2. Starbucks<\/h2>\n
Another example of successful localization in Asian markets refers to the case of Starbucks in Japan. During the initial phases, Starbucks opened its first store in the country with a 50\/50 partnership with Sazaby League, which is a popular retailer and restaurant chain that was already a big name in the Japanese market. Once the brand became more confident that it could run things on its own, it then took complete ownership in 2004.<\/p>\n
Because of this partnership, the brand\u2019s localization efforts were a success. Here are some of the reasons behind this and the localization steps taken by the brand:<\/p>\n
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- Partnering with a regional brand decreased the risks of entering a new market without being properly informed<\/li>\n
- It also helped Starbucks better understand the local market<\/li>\n
- It customized its menu to cater to Asian audiences (this meant introducing more teas on its customized menu, ensuring smaller serving sizes, making the drinks less sweet, and providing exceptional customer service)<\/li>\n
- Starbucks in Japan, instead of writing customers\u2019 names on the drinks, uses a numbers system to respect the customers\u2019 need for greater privacy<\/li>\n
- Japanese Starbucks cafes also have a quiet and peaceful ambiance when compared to other global locations<\/li>\n
- The architecture of Starbucks buildings was also completely localized to fit in with the Japanese environment, taking inspiration from Shintoism and amalgamating designs that are a combination of contemporary and traditional styles<\/li>\n
- The brand also used social media localization to see what\u2019s trending in the region and to further promote its products online. With this in mind, all their social media accounts in the country are localized in Japanese<\/li>\n
- As part of seasonal promotions, Starbucks Japan added cherry blossom beverages to their menus as well as AR experiences in-store as part of their seasonal promotion.<\/li>\n<\/ul>\n
3. Hyundai Motors India<\/h2>\n
Our third case study of successful localization in Asian markets is Hyundai Motors Company (HMC) in India, entering the market in 1996. Here\u2019s what the South Korean brand did to ensure its successful entry into this diverse market:<\/p>\n
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- Market entry started with a wholly-owned local subsidiary, Hyundai Motors India (HMI)<\/li>\n
- Appealing to the government by proposing massive production in India along with over 70% localization of parts and the transfer of technology to India<\/li>\n
- By sincerely contributing to the vision of the Indian government and the development of India, HMI gained the trust of the government and its key stakeholders<\/li>\n
- HMI focused on CSR campaigns to increase awareness of traffic safety. With India\u2019s national actor Shah Rukn Khan, Hyundai launched its traffic safety campaign and visited five major cities in India to hold traffic safety classes for children. Along with TV airing, HMI designed a special website called \u2018Kids Hyundai\u2019 to further educate children in traffic safety. This campaign has made a great contribution towards earning the trust of Indian consumers.<\/li>\n
- Santro was the first strategic car that Hyundai developed and the name of the Santro was created with the initial \u2018S\u2019, which Indian customers like. Ground clearance (height from the ground to the bottom of the car) was increased in consideration of poor traffic conditions, due to many unpaved roads. In addition, the Santro was designed to be easy for women who wear turbans or saris<\/li>\n
- Through market research, Hyundai found that it is important to consider socio-cultural voids such as the consumers\u2019 caution towards India\u2019s weak road conditions, the rising trend of female drivers, and hot weather<\/li>\n
- Due to the unique culture that is derived from the caste system, Hinduism, and English colonialism, Indians display a characteristic of having low loyalty towards the company with high absenteeism. HMI applied the cognitive structure that lies behind the caste system to manage employees and tried to increase employees\u2019 sense of ownership towards the company. The company offered high payroll standards and managed local employees through in-depth site management. They also recruited employees with a \u2018soft\u2019 personality and divided the type of work according to the level of education and age.<\/li>\n<\/ul>\n
Final thoughts<\/h2>\n
Localization in Asian markets, when approached correctly, can help a brand stand out from the crowd and ensure greater local uptake, acceptance, and adoption.<\/p>\n
With Spotify, Starbucks Japan, and Hyundai Motors India as just some examples of great efforts in terms of localization in Asian markets, brands seeking to enter Asia will be well-positioned to ensure that their localization efforts are as close to the ground as possible in terms of meeting their customers where they\u2019re at.<\/p>\n
As was the case of Spotify, using a \u201ccookie cutter\u201d approach should be the last method used. Instead, every brand needs to ensure that they accurately localize for the particular Asian market and market segment they are aiming for to have greater local success.<\/p>\n