To stand out to consumers around the world, though, brands are tasked with a challenge: Find a story worth telling — and tell it in a way that resonates.
Traditional Approaches to Growth Are Dead
MEGATREND 2
Stephen Sadove, former CEO of Saks Fifth Avenue
Retailers must prepare for “recombinant innovation,” which is the practice of using and recombining existing technologies to form completely new experiences and use cases. The key to adapting? Having a foundational technology platform to build upon.
This iPaper is the fourth in a series of six, where we’ll delve into how retailers at all stages of maturity can balance global business savvy and hyper-local strategies to build scalable international brands.
What and who your customers like -- and how they behave -- is far more important than who they are or where they live.
Leading retailers we studied invest in relevant experiences that directly align to target customers’ expectations, history and values as a key tenet of sustainable loyalty.
Innovation is a culture, not a strategy; foster a community that encourages communication and collaboration and rewards innovation.
We’ve found that successful retailers truly put the customer at the center of everything they do. However, those that are thriving do not attempt to provide something for everyone; that’s Amazon’s strategy.
WHERE ARE YOU IN YOUR GLOBAL JOURNEY?
NOUN
Retailers that differentiate in their categories craft relevant and immersive experiences that align with their target customers' wants, needs and core values. Read on to learn the four guiding principles that have helped these retailers create organizations driven by a desire to delight customers in every interaction.
Digital technology has lowered the barriers to entry, creating unique challenges for brands of all sizes.
Shopper Behaviors Will Only Continue to Change
It’s no secret that as an industry, we are tasked with navigating — and responding — to greater change than ever before. Not only are the disruptions themselves significant, but the rate at which these changes are happening has accelerated. Although it feels like the sources of change and disruption are multiplying, we’ve found that they typically fall into three core megatrends.
Tech DNA does not begin and end with the customer experience: it drives everything.
When it comes to time and dollars, consumers are feeling stretched. Their attention is being pulled in a multitude of directions — between work, family and personal wellness. As a result, consumers are focusing less on things and more on experiences.
It is imperative that you are global out of the gate; find your tribe wherever they are in the world and be prepared to compete against global brands.
Large brands are struggling to keep pace with small, scrappy brands that move quickly, but have the power to hyper-localize marketing, merchandising and more.
How a ‘Global Early’ Mindset Can Help Retailers Better Connect with Consumers
1/6
Winning retailers use digital properties to establish their brand promise and integrate that story into their stores.
Despite the challenges, opportunities abound. According to PwC:
a radical change in an industry, business, strategy, etc. especially involving the introduction of a new product or service that creates a new market.
To receive more tactical tips, best practices and examples, click on where you are in your global journey to view a customized strategy.
find your tribe
Delight Customers
foster an innovation mindset
“Delighting Customers” is step one for a reason.
If you can use technology to gain entry and then tell a story that’s engaging to consumers, then there is a good chance of success.
The path to building a scalable, successful retail business isn’t what it used to be. Rather than focusing on brick-and-mortar first, cutting-edge brands are starting online and then building digital, hyper-local communities.
MEGATREND 3
“Consumers stand astride the global economy, still working, still buying, still confident about the future and still embracing new technology. In fact, according to analysis reported in the Financial Times in 2018 the global unemployment level fell to 5.2%, the lowest level in 38 years. And in September 2018, the Brookings Institution reported that for the first time in history, just over half the people on Earth — 3.8 billion — were rich enough to be classified as middle class.”
DISRUPTION IS REAL. AND IT’S A REAL PROBLEM.
This iPaper is the first in a series of six, where we’ll delve into each of the steps you must take in order to cultivate a culture of positive change and empower your team to conquer this disruptive era with gusto.
be digital first
be global early
Small brands can seamlessly reach and sell to shoppers on the other side of the world, but are challenged to create relevance at scale.
The Art and Science of Being Global and Acting Local:
A New Wave of Disruption Is Coming
Being “Global Early” is critical for brands striving to compete and thrive in the disruptive era. Big or small, emerging or established, all brands must know their customers — their “tribe” — on a deeper level and be able to connect with them wherever they are.
MEGATREND 1
To better understand how these trends are impacting the industry, we’ve studied dozens of retailers — retailers from different categories, pursuing a variety of target customers, and retailers executing different growth strategies. Through this analysis, we found the organizations that are thriving in the era of constant disruption display a consistent set of behaviors and practices. We were able to break these methods into six key steps that we believe every retailer should follow in order to create an enterprise built for change.
develop Tech-DNA
disruption
She reads reviews of the item on the blog, then clicks a photo of an item she likes.
