In today's global marketplace, micro, small, and medium-sized companies (MSMES) must think of expansion and move beyond their local borders to grow their business. This then begs the question, how does one expand his or her existing business internationally?
Localising your business in order to venture into new overseas markets is crucial as it helps you stand out and connect with potential customers in these new territories. A well-crafted localisation strategy helps to bridge cultural, language, and market differences, ensuring your products and services resonate with your target audience. This article discusses the importance of localisation and shares ways to help you expand your business to other global cities.
What it means to localise your MSME businesses
First and foremost, what is the meaning of localisation? To put into context, localisation is the process of adapting your product or service to a specific culture, language, and region. This can include customising content for a particular market, adjusting the overall look and feel of a product to suit a cultural preference, or using language-specific tags to connect with your target audience.
It is particularly relevant for MSME businesses looking to expand into new markets, as it helps them stand out from the competition and create a unique selling proposition. A well-thought-out localisation strategy can make the difference between successful expansion and a failed attempt to penetrate an overseas market.
By tailoring your offering to the local populace, taking into account their culture, language, as well as needs and wants, you can increase your reach and strengthen your brand presence. Such a move invariably leads to an increase in customer loyalty and higher revenues.
Examples to kickstart your international business expansion
To create a successful localisation strategy, consider the following examples to ensure your business effectively connects with your target audience in each overseas market:
1. Focus on personalisation
Personalisation is an essential component of localisation, as it enables you to tailor your products or services to the specific preferences and expectations of your target audience. This may include customising your messaging, tone, and language to suit the cultural norms and values of the market you plan to expand into.
2. Understand your target market
A successful localisation strategy takes into account the unique characteristics of the target market, including language, culture, social norms, shopping behaviours, and purchasing habits. Conduct thorough market research to understand your audience and their preferences, and use this information to enhance your localisation efforts.
3. Analyse the local competition
Understanding the local competition is vital to expand into new markets. Due diligence to identify the key players, their strengths and weaknesses, and the gaps in the market that your business can fill is essential in order to grow your business effectively. How you would use this information to differentiate your offering and create a unique value proposition will determine the feasibility of your venture.
4. Pay attention to all details
Executing good localisation strategies requires a keen eye for detail and a deep understanding of the nuances of the target market you want to expand into. This includes being mindful of local customs, traditions, and taboos, as well as staying up to date with domestic events and news. Strive to create a seamless customer experience that resonates with your target audience and adheres to their expectations.
5. Leverage the local channels
To connect with your target audience in each new overseas market you plan to expand into, utilise the existing traditional media, social media, and e-commerce channels that are most popular in that region to market your products and services. This may involve working with a local partner to gain insights and access to the right channels, ensuring your message reaches your intended audience effectively.
