In an increasingly globalized world, the number of new products conquering international markets is growing rapidly. In order to remain competitive in this dynamic environment, there is no way around well thought-out product localization.
Products have long been more than just physical goods - they range from mobile apps and websites to digital services. Thanks to digital sales channels, companies can now reach customers worldwide with just one click. But to really tap into global markets, language and cultural barriers need to be overcome.
The focus here is not only on translating texts, but also on comprehensively adapting them to the needs and expectations of different cultures and target groups.
Product localization is therefore the key to making offers relevant and appealing for international markets. We have explained below exactly how it works, why localization is crucial for global success, how product localization differs from pure translation and what strategies are available to optimally position products.
What is product localization?
Product localization localization describes the targeted adaptation of content to the specific requirements of a new market.
The process includes the translation of texts, the adaptation of formats such as date, time or currency and the consideration of cultural sensitivities and regional preferences. In the end, it must be ensured that local, cultural and functional needs are taken into account.
In addition, it may be necessary to make technical changes to ensure that the product is compatible with local standards, regulations or infrastructure.
The goal of product localization is to optimize the product so that it feels natural and intuitive to users in a particular region and meets all local requirements.
Why is product localization so important?
Product localization helps companies to adapt their products to the needs and expectations of their target group. A central focus is on increasing acceptance and user-friendliness.
Why is this important? Quite clearly, people prefer products that speak their language and respect cultural characteristics. This not only strengthens trust, but also the connection to the brand.
What else makes product localization so important?
Language and culture as drivers of success
In a globalized world, overcoming language and cultural barriers is crucial to the success of a product. Studies show that 66% of B2B and 34% of B2C customers are more likely to invest in an app if it delivers a locally adapted language experience.
Given that only 25.9% of the world's population speaks English and 60% of websites are only available in English, a huge market often remains untapped.
Early product localization during product development creates a clear competitive advantage and enables customers worldwide to interact seamlessly.
Fast and effective market access
An integrative approach, which parallelizes product development and product localization, significantly reduces time to market.
Instead of developing features first and adapting them later, localization is integrated directly into the development process. This allows new markets to be opened up efficiently without having to rely on physical locations.
Sustainable customer loyalty and growth
Product localization not only ensures comprehensibility and cultural relevance for different target groups, but also strengthens trust in the brand. An adapted product experience promotes customer loyalty, increases return visits and supports long-term sales through a growing, loyal customer base.
In addition, product localization ensures that legal and regulatory requirements of the respective market are met. Technical adaptations ensure that the product is compatible with regional standards and infrastructures.
What types of product localization are there?
There are several different approaches or types of product localization. These should and may of course be combined with each other. Which variants are suitable always depends on the actual needs of the company.
- Linguistic adaptation The translation of texts goes beyond pure word-for-word translation. Dialects, idiomatic expressions and regional linguistic characteristics are taken into account in order to make communication credible and natural.
- Cultural sensitivity Colors, symbols, images and even humor are adapted to meet the cultural expectations of the target group. Holidays, traditions and local values are incorporated into the design to present products and messages in a culturally appropriate way.
- Technical integration Digital products, software and interfaces are based on regional standards. This includes character sets, operating systems, network requirements and even loading speeds.
- Legal compliance Product localization requires compliance with legal regulations such as data protection guidelines, product safety standards or packaging regulations.
- Format and currency adaptation From date and time formats to units of measurement and currencies - all relevant elements comply with the standards of the target market with product localization.
- Visual optimization Layout, color schemes and design are specifically adapted to the aesthetic preferences of the target group. The visual adaptation creates a strong cultural reference and promotes acceptance of the product.
- Functional alignment All specific needs of the target market are met by optimizing the products and services. Methods that add or remove individual functions or features are suitable for this purpose.
- Marketing customization In the area of marketing, product localization aims to adapt campaigns, slogans and advertising materials to the linguistic and cultural preferences of the target group. This reduces misunderstandings and strengthens brand messages.
- Product modification Physical products can be improved in terms of size, material or packaging. Operating instructions and technical details are also localized at the same time.
- Customer service and support A localized support offering, including customized FAQs, service hours and language support, ensures that customers in every region receive the best possible service
How can product localization be implemented in practice?
In order to successfully adapt a product for global markets, internationalization (i18n) is the crucial first step.
The product is designed in such a way that it is flexible for different languages and cultural requirements right from the start. This process creates the basis for smooth localization. Only these preparatory measures ensure that the product can be easily adapted to the specific expectations and requirements of a target market.
Subsequent localization requires a thoughtful approach to take into account cultural, linguistic and functional specifics to ensure an optimal user experience.
Market analysis and target group research
To begin with, the specifics of the target market should be examined in detail. This includes analyzing the cultural and linguistic characteristics as well as the technical and legal requirements. It is also important to understand the expectations of the target group in terms of product functions, design and communication.Creating a localization plan
For comprehensive planning of product localization, goals are defined, priorities are set and tasks are structured. A schedule is also drawn up and the required budget is calculated. It is also important to clearly allocate resources and responsibilities in order to ensure efficient collaboration between different teams or service providers.Linguistic adaptation
Content must now be translated into the language of the target market in such a way that it sounds natural and authentic. This includes taking regional dialects, idiomatic expressions and the cultural context into account.Professional translators or localization agencies and translation management system that are familiar with the language and culture ensure high quality. This is followed, as required, by cultural adaptation, technical localization, format and currency adaptation, legal and regulatory adaptation and design adaptation.
Testing and quality assurance
After product localization, comprehensive tests must be carried out to ensure that all adaptations have been implemented correctly. Linguistic, technical and cultural aspects are checked to avoid errors. Beta tests help to identify functional and linguistic errors, while QA checks ensure compliance with regional regulations and technical standards. An iterative approach enables early adjustments to be made and potential problems to be rectified before they reach the end customer.Feedback from users helps to identify potential weaknesses and then revise the product localization. Collaboration with local experts or partners can also be beneficial. They provide valuable insights into the specifics of the market and can help to better take cultural nuances into account.
3 Examples of product localization
Domino's
has successfully conquered the Indian market with thoughtful localization. They adapted their menu to local tastes and integrated regional favorites such as paneer tikka, chicken keema and tandoori variations. This was complemented by a strategic price adjustment and the recruitment of experienced chefs and a specialist marketing manager.
They also responded to the growing importance of digital food ordering with a localized website and app. The success speaks for itself: from 128 outlets in 2006, the franchise grew to an impressive 1,495 locations in India by 2021.
Airbnb
For Airbnb, whose concept is based on local experiences, product localization is a key success factor. The platform is now available in 62 languages, with plans for even broader coverage.
According to Salvo Giammarresi, Head of Localization, Airbnb stands for products and services that are “culturally appropriate, locally relevant and globally consistent”. This approach has helped Airbnb to optimally target users in different markets and promote the local experience on a global scale.
Nintendo
Nintendo also shows how crucial cultural product localization can be for international success. In order to reach American players in the 1980s, they localized their games not only in terms of language, but also in terms of content. Censorship, for example in depictions of violence or death, was implemented in order to meet cultural and legal requirements.
This sensitivity to localization helped establish Nintendo as one of the world's leading gaming brands, with more than 100 million users annually.
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