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When it comes to discussing their global e-commerce expansion plans, a lot of retailers talk localization, localization, localization.
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Given that many online retailers are still passively pursuing international opportunities, we’d like to draw from our initial international e-commerce research findings to offer one helpful way to think about localization. We’ll also share three insights about how to make sure localization initiatives are successful.
Localization: Not So Simple
Generally speaking, we’ve broken localization into two distinct categories ─ cultural and tactical localization. Cultural localization issues revolve primarily around consumer tastes and behaviors while tactical localization challenges encompass operational dynamics such as cross-border pricing discrepancies and region-specific regulations and/or policies.
Although we’ll dive deeper into the emerging localization best practices as we release the study’s findings at the Annual Summit, we’d like to share several key observations gleaned from the study.
Localize. Don’t Homogenize. Respecting cultural nuances will make a marked difference in your international conversion rates. Don’t assume that common languages mean similar cultural modes in different markets. Don’t assume that what works in the U.S. will cross borders with the same degree of success.
For example, the credit card is the most popular payment type in the U.S. In Europe, the debit card is used far more extensively. In parts of Asia, installment billing can be quite popular.
Post-purchase consumer expectations vary widely as well. Given the worldwide footprint of the major shipping companies, one might think that using big domestic shippers provides the best “last mile” customer experience.
Yet often it is the local service providers that international customers know and trust. These relationships can really fuel word of mouth and help online brands build brand equity in new markets. In the U.K. for instance, Royal Mail is the customer’s shipper of choice. In Japan, local shippers like Sagawa Express and Yamato Transport use a wide range of options (including locals on bicycles) to literally provide white-glove service to online consumers.
Cookie-cutter best practices can crumble. Best practices in marketing can work quite well internationally. But be prepared to balance them with a deft touch of localization.
For example, given that seasonality and holidays are quite different across the globe, make sure to manage your marketing calendar with this in mind. Given the recent spikes of online buying ahead of holidays such as Mardi Gras, St. Patrick’s Day and Cinco de Mayo, planning ahead for ethnic holidays can be a big and often overlooked opportunity.
Different geographies also respond to promotional offers and messages differently (e.g. percentage off vs. dollars off). Canadians are more sensitive to the volume of promotional email than are their U.S. counterparts.
It’s very important to carefully balance localization priorities with “templated” best practices, especially those taken from more mature e-commerce markets.
Don’t try to boil the ocean. Localization is often a progressive exercise of trying, testing and learning. Accept that you’re not going to master every little thing. Ask for and accept help from local resources.
Perhaps most importantly, invest in comparative analytics and other tools that provide a better understanding of how consumer behavior and brand insights differ from market-to-market and from region-to-region.
What have you learned from your experiences with localization? We’d welcome your comments on the good, the bad and the ugly.
Join us August 12th for “Going Global – Merchandising for an Overseas Customer”
Please join the Shop.org community and Jim Okamura from the J.C. Williams Group on August 12th as he moderates Going Global – Merchandising for an Overseas Customer, a Shop.org webinar.
Joining Jim will be George Hanson, Senior Manager of International Strategy at Lands’ End and Angela Kapp, SVP – CRM & New Initiatives, The Estee Lauder Companies. Register here for the webinar and please stay in touch.
Thanks,
The J.C. Williams Group
