with customers globally in a way that wasn't previously possible because of geolocalization. Glocalization is the process of assimilating a foreign idea into local culture and tradition such that locals can recognise and relate to it. Glocalization therefore always involves efforts to gain the respect of the local culture.

 

Today, as more nations open their borders to international trade and global marketing, more businesses are investigating foreign markets. Social scientists discovered through market research and international studies that consumers in foreign marketplaces favor purchasing goods and services that are offered in their native tongue. 

 

As a result, websites, product information, and marketing and promotional materials needed to be translated. But local markets and customers wanted something more in line with their own cultures, therefore it wasn't good enough. A service that could bridge the linguistic gap was becoming increasingly important, not just on a national level but also on a regional level.

 

The solution is localization, where websites, goods, and information are adapted to local customs and preferences. Therefore, international firms localized their content so that it spoke to consumers in their own languages. 

 

Along with translating written content, they also altered fonts, colors, layouts, photographs, images of money, date and time formats, and other features to fit the culture of a particular area. 

 

In essence, this is what makes it possible for companies to provide consumers with really global goods. But was that enough to bring about an improvement and more sales? Not for all businesses. Glocalization enters the picture at this point.

 

It could be argued that globalization was potentially problematic since it was predicated on the idea that consumers everywhere were interested in the same kind of goods that were successful in a particular local market. The solution to this problem is glocalization.

 

Travel rapidly demonstrates that tastes vary from place to country. Products or services that can account for these variations and make adjustments as necessary are considerably more likely to succeed in those new markets when it comes to international sales.

 

For instance, an automobile made in Germany will undoubtedly adhere to national standards for safety, emissions, etc. However, it's possible that adjustments will be required to make that automobile model sellable if it is shipped to Japan, for instance.

 

Also Read | What is Globalization?

 

What is Glocalization?

 

The words "globalization" and "localization" are combined to form the phrase "glocalization." The meanings of these two names are wholly dissimilar. However, when used collectively, they are utilised to describe the marketing plans and operational procedures used by foreign businesses in a local market.

 

This means that when a business enters a new market, it must adapt its products and services to satisfy the needs of local customers and to be consistent with local laws and norms. 

 

Products are glocalized in this way to appeal to local consumers. As a result, it is accurate to state that glocalization makes a product a global product, one that everyone may use, and that localization makes it simple to satisfy the wants and expectations of individuals.

 

For instance, if an Foreign automaker like Tesla wants to sell its vehicles in India, it must produce them in accordance with the local Indian market's regulations and norms. To begin with, it is necessary to build cars with right-side steering. because cars are driven on the left side and steered on the right side in India. 

 

Similar to this, different nations have different laws and regulations that must be adhered to by foreign nations if they want to set up shop in those nations' markets.

 

Glocalization is not a brand-new concept. Japanese economists utilized it for the first time to describe their international marketing plans. Sociologist Roland Robertson later popularized this phrase in 1980 when he wrote about it in the Harvard Business Review. Glocalization, according to him, is the result of the coexistence of particularization and universalization impulses.

 

Global sociologists and social scientists have frequently used the word "glocalization" since 1990. The term "glocalization" is used not only in the marketing and commercial worlds but also in anthropology, sociology, geography, technology, and entertainment.

 

How do businesses go local or Glocalize?

 

Understanding the cultural quirks and social mores of a company's target market requires extensive market research, particularly if they are selling in many areas throughout the world.

 

For instance, Walmart encountered issues when it initially opened stores in Germany because of the greeters they used at the entrance. This overly helpful style of customer service turned off German clients. To accommodate its German consumers' needs, Walmart had to modify this distinctive technique, or else risk losing all of their business.

 

Glocalization is about satisfying local customers, even if a business must frequently revise its approach. Understanding your target market in each market you operate in is one of the most crucial components of a global marketing plan. This is why a crucial stage in how businesses glocalize is conducting research on global audiences.

 

Also Read | What is Market Socialism? - All you need to know

 

Glocalization Vs Globalization

 

Standardization of products is prioritized by globalization. A product is standardized when it is created to be used globally without being customized for regional preferences. Mobile phones and laptops are two common examples of this standardization. These two goods will have comparable specifications no matter where they are manufactured.

 

Cultural diversity is homogenized by globalization. Consider Americanization, where American culture helped shape the civilizations of many different nations. One method is by increasing the availability of American goods there.

 

Glocalization, on the other hand, operates in reverse. The corporation tailors its products to local tastes or demands even if both marketing methods are aimed at the global market.