GLOBAL BRAND, ENGAGING LOCALLY
Geographic differences extend far beyond social media and app usage. Shopping behaviors and consumer receptiveness to high-tech experiences (especially in-store) can vary greatly from market to market.
3,226 posts
2,404 posts
How will our values be perceived in different markets? Are there any social or political nuances we should be sensitive to? Pro tip: Recruit one of your colleagues who is originally from, or extremely knowledgeable about, your target market to help you answer these questions.
In addition to globally recognized influencers, ther is also a growing number of hyper- local influencers and micro-influencers who have a strong hold on regional areas and local communities alike.
Poor environmental record
THIS INCLUDES EVERYTHING FROM
When you keep your values at the core of everything you do, people who share these beliefs will find you. Most of all, they will follow you.
THE NUMBERS DON'T LIE. BRAND TRUST IS AT AN ALL-TIME LOW
Privacy breach
666 following
The photo takes her to the brand site, where she views additional photos and a 360 video of the item.
Once you really understand your customers in specific markets and transform that understanding into fully developed personas, you will have greater insight into the products they want to see as they venture across channels.
Your values dictate
Breached government regulations
782 following
If you ask the tough questions first, you’ll be able to reach maximum relevance without losing your brand voice and identity.
What type of content resonates best with this audience?
A week later, Amazon sends her an email with more suggested products based on her purchase.
2,306 posts
114K followers
One of the reasons Nike has become such a global force, and such a household name for so many consumers, is its highly localized approach to marketing. The brand has established partnerships with athletes in specific markets — from the Manchester United football club in the UK, to Colin Kaepernick and LeBron James in the U.S., and even esports star Jian “Uzi” Zihao. Most recently, the brand released “Juntas Imparables,” an ad designed to speak solely to women in Mexico and across Latin America. Although all of Nike’s marketing campaigns and ads remain true to the essence of the brand and its heritage, featuring prominent figures in these campaigns helps the brand get even closer to local communities.
Deloitte, 2019 Retail Outlook
What social networks and apps are most popular in this specific area?
UNITED STATES
UNITED STATES
Chiara Ferragni
Let’s be real. Expanding globally is hard. That is, if you’re doing it right.
CONTINUE YOUR JOURNEY
Jeanne Damas
the marketing channels and touch points you use.
Having presence on key social networks is great, but it’s always good to get a little help from your friends. That’s where influencers come in — and they can make a big impact.
- Source: SAI Global
LVMH is a world-renowned leader in the luxury market. Since its creation in 1987, the business has expanded to include 75 houses across five sectors of the market: Wines & Spirits, Fashion & Leather Goods, Perfumes & Cosmetics, Watches & Jewelry and Selective Retailing. Touting global brands such as Fendi, Celine, Christian Dior and Givenchy, LVMH clearly knows what resonates across markets. But success is not just about keeping an ear to the ground and knowing what trends are on the rise. Success at LVMH is also about planning and allocating assortment to branded and partner stores, so that only the most relevant products are available to local consumers.
Lisa Hahnbueck
If you’re entering a new market, you should also assess local brands that have acquired loyal fans and followers.
For growing businesses, however, it may be more impactful (and budget friendly) to start small. Micro-influencers and nano-influencers are just as effective because they are more closely connected to their followers and actively engage in conversations.
USE SHOPPER PERSONAS TO TAILOR INVENTORY & ASSORTMENT
STAY TRUE TO YOUR VALUES
- Source: Edelman, 2019 Edelman Trust Barometer Special Report
Do we need to refine our messaging in order to maintain translation best practices? Will any slang or cultural references be misinterpreted?
Although mission and values are undoubtedly the foundation of your brand, curating and refining how you communicate your story to local markets is an important next step. If brand values make you authentic, localizing how you share your brand makes you relevant.
Anna browses for inspiration on her social media feeds.
Pam Allier
906 following
First- hand poor customer experience.
114K followers
EMBRACE INFLUENCERS TO VALIDATE AND AMPLIFY YOUR BRAND
Anna wants an accessory to the item that wasn’t sold by the previous brand, so she searches on Amazon.
BRANDS GETTING IT RIGHT
MASTER THE ART OF GOING GLOBAL AND ACTING LOCAL
Brand and designer preferences
FIND AND ENGAGE YOUR TRIBE
The “leapfrog effect” is best illustrated by these charts, which show a side-by-side comparison of how consumers in the U.S. and China use technology to complete a shopping journey.
2,404 posts
After adding the highest-rated item to her cart (and another recommended item), she checks out with her credit card.
