How Does Cultural Differences Impact International Expansion
We are releasing a new series of articles, "Global Scale Series." These articles focus on helping grow your business on a global scale. Our last article focused on tips for boosting your business on a global scale. This article will discuss the importance of identifying cultural differences and how to build your content and strategies around these elements.
Going global and doing international business presents a challenge and an excellent opportunity to enhance global growth. Many companies have decided to go global and seize the opportunities it presents. However, international expansion is not without its challenges and risks. The fact that businesses work differently in other countries is one of them. One of the biggest challenges that such businesses face arises from cultural differences.
Operating on a global scale not only involves speaking a foreign language but also means familiarizing yourself with the cultures of a given region. This article will take a comprehensive look at the cultural differences when expanding internationally.
An Overview of Cultural Difference Problems During Globalization
In the age of globalization, do cultural differences still matter when companies like Apple and Sony sell the same products globally? Does it matter when today's advertising campaigns, which are presented by celebrities, are used in television and magazines worldwide by altering the language and sometimes the pricing?
The answer to that question is YES. The chances of a business succeeding internationally unless it considers the importance of cultural differences are very slim.
Understanding cultural differences provides you with insights to overcome various problems and become successful in the new market. That said, cultural differences impact businesses in the following areas:
Communication: Effective communication is essential to the success of any business. When you join the global business space, understanding the local language is one of the best ways of bridging cultural differences. Understanding the language of your target audience will help you convey your message. You should learn both verbal communication and non-verbal cues.
Interactions: You must remember the proper professional interactions when dealing with different cultures. Gestures that may be commonplace in your own countries, such as making eye contact, kissing people you meet on the cheek, or shaking hands firmly, may be considered offensive by international business partners or clients. As such, it's essential to research the accepted business etiquette.
Organizational hierarchy: Cultural norms can affect how people perceive organizational and management hierarchy. In some countries, it's difficult to question the decisions made by senior managers or voice opinions that differ from the rest. In short, attitudes differ based on the social values of a country.
Different negotiation techniques: Negotiation is a critical element of international business. Culture impacts how people communicate, behave and think. These attributes are reflected in how they negotiate. Companies must understand cultural differences when negotiating and find ways to eliminate any potential barriers. You should consider the way you negotiate based on the country you're operating in.
Workplace etiquette: When running a business that operates across various countries, you're likely to encounter many differences. This requires that you learn international business etiquette. Be keen on the formality of address when interacting with foreign business partners.
Localization Is the Way to Go
Localization is essential for any business that wants to expand internationally. So what is it?
Localization is an approach that businesses use to connect with new audiences. It allows enterprises to plan for their target audience's needs. For instance, it focuses on cultural differences and purchasing habits. Understanding your target audiences is essential, given that you'll understand how best to meet their needs while respecting their cultures.
For your business to be successful in the international arena, you need to create a localization strategy that addresses cultural differences. Only then will you be able to get through to your new customers and thrive in the new international expansion markets.
Steps for Developing a Localization Strategy
There are several steps for developing a localization strategy. You'll first need to outline the aspects that need to be localized. These could be your international marketing campaigns, social media, product information, or website. Once you've determined what needs to be localized, you must identify your target audience.
Identifying your target audience will help you decide the number of languages you need to adapt to your marketing and the cultures you need to understand. You'll need to determine what your content translates to in different languages. You'll also need to determine whether your marketing strategy is acceptable in the culture of the people you intend to convert to clients.
There are several ways of designing a localization strategy. Whichever method you opt for, you must conduct extensive research on the target audience.
How to Avoid Cultural Difference Mistakes in Localization
1. Recognize Differences
It's essential to recognize that each country has its way of conducting business and has a unique etiquette culture. It's also important to acknowledge that different countries have their mannerisms, standards of behavior, and tendencies. Their unique behavior and cultural practices can't be overshadowed by globalization.
2. Honor Local Flags
Local flags evoke emotional responses. It's a national and cultural symbol that's closely tied to what a country and its people are all about. Your localization team should know what the flag represents and how to incorporate it strategically into your products and marketing efforts.
Your team should also understand that several countries restrict the use of the national flag. For example, Azerbaijan does not allow the use of flag colors on products.
3. Mind the Gestures You Use
Your localization team should research gestures in the nations you want to operate. Some cultures have issues with hand gestures, images of different body parts, and the positioning of the feet. For instance, while a closed fist could signify solidarity in some counties, in Pakistan, it means a strongly offending gesture.
4. Exercise Caution When Using Wordplay
While playing with words can be an effective tool in advertising since catchy phrases can easily capture the audience's attention, wordplay can also have negative effects, even in English-speaking countries. For example, the slogan "White Power" may seem harmless in some cultures, but in the U.S., it's taken to mean the promotion of the supremacy of white people.
5. Be Careful With Clothing
Clothes speak volumes. As such, it's important for the ad models and even images you use on your products and websites to be acceptable to the local people. Showing too much skin is unacceptable in some cultures. The same applies to the design of the clothes. Ensure that your localization team understands product positioning and what the audience in the local target market prefers.
Implement Localization to Grow Your Business Globally
When it comes to growing a business across borders, it is important to understand the cultures of your local target market. Understanding your local target market involves creating a localization strategy that explores your target audience's language, cultures, and norms to market