12/10/2013 Leave a comment
We are all keenly aware that the global economy is interconnected and dependent on the strengths and weaknesses of the countries that trade with one another. More so, trade and related activities are greatly impacted by government policies. Obviously, during the 2008-2009 financial crisis that affected this country and also shook most of the world, globalization weakened due to significant declines in trade and foreign investments. Beginning in 2010, once global economies began to improve, globalization increased as international trade and investment flows picked up, and since then we’ve seen global organizations continue to expand and benefit from opportunities abroad.
However, according to a recent article in Bloomberg Businessweek, “Why Globalization Is Going Into Reverse,” the globalization upswing has stalled. Based on a study conducted at IESE Business School in Barcelona, the article states that while globalization was picking up momentum following the global financial downturn, the “depth of globalization” slowed down again at the end of 2012. The main culprit? Poor economic and trade policies put into place following the financial crisis.
Even so, we know the potential for increased global revenues still exists, particularly within emerging markets, such as in Brazil and Africa. According to the McKinsey Global Institute (MGI), the number of global consumers today is about 2.4 billion people, and MGI projects this figure will nearly double by 2025 to 4.2 billion consumers (out of a global population of 7.9 billion), at which point MGI estimates annual consumption in emerging global markets will increase to $30 trillion, up from $12 trillion in 2010. Clearly, reaching these global markets is critical to drive growth.
In the Bloomberg Businessweek article, the IESE study’s authors argue that globalization would continue to rise “if multinational corporations learned to ‘crack the code for competing in emerging economies’ where growth is strongest.” In other words, companies could increase revenue and further strengthen a growing global economy if they could successfully reach potential consumers in emerging markets. Bingo.
So what is the secret “code” to unlocking global revenue potential? Localization is surely a key element: organizations that develop and implement global business strategies to expedite the delivery of product information, sales materials, customer experiences, marketing content, etc., in a market’s local language, using culturally relevant references and images, are more likely to engage consumers and convert them into customers.
Our customers know the value of localizing materials to reach multilingual audiences, and, prior to using the Cloudwords application, were all too familiar with the challenges traditional approaches to the localization process entailed. Marketing on a global scale requires collaboration among growing numbers of stakeholders, communication among globally-dispersed internal teams and departments as well as outside translation vendors, and seamless management of sky-rocketing amounts of content that is created, stored and delivered in a variety of business applications (Web CMS, marketing automation, etc.) in a plethora of languages. (For more information on this topic, check out this recent blog post on “4 Essentials for Taking Your Content Global.”)
We recognize both the challenges to localization and the benefits of localization, and since Cloudwords’ very inception, we’ve worked to develop a very user-friendly application that takes away the complexities of going global and enables customers to optimize the translation and localization process more easily. By automating the globalization process with the right technology tools, our customers reach global markets up to 60% faster.
Regardless of whether globalization trends are reversing, smart companies recognize potential opportunities for revenue growth still exist in global markets—both emerging and otherwise—and know how to crack the code. Do you?