McDonald’s serves the McVeggie in India and Teriyaki burgers in Japan because it recognises that consumer tastes and preferences vary across different markets.
While these products are popular locally, they may not appeal to customers in the UK, where menu items such as the Big Arch are more suited to local demand.
This is an example of glocalisation, a term that combines the words globalisation and localisation.
Glocalisation is a business strategy in which a company operates on a global scale while adapting its products, services and marketing to suit local cultures, regulations and consumer preferences.
For businesses that sell products and are thinking about expanding out of the UK, you may want to consider glocalising your products to fit within cultural differences.
Understanding the financial aspect of glocalisation
The world is a big place, so, when considering an international expansion, businesses need to shift their products to fit within the needs of local people.
A successful glocalisation strategy must be supported by a strong understanding of the financial landscape in each territory.
Businesses operating internationally may need to consider:
- Local tax regulations and reporting obligations
- Transfer pricing requirements between international entities
- Currency fluctuations and foreign exchange risk
- Import duties and customs costs
- Local employment regulations and payroll requirements
- Different accounting and compliance standards
Failing to address these factors early can create unexpected costs and administrative burdens that undermine growth plans.
What are the costs of ignoring glocalisation?
Many people assume that glocalisation is just a change of products. While this is true, glocalisation allows businesses to seamlessly fit within a foreign market.
Whether this is with warning labels or the materials used within a product, all things that are exported internationally will need to be changed to fit local laws.
Businesses that fail to consider these differences risk more than just losing potential customers. Products that do not comply with local regulations may face delays at customs, fines or even restrictions on sale within the market.
There is also the risk of damaging a brand’s reputation. Marketing campaigns, packaging or product features that work well in one country may be misunderstood or viewed negatively in another.
In an increasingly connected world, these mistakes can spread quickly and have a lasting impact on consumer trust.
Ignoring glocalisation can also be costly. Entering a new market without understanding local requirements may lead to unexpected compliance costs, product recalls or the need to redesign products after launch.
While adapting products, services and marketing for different markets requires investment, it is often far less expensive than correcting mistakes after expansion has already begun.
By taking the time to understand local consumer preferences, regulations and business practices, companies can improve their chances of building a profitable international business.
How can we help?
Glocalisation is a term that many people haven’t heard of. However, everybody across the globe has heard of McDonald’s and Disney. That is because they have glocalised their products to be accessible to an international audience.
The team here at Reanda can help businesses adapt their finances so that they have the scope to glocalise their products and create a successful international business.
We can help you prepare your accounts, consider compliance issues and stress-test your finances to ensure that you can glocalise effectively.
Thinking about glocalising for successful international trade? Speak to an accountant first for support.