Store-level product allocation should be tailored to local preferences and behaviors. Online shopping experiences and featured products should be prioritized based on these insights, too.
How can you reach consumers globally and successfully win their trust when they are so wary?
1.1m followers
Seeing something she likes, she screenshots it, and texts/snaps it to her friend group.
Deloitte researched the shopping behaviors of consumers in China, noting their heightened level of tech-savviness and willingness to embrace new communication platforms — especially for commerce-related activities.
Gone are the days when retailers could use their brand name and historic clout to sway consumer minds and dollars. In fact, shoppers are warier than ever before of large corporations. Products, values and intentions are all being critiqued and challenged.
She creates an account on the brand website, and then pays with PayPal.
FIRST, KNOW WHAT MAKES CUSTOMERS RUN FOR THE HILLS.
Your values are the essence of your brand and what makes it unique and authentic. It is a core component of your brand DNA. So, it should be ever-present — even when you expand to new markets and reach new customers on a local level.
of consumers say trust is a deal breaker or deciding factor in their buying decisions.
Reputation for treating employees poorly
Unethical business practices
Connect with your tribe in a meaningful way...no matter where they live.
A few key questions to ask as you go through this process include:
Color preferences
As we’ve noted in earlier chapters, your mission and values are the cornerstone of your brand and who you are as a collective team.
A deep understanding of local customers should be applied to product-focused decisions, as well.
Germany’s Most Influential Influencer Lisa is a regular collaborator with global brands like Louis Vuitton, Fendi, MCM, Chloe, Jimmy Choo, Christian Louboutin, Furla and more.
H&M has profoundly impacted the fast-fashion market — and consumers’ perception of it. It seems like you can’t walk down the block of a metropolitan area without seeing one of their stores, but now the retailer is focusing on smart, scalable growth. Executives announced that they were decreasing reliance on promotions and markdowns and increasing investments in e-Commerce and store innovation. While H&M plans to close 160 stores in 2019, the retailer will open up to 335 new locations in markets outside of Europe and the U.S., as China, India and Russia are among the countries where H&M has seen the most growth historically. It is clear that the retailer is taking a holistic look at performance and using these insights to make smarter decisions across the business.
Only 34% trust most brands.
TAILOR EXPERIENCES TO BEHAVIORS & PREFERENCES
Blogger , Designer , Influencer One of the biggest influencers in Mexico, her influence is beginning to reach far beyond the borders of Latin America.
815k followers
Silhouettes
She then searches for the item on Google and clicks the first link (a blog post).
To build a competitive advantage, retailers should consider looking at global cross-industry trends and build capabilities that can shape consumer experience. In China, consumers and the retail market have skipped a generation of technology. With less established public infrastructure as recent as 5 to 10 years ago, Chinese companies such as Alibaba, JD.com, and Tencent have invested on their own, helping Chinese retail consumers leapfrog their peers in the United States.
CHINA
Fashion Mogul and Modern Mom In September 2017, Chiara was ranked No. 1 on Forbes’ “top fashion influencers list” and has undoubtedly become one of the world’s most recognized fashion bloggers-turned-business moguls. She is loved by top brands like Tod’s and Pantene and is now expanding her content to focus on her life as a wife (to well-known Italian rapper Fedez) and mom.
We believe the hardest part is navigating local biases and preferences without feeling like you’re in some way risking your brand story and values.
Read through the other steps and learn how to create an organization that's built for change.
Size preferences
CHINA
Learn more about how these influencers are influencing your shoppers. GET THE DETAILS
Research shows that first-hand experiences have a profound impact on consumer trust. By integrating the following four best practices into your organization, you can better bridge connections with international shoppers and prove that you have the best of intentions.
But it’s possible, if you act with authenticity and intentionality.
Overall styles and aesthetics (‘90s grunge, bohemian, classic, etc.)
Visit the “Built for Change” microsite for more insights and resources.
Take inventory of competitors of all sizes and discover what makes your brand stand out. At the same time, think about what they do extremely well that you can use as inspiration for your experiences.
Fashion Blogging Pioneer Since starting her style-setting career into motion in 2008, she has become one of France’s most influential fashionistas.
CHINA
The “leapfrog effect” is best illustrated by these charts, which show a side-by-side comparison of how consumers in the U.S. and China use technology to complete a shopping journey.
To build a competitive advantage, retailers should consider looking at global cross-industry trends and build capabilities that can shape consumer experience. In China, consumers and the retail market have skipped a generation of technology. With less established public infrastructure as recent as 5 to 10 years ago, Chinese companies such as Alibaba, JD.com, and Tencent have invested on their own, helping Chinese retail consumers leapfrog their peers in the United States.
