For Western brands, the allure of tapping into Asia’s vibrant and diverse markets has never been stronger. Rapid urbanization, the rise of a burgeoning middle class, and the relentless adoption of digital technologies have transformed this continent into an economic powerhouse characterized by boundless opportunities and untapped potential. 

And with its staggering population of over 4.7 billion accounting for 39% of the world’s GDP, Asia stands as an irresistible frontier for Western brands seeking expansion beyond their borders.

Yet, venturing into these territories is no simple feat. For Western brands, market entry into Asia can be thrilling and intimidating. With each country, steeped in unique cultures, traditions, and consumer behaviors, it demands astute observation, nuanced strategies, and careful consideration of the local landscape.

Decoding the Asian Enigma: Choosing Your Entry Point

As brands set their sights on the vast expanse of Asia, the question that looms large is: Where to begin? Selecting the optimal entry point into Asia is a critical decision that can significantly impact a brand’s success. 

The continent’s immense diversity, contrasting cultures, and varying economic landscapes demand a strategic approach to market entry.  A meticulous analysis of market potential, leveraging data-driven market research, and understanding the intricacies of each country’s culture are essential components of this strategic decision. 

Factors to Consider When Selecting the Initial Market(s) for Entry

A thorough understanding of the target audience is the foundation of effective market selection. Factors such as demographics, consumer preferences, purchasing power, and cultural inclinations vary significantly across Asian countries. Conducting in-depth market research that considers macroeconomic indicators and micro-level consumer insights is vital. Additionally, evaluating the competitive landscape and the presence of rival brands in each market can inform decisions on where to focus initial efforts.

Analyzing Market Potential 

As the saying goes, “Know thy market.” Conducting thorough market research is the cornerstone of effective decision-making when entering Asia. Analyze each target country’s economic indicators, consumer trends, and industry outlooks. Consider the market’s size and growth potential, competitors’ presence, and consumers’ receptiveness to foreign brands. With data-driven insights, brands can confidently gauge the viability and allure of each market.

Market Research and Analysis Techniques

Effective market research is a blend of art and science. Apart from traditional research methodologies, digital data analytics and social listening can provide real-time consumer sentiment and identify emerging trends. Leveraging partnerships with local market research firms and consulting agencies, like Kadence International, can yield valuable insights into the nuances of each market. Such data-driven approaches enable brands to make informed decisions, mitigating the risks of entering unfamiliar territories.

Pros and Cons of Entering a Single Market Versus Multiple Markets Simultaneously

Choosing between a single-market entry and a multimarket entry strategy depends on a brand’s resources, risk appetite, and long-term objectives. Initially, focusing on a single market allows brands to direct their efforts and resources to gain a strong foothold. This approach is particularly advantageous for brands with limited budgets and those seeking to acclimate to the intricacies of one market at a time. Conversely, a multimarket entry strategy can provide diversification and faster market penetration if executed effectively. However, it also demands significant investments in market research, localization, and brand adaptation.

Balancing Ambitions with Realistic Market Entry Plans

Entering multiple Asian markets simultaneously can be an ambitious endeavor, but balancing aspirations with realistic planning is crucial. Brands must consider their operational capabilities, supply chain readiness, and adaptability to cultural nuances. Establishing a phased market entry approach can mitigate risks and allow for learning and adjustment as the brand expands its presence across different markets.

Navigating the Diversity and Uniqueness of Each Market

One of the defining characteristics of Asia is its incredible diversity, even within individual markets. Each country encompasses a multitude of regions, languages, and cultural practices, necessitating a nuanced understanding of local preferences. What works in one city may not resonate in another, and brands must craft strategies that account for such regional differences. Flexibility and adaptability are key traits for brands aiming to thrive in the diverse landscapes of Asia.

Critical Considerations for Market Entry: Embracing Cultural Nuances and Regulatory Landscapes

Entering Asia requires more than just a business strategy; it demands a profound understanding of cultural nuances and the ability to navigate complex regulatory frameworks. Brands must navigate the intricacies of diverse markets with cultural sensitivity, recognizing that each country holds unique opportunities and challenges. 

Cultural Aspects and Consumer Preferences

Culture shapes consumer behaviors, and adapting marketing strategies to align with local customs is paramount for success. This includes everything from product packaging and brand messaging to promotional activities and customer engagement. What works in one country might not necessarily translate well to another, making cultural sensitivity an indispensable skill. Brands must invest time and effort in understanding each target market’s values, beliefs, and social norms to tailor their approach accordingly.

Localized Marketing Strategies: A Bridge to Consumer Hearts

Central to successful market entry in Asia is the art of localization. It involves more than just language translation; it’s about embracing the heart and soul of each culture. Whether incorporating local festivals and traditions into marketing campaigns or adjusting product features to cater to specific preferences, personalized experiences resonate deeply with consumers. 

Leveraging Digital Marketing and Social Media Platforms

In Asia, digital connectivity is revolutionizing consumer behavior. E-commerce platforms, social media channels, and mobile apps have become central to daily life, providing unparalleled opportunities for brands to engage with consumers. Social media marketing is particularly powerful, with influencers and user-generated content significantly shaping brand perception. Embracing digital channels and leveraging influencer partnerships can amplify a brand’s reach and foster authentic connections with target audiences.

Navigating Legal and Regulatory Frameworks

Regulatory compliance is a critical aspect of market entry that cannot be overlooked. Each Asian country has laws and regulations governing business operations, advertising, and product distribution. Brands must familiarize themselves with local trade policies, intellectual property rights, and labeling requirements. Collaborating with local legal experts or partnering with local entities can help ensure adherence to the legal framework, safeguarding the brand’s reputation and minimizing potential risks.

Competitor Analysis and the Competitive Landscape

Understanding the competitive landscape is indispensable for devising effective market entry strategies. Competitor analysis provides insights into existing players, their strengths, weaknesses, and market positioning. Brands can identify gaps in the market, unmet consumer needs, and opportunities for differentiation. By leveraging this knowledge, brands can craft compelling value propositions that resonate with consumers and set them apart.

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The Art of Cultural Localization: Winning Hearts and Minds

The journey to winning hearts and minds in Asia necessitates an unwavering commitment to cultural localization. Brands that seek to leave a lasting impression in these diverse markets, language, imagery, cultural values, and local celebrations serve as the threads that weave together a compelling brand narrative. 

By embracing the unique identities of each Asian market and fostering genuine connections, Western brands can break barriers, earn loyalty, and thrive amidst the captivating tapestry of Asia’s rich and multifaceted cultures.

Language Matters: Bridging the Communication Divide

Language serves as the gateway to culture. Acknowledging the linguistic diversity in Asia is fundamental for effective communication. In countries like India, Indonesia, and the Philippines, where numerous languages coexist, tailoring marketing messages to regional dialects can create a sense of familiarity and accessibility. Additionally, translating content accurately is imperative, as linguistic errors can harm brand perception. Embrace the power of local linguists and copywriters to ensure precision and cultural relevance in all communications.

Visual Storytelling: Embracing Cultural Imagery 

A picture speaks a thousand words, and in the realm of cultural localization, visuals hold unparalleled significance. Adopting culturally appropriate imagery that resonates with the target audience can evoke emotions and forge strong connections. However, a keen awareness of cultural symbolism is crucial to avoid misinterpretation or offense. Colors, gestures, and facial expressions can have different meanings in various Asian cultures. Conducting thorough research and consulting local experts can help navigate this intricate web of visual cues.

Understanding Cultural Values and Sensitivities 

Each Asian market is shaped by unique cultural values, norms, and sensitivities. Respect for age-old traditions and social structures is vital in building consumer trust. In countries like Japan and Thailand, where hierarchy plays a significant role in society, acknowledging and adhering to respectful communication norms can enhance brand credibility. Conversely, in Indonesia and the Philippines, collectivist values underline the importance of community and family ties, making inclusive messaging and community-driven initiatives impactful.

Festivals and Celebrations: A Window to Culture 

Asia’s calendar is adorned with vibrant festivals and celebrations, each offering a glimpse into the region’s cultural fabric. Brands can seize these occasions to engage with consumers in meaningful ways. Sponsoring or participating in local festivities demonstrates a genuine commitment to embracing the culture and fostering positive brand associations. However, authenticity is paramount; brands must approach such engagements with sincerity and a genuine desire to celebrate and understand the significance of these events.

Adapting Marketing Channels to Local Preferences 

Digital penetration is rapidly transforming the Asian consumer landscape. While online platforms offer immense opportunities for brand exposure, each market has unique preferences and usage patterns. For example, while Japan strongly prefers local social media platforms, Indonesia and the Philippines have embraced Western platforms like Facebook and Instagram. Understanding these regional preferences empowers brands to tailor their digital strategies effectively.

Localizing Marketing Strategies: A Gateway to Consumer Hearts

The art of localization holds the key to forging authentic connections with consumers, ensuring that brands resonate deeply with their target audiences. By embracing the diversity that defines each market, brands can craft strategies that celebrate local values, customs, and traditions. 

Localization extends far beyond language translation. 

While linguistic accuracy is vital, successful localization delves into the intricacies of each market’s cultural fabric. This involves tailoring product offerings, packaging, and advertising to reflect local consumers’ tastes, preferences, and aspirations. From using symbols and colors that hold cultural significance to crafting narratives that align with historical context, brands must embrace the essence of each market.

Case Study: Coca-Cola’s “Share a Coke” Campaign 

Coca-Cola’s “Share a Coke” campaign, which replaced the brand’s logo with popular names on its bottles, provides a shining example of successful localization. In various Asian countries, the campaign adapted to local cultures by featuring common names relevant to each market. This personal touch struck a chord with consumers, fostering a sense of inclusion and familiarity.

Leveraging Digital Marketing and Social Media Platforms

Asia’s digital revolution has catapulted social media and e-commerce platforms into the forefront of consumer engagement. Brands that effectively leverage these channels can create compelling localized content that resonates with audiences. Engaging influencers who embody the values and aspirations of the target market can significantly amplify a brand’s message.

Case Study: Shopee’s “Shopee 9.9 Super Shopping Day” 

Shopee, an e-commerce platform operating across Southeast Asia, orchestrated a highly successful localized marketing campaign. Their “Shopee 9.9 Super Shopping Day” event offered exclusive deals, games, and entertainment, perfectly aligned with the region’s love for festivities and online shopping. The campaign generated massive consumer interest and record-breaking sales.

Engaging in Cultural Celebrations and Festivals

Festivals hold profound cultural significance in Asia, providing brands opportunities to connect with consumers personally. By participating in or sponsoring local festivals, brands can showcase a genuine appreciation for the culture and values of each market.

Case Study: Airbnb’s “A Night at the Great Wall of China” 

Airbnb’s campaign, offering the chance to spend a night at the Great Wall of China, exemplifies how brands can creatively engage with cultural icons. By giving travelers an exclusive experience steeped in Chinese heritage, Airbnb fostered a strong emotional connection and earned widespread acclaim.

