The
popular economic resource online site Investopedia describes “Globalization” as the global
integration of international trade, investment, information technology (IT),
and cultures. It further claims that government policies drive globalization
which results to the opening up of economies domestically and internationally.
This translates into economic development and higher standards of living for
people in poorer countries. It says that globalization allows corporations to
gain competitive advantage due to lower operating costs, access to cheaper raw
materials and wider market base.[1] However, many also look at
globalization with intense scrutiny as it has become the symbol of
environmental destruction, imperialism and human exploitation among many others.
Professor
Theodore Levitt (who is credited for the term “globalization”) perhaps made one
of the greatest prophesies in the history of marketing when he claimed that a
global market for uniform products and services is at hand. Levitt said that “a
powerful force drives the world toward a converging commonality, and that force
is technology”.[2]
Many marketing gurus subscribe to his tenets but others view it with more
objectivity.
Jean-
Noel Kapferer asserted that there is such thing as “Post-Global Brand”. He said
that “global brands must be also be local” which means that while they are
being marketed based on the popularity of their name, it must be able to cater
and adapt to the local market. World leaders in the industry such as Ford and
Toyota for example has assembly plants in various countries, and they vary car
models sold from country to country to suit the needs and demands of the
market. McDonald’s in the Philippines tastes a little bit different as compared
abroad due to the unique palate of the Filipinos. Jollibee changed its local
name when it ventured in China. The most popular technology brands such as cell
phones and computers are assembled in countries outside their main headquarters
and sold with unique features for every country. The point is, global brands
cannot just bank on the popularity of their brands alone to achieve global
success. They should immerse, adapt and adjust their products to the target
market or else other brands will do- and eat them up.
Now
going back to my wife’s salon business: During our light moments, we dreamed of
expanding her business, first locally then internationally. We both agreed that
it is an ambitious thought and an interesting proposition but not totally out-of-this-world.
These local brands that we know of today were once struggling start-ups in a
small garage somewhere. But after reading Kapferer, the challenge became more
daunting than ever. Does the salon have the X-factor to position itself as an industry
leader locally? How about internally and globally?
Meanwhile,
the thought of international salons (mostly Korean brands) rapidly flooding the
Philippine market sends shivers down our spine.