Consumers want brands to understand them on a deeper level. Knowing what they expect when they interact with you is the foundation of deep insights.
In addition to globally recognized influencers there is also a growing number of hyper- local influencers and micro-influencers who have a strong hold on regional areas and local communities alike.
Approximate active monthly users: 75 million
More consumers are looking closely at how products are sourced, created and delivered. As a result, transparent and ethical brands are finding their place in the retail industry. Brilliant Earth, for instance, has acquired a significant share of the bridal and fine jewelry market as a result of its mission to deliver ethically sourced products to consumers. With this core mission at the foundation, Brilliant Earth has developed a scalable expansion strategy that includes personalized service, social media engagement and omnichannel experiences, including showrooms across the U.S.
Jeanne Damas
She creates an account on the brand website, and then pays with PayPal
Brand and designer preferences
We are seeing growing demand for local and personalized products gaining momentum. Consumers really want a local brand with a store to identify with, particularly millennials and the younger consumer.
Courtney Rickert McCaffrey, A.T. Kearney’s Global Business Policy Council
Having presence on key social networks is great, but it’s always good to get a little help from your friends. That’s where influencers come in — and they can make a big impact.
BRANDS GETTING IT RIGHT
Anna wants an accessory to the item that wasn’t sold by the previous brand, so she searches on Amazon
For growing businesses, however, it may be more impactful (and budget friendly) to start small. Micro-influencers and nano-influencers are just as effective because they are more closely connected to their followers and actively engage in conversations.
906 following
We believe the hardest part is navigating local biases and preferences without feeling like you’re in some way risking your brand story and values.
Silhouettes
Source: GlobalWebindex - Flagship Report 2018
Pam Allier
TAILOR EXPERIENCES TO BEHAVIORS & PREFERENCES
Germany’s Most Influential Influencer Lisa is a regular collaborator with global brands like Louis Vuitton, Fendi, MCM, Chloe, Jimmy Choo, Christian Louboutin, Furla and more.
She then searches for the item on Google and clicks the first link (a blog post)
A few key questions to ask as you go through this process include:
What type of content resonates best with this audience?
114K followers
Approximate active monthly users: 100 million
Connect with your tribe in a meaningful way...no matter where they live.
Learn more about how these influencers are influencing your shoppers. GET THE DETAILS
Approximate active monthly users: 30 million
Source: Makeawebsitehub.com/social-media-sites
What are they doing to make their stores stand out?
666 following
Nuria is a small skincare brand designed to be global from the get-go. Its parent company, Small World Brands, developed consumer panels in Japan, China, Singapore and the U.S. to inform product development and learn more about consumers’ skincare habits and challenges. Ingredients are also sourced from around the world, based on treatments created independently and passed down from generation to generation. To attract and engage customers, Nuria connects with influencers who travel the world and have “global sensibilities.”
CONTINUE YOUR JOURNEY
3,226 posts
USE SHOPPER PERSONAS TO TAILOR INVENTORY & ASSORTMENT
Seeing something she likes, she screenshots it, and texts/snaps it to her friend group
Consider this: There has been a 60% growth in mobile searches for “___ for me” and 80% growth in mobile searches for “___ should I ___” in the past two years.
As we’ve noted in earlier chapters, your mission and values are the cornerstone of your brand and who you are as a collective team.
THIS INCLUDES EVERYTHING FROM
If you’re entering a new market, ask some pointed questions about your customers’ shopping behaviors and preferences.
16.9m followers
CHINA
CONNECT WITH CUSTOMERS WHEREVER THEY ARE
We are seeing growing demand for local and personalized products gaining momentum. Consumers really want a local brand with a store to identify with, particularly millennials and the younger consumer.
Let’s be real. Expanding globally is hard. That is, if you’re doing it right.
After adding the highest-rated item to her cart (and another recommended item), she checks out with her credit card
Do we need to refine our messaging in order to maintain translation best practices? Will any slang or cultural references be misinterpreted?
You can’t assume that the core values and mission of your brand are universal. But that doesn’t mean you should completely throw away your core values and principles.
Chiara Ferragni
2,306 posts
It’s important for brands, even growing ones, to not put all their eggs in one basket. While it’s perfectly fair to start on Facebook and Instagram, then scale from there, it’s important to also consider the smaller, yet highly engaged communities in specific geographies.
LOCAL BRAND, EXPANDING GLOBALLY
Blogger , Designer , Influencer One of the biggest influencers in Mexico, her influence is beginning to reach far beyond the borders of Latin America.