Authentic Storytelling: Connecting with Emotional Resonance

When localizing marketing strategies, storytelling is a potent tool for creating emotional resonance. By crafting narratives that evoke the aspirations and struggles of the local population, brands can elevate their purpose beyond mere commercialism.

Case Study: Unilever’s “Project Sunlight” 

Unilever’s “Project Sunlight” initiative tapped into Asian consumers’ desire for social responsibility and sustainability. By showcasing real stories of individuals making positive impacts in their communities, Unilever reinforced its commitment to social causes, resonating deeply with consumers’ values.

Distribution and Logistics: Paving the Path to Market Penetration

Distribution and logistics form the backbone of a successful market entry strategy in Asia. Understanding the intricacies of each market’s distribution landscape, overcoming logistics challenges, and devising efficient warehousing and fulfillment strategies are indispensable for achieving market penetration and customer satisfaction. A well-executed distribution and logistics approach unlocks the potential to thrive in the thriving markets of Asia, transforming market entry visions into tangible realities.

Exploring the Most Efficient Distribution Channels

Asia has many distribution channels, each with unique strengths and challenges. Understanding the prevailing distribution landscape in each country is crucial for selecting the most effective channels to reach consumers. 

For instance, the retail sector in India combines traditional mom-and-pop stores and modern retail chains. In contrast, Indonesia’s vast geography necessitates leveraging offline and online distribution networks to reach the archipelago’s dispersed population. Adapting to the local distribution ecosystem allows brands to optimize their reach and coverage.

Case Study: IKEA’s Distribution Innovation in India 

IKEA’s entry into India exemplifies the importance of adapting distribution strategies to local needs. Recognizing the significance of affordability and accessibility in the Indian market, IKEA invested in localized supply chains, reducing costs and offering products at competitive prices. Furthermore, the brand established distribution centers in major cities to cater to the country’s vast and diverse customer base.

Overcoming Logistics and Supply Chain Challenges

Asia’s diverse terrains, infrastructures, and regulatory complexities present unique logistics challenges. Brands must meticulously plan their supply chain operations, considering transportation costs, warehousing, and inventory management. Engaging experienced logistics partners can help streamline processes and navigate regional nuances.

Case Study: Zara’s Agile Supply Chain in Asia 

Zara, renowned for its fast fashion, implemented an agile supply chain in Asia to cater to its rapidly evolving consumer demands. By establishing regional distribution centers and closely monitoring inventory levels, Zara significantly reduced lead times, ensuring that the latest fashion trends reached Asian consumers in a timely manner.

Warehousing, Shipping, and Fulfillment Strategies

Warehousing is pivotal in ensuring seamless order fulfillment and timely product delivery. Brands must strategically position warehouses to minimize transit times and storage costs while meeting customer demands. Additionally, collaborating with reliable shipping partners can enhance the brand’s reputation for on-time delivery and customer satisfaction.

Case Study: Amazon’s Fulfillment Centers in Japan 

Amazon’s expansion into Japan relied heavily on building an extensive network of fulfillment centers across the country. By leveraging sophisticated fulfillment technology and strategically locating centers, Amazon efficiently met the expectations of Japan’s demanding e-commerce customers, solidifying its position as a leading online retailer in the market.

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Partnering and Collaborations: Fostering Success Through Local Expertise

Partnerships and collaborations are integral to the roadmap to success in Asian markets. Aligning with local entities unlocks cultural insights, distribution networks, and consumer engagement opportunities that can prove transformative for Western brands. 

By carefully selecting partners, cultivating meaningful relationships, and embracing cultural sensitivity, brands can tap into the knowledge and experience of local collaborators. 

The Benefits of Forming Partnerships with Local Companies

Collaborating with established local companies can provide Western brands with a competitive edge and a deeper understanding of the target market. Local partners possess invaluable insights into consumer behaviors, market trends, and regulatory frameworks, enabling brands to tailor their strategies effectively. Such partnerships also facilitate access to well-established distribution networks and existing customer bases, expediting market entry and amplifying brand visibility.

Case Study: Starbucks’ Partnership with Tata Group in India 

A strategic partnership with the Tata Group, a well-respected Indian conglomerate, bolstered Starbucks’ entry into the Indian market. Tata’s extensive local knowledge and network, coupled with Starbucks’ global expertise in coffee retail, resulted in a successful collaboration that resonated with Indian consumers. 

By incorporating Indian flavors and cultural elements into their offerings, Starbucks cultivated a unique brand experience tailored to the local palate.

Identifying and Evaluating Potential Partners and Collaborators

Selecting the right partners is crucial in establishing a successful market presence in Asia. Brands must thoroughly research potential collaborators, assessing their reputation, track record, and alignment with the brand’s values and goals. 

Engaging in direct dialogue with prospective partners can provide the following:

  • Insights into their cultural fit.
  • Commitment.
  • Willingness to invest in mutual success.

Contracts and agreements should be well-defined, outlining roles, responsibilities, and expectations to ensure a harmonious and productive partnership.

Case Study: McDonald’s and Local Partnerships in Asia 

McDonald’s exemplifies the value of local partnerships in Asian markets. The fast-food giant often collaborates with local businesses to adapt its menu and offerings to suit regional tastes and preferences. Such partnerships enhance the brand’s appeal and foster goodwill and support from local communities.

Negotiation and Contractual Considerations in Partnerships

Negotiating partnerships requires a delicate balance of cultural sensitivity and business acumen. Western brands must adapt to varying negotiation styles in each market, respecting hierarchical structures and decision-making processes. Contracts should outline clear performance indicators, protection of intellectual property rights, dispute resolution mechanisms, and provisions for termination if necessary. By fostering open communication and transparency, brands can build trust and lay the foundation for a successful partnership.

Case Study: Uniqlo’s Collaboration with Local Designers in Southeast Asia 

Uniqlo’s expansion into Southeast Asia saw the brand collaborating with local designers to create region-specific collections. By celebrating local design aesthetics and incorporating culturally relevant elements into their apparel, Uniqlo cultivated a loyal customer base and gained acceptance as a part of the region’s fashion landscape.

Navigating Cross-Cultural Communication and Building Relationships

Building solid relationships with local partners requires effective cross-cultural communication. Understanding and respecting local customs, etiquette, and communication styles fosters mutual respect and rapport. Regular interactions, face-to-face meetings, and investing time in getting to know one another can strengthen the bond between brand representatives and local collaborators.

Case Study: Airbnb’s Approach to Building Local Relationships 

Airbnb’s successful expansion in Asia was founded on building relationships with local communities. By engaging in community-driven initiatives, supporting local businesses, and respecting cultural values, Airbnb positioned itself as a responsible and empathetic brand. This approach enhanced the brand’s reputation and fostered long-term partnerships with local stakeholders.

Navigating Legal and Regulatory Landscapes: Ensuring Compliance and Building a Solid Foundation

As Western brands seek to enter into Asian markets, a comprehensive understanding of the legal and regulatory frameworks is essential. Each country presents unique legal requirements, trade policies, and business regulations that can significantly impact market entry and ongoing operations. 

Legal Requirements for Market Entry

Before making their market entry, Western brands must adhere to specific legal requirements in each Asian country. This includes registering the business entity, obtaining the necessary permits and licenses, and complying with tax regulations. Engaging local legal experts and consultants can provide valuable guidance in navigating the bureaucratic landscape, ensuring a smooth and lawful market entry process.

Case Study: Google’s Legal Compliance in Vietnam 

When Google expanded its operations into Vietnam, the tech giant ensured strict adherence to local data storage and localization laws. By establishing data centers in Vietnam and complying with the country’s cybersecurity regulations, Google demonstrated a commitment to legal compliance and building trust with the Vietnamese government and consumers.

Protecting Intellectual Property Rights

Safeguarding intellectual property (IP) rights is of utmost importance in Asian markets, where counterfeiting and IP infringement can be prevalent. Brands must conduct thorough IP research and file for trademark and copyright protections to prevent unauthorized use of their brand assets. Proactive measures like monitoring and enforcing IP rights can deter potential infringements and protect the brand’s reputation.

Case Study: Apple’s IP Protection Strategies in China 

Apple’s expansion into China saw the company employing a robust IP protection strategy to combat counterfeit products and imitations. By working closely with Chinese authorities and partnering with local distributors, Apple actively tackled IP infringements, fostering consumer trust in the authenticity of its products.

Mitigating Legal Risks and Ensuring Compliance

Navigating unfamiliar legal landscapes poses inherent risks for Western brands. Thoroughly researching and understanding local business regulations and consumer protection laws can mitigate risks and prevent costly legal disputes. 

Engaging in due diligence when selecting local partners and collaborators is crucial to ensuring that the brand’s values align with those of the partners, thereby minimizing potential legal conflicts.

Case Study: Uber’s Legal Challenges in Asia 

Uber’s entry into several Asian markets was met with regulatory hurdles and opposition from local taxi industries. Facing legal challenges in various countries, Uber eventually exited some markets, highlighting the importance of adapting business models to comply with local regulations.

Building a Compliant Business

Building a compliant business in Asia necessitates ongoing vigilance and adaptability. Regularly reviewing and updating legal documentation, licenses, and permits ensures that the brand complies with evolving laws and regulations. 

Employing internal compliance teams and maintaining open communication with local authorities can foster a proactive approach to legal compliance.

Case Study: Nestlé’s Commitment to Responsible Sourcing in Indonesia 

Nestlé’s operations in Indonesia underscore the significance of responsible business practices. By engaging in sustainable sourcing of raw materials, Nestlé demonstrated compliance with Indonesia’s environmental and social regulations, earning recognition for its ethical practices.

Realistic Timing and Expectations: Charting the Course for Success

It is vital to approach new market entry with realistic timing and expectations. Asia’s markets are diverse, and building a solid brand presence takes time and adaptability. 

Understanding that market entry is a journey, not a race, empowers brands to adapt to local realities, seize opportunities, and overcome challenges. By setting achievable milestones, projecting realistic timelines for breaking even and achieving profitability, and prudently budgeting for market entry and growth, Western brands can pave the path to sustainable success in Asia.

Understanding the Timeline for Market Entry

Patience and a long-term perspective are essential when entering Asian markets. Market research, localization, regulatory compliance, and partnership negotiations demand meticulous planning and execution. Western brands must recognize that building brand awareness and customer trust may take longer than expected, especially in markets with well-established local competitors.

Case Study: Walmart’s Gradual Expansion in India 

Walmart’s entry into India exemplifies the importance of a gradual and strategic approach. The retail giant entered India through a joint venture to navigate local regulations and gain a foothold in the market. Over time, Walmart increased its ownership stake and expanded its operations, respecting the dynamics of the Indian retail landscape.

Setting Achievable Milestones

Setting realistic milestones is crucial for measuring progress and aligning expectations with outcomes. Brands must establish clear objectives for market entry and growth, considering each country’s varying market conditions and consumer behaviors. Flexibility is essential, as adjusting strategies based on real-time feedback and market insights can drive success.

