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Product Localization for your Business Growth in 2023
Successful businesses that market their products in foreign markets understand the power of localization and use it to their advantage to increase their ROI. Adapting a product or service to suit the needs, culture and language of a target market is what product localization is all about. Brands that are able to adhere to localization best practices are the ones that break even in foreign markets.
In the past, products had a limited definition and were constrained to physical items but not anymore. Today, a product can be anything ranging from a good to a service; even intangibles like a website or an app can be classified as a product. Thanks to the power of the internet, small brands can now reach a wider market to sell their products if they are able to localize them to serve the needs of their target market.
To tap into the global marketplace, you need to break through language and cultural barriers that serve as impediments to business growth and the only way to achieve this is product localization. We explain the concept below and explain why it is so important today.
What Product Localization is all about
Product localization is the art process of adapting a service or product to suit the needs of a target market by taking into consideration its language and culture. The localization process is all encompassing and includes tangibles and intangibles. Things as mundane and taboo are taken into account when localizing a product for a specific market.
The main goal of product localization is not to design a new product but to modify it to suit the needs of the target market. The creator doesn’t make the adaptation obvious but does it in such a way as to make the users in the target market feel like the product was specially created for them. Product localization allows brands to break into new markets quickly rather than to create a whole new product from scratch.
Why is Product Localization Necessary?
Product localization is necessary because it makes the product available to a wider audience. For instance, a product that has its product description written in English will not find many French or Chinese buyers because they may not understand what the product is for or how it is used. The same thing goes for business websites written in English. Such a website will not attract traffic from Germany because most Germans don’t understand English.
It will also interest you to know that only one third of the world’s population is proficient in English so that leaves a massive 80% of the market out of your reach. If you want your brand to go global and products to break into new territories you need to invest in localization services to help you attract customers whose first language may not be English. This will increase your sales conversion rate by several folds.
We know for a fact that buyers are more than likely to buy a product if it’s marketed in their own language and reject versions that are marketed in a foreign language even if the latter may offer more value for money. So the need for product localization cannot be overemphasized, however, if it must be done at all it must be done right otherwise the move may backfire.
Benefits of Product Localization
For those who wish to make their brands established brands across the globe, product localization is a must. Here are some of the benefits of localizing your products for a target market.
Effective Marketing Strategy
Product Localization is an effective marketing strategy in its own right but many business managers are not even aware of this. When you localize a product, it becomes readily available to users who will gravitate towards your brand because you are communicating the value of the product in a language that they can understand. This gives you an advantage over your competitors before you even spend money on advertising. Furthermore, when you localize your product, it forces you to ask key questions like who your target market is, what they like, and how to reach them effectively. The insight you gain from asking these questions can help you craft successful marketing campaigns later on.
Quicker Time to Market
When you localize an existing product, you don’t have to spend more time and resources creating a new product. You localize a product by simply adapting it to suit the needs of a new market. There may be a few modifications here and there but the core features of the product remain the same. This reduces the time to market; the launch time can be reduced by several months or years.
Higher Revenue with Product Localization
Product Localization leads to higher ROI eventually because you serve a wider market. The “Can’t Read, Won’t Buy” syndrome plaguing your competitors will not be a problem for you and you can market your product to new buyers. The more people you market to the higher your chances of sale and eventual revenue. It doesn’t take rocket science to know that businesses that market their products to multiple markets stand to make more profit than single market businesses. According to a study by Common Sense Advisory, 56.2% of consumers said that the ability to obtain information in their own language is more important than price.