What is localization?

• Localization is the customization of all components of a product for a particular target market. These components include:

o product itself,

o customer service,

o any printed or online documentation related to the product,

o online presentation and websites,

o advertising campaigns, and

o any other marketing communication materials for the product.



Levels of localization

• The actual extent to which you localize your product may vary.

• There are three main alternative approaches for competing internationally:

1) A multidomestic strategy, i.e. a think-local, act-local approach to set the international strategy for entering foreign markets. This approach is appropriate for cases that require varying product offerings and competitive approaches from country to country.

2) A global or international strategy, i.e. a think-global, act-global approach. This approach characterizes a strategy that works best when there are benefits to be gained from taking a standardized and globally integrated approach and there is little or no need for responding any specific local customer preferences.

3) A combination think-global, act-local approach, also known as a transnational strategy. This approach is required when there is a high need for local responsiveness as well as substantial benefits from taking a globally integrated approach.



Localization options

• Localization has a lot to do with language issues, as in multilingual Europe your potential foreign market customers will probably speak different language than is your mother tongue.

• Depending on the scope of the localization, you have a few options how to cope with language issues:

o Dealing with localization internally - besides your comprehensive knowledge of your products and possibly also about your potential target foreign market, your everyday tasks and responsibilities would slow down the localization process. To handle the localization yourself, you not only need to be proficient in the specific language but you must also have an understanding of the cultural nuances. Also, you may not have the skill for translation as does a professional, native translator.

o Hiring an external translator - a general translator or translation firm may provide a quality translation but it may not have the technical expertise necessary to produce successful localization.

o Single language vendor - this type of vendor may have expertise in a specific language or market but managing the cooperation may be difficult. If you aim to enter more markers, you will be duplicating your efforts in terms of communicating with more than one vendor. If you become more successful and your market grows, you will probably need to expand to other languages to serve customers in more countries.

o Multilingual vendor - this type of vendor is considered a full-service localization vendor who will provide linguistic and technical expertise as well as international project management experience for as many languages as you need. Since they are the only vendor that will manage the project, this vendor must be chosen very carefully.



Dos and don’ts of localization

• Here are some recommendations you should follow when planning and implementing your localization project:

o Do plan your localization project to keep the balance of time, cost and quality.

o Do research your local competitors in each target foreign market.

o Do demonstrate understanding of the customer.

o Do show your customers how to use your product if they are not familiar with it.



• On contrary, make sure to avoid following “Don’ts” of localization:

o Don’t use translations without understanding cultural significance.

o Don’t use automated translation (e.g. Google Translate) without having the text checked.

o Don’t use your or your product’s brand name without verifying its cultural or language connotation in foreign language.



Where to find information whether and how to localize?

• Do research online - check local and relevant international online marketplaces, specialized websites, as well as websites of arts & crafts shops.

• Find a partner abroad - approach a local retailer or arts & crafts shop owner with experience.

• Participate on a fair or market - visit the target foreign country to present and sell your products on an arts & crafts fair. Talk with people attending your stall and get as much information and feedback as possible.



Country brand as a part of localization

• Some arts & crafts items are particularly typical and traditional for their country of origin, while some can be considered rather universal, without attachment to any specific country. One of the questions you can consider is the country brand name. In particular, you might either use the power of your country’s brand name, or, on the other side, to completely ignore or even hide the country of origin.

• When customers see a specific country name, they have certain associations in their minds.

• For illustration on the power of countries’ brand names FutureBrand regularly prepares the Country Brand Index. In its 2014-2015 edition, following European countries have been classified in TOP 10 according to strength of their brand name: Switzerland (1st in Europe, 2nd worldwide); Germany (2nd in Europe, 3rd worldwide); Sweden (3th in Europe, 4th worldwide); Norway (4th in Europe, 6th worldwide); Denmark (5th in Europe, 9th worldwide); Austria (6th in Europe, 10th worldwide)



• Here are several issues you should consider when thinking of whether to emphasize your country of origin when attempting to attract the customers on a foreign market:

o How do customers in the target foreign country perceive your home country and its brands?

o How do customers in the target foreign country perceive their own country and its brands?

o How would entering a new country change your personal seller’s image?