Case Study: Procter & Gamble’s Sustainable Growth in the Philippines 

Procter & Gamble (P&G) has achieved sustainable growth in the Philippines by setting specific and achievable milestones. By focusing on product innovation, targeted marketing, and localized strategies, P&G successfully captured a significant market share and established a strong brand presence in the country.

Budgeting and Financial Considerations

Market entry in Asia requires substantial financial investments. Brands should allocate budgets for market research, localization efforts, legal compliance, distribution networks, and advertising campaigns. Balancing prudent spending and allocating sufficient resources to gain a competitive edge is essential.

Case Study: Netflix’s Strategic Investment in Japan 

Netflix’s entry into Japan involved significant financial commitments to create a localized content library and effectively compete with local streaming services. By strategically investing in Japanese content and offering diverse language options, Netflix captured a substantial share of the Japanese market.

Projected Timelines for Breaking Even and Achieving Profitability

Entering Asian markets requires a longer-term commitment to realize returns on investment. Brands should anticipate that profitability may take time, particularly in markets with unique consumer preferences and high competition. Preparing stakeholders for a gradual return on investment while showcasing consistent progress can garner support and confidence.

Case Study: Tesla’s Market Entry Strategy in China 

Tesla’s approach to entering the Chinese market demonstrates the importance of projecting realistic timelines. By building a Gigafactory in China to manufacture vehicles locally, Tesla aimed to reduce costs and achieve profitability in the region. This strategic move aligned with the brand’s long-term vision for success in the competitive Chinese electric vehicle market.

Embracing the Asian Opportunity

Venturing into Asia’s vast and diverse markets is akin to embarking on an uncharted path, where every step taken offers both challenges and rewards. As brands contemplate the journey from West to East, they face an array of cultural, regulatory, and logistical intricacies that demand a thoughtful and adaptive approach.

With humility, cultural appreciation, and a genuine desire to contribute positively to the lives of Asian consumers, Western brands can navigate the complexities of these diverse markets, illuminating a world of possibilities that transcend borders and foster a truly global impact. The journey from West to East promises transformative growth and the potential to build bridges that span continents, making this voyage an adventure worth undertaking.

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Globalization has profoundly transformed the business landscape, bringing unprecedented opportunities and challenges for brands. As markets become increasingly interconnected, brand identity has emerged as a critical factor in establishing and maintaining a competitive edge. Brands must navigate the delicate balance between maintaining their core identity and adapting to diverse cultural contexts to resonate with local audiences. The authenticity of a brand’s identity, defined by its values, messaging, and visual elements, plays a crucial role in building consumer trust and loyalty.

Globalization, characterized by rapid technological advancements, increased connectivity, and the free flow of information, has dismantled traditional barriers to trade and communication. As a result, brands now have access to a vast global marketplace, enabling them to reach consumers in diverse cultures and geographies. However, with this expansion comes the challenge of maintaining the authenticity of a brand’s identity across different cultural contexts.

Brand identity encompasses not only tangible elements like logos and slogans but also intangible aspects such as values, beliefs, and the emotional connections that consumers associate with a brand. In an era of globalization, brands face the dilemma of striking a balance between presenting a consistent image worldwide and adapting to local preferences and sensitivities. Failing to understand and cater to cultural nuances can lead to misunderstandings, misinterpretations, and a loss of consumer trust.

Successful brands have demonstrated an ability to harmonize global consistency with local relevance. By understanding the cultural intricacies of various markets, these brands have effectively tailored their messaging and experiences to resonate with local consumers while preserving their core identity. Conversely, there have been notable instances where brands have stumbled in their pursuit of global expansion, succumbing to the pressure to dilute their identity or failing to adapt to cultural sensitivities, resulting in reputational damage and lost market opportunities.

By understanding the impact of globalization on brand identity and studying both successful and unsuccessful cases, we can gain valuable insights into the importance of authenticity in the global marketplace. Such insights will give marketing executives a deeper understanding of the complexities involved in brand management in an era of increasing interconnectedness, empowering them to make informed decisions in their pursuit of global expansion while maintaining the essence of their brand’s identity.

Globalization’s Impact on Brands 

The advent of globalization has revolutionized the way brands operate and engage with consumers worldwide. Globalization is characterized by the rapid exchange of goods, services, ideas, and information across borders, facilitated by technological advancements, transportation, and communication. This interconnectedness has led to an unprecedented level of market integration, creating both opportunities and challenges for brands.

In this globalized marketplace, brands can now reach a diverse range of consumers across different cultures, languages, and geographies. This presents immense growth potential and access to new customer segments. However, it also exposes brands to the complexities of cultural diversity and the need to adapt their strategies to resonate with local audiences.

Defining Brand Identity 

Brand identity lies at the heart of effective brand management, serving as the foundation upon which all brand-related activities are built. It encompasses the distinctive characteristics and values that differentiate a brand from its competitors and shape the perceptions and associations held by consumers.

Brand identity comprises various elements, including visual cues such as logos, color schemes, and design aesthetics. Equally important are the intangible aspects, such as brand values, personality, and the emotional connections forged with consumers. Brand identity serves as a promise to consumers, conveying a sense of trust, reliability, and authenticity.

The Significance of Brand Identity in a Globalized World 

Maintaining a strong and consistent brand identity is crucial in a globalized world, where brands operate in diverse cultural contexts. Brand identity acts as an anchor, providing consumers with a sense of familiarity and continuity irrespective of their geographic location. A consistent brand identity enables consumers to develop a relationship with a brand, fostering trust and loyalty.

While global consistency is important, brands must also consider the need for local relevance. Cultural nuances, values, and consumer expectations vary significantly across regions. Brands that overlook these differences risk being perceived as distant, insensitive, or out of touch. Adapting brand messaging and experiences to resonate with local audiences while preserving core brand values is essential for long-term success in global markets.

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The Role of Authenticity in Brand Identity 

Authenticity lies at the core of a brand’s identity and is a key attribute that resonates with consumers in an increasingly globalized and diverse marketplace. 

Authentic brands are perceived as genuine, transparent, and true to their values. They create meaningful connections with consumers seeking brands that align with their beliefs and aspirations.

Maintaining authenticity requires brands to stay true to their essence while navigating cultural variations. Authenticity is not about uniformity but rather about consistency in delivering on brand promises and adapting to cultural nuances without compromising the fundamental principles that define the brand.

In the context of globalization, the challenge lies in striking a balance between global consistency and local relevance while preserving authenticity. Brands that successfully navigate this delicate balance can build strong emotional connections with consumers, fostering brand loyalty and sustained success.

The Dilemma of Global Consistency 

Global consistency refers to the practice of maintaining a unified brand image and messaging across different markets and cultural contexts. It allows brands to establish a recognizable and cohesive identity that transcends borders. 

Consistency provides consumers with a sense of familiarity and reliability, enhancing brand trust and loyalty.

However, pursuing global consistency can be challenging due to the inherent diversity of markets and consumer preferences. Cultural differences, varying consumer behaviors, and distinct societal norms necessitate a nuanced approach to brand management. Brands that fail to account for these differences risk being perceived as culturally insensitive, detached, or irrelevant. Striking the right balance between global consistency and local relevance is imperative to resonate with consumers in different regions.

The Imperative of Local Relevance 

Achieving local relevance involves adapting brand messaging, product offerings, and marketing strategies to align with local consumers’ specific needs, values, and preferences. Localization ensures that brands are not perceived as foreign entities imposing standardized approaches but as entities that understand and cater to the unique demands of each market.

Localization strategies may include:

  • Translating and adapting brand content.
  • Tailoring product features to suit local preferences.
  • Leveraging cultural symbols and references.

By acknowledging and embracing local culture, brands can establish a deeper connection with consumers, instilling a sense of familiarity and relevance.

Lessons from Failed Attempts 

Some brands have encountered challenges maintaining authenticity and striking the right balance between global consistency and local relevance. 

Starbucks faced backlash in China when it initially positioned itself as an upscale Western coffee experience. Recognizing the need for localization, the brand adjusted its strategy by incorporating local elements, such as tea-based beverages, and creating stores with distinct Chinese design aesthetics, ultimately finding success in the market.

When KFC entered the Indian market, it initially emphasized its chicken-based offerings without adequately considering cultural preferences and dietary restrictions. This oversight led to a lack of resonance with the local population and posed challenges to the brand’s acceptance and growth in the market.

Cultural Nuances and Sensitivities

One of the primary challenges brands face in maintaining authenticity while adapting to different cultural contexts is navigating the intricacies of cultural nuances and sensitivities. Cultural values, traditions, and social norms vary significantly across regions, influencing consumer perceptions and expectations. 

Brands must be mindful of these cultural differences to avoid inadvertently offending or alienating their target audiences.

Understanding the local context requires comprehensive research and a deep appreciation for cultural intricacies. Brands must invest time and resources in studying the target market’s history, customs, and values to ensure their messaging and brand experiences align with the local culture. Failure to acknowledge and adapt to cultural nuances can lead to misunderstandings, negative associations, and loss of brand authenticity.

Language and Communication

Language is a powerful tool for expressing brand identity; its adaptation is crucial in maintaining authenticity. Global brands must address the language barrier by ensuring accurate translations and cultural adaptations of their messaging. Using idioms, puns, and colloquialisms may require careful localization to resonate effectively with local audiences.

However, translation alone is not sufficient. Effective communication goes beyond linguistic accuracy and involves conveying the brand’s values and personality in a way that resonates with the cultural sensitivities of the target market. Brands must consider how different cultures interpret and respond to specific messaging techniques and symbols to avoid unintended miscommunications or misunderstandings that may compromise authenticity.

Consumer Expectations and Preferences 

Consumer expectations and preferences can vary significantly across different markets. Brands need to be responsive to these variations to maintain authenticity. Adapting to local consumer preferences may involve product modifications, packaging design, pricing strategies, or adjusting the brand’s positioning.

Brands must conduct thorough market research to understand the target audience’s specific needs, desires, and behaviors. This includes examining consumer habits, lifestyles, and aspirations to ensure the brand’s offerings align with their expectations. Failure to address these expectations may result in consumer dissatisfaction or rejection of the brand, leading to a loss of authenticity.

Global vs. Local Decision-Making 

Maintaining authenticity in a globalized world often requires striking a delicate balance between centralized decision-making and local autonomy. Brands must define their core identity and values at the global level, ensuring consistency across markets. However, they must also empower local teams and partners to make informed decisions that resonate with their specific cultural contexts.

This challenge lies in finding the right balance between global guidelines and local adaptation. Brands that overly centralize decision-making risk losing touch with local markets, diluting their authenticity, and missing opportunities for innovation and cultural relevance. Conversely, brands that grant excessive autonomy may face inconsistencies that erode their global identity.

Successfully navigating this challenge requires effective communication and collaboration between global and local teams, allowing for a cohesive brand strategy that respects cultural differences while preserving the core brand essence.

By acknowledging and addressing these challenges, brands can better navigate the complexities of maintaining authenticity in a globalized marketplace. 

