I have always been a champion & advocate of glocalization by adapting products to suit local markets. However, as every coin has 2 sides, let me here highlight the flip side of adaptation. The adaptation of products in international markets to suit local cultures and markets can be a challenging and complex process for MNC brands. In my opinion, some potential downsides of adapting products for multiple markets are:

Loss of brand consistency: When companies adapt their products to suit local cultures, they may inadvertently dilute their brand identity, making it harder for customers to recognize and trust the company. This can lead to confusion and mistrust among customers who are used to the original taste or recognition of MNC brands.PepsiCo: In the 1990s, PepsiCo attempted to market its products as more "local" in order to compete with Coca-Cola. However, this strategy completely backfired.

Increased complexity and higher cost:Exporters may need to create different versions of products for different regions, which can be time-consuming and expensive. This can also lead to an increase in operational costs. I have seen with many cigarette brands that have to print multiple health warnings packs in order to meet legal compliance.

Risk of cultural insensitivity: Many times we have seen in history when companies may not fully understand the nuances of local culture. For eg Kellogg's was a big failure in India when it was launched for the first time. Wal-Mart’s expansion in Germany was nothing short of a disaster that finally led to its closure ! Similarly in 1960 General Mills had to withdraw their cake mixes from the market when they realised that unlike USA , its less than 3% of population in japan owned oven !

Risk of alienating global customers:MNCs may focus too much on local markets and neglect the needs of global customers, which could lead to lost business as those customers may switch to a brand that has global consistency. In addition, it can also lead to a dilution of the brand identity. The best example is McDonald that adjusts its menu as per local taste but a American that us used to real Big Mac ( the beef burger ) may find amusing that it’s not available in many countries like India & even in dubai & Middle East it’s only halal meat with very different taste .

The message that I want to convey here is that exporters or brands operating in multiple markets should be extremely careful when adapting their products to suit local cultures and markets as sometimes it can have negative consequences. After all, when a core global chicken fast food chain starts selling veg thali to suit a market, I think it needs to ponder on its core brand identity! Right?#business #strategy #food #markets #complexity #brand #india #culture #export #exporters #exportimportbusiness #exportimport #glocalization #globalization #globalbusiness #cigarettes #mcdonalds #pepsico #coke