CandleFocus

Glocalization

Glocalization is a business approach that seeks to maximize the benefit of both local and global strategies. Through this strategy, businesses aim to capitalize on the global market by capitalizing on local cultural, economic and political differences. Globally, organizations are recognizing the need to cater to a more nuanced customer base and go beyond a single, homogenous market. The process of glocalization enables organizations to identify, understand and respond to the varied needs of their regional, national, and international customers–locally, globally and in between.

E-commerce companies are particularly noted for their interactive and data-driven strategies that require marketers to think multilaterally, servicing both global and local customers. Glocalization allows companies to better personalize their offerings and tailor them to a specific consumer group. By considering local contexts – such as local laws and regulations, culture, norms, and other aspects – companies can create more effective products and experiences. Additionally, organizations can customize services by local languages, currency and payment methods.

The concept of glocalization encompasses both the world’s diversity and international industry objectives. Companies that succeed at glocalization need to focus their approaches on local needs and have the technological tools in place to support their operations. Global companies must realize that localization is a cornerstone of success in international markets, as well as in local markets, and vice versa - local companies need to realize that global resources and capabilities can be utilized to target larger audiences beyond local borders.

Glocalization is used extensively in the retail industry, providing a perfect demonstration of how an organization can unite the global and local worlds. With glocalization, retailers have the capability to better understand the wants and needs of different demographic groups in different regions and respond with tailored products and services. Successful glocalization requires an intensive data-driven approach and analysis to understand customer behaviors and needs.

Ultimately, glocalization is a powerful business tool that can be beneficial for organizations looking to explore international markets and those looking to better serve their local audiences. By embracing the concept and leveraging technology to uncover customer insights and preferences, multinationals can significantly increase their reach and more effectively target customers both in their home and in international markets.

Glossary Index