Strategies for Maintaining Authenticity in Global Markets

Conduct Comprehensive Market Research

Thorough market research is essential for maintaining authenticity in global markets. Brands must invest in understanding each target market’s cultural nuances, consumer behaviors, and preferences. This includes conducting surveys, focus groups, and market studies to gain insights into the local context.

By gathering data and feedback from local consumers, brands can identify opportunities for customization while staying true to their core identity. Research can uncover specific cultural elements, values, and aspirations that resonate with the target audience, allowing brands to tailor their messaging and offerings accordingly.

Adapt Brand Messaging and Visuals 

Adapting brand messaging and visual elements is crucial for maintaining authenticity in diverse cultural contexts. Language translations should be accurate and culturally appropriate, capturing the essence of the brand’s identity while resonating with local consumers. Culturally sensitive imagery, symbols, and colors can be employed to create a connection with the target audience.

Brands should also consider the tone and style of communication. Humor, for instance, may be interpreted differently across cultures, necessitating adjustments to ensure messages are well-received. Striking a balance between consistency and adaptability in brand messaging and visuals enables brands to maintain authenticity while resonating with local consumers.

Embrace Cultural Sensitivity and Inclusivity

Cultural sensitivity and inclusivity are critical for maintaining authenticity in global markets. Brands should actively seek to understand and respect their target audiences’ cultural norms, traditions, and sensitivities. This involves avoiding stereotypes, cultural appropriation, or offensive references that may erode authenticity and trust.

Inclusivity is another aspect to consider. Brands that embrace diversity and reflect the values of their local markets demonstrate an understanding of and respect for different cultures. This can be achieved by featuring diverse models in advertising campaigns, incorporating inclusive language, and engaging in partnerships that promote cultural exchange and understanding.

Foster Local Partnerships

Collaborating with local partners can significantly enhance a brand’s authenticity in global markets. Local partners, such as distributors, influencers, or cultural experts, possess valuable knowledge and insights into the target market. Their involvement can help brands navigate cultural nuances, language barriers, and consumer expectations.

Partnerships can also provide brands access to local networks and communities, facilitating a deeper understanding of the market and consumer behaviors. By involving local voices and perspectives, brands can ensure that their strategies are culturally relevant and resonate with the target audience, ultimately maintaining authenticity.

Stay Agile and Iterative 

Maintaining authenticity in global markets requires brands to be agile and iterative. Consumer preferences, cultural landscapes, and market dynamics can change over time. Brands must remain open to feedback, continuously monitor consumer responses, and be willing to adapt their strategies accordingly.

Staying connected to local markets and maintaining a feedback loop enables brands to make timely adjustments, ensuring their authenticity remains intact. This may involve refining brand messaging, updating product offerings, or responding to emerging cultural trends. By embracing an iterative mindset, brands can maintain authenticity while remaining responsive to the evolving needs of their global consumers.

beauty-trends

Successful Brands: Maintaining Authenticity in Global Markets 

Numerous brands have successfully navigated the challenges of maintaining authenticity while expanding globally. One example is Nike, known for its consistent brand messaging centered around athletic performance and empowerment. Nike has adapted its marketing campaigns to resonate with diverse cultures while staying true to its core identity. By collaborating with local athletes and embracing cultural diversity in their advertisements, Nike has fostered a global community that values athleticism and self-expression.

Another successful example is Airbnb, which has balanced global consistency and local relevance. While maintaining a unified brand image, Airbnb has localized its platform to cater to different markets’ unique preferences and needs. The company provides localized content, supports regional partnerships, and showcases diverse accommodations that reflect the cultural identities of various destinations. By embracing local communities and allowing hosts to share their stories, Airbnb has fostered a sense of authenticity that appeals to travelers seeking genuine, immersive experiences.

Lessons from Failed Attempts 

Failures in maintaining authenticity in global markets provide valuable lessons for brands. One notable example is Pepsi’s ill-fated ad featuring Kendall Jenner, which sparked controversy and accusations of trivializing social activism. The ad’s attempt to align the brand with social movements lacked cultural sensitivity and authenticity, resulting in widespread backlash and damage to the brand’s reputation. This incident underscores the importance of understanding cultural contexts and social issues and the need to approach activism with genuine commitment and sensitivity.

Additionally, the failure of Walmart in Germany serves as a cautionary tale. Walmart entered the German market with a strategy focused on its American identity and low prices. However, the company failed to adapt to the German culture, resulting in consumer resistance and a lack of resonance. Walmart’s attempt to impose a standardized approach without considering local preferences and shopping habits highlights the necessity of adapting to local markets to maintain authenticity.

These examples highlight the importance of cultural understanding, adaptability, and sensitivity in maintaining authenticity while expanding globally. Successful brands demonstrate a deep appreciation for local cultures, embrace diversity, and align their messaging and offerings with their target markets’ specific needs and aspirations. Failure to do so can lead to reputational damage, consumer alienation, and an erosion of brand authenticity.

Final Thoughts

Maintaining authenticity in the face of globalization is a complex and ever-evolving challenge for brands. As markets become increasingly interconnected, brands must balance global consistency and local relevance to resonate with diverse cultural contexts. This delicate equilibrium is essential for building trust, loyalty, and long-term success in the worldwide marketplace.

Successful brands have demonstrated that maintaining authenticity is not about imposing a standardized approach but instead embracing each market’s cultural nuances and preferences. By conducting comprehensive market research, adapting brand messaging and visuals, fostering local partnerships, and staying agile, brands can navigate the challenges of globalization while preserving their core identity.

Conversely, failed attempts to maintain authenticity serve as cautionary tales. Brands that overlook cultural sensitivities lack genuine commitment or impose a one-size-fits-all strategy risk alienating consumers and diluting their authenticity. Understanding and respecting cultural differences, language nuances, and consumer expectations are crucial for successfully navigating the global landscape.

The impact of globalization on brand identity necessitates a strategic and nuanced approach to maintaining authenticity. Brands must embrace cultural sensitivity, adapt to local markets, and foster genuine connections with consumers. By doing so, they can create a meaningful and authentic brand experience that resonates across borders.

As brands expand globally, preserving authenticity will remain a paramount consideration. By embracing the challenges, learning from successes and failures, and leveraging strategies that foster cultural relevance, brands can navigate the complexities of globalization while maintaining their unique and authentic brand identities in the global marketplace.

Ready to navigate the complexities of globalization and maintain authenticity in global markets? Partner with Kadence International and gain cultural insights, comprehensive research solutions, and data-driven strategies to resonate with diverse audiences. Contact us today.

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We had the opportunity to chat with Sachit Gupta, Vice President of Kadence International’s India office, as part of our ‘People in Research’ series. Sachit has a wealth of experience in the industry and an impressive grasp of the Indian market, which made him the ideal person to ask about the most recent market research trends, challenges, and possibilities for rural India research.

Can you tell us about your journey to becoming Vice President of Market Research at Kadence International’s India office?

I started my career in 2001 with a leading industry chamber as a research executive. Initially, I worked on policy research and, in 2004, got into primary research. I joined Mode Pvt Ltd. (now GfK) as a research executive and worked in different positions for the next ten years. I was primarily looking after consumer research businesses and handled some of the key clients, such as Coca-Cola India and YUM Foods. I was also India lead for the mystery shopping business at GfK.

In 2015, I joined Karvy Insights, an Indian start-up market research company, as Associate Vice President and handled various corporate and social sector clients for seven years. Some of the key clients I serviced were Carlsberg, Syngenta, and Dabur (an Indian FMCG company).

Finally, in 2022, I joined the Kadence India office as Vice President. Currently, I oversee the Insights business at Kadence India.

How has the market research industry in India evolved since you first started?

The market research industry in India has seen many changes in the last decade. The explosion of data volumes, types of data, and sources, and, more importantly, the pervasiveness of technology, has substantially expanded and enabled many non-traditional methods of research.

We have come a long way from the days of pen-and-paper interviews to electronic interviews, from program-based analysis to the use of machine learning, artificial intelligence and predictive analysis to make sense of big and complex data.

Similarly, there is a significant shift in how we collect data from memory-based responses and elaborate diary-based data collection methods to more reliable and accurate passive data collection techniques using app-based technologies.

COVID, in many ways, has acted as a catalyst in promoting technology and tech-based solutions in market research. Agencies are adopting shorter, cheaper, smarter interviewing techniques to gather real-time data and provide quick and reliable client solutions.

Another change I see happening is the consolidation in the industry. The prominent players in the industry today are trying to focus on their core strengths, that is, insights and consulting, and outsourcing many of the support functions, such as field operations and analytics, to smaller boutique firms. It is an effective way to stay leaner, more focused, and profitable long-term.

What sets Kadence International apart from other market research companies you’ve worked for?

At Kadence, we have the reach and network of a large global company, but at the same time, we are nimble and flexible when it comes to customizing solutions for clients.

Today, when most large agencies are outsourcing support functions such as operations and analytics, we at Kadence take pride in having all functions in-house. This helps us keep close control of quality and overall project management.

Also, the culture at Kadence India is collaborative and cohesive. We are a small, closely-knit unit; all departments work in close coordination. The top management is entirely hands-on and can be approached 24X7 for any issue.

How do you ensure timely and cost-effective delivery of market research projects?

We follow a few principles to ensure projects remain profitable and are delivered on time.

  • There is the involvement of the operations team at the proposal writing stage. We ensure there is a buy-in from the operations team on the feasibility of accessing the target group, field budget, and timelines at the proposal submission stage. It ensures that all stakeholders are aligned on the agreed deliverables and avoids time and cost overruns later on.
  • Similarly, educating the clients on the minimum time required for us to collect quality data, the optimum length of the interview, and other such timelines is equally essential. We understand our clients have pressing deadlines, but we are responsible for educating them on certain aspects to deliver quality output.
  • Finally, strict adherence to set protocols and processes within the internal teams at Kadence ensures we honor our commitments. We have documented procedures at Kadence, and much emphasis is laid on ensuring compliance at all levels.

Can you share a particularly challenging research project you’ve worked on and how you overcame any obstacles?

The research that comes to my mind is the one where we had to study the consumers of hair color. The study’s objective was to do a sufficiency test with respondents to assess whether the quantity of hair color was sufficient. As we had to test two product samples sequentially, ensuring the respondent applied the hair color when a good number of hair strands had turned grey was critical. In the normal course of fieldwork, it would have meant leaving the decision to the judgment of the field investigators. This would have introduced an element of subjectivity into the research.

As a solution, we created a WhatsApp group wherein we asked the respondents to post a photograph of their hair before applying hair color. Specific parameters regarding what percentage of hair should be grey for the application of color were decided in consultation with the client. A dedicated team of researchers was set up to scan the photographs of all respondents. We only asked the respondents to use the hair color when the criteria were met.

This brought much objectivity into the study and ensured the final results had no personal bias. The findings were well received by the client.  

What are some of the most significant opportunities for market research in India?

