By Walter Loeb - Forbes - May 1, 2018
At the recent TransPerfect Global Retail Forum, speakers focused on challenges that face any business looking to be successful in foreign lands. Many obstacles can develop, often because of a lack of appreciation for local customs, language barriers or structural organization in the marketplace. Success comes from learning to know people–how they act, what they like, and how they live. The consistent stress throughout the conference was on the need for companies to pay attention to local behavior and routines as a way to test their global potential.
The use of the internet provides a perfect example. With such a broad user base, it seems like an excellent way to reach people in foreign countries. However, 72% of the internet’s three billion users do not speak English so an ability to speak the local language is essential. Supporting this is the fact that 90% of European browsers only act in their native language. Plus, 85% of consumers won’t buy in a foreign language, and 56% insist that language is more important than price. That is quite a shock to many U.S. companies who think they can enter a foreign country easily without knowledge of the local language or customs.
Something as seemingly minor as return policies reinforces this issue. It was indicated in one session that the total return rate for purchases in the United States is about 7%, while the rate is about 3% in Brazil, 4% in Canada, 6% in France, 9% in Switzerland, and as high as 13% in Japan and Germany. The variation is significant since it shows that some countries, like Germany, have more stringent rules for credit and returns. Speakers stressed that it is important to understand such policies and how people act.
Stanley Silverstein, president for international development & global licensing for Perry Ellis International, spoke about making a plan, testing offerings in social media, studying regulatory influences and only then enter any new geographical location with as much knowledge as possible to understand who the customer will be. Carl Miller, managing director of Global Retail Insights Network, added similar insights based on his knowledge of international retail practices. He stressed that knowledge of the targeted country’s culture as well as understanding how to process payments across borders as both being essential for success.
Global commerce is booming and certainly presents great opportunity. But, companies must localize experiences in order for consumers to accept their product. It requires knowledge of local customs shaping both consumer expectations and business operations. A shopper’s ease of mind will be more assured if there is full visibility of the entire shopping experience, including end costs of any product (which should include all charges, duties and taxes). There should be no surprises.
Three hundred and seventy-five people attended the Global Retail Forum on April 26, which was sponsored by TransPerfect. The keynote speaker was Kenneth Cole. His Kenneth Cole brand has global acceptance. He indicated how his products–shoes, apparel and accessories–have to be specific for each country to achieve this broad success. He also stressed that the market changes very fast today and his brand has to be clearly focused, concise and specific. That’s the way you can have impact.
Without doubt, technology has made global retailing easier. But don’t be fooled. Just because it can be easier to connect to new markets doesn’t mean that global expansion can happen in one easy step. Whether you are looking to expand as a manufacturer or as a retailer–the message is the same. You have to know your customer and market to her (or him) in her fashion. Each country is different, but a carefully planned market entry strategy can lead to steady customer acceptance and each purchase can be a stepping stone to a profitable venture.
Original Article: https://www.forbes.com/sites/walterloeb/2018/05/01/going-global-think-local-first/#6ab769055e95