Standardization vs. Localization: Choosing the Right Strategy for Global Business Growth 

For any brand that’s thinking about moving into new territories, the standardization vs. localization debate comes up. Standardization is a useful approach for companies comfortable with the idea of uniform branding and marketing campaigns, but there’s always the risk that your products and messaging won’t resonate with foreign audiences. 

With localization, there’s more scope for personalization and tailoring products and marketing to meet the needs of untapped markets. However, here, you run the risk of diluting your brand identity. 

Unsure of whether to standardize or localize? Rather than waste time and resources on the wrong approach, read on for everything you need to know about these two global expansion strategies. 

Standardization vs. Localization: Key Differences 

Simply put, standardization sees you maintain a consistent brand identity across every market. When it comes to localization, you’re finely adapting products, marketing, and other content for new audiences. 

With standardization, you have a uniform approach to everything from product design to marketing strategies. By being consistent across multiple territories, it’s easier to maintain a coherent brand image and scale relatively cost-effectively. However, standardization is only really effective when targeting markets where customer preferences are largely homogenous.

Even for brands that can cover the costs and resources associated with localization, standardization can still prove to be an effective strategy. In some cases, brand image may be so strong that it resonates successfully across every region. Heavily localizing branding to meet local requirements can risk diluting the brand and decreasing recognition and trust. 

Unlike the uniform nature of standardization, localization involves adapting a brand to meet the needs of a particular market. Consistency isn’t a chief concern here, with the main focus being realigned products and content that strike the right note with target audiences. 

Localization is generally fairly comprehensive. It can involve everything from adapting a company website to overhauling products to better match customer appetites. Essential for brands looking to do well in competitive markets, localization ensures that companies have a fighting chance of making their mark right from the off. 

However, localization is considerably more expensive than standardization, requires more resources, and is time-intensive. Preliminary phases like market research can impact lead times, while there’s typically a need for local consultants and native speakers to ensure success. 

Key Benefits and Challenges of Each Strategy

Standardization and localization are both worthwhile approaches if you’re looking to expand internationally. Struggling to decide on which strategy to adopt? It’s a good idea to break down the benefits of each to decide which is the best path forward for your business. 

Benefits of Standardization

With standardization, you’re using the same core products and marketing materials across every territory. This standardized approach can help slash costs considerably. What’s more, standardization can help you simplify your operation. With less complex processes in place, there’s less scope for error and inconsistencies. It’s also the best strategy if you have your eyes on international expansion. By using the same measures uniformly, you can build and deploy a truly global strategy with ease. 

Standardization can also help you maintain a consistent brand identity. This is essential when moving into new markets, enabling you to secure a strong identity, build trust, and boost recognition with unfamiliar audiences. Finally, there are the speed-to-market benefits of standardization. Because you’re utilizing a stockpile of ready-made materials and tried and tested strategies, you can launch campaigns more quickly and effectively. 

Benefits of Localization 

Although it’s generally more complex than standardization, localization brings many benefits. Firstly, you can count on greater market relevance. By carefully adapting products and marketing messages to align with new customer segments, you can look forward to increased engagement and secure greater brand loyalty. 

Eyeing up a particularly crowded market? By investing in localization, you can enjoy a competitive advantage over rival companies, even established ones. Additionally, tailoring your product and marketing content delivers a better experience for the customers, improving satisfaction and retention rates. 

Do you operate in an industry sector with strict compliance laws and regulations? Localization ensures you’re always on the right side of the law and avoiding potential legal issues and fines. Finally, localization is a far more adaptive and responsive strategy than standardization. Once you’ve localized, you’re better able to meet and address changes in the market or accommodate shifting consumer appetites. 

Pros and Cons of Localization vs Standardization 

We’ve already touched upon the perks of standardization and localization, but there are some potential pitfalls to consider. While standardization is generally streamlined, cost-effective, and a good choice for maintaining a consistent brand, there is a risk that you’ll fail to connect with customers. Sometimes, standardization doesn’t go far enough in catering to the specific needs of local audiences or honoring cultural nuances. 

Should this happen and consumers fail to engage with products and marketing, market penetration hits a brick wall. If growth objectives hinge on winning out in a new market, this is a serious cause for concern. There’s also the potential issue that standardization will fall short as far as regulatory compliance is concerned. Standardizing products and marketing may simplify processes, but such an approach may mean that key regulations are missed. 

Localization is typically a far more effective strategy for expanding into new markets. It’s more responsive, grants you a competitive advantage, and increases the odds of you enjoying more market relevance. However, it’s generally more expensive than standardization, calls for more complex processes, and can be difficult to scale. 

Additionally, localizing too heavily for a specific market can bring problems. The more you localize and introduce local adaptations, the more diluted your brand becomes. Eventually, this can result in a brand identity that’s far removed from the original. 

Factors to Consider When Choosing Between Standardization and Localization

Before deciding on standardization and localization, you’ll first need to determine your audience. Once you’ve done that, extensive market research is required to identify market appetite, buying behavior, and cultural nuances. Once you have your findings, you’ll be able to determine whether your project merits localization or standardization fit for the purpose. 

Next, you’ll want to think about your branding, namely the question of whether brand recognition or brand consistency is most important. If you’re more interested in getting your brand established in multiple markets, standardization is probably the best approach. If you’re more concerned with preserving a consistent brand image across territories, go for localization. 

You’ll also need to establish whether or not you have the resources to undertake each strategy. Localization can be an expensive endeavor, and the process calls for expert insights you might not have available within an existing team. However, standardization is a far more accessible strategy to most companies. In most cases, you’ll be able to undertake standardization using existing resources without causing too much disruption to your existing operations. 

Which Industries Benefit More from Standardization?

Many industries can benefit from standardization. However, it’s best utilized by well-known brands that don’t need to worry about establishing themselves in new territories. The food and drink industry, along with manufacturers selling consumer goods like electronics, can all utilize standardization to expand into new markets. 

Which Industries Benefit More from Localization?

Localization is the preferred approach for many industries. The e-commerce sector is just one example. Despite a significant proportion of the planet speaking English, most consumers prefer to buy from online stores that offer product descriptions and content in their native languages. What’s more, buying habits and consumer preferences differ considerably between countries, while seasonal shopping trends also vary. Localization takes all this into account, providing customers with a truly native experience. 

The same localization logic also applies to the travel, hospitality, and leisure sectors. Online booking platforms that have been localized to meet specific cultural requirements are far more likely to engage would-be visitors. Meanwhile, localization also lends itself well to software and mobile app development. By carefully localizing everything from language to images and colors used, you can create products that resonate with users in all the right ways. 

Standardization vs. Localization: Make the Right Choice with BLEND

If you’re planning on targeting a new market and expanding your efforts internationally,  you’ll eventually have to decide on whether to standardize or localize. While cost-effective and easier to implement, standardization is best utilized by established brands with existing recognition. For smaller businesses looking to establish themselves in new markets, the heavily tailored approach of localization is the best way forward. However, here, brand consistency can become a problem. 

Need help with standardization, translation, or localization? It’s time to speak to the team at BLEND. Our expert localization services will help you navigate and succeed in new markets with ease, even if you’re up against significant competition. 

Ready to master new markets and achieve your dreams of global expansion? Why not get in touch for a quote today? 

Corinne Sharabi

Corinne is the Social Media and Content Lead at BLEND. She is dedicated to keeping global business professionals up to date on all things localization, translation, language and culture.

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