The Indian research and insights industry grew at approximately 12% CAGR from FY17 to FY20 and is expected to double by FY26. I see a lot of opportunities and headroom for the business to grow. To be specific, I see the following trends or opportunities in the next few years:

  • The ask from research agencies will be much beyond simple analytics. There will be strong expectations from the clients in terms of value-based insights using advanced analytics such as machine learning and predictive analytics.
  • The pandemic accelerated the shift towards online panels. This trend will continue in the future. Due to the advantages of economy and speed, I see a declining preference for face-to-face, in-person interviews and a greater proliferation of online panels.
  • Much stronger focus on rural research. We are already seeing saturation in urban markets, and the rural economy in India will fuel the next level of growth. Therefore, there will be a sustained focus of all clients on understanding consumer behavior in the rural markets.

How does Kadence International incorporate technology into its market research methodologies?

Technology is at the heart of all the research we do. Kadence India has one of the largest state-of-the-art CATI infrastructures in India. We are also investing heavily in creating our independent online panel, which should be up and running soon.

In addition, there is a conscious focus on promoting digital data collection modes, whether online qualitative interactions, app-based surveys, or passive data collection.

We have a full suite of data collection techniques and customize our solutions depending on the client’s needs and budget. 

How does your team stay current on market research trends and advancements?

One of the KRAs for research managers is proactively using cutting-edge tech-based solutions for research problems. We always seek technology partners to collaborate for new and innovative methodologies. These collaborations and interactions with technology partners give the team good visibility on the emerging trends in the technology space and how best they can use those solutions in tackling clients’ marketing issues.

We also organize knowledge dissemination sessions within the insights team, wherein, if a particular team uses a new technology or an innovative methodology, they are encouraged to share it with other team members through these sessions. The larger objective is to promote a culture of sharing and learning and stay updated on new and emerging trends.  

What is the culture like at Kadence International’s India office?

We have a closely-knit team at Kadence India. There is a collaborative culture between functions, and everyone works towards a unified objective of business growth and client satisfaction.

Having said this, we strive to ensure a good work-life balance for our researchers. They are encouraged to take vacations, spend quality time with family and maintain a family-like environment at the workplace too. We invest in their training and development from time to time for their continued professional growth.

We recently initiated Learning and Fun Sessions (LAF) to encourage team bonding and cohesiveness at Kadence. The objective is to make these sessions as interactive as possible and provide platforms within the company for team bonding and learning. The initial response to the sessions has been very encouraging.

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How do you balance the commercial aspects of market research with the ethical considerations involved in conducting social research projects?

Social research projects are generally large-scale projects and thus contribute immensely to the top line of the business. Similarly, since most of these projects are for the government or multilateral bodies, a prestige value is attached, which is also crucial for future business and the organization’s visibility.

Many social research projects are in health or on sensitive topics. Therefore, there are a lot of research-related ethical considerations and protocols one has to keep in mind.

It is important to take a long-term view when pitching for such projects and strike a balance between commercial aspects and ethical considerations of research. 

How do you ensure clear and effective client communication throughout the research?

Communication is an integral part of the research process. In fact, it is critical to ensure a project’s success and maintain good client relationships. There are a few practices at Kadence India that we follow: 

  • Right at the project’s inception, we ensure a kickoff meeting between the research team at Kadence and the key stakeholders from the client side. This is important to ensure everybody is on the same page regarding study expectations and deliverables.
  • In the meeting, we also appoint a single point of contact from our team to spearhead all client communications from the research team. Similarly, we request the client to select a single point of contact from their team. This ensures clear lines of communication and avoids confusion or multiple people communicating with the client.
  • It is also important to keep the client informed of various milestones with respect to the progress of the study. So we have a system of giving regular updates to the client on how fieldwork is progressing, any issues faced in the research, and timelines for the deliverables.
  • We make it a point to keep the client informed of any exigencies faced in the study. So, if the fieldwork is getting delayed or there is an expected delay in reporting, the same is communicated immediately to the client. 

What is your favorite aspect of working in the market research industry?

In the last 20 years, I have worked across clients and product categories. The sheer diversity in client issues and problems, the nature of the business, and the people we interact with daily make it an exciting space to work. It allows you to learn and grow every moment and gives you immense satisfaction that, in some way, you are a part of the story of your client’s growth.

In a project execution role, I made it a point to visit the field and interact with consumers. The first-hand experience of directly interacting with people and then translating their issues and problems into actionable strategies for higher-up authorities gives a great sense of achievement and satisfaction.

How do you prioritize tasks and manage time effectively when overseeing multiple research projects simultaneously?

Empowering your teams and encouraging them to take ownership of clients and business is very important. Therefore, I delegate as much as possible and give them the space to make decisions that are in the larger interest of the projects and clients. At the same time, being in a senior position makes it impossible to lose sight of what is happening on projects. Therefore, I try to balance giving teams autonomy while ensuring they stay on course.

Typically, I start my day with a checklist of activities/ tasks to be done during the day and religiously ensure I finish those tasks and do not carry them forward to the next day. So far, it has helped me prioritize tasks and manage time effectively.

Can you tell us about a particularly successful market research project you’ve overseen and what contributed to its success?

I remember overseeing a large market entry strategy research for a global FMCG brand. The study was challenging as it required an accurate estimation of the market size for the category and a nuanced understanding of the current behaviors and habits of Indian consumers across the diverse geographies of India. It also required close coordination between the qualitative and quantitative research teams as the client sought a comprehensive market entry strategy for the brand. The study spanned six months, and at the end of it, it turned out to be a successful project helping the client implement an entry strategy for the brand. It also opened doors for us to get more business from the same client.

Teamwork and our qualitative and quantitative researchers working in close coordination contributed immensely to the project’s success.

What are some unique challenges in conducting research in rural areas of India, and how do you approach them?

India is a diverse country with 29 States and seven Union Territories covering more than 600 districts, roughly 8,000 towns, and more than 0.6 million villages.

There is vast heterogeneity in population characteristics due to socio-cultural factors, caste-based divisions, and religious and linguistic diversity.

Specifically, in the Indian context, ensuring that data capturing and research methodologies are amenable to different languages, literacy levels, and differentiated access/familiarity with the internet is critical.

For the above reasons, research and data collection becomes challenging and calls for a robust methodology that mirrors India’s diversity.

“A one size fits all approach” does not work well when designing a survey or methodology for rural India. For example, poor and backward States like Bihar, Uttar Pradesh, West Bengal, and Madhya Pradesh have more than 75-80% of their population living in rural areas. In contrast, urbanized states like Tamil Nadu, Maharashtra, and Telangana are more equitable in distribution.

Therefore, each State has its unique demographic and socio-cultural profile, which must be considered while designing the sampling methodology in any primary research survey.

Therefore, the key to rural research is managing heterogeneity, linguistic diversity, and gender inclusivity while ensuring project representativeness and commercial viability. One has to strike a balance between the two.

What do you like to do in your free time?

I play with my two kids in my free time. I like spending quality time with them and participating in their school and outdoor activities.

I also keep abreast of the latest developments/ technologies in the market research sector.

For a deep dive into the changing face of qualitative research and the impact of technology on market research in India, read our blog post here.

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2022 may be in the rearview mirror, but we wanted to look back at our most visited posts and articles for the year. Researchers are naturally curious people, so here are the pages you sort out the most in the past year.

The benefits of market segmentation

When you know, you grow! Segmentations can guide everything from marketing to product development to identifying new market opportunities. In this article, we outline the key benefits of market segmentation.

READ THE FULL ARTICLE HERE: https://kadence.com/the-benefits-of-market-segmentation/

What is market entry strategy?

Entering a new market can be a complex process. Having a robust strategy maximizes your chance of success. In this article, we explore what makes a sound market entry strategy and the differences between entering a new domestic market or an international one.

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-market-entry-strategy/

What are the four market entry strategies?

When entering a new market there are many routes you can take. This article explores four of the main type of market entry strategies and the pros and cons of each.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-are-the-four-market-entry-strategies/

Biggest risks and benefits to market entry

Launching your product or brand into a new market can be littered with many potential pitfalls, but often the benefits outweigh any risk. In this article, we take a deep look at both the risks and benefits of entering a fresh new market, so you are armed with the information to help you succeed.

READ THE FULL ARTICLE HERE: https://kadence.com/biggest-risks-and-barriers-to-market-entry/

What is market size, and why is it important?

In this article, we not explore what market size is and why it is important but also look at the best ways to calculate market size and is there such a thing as too small when it comes to your brand or product’s serviceable obtainable market.

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-market-size/

5 major challenges of market segmentation and how to mitigate them

Market segmentation can be riddled with challenges. In this article, we explore some of the main obstacles to market segmentation and equip you with the knowledge and tools to segment your market correctly.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/5-major-challenges-of-market-segmentation-and-how-to-mitigate-them/

What is quantitative research?

What is quantitative research? How is it different from qual? Why is it important? and what are the best collection methods? All these questions are answered in one of our more popular articles for 2022.

READ THE FULL ARTICLE HERE: https://kadence.com/en-us/what-is-quantitative-research/

What is top-down market sizing?

Top-down market sizing is one of the two main methods researchers can use to calculate the serviceable obtainable market. This article looks at what top-down market sizing involves, how you can use it in your business, and the strengths and weaknesses of this approach.

READ THE FULL ARTICLE HERE:  https://kadence.com/what-is-top-down-market-sizing/

The top 5 challenges in international market research

Researching a new market in another country can be a challenge to get right. This article explores the top five challenges in international marketing research and our top tips for overcoming these.

READ THE FULL ARTICLE HERE:  https://kadence.com/the-top-five-challenges-in-international-marketing-research/

What is concept testing in new product development?

Ideation is often seen as the easiest part of product development. But how do you know that your great idea is actually what the market wants? This article looks at concept testing and the different approaches to testing new products. 

READ THE FULL ARTICLE HERE: https://kadence.com/what-is-concept-testing-in-new-product-development/

Now that 2022 is a wrap, we can’t wait to share more insight and information to help you with your research goals. Sign up below to receive our monthly newsletter Connecting the Dots, to get the latest news from Kadence and our team.

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At Kadence International, market researchers are at the heart of our team. In this series, we honor some of our colleagues, asking them about their experience working within the market research industry and what the future holds for the industry.

Name: Arpan Jhingran

Position: Project Manager

Kadence Office: New Delhi, India

I joined the Kadence India office in February, 2010.

What does a typical day or week look like for you in your current role? Or what are your primary responsibilities/duties?*

Client Servicing is a significant part of what I do for the project life cycle, starting from sharing the cost to the invoice raising and updating the client and senior management on a timely basis. Our responsibilities include solving the field operations query by speaking to the client and finding the best solution.

Tell us a little about your career so far. What was your first job or role? How did you get started with market research? What other roles (in market research) have you had?*

I had worked with ACC Concrete as a management trainee at their Mumbai location, then moved to Delhi. Kadence is my first company in the Market Research industry. I joined as Operations Executive and was promoted to Senior Field Executive. I have been a project manager for the past five years.

Did you always know that you were destined for a career in market research? Why? If not, what did you actually think your career would be, or what did you say you wanted to do “when you grew up” as a child?*

During my MBA, I was fascinated with the Market Research industry because of its involvement in every possible sector. I was also intrigued by the prospect of using different methodologies for deriving results and presenting those as findings and insights to brands.

