In a world so hyperconnected as ours, building a global brand is more complex than ever before. The growth and domination of digital platforms and global trade has opened the door for brands to expand internationally with unprecedented ease. However, while the logistics of entering new markets may be simplified, the challenge of truly connecting with diverse audiences remains as complex as ever. At the heart of this challenge is the importance of local culture, a factor that can make or break a brand’s success in a new region.

A standardisation strategy – the ‘harmonising and unifying [of] an organisation’s marketing messaging, services and processes across all global markets and cultures’, has its benefits, such as allowing for a consistent brand image, delivering economies of scale, providing transferable experience and creating easier control and coordination. However, separate disadvantages arise with such strategies; misalignment with customers (including behaviours, preferences and experiences), differences in market maturity, a lack of competitiveness and unique challenges with local rules and regulations. Consequently, successful global brands are those that strike a delicate balance between maintaining a consistent global identity while adapting to local cultural nuances.

One of the biggest challenges for global brands is maintaining a coherent and consistent identity while resonating with consumers from vastly different cultural backgrounds. While a brand’s core values and messaging need to be stable enough to be recognisable worldwide, it must also be flexible enough to integrate local customs, tastes, and preferences.

McDonald’s being a classic example of this balancing act, a brand that has become synonymous with globalisation. McDonald’s maintains a global identity centred around fast, affordable, and family-friendly dining. However, its success in different markets comes from its ability to adapt its menu to local tastes. In India, for example, McDonald’s offers a variety of vegetarian options, such as the McAloo Tikki, to cater to the country’s significant vegetarian population, a cultural necessity in a country where many people avoid beef and pork for religious reasons. Or, in South Korea, where they offer a Bulgogi Burger (Bulogi being a classic Korean dish) to appeal to local flavour preferences and familiar cultural elements. This adaptability has allowed McDonald’s to maintain its global brand identity while being relevant to local customers.

Understanding the local culture goes beyond just adapting product offerings; however, it also involves cultural sensitivity in marketing, communication, and brand positioning. Similarly, localisation isn’t limited to products and services; it extends to marketing and communication strategies as well. To resonate with local consumers, global brands must adopt localised advertising, content, and messaging that speak to the region’s cultural norms, humour, and values.

A study conducted by the Harvard Business Review found that ‘70% of consumers in international markets are more likely to buy from a brand that demonstrates cultural sensitivity and understands local customs and traditions’.

One of the main reasons that localisation is so critical to global branding is that it helps to build trust. Consumers are more likely to trust a brand that demonstrates an understanding of their culture, values, and needs. This trust translates into long-term loyalty, as customers feel that the brand is not merely looking to capitalise on their market but is genuinely interested in serving them.

Starbucks provides another excellent example of how global brands can win trust through cultural adaptation. In China, a country with a deep-rooted tea culture, Starbucks didn’t simply attempt to transplant its Western coffee shop model. Instead, the company researched and developed a deep understanding of the local culture and incorporated elements that would resonate with Chinese consumers. Starbucks stores in China are typically larger to accommodate group gatherings, a nod to their collectivist nature and culture. Additionally, Starbucks introduced a variety of tea-based beverages alongside its coffee offerings, recognising the significance of tea in Chinese daily life. These adaptations allowed Starbucks to build trust with local consumers, leading to the brand’s rapid expansion and success in the region.

“Starbucks entered the Chinese market in 1999 and has since become one of the most successful international brands in the country. As of 2021, Starbucks has over 4,700 stores in China and plans to open 600 more each year. The company’s success in China is due to several factors, including its focus on providing a unique and high-quality coffee experience, its localisation strategy that tailors stores to local preferences, and its commitment to sustainability and social responsibility.” – Medium 2023

The success of global brands in new markets ultimately depends on their ability to balance global consistency with local relevance. Brands that invest in understanding local cultures, adapting their products, services, and communication to meet the needs of local consumers, can build lasting relationships and foster trust. On the other hand, brands that fail to recognise the importance of cultural adaptation risk being seen as out of touch or, worse, disrespectful. In an increasingly globalised market, the brands that thrive are those that see cultural differences not as obstacles but as opportunities for connection. By tapping into local cultures and demonstrating a genuine commitment to understanding their audiences, global brands can transcend borders, creating meaningful and lasting consumer relationships across the world.