We need to disrupt global Branding
If you’re fortunate enough to have travelled some of the world, you’ll have seen that there are global brands that connect us. Go to Marrakech, Buenos Aires, Bombay or Paris and you find locals coat-hanging Zara, strolling in Nikes and scrolling through Apple phones.
These giants made their international presence known long ago. They did so by exploiting economics of simplicity. By selling standardised products worldwide, leaning on their aspirational quality, brands like Starbucks, Netflix and Coca Cola achieved global notoriety.
But what if I told you this approach has run its course? And that companies smart enough to manage their brands as global symbols, because that’s what consumers will perceive them to be, are re-strategizing their international branding efforts.
Standardisation is death
If you don’t believe me, ask Dr Martens, who discovered that standardisation was death in Argentina. Dr Martens took the old-school approach and overestimated the universal fame of its boots. They priced their boots at European price-points, offering monthly payment quotas to purchase over 12 months, a common pricing strategy in South America. This, combined with import taxes applied to foreign goods made their usually irresistible boots completely unattainable. Result, within 5 years and just 3 stores, its Latin internationalisation strategy flopped.
Unquestionably, brands must bet on the aspirational quality of their product when approaching international markets. They shouldn’t forget, however, that no brand is larger than life.
The establishment of a global culture doesn’t mean that consumers share the same tastes or values.
Celebrate local Culture
A brand doing remarkably well in South America is McDonald’s. The 1# fast-food chain in Latin America understands that global brands show us what we want to be, but that local brands celebrate who we are. Yuquita French fries in Venezuela, Dulce de Leche Soft Serve in Argentina…across the continent you will find examples of the Golden Arches tailoring their menu to include local delicacies manufactured nationally, blending them with their trademark experience.
Promote Native Talent
McDonalds has earnt big wins by promoting native talent. Following Travis Scott’s footsteps in the US, Colombian superstars J Balvin and Sebastiana Yatra launched custom menus for their fans to enjoy. Result - chaos among fans, a shortage of ingredients for McDonald’s and an uptick in both collaborator’s KPIs.
To thrive in the global context, brands must learn to manage their universal characteristics. No brand is larger than life. Adapt. Handle customs, values and perspectives with care. Celebrate local culture and promote the native talent in the foreign market of choice. Do this, and your brand could stand a chance at being global.