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What is your favorite quote or the motto you live by?*

Live and let live

What is the best thing about the culture at Kadence?*

I love the open culture at Kadence, which allows you to work freely and use your experience to guide you in the right direction.

What essential skills are required to excel as a Market Researcher?*

Excellent and clear communication is paramount to building trust with the client.

What is unique about the market research field / and or consumers in your country/ region?*

There is much enthusiasm for trying new products or giving their opinions on topics we need data and insights on. 

What is it about the field of market research you wish everyone knew?*

Much hard work goes behind every outcome to improve any product or idea.

What piece of advice would you give someone looking to start a career in market research?*

Clear communication is the key in any service industry to building confidence, and I would like to advise anyone inclined to join market research to hone their communication skills. 

How have you seen consumer behavior change in the past 2 – 3 years as a result of the pandemic? If so, what are your main observations?*

The expenditure pattern has changed drastically. People are ready to spend on what they want rather than save for the future. 

For one of our projects in the healthcare field, we had to visit government hospitals and understand the conditions and processes by speaking to doctors, medical staff, and patients. Also, we had to talk to doctors without medical degrees and use medication based on their experience. That was great learning of my career.

If you could time travel into the future ten years, how would market research evolve?*

I see market research moving online compared to the current scenario of being an offline-dominated industry.

What do you like to do in your free time when you are not working?  *

I enjoy spending time with my family or sometimes going out with my friends.

What is something you have accomplished in work or life that you are particularly proud of?*

A beautiful family.

What is your all-time favorite food or cuisine?

South Indian Food (particularly Dosas).

What is your all-time favorite travel or vacation spot, and why?

I love hill stations because of the drive up there and the weather. 

How has Kadence’s remote work opportunity allowed you to achieve a work/life balance? We would love an example.

It gives me some more time to spend with my family.

Doing good doesn’t have to be at odds with profit. Organizations focused on their triple line in today’s marketplace will outperform their less socially conscious competitors. 

So what is the triple line? And what does Corporate Social Responsibility (CSR) entail?

In economics, the triple bottom line (TBL) explains how organizations should commit to focusing on social and environmental welfare as much as they do on profits. 

The triple bottom line theory asserts there should be three bottom lines: profit, people, and the planet. A TBL measures a corporation’s commitment to Corporate Social Responsibility (CSR), a self-regulating business model aimed at helping a brand become socially accountable to itself, its stakeholders, the public, and its environmental impact over time.

Reducing carbon footprints to avert the climate crisis, improving labor policies, adding employee welfare programs, embracing fair trade, and incorporating charitable giving are examples of ways brands can support CSR initiatives.

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Why is CSR important in your brand strategy?

The idea behind social responsibility is based on the concept of businesses doing good and balancing their profit goals with initiatives that benefit society and the environment. 

Social responsibility is also good for business. Many brands focus on local, national, and even global philanthropic initiatives to attract consumers, making social responsibility a means of growing the brand. 

Customers like to do business with socially responsible organizations and enhance brand equity by boosting their sales, profits, and goodwill. CSR activities allow companies to improve their reputation, positively impacting brand equity and value.

CSR also helps an organization internally. Research led by Verizon and the Campbell Soup Company quantified the advantages of being socially responsible. The study showed how CSR lowers turnover by up to 50 percent, boosts team productivity by up to 13 percent, and enhances employee satisfaction by up to 7.5 percent. 

Millennials and Gen Zers demand social responsibility from the brands they interact with

A survey of 30,000 consumers in 60 countries found that 66 percent of consumers were willing to pay more for brands with CSR initiatives that resonated with them or aligned with their values and beliefs. 

Another study revealed that 87 percent of Americans would purchase a product based on the advocacy of an issue that resonates with them. 

This is especially true of the younger generations, including millennials and Gen Z. In our recent report on Gen Z —the definitive guide, there are several examples of brands demonstrating social responsibility to attract this cohort of consumers who demand social and environmental responsibility from brands. 

Why does this matter?

In 2020, there were 1.8 billion millennials worldwide, making them the largest generation cohort in recent times. Furthermore, with most of them employed, their spending power has dramatically increased over the past few years. 

In 2021, overall spending by Millenials had also considerably increased because most wanted to make up for the time lost during the pandemic. This cohort is a self-indulgent group that also cares deeply about society and the environment. 

According to a Deloitte survey in 2020, 60 percent of Millennials said they would be willing to support a business that takes care of its employees and positively impacts society. 

It’s not just societal impact but also an organization’s impact on the environment that matters to the younger Millennial and Gen Z cohorts.

Another critical factor is how brands lead diversity and inclusion. As detailed in our exhaustive Gen Z report on emerging beauty trends, today’s consumers, especially younger generations, demand brands to be diverse and inclusive. 

It is worth noting that brands cannot mislead consumers and send out a social message that is not executed because these discerning consumers also expect authenticity. 

Greenwashing, for instance, is a term that has gained prominence in recent times. The term refers to brands and organizations that say they are environmentally friendly, but in practice, they do nothing to protect the environment or actually harm the environment. 

Marrying profits with purpose

Gone are the days when profit and doing good were mutually exclusive. Today, corporations are increasingly incorporating purpose into their brand strategy. Having a cause attached to an organization is not just nice to have but a necessity. Governments worldwide have established mandates to ensure that big corporations are socially responsible. 

In Asia, CSR-related investment is conspicuous in the major economies. While we see a global trend with businesses taking a more significant share of responsibility for social and environmental good, different nations approach CSR with varying levels of vigor and pace.

Let’s look at the American, European, and Asia Pacific countries where we have a presence to see how they approach CSR and corporate citizenship. 

CSR initiatives are part of company law in China

A worldwide survey on millennials revealed that 83 percent wanted businesses to address social issues. In China, this percentage was higher at 92 percent. 

Typically, CSR is considered a voluntary initiative; yet in the past few decades, we have seen the rise of CSR mandates worldwide that explicitly target corporations to include CSR programs. 

One such country is China, where CSR initiatives are in Article 5 of the 2006 Chinese Company Law and explicitly require all Chinese companies to be socially responsible. 

The Chinese government incentivizes companies to incorporate social responsibility into their business practices. 

In 2014, Coca-Cola launched a socially conscious bottled water brand called Ice Dew “Chun Yue,” or Pure Joy in China. This was the company’s first socially conscious brand. Although priced slightly higher than competing brands, this bottled water targeted Millennials who care about social issues and are more likely to pay more for an environmentally conscious brand.

With the fitting tagline, “Drink Good, Do Good, Feel Good,” the brand claimed it would set aside funds to develop safe drinking water sources for schoolchildren in rural provinces such as Yunnan and Sichuan.

Japanese brands face pressure to get involved in CSR activities.

Japanese culture is all about relationships, and giving money to unknown people or charity has never been common practice. Until recent years, the Japanese considered social responsibility mainly the government’s job.

However, this has changed recently as issues such as the climate crisis, human rights, women’s equality, and poverty have come into the forefront of mass consciousness. 

The Japanese understand the adverse impact of poverty, social injustice, well-being, and the environment on society and realize the extent to which individual companies and people can help promote a better community. 

As a result, Japanese corporations face pressure to do more “good” and be responsible for their actions.

CSR in a net zero U.K.

One of the world’s largest automotive companies, Japanese automaker Toyota now faces increased international scrutiny as its growth continues.

In 1989, the company set up its Corporate Citizenship Activity Committee, and in 1995 it established the Basic Principles of Social Contribution Activities. In 2006, the company launched the Corporate Citizenship Division to consolidate all its social responsibility functions globally and become more strategic. In 2009, it opened the Toyomori Institute of Sustainable Living. 

Balancing the amount of greenhouse gases we put into the atmosphere with the amount we remove to tackle the climate crisis is called ‘net zero.’

The U.K. government has urged more businesses to pledge to this net zero target by 2050. In an industrialized world, reaching this goal is challenging and requires massive efforts from governments, corporations, and societies worldwide. 

Various countries and organizations have now adopted the target of ‘net-zero emissions by 2050,’ and about one-third of the largest U.K. businesses, representing a £650 billion market capital, have pledged to eliminate their carbon emissions by 2050. 

One such brand is luxury automaker Rolls-Royce, which is committed to net zero greenhouse gas emissions associated with its operations and facilities by 2030. 

U.K. pharmaceutical brand AstraZeneca has also committed to achieving zero carbon emissions by 2025 and becoming carbon negative across its value chain by 2030. 

Not mandatory in The U.S., but consumers expect brands to incorporate CSR.

From how we grow our food and how we deal with the climate crisis to how we treat our labor force, consumers in the U.S. are increasingly demanding accountability from corporations and organizations.

While CSR is not required by U.S. statute or regulations, it is somewhat soft law as consumers demand social responsibility from the brands they use.

In recent years, there has been a growth in CSR initiatives in the U.S., and major corporations have made massive strides in improving their environmental disclosure through annual sustainability reports.

Driven by its mission, Tom shoes is top-of-the-mind for social responsibility in the U.S. 

Toms shoes are likely the first brand that comes to mind when discussing corporate social responsibility. And for good reason —the brand’s CSR initiative is intertwined with its mission statement. 

In 2006, TOMS launched with the mission “to match every pair of shoes purchased with a pair of new shoes for a child in need.” During its first year, TOMS sold 10,000 pairs of shoes, and today, it has partnered with social organizations in more than 50 countries worldwide. 

The company’s social efforts focus on improving environmental and social issues and are seen globally in every aspect of its operations. The brand is an excellent example of authentic social responsibility.

CSR focuses on labor welfare and environmental consciousness in Indonesia.

Indonesian company law states that “companies with an impact on natural resources must implement CSR, and the same must be budgeted as a cost.” 

Recently, issues concerning worker abuse, severe climate, and environmental concerns have heightened interest in CSR. 

For example, Indonesia Eximbank’s Corporate Social Responsibility (CSR) encompasses four areas: environmental responsibility, responsibility towards social and community development, labor and workplace health and safety responsibilities, and responsibility to their customers. 

CSR is a complementary approach to doing business in Singapore

Singapore is among the world’s fastest-growing economies and is in tune with the sustainability trend. 

The climate crisis and societal issues have propelled social responsibility and sustainable business practices to the forefront. A growing population demanding brand corporate responsibility has turned “doing good” into a winning business strategy. 

In Singapore, most CSR initiatives are handled by the state in partnership with employers and labor unions, making the government a key driver of CSR in the island state. 

The Singaporean code of governance urges domestic companies to follow high standards, and while the code is not mandatory, listed companies are required to disclose their corporate governance practices and explain any deviations from the code in their annual reports.  

In Singapore, Yakult, a probiotic beverage brand, stopped using plastic straws in its efforts to be environmentally conscious. 

Additionally, Yakult has partnered with many non-profit organizations in the health arena, sponsoring public projects and health-related events in Singapore. 

