GLocalization – An Effective tool for Product Innovation : Think Global, Act Local

It is a fact today that due to globalization and advancement in technologies, the world has turned into a common market for all manufacturers and retailers. The market has also changed. “We have no other branch” has changed into chain of franchise operating stores. Government policies adopted by most of the nations have allowed retailers and manufacturers to express their presence all over the world.

But along with this comes one more fact. Red is not same everywhere. In china and India  Red color is considered a color of Good Luck and is considered as wedding color whereas in South Africa the Red color is color of mourning. This indicates that every country we go, every region we go it is characterized by its unique culture, values, lifestyles, ethics, ethos and expectations. It is indeed very crucial for Business Analyst to consider this facts while is he is analyzing may be for product innovation / development.

“What works excellent in one place will not work at all in other place”. It is duty of  Business Analyst to understand this if he is interested in developing/innovating a product because the enterprise is  expanding its reach to some other location.

We have many such examples in different sectors that have tremendously gained in their business as they were able to incorporate the Glocalization principle in their product innovation / development strategy. I am just listing few examples that will help to understand the Glocalization:

Automobile:

Vespa:

In 2012, Piaggio & C. S.p.A., the iconic Italian two-wheeler re-entered the Indian market. It adapted its scooter the Vespa to suit the Indian riders and road conditions.

• The rear wheel structure was redesigned to facilitate easier tyre changes,
• the scooter is more efficient than it is in Europe (62km per liter compared to 35 in Europe), 
• increased ground clearance,
• Slimmer design and a lower footboard to give more legroom to Indian women who ride sitting side-saddle in the back seat.

Domestic Appliance:

Whirlpool:

• Whirlpool incorporated specially designed agitators into its washing machines when it sold them in India. This helped Indian women wash saris without the five-foot long sari getting tangled. Whirlpool formed a joined venture with a local partner to produce the redesigned washing machine to suit local taste and culture.
• Whirlpool also makes its refrigerators in bright colors like red and blue as many Asian consumers placed their refrigerator in living rooms as a sign of status. Whirlpool believes in standardizing worldwide what it can and adapting what it cannot.

Cosmetics:

Chick Shampoo sachets:

Cavin care found that in rural India the bathrooms are present at some distance from the house. It is generally a room with no ceiling and raised walls with no place to keep bottles. So people shy away using shampoo bottles. One because of no place to keep and other possibility of theft (higher price compared to soap). Cavin care showed excellent product innovation by introducing “Cheap – Use and Throw shampoo sachets” which solved the problems mentioned above.

Fast Food / Restaurant Chains:

• KFC selling Vegetarian food products in India.
• Subway and McDonalds does not have beef products in India.
• Use separate kitchens/ ovens for vegetarian and non vegetarian products.

The case studies mentioned above shows tremendous success as they maintained their global standards along with adapting well with the local market / environment through their product innovations using principle of Glocalization.

It can be concluded from the above that Glocalization is the key  principle if effectively implemented by the organization during product development / innovation stage will help organization successful in the vast diverse market place.

About Author:

Saurabh Kane is a consultant in Systems Plus Pvt. Ltd. Within Systems Plus, he actively contributes to the areas of Technology and Information Security. He can be contacted at: saurabh.k@spluspl.com