 

Consider quick food restaurants like McDonald's. The business runs eateries all over the world. It prepares the cuisine in accordance with regional tastes rather than standardizing it across all nations. For instance, you might discover that certain countries have a special menu that other countries do not.

 

Watch this Video on Glocalization where Dr David Randall defines how it can be beneficial:

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Impact of Glocalization on Regional Marketplaces

 

Smaller economies that have developed out of tiny firms may suffer from the effects of glocalization.

 

Larger businesses can offer lower rates since they have a larger budget for localization and can capture the majority of the market more quickly. Local and small enterprises may find it challenging to compete. Corporations boost their prices because local firms can't keep up since there is no longer any competition.

 

However, when big businesses join local markets, new employment is generated where there may not have been any. Therefore, depending on the setting, glocalization has different impacts.

 

Also Read | What is Monopoly in Economics?

 

Advantages of Glocalization

 

There are various advantages of Glocalization for businesses as well as for the destination nations. They include the following:

 

1. Boost your odds of success

 

Making adjustments for local requirements makes the company's offering more appealing. Additionally, it puts the business in a better position to respond to regional market dynamics. The business is then better equipped to compete successfully.
 

Not all items are compatible with the standardization plan. Country-to-country differences in taste for goods like food and drink are a result of regional cultures, values, and preferences. As a result, glocalization fosters stronger emotional connections and builds trust with customers in each nation.

 

2. Boost Inventiveness

 

Companies can promote product creation and development by utilizing local knowledge, expertise, viewpoint, and backgrounds. Diversity is a key ingredient in the process of creating new ideas and a crucial motivator of creativity.

 

3. Greater Sales

 

The successful adaptation increases the company's sales. The company's products gain popularity when local people enjoy them. The first success made it simpler for the business to introduce other goods in the future.

 

4. Adding jobs for the nearby workforce

 

Locals are typically used by enterprises to operate their operations. It could be a component of the business plan or a requirement of the government in the country of destination. As foreign companies grow, they increase the number of employment and incomes they provide for locals. In the end, the economy prospers as a result.
 

5. Boost the economy's capability for production

 

Foreign enterprises' investments boost the economy's capital formation. A country can eventually produce more production in the future as its productive capacity rises. Foreign investment is a method of transferring technology, expertise, and knowledge as well. These advantages help the economy of the destination countries produce goods and services of higher quality.

 

6. More convenient product access

 

Local customers can benefit from a larger product selection. They have access to purchasing from nearby foreign businesses in addition to local ones.

 

Foreign companies' competition helps to drive down costs and raise the caliber of goods. Local businesses that want to continue in the market must become more competitive by focusing on cost leadership (efficiency) or product differentiation.

 

Also Read | Impact of Poverty in Different Countries of the World

 

Drawbacks of Glocalization

 

The benefits and risks of globalization are both there. The following are a few drawbacks of glocalization:

 

1. Demands significant financial and material resources

 

Adopting this method costs businesses a lot of money and resources. They must employ locals and conduct in-depth market and rivalry research locally.

 

Finding qualified talent could be difficult for them. In addition to the expenditures of developing networks and creating industrial facilities, the convoluted bureaucracy also raises costs.

 

2. Local market opposition

 

Consumers in some nations might not welcome the arrival of international businesses. Even when the business has modified its offering to meet local demand, this does not necessarily result in more interest from customers.

 

The nationalism of the area is one factor. Customers favor domestic goods over imported goods because of patriotism. Local enterprises receive more assistance from them than do foreign ones.

 

The corporation finds it challenging to meet its sales goal in the face of such resistance. Finally, the business was forced to close after failing to expand the local market.

 

3. Closing down local businesses

 

Large multinational corporations frequently use glocalization. They do, in fact, enhance competition and lower prices. However, they have a better chance of dominating the local market because they have more and better resources than smaller businesses.

 

Increased competition increases business pressure and risk for local businesses, especially small ones. Finally, local business owners shut down because they were unable to compete with multinational corporations.

 

Also Read | Types of Trade Barriers

 

Conclusion

 

Companies should understand the notion of geolocalization. Due to the availability of chances for human development, better-paying occupations, and more valuable services, people are drawn to immigrate to other nations. Urban centers become the main sites for interpersonal systems for learning, collaboration, and resource sharing as they become denser. 

 

They also develop into hubs for several industries. Urban areas develop into megacities. In order to better serve the broad market of different ethnicities with different cultural beliefs and product preferences, one must adapt services and products.

 

Transcreation, which goes beyond basic translation or localization and creates new campaigns and messages, is advantageous for glocalization as well.