CSR is part and parcel of doing business in Thailand

The fundamental concepts of the Thai way of life and religious beliefs are centered around doing good deeds for others without any selfish motives. This thought process has seeped into business life, and Thai businesses accept their social responsibility.

During the 1997-1998 financial crisis in Thailand, His Majesty King Bhumiphol Adulyadej recommended the “Sufficiency Economy” philosophy to guide the Thai people towards a balanced way of life. 

Wonderland products, a manufacturer of wooden toys in Thailand, enforces CSR initiatives internally by ensuring the quality of life and humane labor practices and externally by supporting environmental protection. Its plants reuse and recycle waste for environmental reasons. 

What the world can learn from India about CSR implementation

Corporate social responsibility is a practice in which businesses voluntarily contribute positively to social and environmental projects. However, in the Indian context, the phrase takes on a different meaning. 

While organizations voluntarily participate in CSR in the rest of the world, it is not the case in India. As the world’s fastest-growing economy, India requires companies to have a CSR policy. 

In 2014, with the implementation of the new company law on April 1, India became the only country in the world with legislated corporate social responsibility (CSR) and a spending threshold of up to INR 15,000 crore (USD 2.5 billion). 

The new law mandates that “all companies, including foreign firms, with a minimum net worth of Rs 500 crore, turnover of Rs. 1,000 crores, and net profit of at least Rs 5 crore, spend at least two percent of their profit on CSR.”

In India, CSR is approached with a stringency not found anywhere else in the world. 

The law requires three Board directors to form a CSR committee to enforce the organization’s CSR policy. The law also dictates that the CSR policy be elaborate and the money spent audited. Organizations must also detail their CSR policy in their annual reports and websites. 

For example, Coca-Cola’s 2015 “Support My School” campaign was one of India’s most extensive CSR campaigns ever undertaken. The viral campaign earned Coca-Cola media exposure to an extent even the most planned marketing campaigns cannot replicate.

It is well established worldwide that businesses cannot progress at the cost of society or the environment. Most nations are on board with Corporate Social Responsibility initiatives that are good for the employees, consumers, businesses, and society. Brands are integrating societal and environmental goals into their operations to help reduce waste, enhance reputation and identity, attract top talent, and increase their bottom line. 

For international brands entering new markets, CSR provides a remarkable branding opportunity and helps them build their reputation locally as socially responsible brands.

The phrase “Never judge a book by its cover” does not apply to product packaging design. When package design is the only reference a consumer has, he is bound to go for the most appealing option. Years of market research have established that what’s outside the package is as important as what’s inside it. How else will a product stand out in a sea of competing brands? Yes, brand loyalty, ingredients, and other factors can make a difference, but in the end, most of it comes down to consumer psychology. 

In a store, the package design is the gateway to the product. Successful brands use psychology in their product design and packaging, driving sales and brand loyalty. Consumers often perceive a product’s function and worth based on its packaging and design.

Product packaging is primarily dictated by the target audience and what they want. For brands targeting a younger demographic, for instance, it is essential to add personalization and brighter colors and fonts that appeal to the youth. 

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This can change when catering to the same demographic in different countries. For instance, the environmental impact of packaging is a relatively less critical purchase factor for Japanese consumers, yet 80 percent of the respondents in India factor the environmental impact of packaging into their purchase decisions.

Understanding Consumer Psychology

Any buying decision involves consumers going through several cognitive stages when looking for a product actively. Their perceptions and opinions are based on what they see during this stage. After they select and purchase a product, they continue to evaluate their decision based on the product’s performance and experience. 

When a product’s perceived value is high, consumers are less impulsive than when the value is lower. This explains why over 70 percent of supermarket purchases are not planned. Shoppers in supermarkets and grocery stores rely primarily on the instinctive cues they get from package design as they browse stores. These help them make quick judgments about the product’s quality and value and can be why they add it to their carts (or not). 

Choosing the right colors

Research shows that color is one of the first things our brains see when they come across a brand and is often the first thing that pulls consumers in. 

Do you feel calm in a blue room, and does yellow make you anxious?

Pablo Picasso once said, “Colors like features, follow the changes of the emotions.” Colour is known to change emotions, moods, and feelings dramatically. Colors can have different meanings from culture to culture, as the idea of color is deeply rooted in our experiences. 

Color psychology is a hot topic in marketing, branding, and graphic design because colors play a huge role in brand perception and image. 

When selecting colors, it is imperative to look into the cultural significance of each color. This becomes necessary for brands planning international market entry, as different cultures have different connotations and emotions attached to specific colors. For instance, while green is a color of prosperity in many Muslim nations, it is a color associated with illness and death in some South American cultures. 

It is also essential to consider how your brand colors align with your brand and its identity. Other considerations are whether these colors stand out in a crowded marketplace and how they would work for those who are colorblind. 

Format and materials

The format or shape of the packaging is often based on whether the package will be used or discarded. In case it’s part of the product, like a milk carton, the quality, materials, and function are important considerations. For instance, a square or rectangular base is better so it can fit in the refrigerator more efficiently, and an easy-to-pour spout enhances convenience and functionality.

Packaging design depends on many other factors as well. For instance, a luxury product needs to be packaged in a way that reflects the high price of the product. In recent years, sustainability has also become a huge factor in selecting packaging materials, and an exciting product design may encourage consumers to post the packaging or unboxing online.

Typography and labels 

Typography is the art of placing text to make the copy clear, legible, and visually attractive. It utilizes font style, size, and structure to evoke feelings and emotions and convey a message. It also helps balance the graphics on a package. 

The font styles and sizes you use on your packaging play a huge role in the overall design and how consumers perceive your brand. The logo, typography, and fonts allow your brand to stand out from the competition. The typography helps catch your target audience’s attention and conveys the brand’s message. It also helps establish consistency, a vital aspect of brand identity. 

For a successful packaging design that quickly moves the product off the shelves, brands need to know their target audience and stay abreast with the latest trends. The typesetting, fonts, and styles you use, just like the graphic and color choices, are based on your target market —factors such as age, gender, language, culture, and preferences influence the typography of a product’s package design. 

By providing invaluable information regarding current market trends and the unique wants and needs of a brand’s consumer base, market research helps a brand develop its business and marketing strategy. Market research benefits many different facets of business, including product design and packaging. 

Brands need to have complete knowledge of consumer desires and the effect of specific product packaging on purchasing patterns and preferences. In market research, there are many different means for gathering this data, each with its own set of advantages. In most cases, it is best to use a combination of methodologies to understand the effectiveness of your packaging design and labels. 

Market research allows brands to tap into the psyche of their target markets to gain a deeper understanding of how a package design impacts purchasing decisions. 

This can be done in many ways by gathering data, each method with distinct advantages. 

Some common forms of gathering data:

1. Focus groups 

Market researchers often use focus groups and show them labels and packages to gauge their first reactions to the design, colors, typography, offers, and form. The focus group participants sample the product and look at the packaging and label to provide insights into what part of the packaging would influence their purchase decision. 

2. Interviews and discussions

Many brands conduct interviews with consumers as they browse competing products in a store setting. Questions like, “what made you add a product to your cart?” can uncover purchase decisions and the effectiveness of your product packaging. You may also interview employees from different departments who know the product well.

3. Surveys

Online surveys are a quick and easy way to conduct a survey. These can be carried out for in-store and online purchases on eCommerce sites and allow for anonymity, providing information and insights into purchase decisions and behavior. A well-designed survey employs a rating scale and asks open-ended questions. 

4. Observation 

Market researchers often use direct observation by visiting the store and observing how the products on the shelf move. In this manner, it is possible to see how the placement of items in a store affects sales. It also allows brands to look closely at the competition to see what graphics, colors, and other visual elements affect purchase decisions. How would your product look in comparison to competing brands? Does it blend in or stand out? Does it stand out in a good way? Making frequent visits to stores can provide a window of opportunity and is a powerful way to conduct market research. 

Market research provides invaluable insights into market trends, consumer psychology, and behavior. It can help formulate the right business and marketing strategy for businesses, including package design. 

Package design research is more critical now than ever. In many cases, the retail package design is the only advertisement for the brand. The brand’s packaging has a few seconds to draw consumers to the product and evoke purchase intent. 

While brands use many quantitative and tried and tested package designs, they often tend to overlook the subjective side of research, which requires qualitative research methods and tools—knowing the “why” behind purchase decisions and consumer motivations can provide the essential piece in understanding the effectiveness of a new package design or redesign. 

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Market research is an essential activity for companies of all kinds. When entering a new local market or category, it’s crucial to do as much research as possible in many areas to ensure you’re as prepared as possible to launch successfully, with minimal risk.

Market research is even more important when entering an international market, as the stakes are higher, and you’ll be facing entirely new market conditions.

This article will examine international market research, how it typically differs from what you’re used to in your domestic market, and some of the main reasons companies need to do it.

What is international market research?

International market research is a blanket term for all the research and preparation on a new market, usually before entering it. Unlike domestic market research, international market research focuses on an overseas market, often with different cultures, business conditions, and consumer behaviors.

There are many different methods and stages involved in international market research. In some cases, the particular methods and techniques are the same as domestic market research, but your overall strategy will likely be very different.

What are the objectives of international marketing research?

International market research is a way of understanding a new, overseas market before you launch a product or service there. The main objectives are to understand your target customers, identify any challenges, get familiar with your competitors, and do anything else to boost your chances of success and avoid unpleasant surprises.

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How is international market research different from domestic research?

There are several key differentiating factors between domestic market research and international market research. Here are three of the key differences:

1. You’re entering a market with social and cultural differences

Domestic market research is already tricky, but the often vast differences between your home country and your target country make international market research much more challenging in many ways.

Often, the reasons for this difficulty are the same reasons why you need to research in the first place — you need to learn as much as possible about a region and culture that may be entirely unlike your own. 

The differences between countries can create many challenges for researchers. For example, a research method like one-on-one interviews that work well in western countries like the UK and US may fail miserably in other parts of the world where it is considered suspicious.

2. There may be more restrictions around research

In addition to cultural and social differences, international markets also come with legal differences. While you might have a good understanding of how the law (as it relates to market research) works at home, the reality abroad may be very different.

You’ll need to be aware of an entirely new set of rules to avoid breaking them and ending up in legal trouble. One example is the USA’s TCPA, which forbids calling a cellphone using an automated dialing system.

Legal differences make it imperative to conduct legal research and coordinate with lawyers in your target market before beginning any research. Ending up on the wrong side of the law could be catastrophic.

3. It requires more investment

Conducting market research on your home soil can often be undertaken relatively cheaply. However, costs can quickly skyrocket doing research abroad. Seemingly simple things like hiring venues, running telephone interviews, and gathering people to interview can become exponentially more complicated when you’re doing it in a foreign country with people who speak another language.

You may find yourself needing to hire a small army of staff on the ground to help you carry out these tasks. To make things even more frustrating, the cheaper market research methods like email and online surveys don’t work nearly as well in developing countries with less widespread internet access.

8 reasons why companies need to research their international markets

Despite the additional challenges involved, international market research is simply unavoidable if entering a new market overseas. Here are some of the reasons why.

