Glocalisation describes the process of tailoring internationally available goods and services to regional markets' tastes, requirements, and cultural specifics. Finding the right balance between adapting offerings to meet regional or local requirements and upholding a consistent worldwide corporate identity is required. Modifications to a product's features, packaging, marketing tactics, and even pricing are frequently made as part of the process of "glocalisation" to appeal to a range of consumer preferences and cultural contexts.
A combination of globalisation and localisation, glocalisation refers to any service or product developed and distributed internationally but adjusted according to the demands/ requirements of the local market and made available there.
Culture, consumer preferences, and laws are considered to capture local markets. Globally generated goods are customised according to the needs of the new market.
Did you know?
To produce, adapt, and launch a product into new markets, one must follow three processes – globalisation, internationalisation, and localisation.
What Is Glocalisation?
Glocalisation emerged from a combination of globalisation and localisation- glocalisation refers to launching a product or service developed and available globally but also introduced into local markets with required adjustments.
This is done considering the populace's social norms, values, and requirements.
An excellent example of glocalisation is automobiles available worldwide and made available in local markets with adjustments in emission standards, left/right side steering wheel adjustment, and other requirements.
Why Is Glocalisation Important?
Going global is necessary for multinational companies to gain trust and growth in the local markets of various countries.
Suppose they have the required infrastructure and skill to go ahead and provide services and products according to the needs and preferences of the local communities. In that case, the company will benefit from its revenue collection and create a place for itself in the markets.
Foreign revenue will help the companies decongest as they establish new branches in different geographical locations.
Glocalisation Examples
Some examples of glocalisation are listed below:
1. Automobile companies customise their globally available models according to the requirements of different local markets. This includes the steering wheel position and emission standards.
2. The food and beverage industries are other examples of glocalisation.
These companies employ a local strategy to enter and influence local markets in different regions to enhance their revenue.
They customise their packaging and distribution pattern in accordance with the local, maintaining their global authenticity as well.
3. Google Maps: By offering regionally specific features and services, Google Maps includes glocalisation in India. It provides voice-guided navigation, for instance, in regional languages, including Bengali, Tamil, Hindi, and more.
To meet the special demands of Indian consumers, it also offers real-time traffic reports and details about nearby transportation options, including buses and trains.
4. Coca-Cola: By providing regional and seasonal beverage options, Coca-Cola has embraced globalisation in India. For instance, to appeal to the local market during holidays like Diwali, they produce limited-edition flavours like "Thums Up Charged No Sugar" and "Limca Raspberry Rush."
Additionally, they offer a wide variety of regional flavours, such as "Kinley" packaged water, "RimZim" lime-flavoured soda, and "Maaza" mango drink.
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Glocalisation - Special Considerations
Companies with decentralised authority structures and companies operating in various cultural contexts prosper under globalisation.
Although this endeavour is resource intensive and costly, it allows access to a larger and culturally varied market.
These companies also prove to be successful competitors in that region.
Advantages of Glocalisation
Glocalisation benefits the domestic market. It helps improve quality and decrease prices, and businesses work more efficiently to maintain their position in the market. Adopting glocalisation is beneficial for both destination countries and foreign companies.
The advantages of glocalisation are outlined below:
1. Increased Chances of Success
Consumers prefer companies that provide services or products that meet local needs. The company becomes more relevant to local market conditions and can compete more effectively.
Since the consumer’s taste for edible products varies from region to region and is also influenced by culture, values, and pallet of taste, it cannot be standardised.
Glocalisation helps companies provide goods according to local preferences. This helps the company gain trust and bond with consumers in different geographical regions.
2. Drives Innovation
Realising local knowledge, perspective, background and skills and using them for product innovation can work wonders. This can help the company support product innovation.
3. Increases Sales
Positive adaptation of the product increases sales and profits for the company. As the product becomes popular, the company is reassured that launching new products in the future will be easier and more successful.
4. Employment Opportunities for the Local Workforce
Due to the company’s strategy or the requirement/ instruction of the destination country's government, local people are employed to run the business locally.
Foreign businesses in the destination country create job opportunities for local people. This enhances and adds to the economic growth of the destination country.
5. Increased Productive Capacity of the Economy
Foreign investments are a significant source of non-debt financial resources for economic development. This boosts the manufacturing and services sector of the country.
Foreign investments help transfer technology, knowledge, and skills. The destination country benefits from improved factors of production.
6. Better Access to Products
Local consumers enjoy varied choices. They can choose between local and foreign products. Competition from foreign companies accelerates improving product quality and lowering production costs for local manufacturers.
Also Read: 5 Steps to Building Your Effective Business Continuity Plan (BCP)
Disadvantages of Glocalisation
Glocalisation has a positive effect on the domestic/local market, but it also has its limitations.
The following are the disadvantages of glocalisation.
1. Need for Large Investments and Resources
To adopt the glocalisation strategy, companies need to invest a substantial sum of money and resources. They need to do in-depth research into local markets and competition.
Hire a local workforce. It might be challenging to find qualified talent. Cost to build production facilities and network development too are required.
2. Local Market Resistance
There are instances in some countries where consumers do not respond favourably to foreign products. A major reason is patriotism and, thus, a preference for local products.
Strong support for local businesses and disinterest in foreign products makes it increasingly difficult for a foreign company to meet its sales target. Sometimes foreign companies shut down their business.
3. Local Companies Losing Their Business
Large multinational companies make their advent through glocalisation into new geographical regions. With their better resources and infrastructure, they have a bigger chance of dominating the local market.
Their entry increases competition, so local companies lower their rates to keep their hold on the market. It is this increased threat/competition that puts business pressure on local businesses.
There are several instances when the local businesses, after trying valiantly for a time, wrapped up their business because it was impossible to compete with foreign companies.
Conclusion
This article has helped provide information about glocalisation. Glocalisation has made it possible to offer services and products to the masses worldwide. As a result of glocalisation, global businesses have established themselves in local markets. Glocalisation increases competition, improves quality, and lowers prices.
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