Glocalization is a term that combines two words: globalization and localization. The rapid development of technologies has contributed significantly to globalization. In the business world, we see global trends, that create a unified picture of mass consumers. Despite similar purchasing behaviors of different groups, the society still is heterogenous, and the right adjustment of the offer to the local needs is a strong bargaining chip for companies running their businesses all over the world.

Glocalization – table of contents:

  1. What is glocalization?
  2. Act globally, think locally
  3. Examples of glocalization
  4. Summary

What is glocalization?

To understand the nature of globalization, one has to distinguish between two types of markets, the global one and the local one. Following the name, the global activity is based on shaking off the limitations and attachments to the closes environment. But in compliance with the idea of glocalization the companies that broaden their activity to the whole world should even more care for the local adaptation of the products offered.

The process of glocalization may be defined as the connection and mutual penetration of global and local markets. Brands are recognizable because the business operates in many different countries, but the key to the real success of the company is understanding the differences between groups of clients and using this knowledge to create an offer that corresponds to local standards and traditions.

Thanks to globalization, the product, that is used globally becomes even more unique for the specified target groups. Local adjustments don’t change the essence of the given product, but, the customized promotion, even more, reflects the preferences of consumers.

Act globally, think locally

International expansion of brands allows them to reach a wide audience, which positively increases the results of the whole company. But following the unified picture of the world lead to the excessive homogenization of the economy, by ignoring local customers.

Glocalization opens entrepreneurs’ eyes to the needs of specific groups, at the same time highlighting the essence of the importance of the society’s cultural references. As a result, such an approach bring benefits both to the company and to the purchasers.

A thorough analysis of the tradition and needs makes the companies produce almost ideal products, that meet the individual requirements of the given community. Additionally, a well-thought-of marketing campaign, focused on key needs, hits the hearts of customers, convincing them to choose the specific brand. On the other hand, the purchaser receives more personalized products, that apart from meeting the basic expectations, correspond to his culture and tradition.

Glocalization – global products versus local needs

Examples of glocalization

One of the most recognizable brands, that follows the idea of glocalization is McDonald’s. The network of fast food bars functions on the market for many years already and opens up new facilities all over the world. Instead of offering a unified menu at each localization, McDonald’s decided to introduce diverse products that fit into the culture of the particular regions. A special menu that takes into account culinary preferences of different countries and due to this there are McArabia Chicken is available in the Arabic countries, McLobster can be found in Canada, McItaly is in Italy, while McBeer can be bought in Germany.

Similar strategies are used by well-known chains such as TacoBells or Starbuck, which stand out on the market by creating the menu adjusted to the local tastes and the interior design that corresponds to the specific cultures.

An interesting example of the same rule is Coca-Cola, which its success owes to glocalization. The commercial “Pearl of the Orient”, aimed at the residents of the Philippines, gained in 1955 outstanding popularity. The brand concentrated its efforts on Filipino culture and its uniqueness, which enabled the brand to get the appreciation of the local community and increase the demand for the beverage.

There are examples of glocalization that are not limited to the gastronomic sector. An international network of shops, Walmart focuses on providing clients with the best shopping experiences, by considering cultural differences and preferred by different nationalities service styles.

The Whirpool brand, to meet the expectations of its target groups creates products while taking into account cultural differences. For example, while developing their operation on the Indian market, the company has proposed a customized washing machine that can wash sari and other long materials without the risk of the fabric being caught up in the machine.

Summary

Why it is beneficial to follow the idea of glocalization? Glocalization allows entrepreneurs to understand the needs of specific groups of clients, by highlighting the essence of the importance of society’s cultural references. As a result, such an approach brings benefits to the company and the buyers.

Read also: Global leadership trends in business for 2022 and 2023

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Author: Andy Nichols

A problem solver with 5 different degrees and endless reserves of motivation. This makes him a perfect Business Owner & Manager. When searching for employees and partners, openness and curiosity of the world are qualities he values the most.