1. Differences in culture

The culture of your overseas target market may be completely different. Failing to research the culture of your target market adequately could result in serious blunders, which could seriously harm your market entry and brand reputation.

Cultural differences don’t have to be vast to cause significant problems. For example, in many African countries, containers are labeled with a picture of their contents. When baby nutrition company Gerber entered this market with their jars labeled with photos of babies, the reaction was understandably negative and seriously impacted sales.

2. Differences in laws and regulations

Laws and regulations don’t just have an impact on your market research methods. They can affect every part of your market entry process and how you conduct your business in your new market.

If you enter a new market without a comprehensive understanding of the law concerning your activities, you risk getting into legal trouble.

There are many different potential legal pitfalls to consider when entering a new market. Some examples are environmental regulations, tax laws, and laws that pertain to hiring new staff. On top of this, rules can change quickly, and what was legal five years ago might be a no-go today. 

Understanding legal and regulatory differences is where one-off research isn’t enough — you’ll have to conduct regular and ongoing research as well as work with legal experts in your target market.

3. Differences in customer preferences

Customers in one country may have completely different preferences to those in another. Cultural differences can be due to the earlier issues, but they can also result from other factors.

When China began allowing its citizens to buy and own homes a few decades ago, US do-it-yourself chain Home Depot quickly capitalized on this new opportunity. Six years later, they closed all their Chinese stores, never to return.

The reason — they opened all their stores in the suburbs, but most middle-class Chinese citizens tend to live in apartment blocks in the cities, homes that don’t require or allow much renovation. This simple misunderstanding due to incomplete research led to the failure of Home Depot’s market entry attempt.

4. Understand the competition

When you enter a new market, you’ll need to compete with already existing brands. Brand competition is not easy — you’re already at a significant disadvantage compared to companies that have been established in that region for a long time and are well-known to the local consumers.

It’s essential to understand who you are competing against and — more importantly — how they have been able to succeed. What exactly is it that customers like about your competitors? What keeps them coming back? What has allowed them to gain and maintain a hold in your target market?

Answering these questions through research will give you valuable direction on what your brand must do to succeed. It will also highlight weaknesses in your competitors that you can address in your marketing.

5. Mitigate risk

Entering any new market is a risky venture, and that risk increases when you expand abroad. According to the Harvard Business Review, companies operating abroad faced far lower Return on Assets than those in domestic markets. Many of these companies do not survive the attempt.

Market research allows you to mitigate your risk by being as prepared as possible for the many challenges of entering a foreign market. You’ll better understand your customers and what they want, be more prepared to take on your competition, avoid legal issues, and have a more viable strategy. 

Entering a new market overseas will never be risk-free, but research allows you to minimize that risk.

6. Logistical challenges

The logistical challenges involved in entering a foreign market can be enormous. Everything from selecting and evaluating suppliers to finding ways to transport your products around your new market, there are many things to consider.

When entering a market in the developing world, these challenges become compounded. Regions without well-established transport infrastructure, financial systems, labor laws, government, and so on can create an endless series of logistical challenges.

To prepare for this, you’ll need to research your new market rigorously. Understand all the potential issues facing you so you have time to prepare and aren’t caught unawares by a problem that might set back your operations by a significant amount.

7. Prepare a solid strategy and budget

A well-established strategy and budget plan is an essential starting point for any market entry process. The only way to do this effectively is through diligent market research.

Market research allows you to understand the costs of your new market, including unexpected expenses. It also helps you anticipate obstacles and challenges and flesh out your strategy in a way that boosts your chances of success.

Suppose you need to win the support of high-level stakeholders in your organization. In that case, a well-prepared and financed strategy is an excellent way to convince them that your market entry attempt is well-placed to go ahead.

8. Find available marketing channels

Marketing your product in a foreign market comes with a unique set of challenges and considerations. Channels that work well in your home country may fail abroad — for example, digital marketing in a country with poor internet access.

On top of that, your messaging will need to consider all the cultural and linguistic characteristics of your target market. An advertising campaign that works well at home may very well perform terribly on the other side of the world.

Market research is a great way to identify the marketing channels and approaches that typically work well for similar products in your target market, helping you plan an effective marketing strategy and boost your chances of success from the start.

Market research is an essential and unavoidable task if you want to enter a foreign market successfully. Done right, it can help reduce the many risks involved and give your product the best possible chances of succeeding in a market that may be radically different from the ones you currently operate.

Contact Kadence to learn more about how we can help you with international market research, along with all other kinds.

Considering expanding into an overseas market? If so, you’ll need to do international market research, but be warned, there are many different methods involved and choices.

The difference between good and bad market research can make the difference between the success or failure of your product launch. This is even more true when launching in foreign markets.

All the various challenges and obstacles of market entry are compounded when you enter a market with different cultures, customs, languages, laws, and infrastructure to what you’re used to dealing with in your domestic market. 

Without conducting rigorous research beforehand, you risk being unprepared for an already challenging process.

This article will look at some of the most effective methods for international market research and what you’ll need to consider compared to domestic research. 

The three main types of data

Before we explore the methods available to researchers, it’s essential to look at the three main types of data you will be aiming to collect:

1. Secondary data

Secondary data refers to data not collected specifically for the task at hand (in contrast with primary data). It can involve things like government records, business reports, information from NGOs, and scientific publications. 

Secondary data is usually the easiest to collect and makes a good starting point for your international market research. When researching a foreign market, it’s crucial to consider linguistic differences and that specific data may be less accessible for political reasons.

2. Survey data

Survey data is a blanket term for all the data you gather through speaking to real people in your target market. There are many ways to collect it, including face-to-face surveys and interviews, electronic methods like email surveys, via telephone, and more.

When dealing with an international market, surveys can be highly effective as they offer a direct connection with your target customers in your new market. However, there are challenges to overcoming language barriers and cultural differences.

The best way to conduct an international survey is to appoint a research firm with direct market knowledge and experience.

3. Experimental data

Experimental data is gathered through an experiment. In market research, this can take many forms. For example, you could divide customers into groups and offer one a full-price product and the other a discounted product, then measure which has more uptake.

Once again, experimental data is a helpful tool when researching an international market since it yields real-world findings and allows you to draw concrete insights about how the market will respond to your product.

It’s worth noting that primary data refers to any information collected solely for the task at hand, so survey data and experimental data can be considered primary or secondary depending on the source.

9 of the most effective methods in international market research

Now, let’s explore some of the most effective methods available to market researchers when getting started in a new, overseas market.

1. Overseas business research

The research conducted by other businesses can be a good starting point for your market research. Companies in your space may have already collected this data. It may have been collected by businesses based in your target market or a nearby location.

Business research is valuable because it’s an example of another organization that has done some of its work for you. You can learn a lot about business trends, cultural differences, markets, laws, and more from the research of other companies.

However, this is always just a starting point. No business in the world will have the same set of questions, challenges, and needs as yours, and nobody will have the same product and audience for it. For effective market research, you’ll have to do your own work too.

2. Collecting foreign government information

Governments collect a tremendous amount of information about their populations and the business within their borders. This includes demographics, geography, and culture, which can be extremely useful when planning your marketing and choosing where to sell your product.

In addition, government data can provide valuable insights on the legal challenges you might face when entering a new market and the various regulations you’ll be required to comply with as you market and launch your product. Much of this information is readily available on government websites.

3. Collecting information from NGOs

Non-governmental organizations like charities can be excellent sources of data due to their work in research. NGOs may provide more accurate and up-to-date data than governments in developing regions of the world, which can lack the infrastructure to collect information properly.

4. Face-to-face research

One-to-one interviews and focus groups can both be highly effective market research methods. They afford you a direct insight into what your customers think, what they want, as well as what concerns them, what their pain points are, and how they feel about your competitors, among many other things.

However, doing face-to-face research in an international market comes with a unique set of challenges. The logistical demands are higher — you’ll need to locate and hire venues and work with interviewers on the ground, which may be more complex than doing so back home. You’ll also need to consider linguistic differences, which means hiring interpreters or locally-based staff.

Another challenge is cultural differences. For example, some Middle Eastern cultures treat interviews with suspicion, and it may be not easy to gather a meaningful sample group. 

5. Attitude scales

Attitude scales — like the Likert scale — allow respondents to give a score on how they feel about a question or statement, usually on a scale of “Strongly Disagree” to “Strongly Agree”.

There are many benefits to using this type of research method in international markets. It tends to transcend language, and questions are easily translated. It’s also easy to distribute and can quickly be done either in person or electronically.

However, there are still challenges. Some cultures, such as Japan, may be unwilling to give strong responses, leading to many neutral answers and no meaningful takeaway.

6. Text message (SMS) survey

Text message surveys involve sending out a series of questions to a group of respondents via SMS. It’s quick, easy, cheap, and allows you to reach a large number of people. You won’t get detailed responses from this kind of survey, and it tends to miss out on nuances, but it’s potentially an excellent way to get lots of feedback with minimal effort.

The drawbacks are that it’s dependent on mobile access. Many countries worldwide lack this — Laos, for example, has a mobile phone penetration of just 53.4%. This makes it harder to distribute your surveys to a significant number of people.

7. Online survey

There are many different types of online surveys available to you when conducting international market research. Email, social media, and web forums are just a few examples of places you can connect with respondents and distribute surveys and questionnaires.

Online surveys are one of the cheapest and easiest ways to gather information and can be done from anywhere globally with no need to hire additional staff or deal with logistics in your target market. You’ll get fast responses, and surveys are also easy to translate into multiple languages.

There are some challenges involved, however. Anything involving the internet is dependent on internet access in your target market, which may be very low in some parts of the world. This method works well in North America and Europe but is poorly suited to countries like Eritrea, where only 14% of the population uses the internet.

8. Mobile web survey

This method involves distributing surveys via smartphones through applications or some of the other online methods mentioned above. In many countries, smartphone ownership exceeds computer ownership, making this a valid alternative.

In other countries, however, very few people own smartphones. Pakistan is one example — smartphone penetration here is just 18.4%. However, if your target market has a high smartphone penetration, this can be a reliable research channel.

9. Remote Face-to-Face

In recent years, we’ve all seen an explosion in the use of video chat software like Zoom and Microsoft Teams. Today, this is used regularly to communicate with friends and family, attend work meetings, and even see your doctor. The COVID-19 pandemic accelerated this trend and forced us to rely on remote communication for almost all of our social interactions.

This technology applies to market research and is ideally suited to researching foreign markets. Now, face-to-face interviews and focus groups can take place entirely digitally, removing the need to send team members abroad or hire people in your target market.

There are still limitations, of course — it relies on your audience having access to electronic devices which can lead to skewed results (for example, you end up interviewing only younger and more affluent people). It should be combined with other methods for best results.

Market research is an essential but often challenging process, and it becomes harder when you try to do it in a completely new market far from home. Fortunately, market researchers today have access to a wealth of methods and tools, many of which did not exist even in the recent past.
Get in touch to learn how Kadence can help you conduct international market research as effectively as possible, allowing you to mount a confident and informed market entry.