When brands go digital, they are opening the doors to millions of consumers around the world. If you’re true to your brand values and communicate those values authentically across all channels, it won’t be a question of if you’ll be found, but when.
Color preferences
Store-level product allocation should be tailored to local preferences and behaviors. Online shopping experiences and featured products should be prioritized based on these insights, too.
But small and local brands are now beginning to gain the upper hand.
EMBRACE INFLUENCERS TO VALIDATE AND AMPLIFY YOUR BRAND
Once you establish a deep understanding of your customers in specific markets and transform those insights into fully developed personas, you will have greater insight into the products they want to see as they venture across channels.
The photo takes her to the brand site, where she views additional photos and a 360 video of the item
Lisa Hahnbueck
Anna browes for inspiration on her social media feeds
Your values are the essence of your brand and what makes it unique. It is a core component of your brand DNA, so, it should be ever-present — even when you expand to new markets and reach new customers on a local level.
Deloitte researched the shopping behaviors of consumers in China, noting their heightened level of tech-savviness and willingness to embrace new communication platforms — especially for commerce-related activities.
Your values dictate
Google: January 2018
Your customers gather in little pockets around the web and in their communities. We call these gathering areas “watering holes,” and they are prime areas where your brand should be present and active.
E-Commerce has opened consumers’ minds and introduced them to a host of new brands and retailers. While this has certainly helped level the playing field for small and growing retailers, it has also made the industry a lot more crowded. And a lot more competitive.
UNITED STATES
Deloitte, 2019 Retail Outlook
Read through the other steps and learn how to create an organization that's built for change.
By following these four steps, you can drive global interest — without risking your brand identity and heritage.
She reads reviews of the item on the blog, then clicks a photo of an item she likes
Size preferences
If you’re entering a new market, you should also assess local brands that have acquired loyal fans and followers.
Overall styles and aesthetics (‘90s grunge, bohemian, classic, etc.)
Farfetch has experienced explosive growth, especially with its $4.56 billion valuation in 2018. To some, the UK-based luxury e-Commerce company is no longer a growing brand, however, its business model and approach to growth is something budding brands can learn from. Farfetch initially focused on bringing small and local brands to shoppers around the world. First partnering with independent fashion houses and even one-person operations, the company has expanded to include partnerships with high-end brands like Balmain and Gucci. But even as far back as 2013, the brand prioritized the customer experience, personalizing content and the e-Commerce journey based on shopper behaviors and preferences.
Targina - LATIN AMERICA
UNITED STATES
Fashion Mogul and Modern Mom In September 2017, Chiara was ranked No. 1 on Forbes’ “top fashion influencers list” and has undoubtedly become one of the world’s most recognized fashion bloggers-turned-business moguls. She is loved by top brands like Tod’s and Pantene and is now expanding her content to focus on her life as a wife (to well-known Italian rapper Fedez) and mom.
STICK TO YOUR VALUES, ALWAYS
Geographic differences extend far beyond social media and app usage. Shopping behaviors and consumer receptiveness to high-tech experiences (especially in-store) can vary greatly from market to market. Understanding what they expect as they engage with your brand is crucial when you’re introducing your brand to someone for the first time.
STAY TRUE TO YOUR TRIBE AS YOU GROW
What social networks and apps are most popular in this specific area?
2,404 posts
Use your mission and values as the foundation of your messaging, and curate your engagement and communication tactics to align to local market needs, preferences and nuances. If brand values make you authentic, localizing how you share your brand makes you relevant.
1.1m followers
A week later, Amazon sends her an email with more suggested products based on her purchase
How will our values be perceived in different markets? Are there any social or political nuances we should be sensitive to? Pro tip: Recruit one of your colleagues who is originally from, or extremely knowledgeable about, your target market to help you answer these questions.
MASTER THE ART OF GOING GLOBAL AND ACTING LOCAL
815k followers
When you keep your values at the core of everything you do, people who share these beliefs will find you. Most of all, they will follow you.
Visit the “Built for Change” microsite for more insights and resources.
VK - RUSSIA
12,793 posts
If you ask the tough questions first, you’ll be able to reach maximum relevance without losing your brand voice and identity.
782 following
A deep understanding of local customers should be applied to product-focused decisions, as well.
But it’s possible, if you act with authenticity and intentionality.
Fashion Blogging Pioneer Since starting her style-setting career into motion in 2008, she has become one of France’s most influential fashionistas.
RenRen - CHINA
It may feel overwhelming trying to find customer watering holes all over the world, so we’re doing some of the work for you. Here are the 15 most popular social networks around the world, based on active users and number of members:
the marketing channels and touch points you use.
