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Localization: The driving force behind online business success

Localization Services

New business ideas and concepts are launched on the Internet frequently yet only a few achieve success that every Internet company hopes for. The few who do make it are often touted so it’s no surprise to see innovative business ideas being replicated and often bettered in foreign markets. Online business ideas are just as prone to being copied as anything else. There is not much a business can do, registering patents can be costly and time consuming, other than penetrating different markets swiftly.

The online sphere continues to see new business entrants gaining enviable success on the World Wide Web. The current economic climate hasn’t impacted Internet companies as adversely as it has many others. This has bolstered confidence in investors who fund Internet companies that are hoping to become a part of the next big thing. However, any idea that has a hint of success associated with it is replicated in different parts of the world and results in added competition for the start-up source.

Internet companies are initially location specific and cater to a particular country and/or region. The restrictions in place are not due to the idea being location specific but because of limited resources and lack of understanding of foreign markets in part. An online business service or utility in America will always be geared towards the American market initially. This allows a chance for a replicate to pop up in another part of the world which caters to a different market. The term “clones” describes this occurrence, and there are two countries leading the clones industry. Germany and China are home to the most prolific examples of this industry which has in turn spawned its own investment community. One such example is the Samwers, three brothers who hail from Germany. The trio has been churning out highly successful clones for European markets much to the annoyance of their American inspirers for over 12 years.

The Samwer brothers have continually been inspired, as they say, by ideas in America and have developed successful European versions of original American counterparts. The driving force behind their achievements is their focus upon a localized service. A market which might take a foreign company some time to understand, and localise their service for, is already known by locals and this enables them to replicate an idea quickly and efficiently. Several well-known American companies have bought European clones started by the Samwer brothers. This goes as far back as 1999 when Ebay bought Alando, a German online marketplace, for $50 million dollars.

A recent example of the Samwers’ success is Wimdu, an idea inspired from its American competitor Airbnb, an online marketplace for renting rooms and houses. Wimdu gained an edge over Airbnb by providing a localised service in the European markets, their concentration upon providing a similar service in different languages has worked resoundingly well. Today, Wimdu supports 20 languages compared to Airbnb’s 8. Localization is important in making a service or utility suitable for a different market. Its usefulness is exemplified by the success of the clones who dominate other markets when the American company is focused upon American or English-speaking consumers only. Imitation is said to be the sincerest form of flattery, in the business world imitation mixed with localization has become the driving force behind success.

 

Marketing/Wimbledon Week

During the last week of June, we exhibited for the second consecutive year at the Insight Show. The leading trade fair for the market research industry is part of Marketing Week Live held this year in the Grand Hall at London’s Olympia.

Given that Wimbledon was in full swing during the exhibition, our stand had a tennis theme this year. Strawberries and cream were snapped up quickly by visitors wanting to cool off during the warm afternoons on both days.

Take a look at photos of Language Connect’s stand here:

We had a fantastic time catching up with all our clients, most of whom were out in force, lured by the Research Party! Some of the main talking points were:

Online communities – we exhibited next to VisionsLive who demonstrated their technology platform for running online qualitative groups. We have been working with VisionsLive to help their clients overcome the language barrier in international research. Utilising our vast pool of interpreters means that together we can set-up online groups in any language anywhere in the world within a matter of days. Clients listen to a Language Connect interpreter on a separate audio feed so that they can follow the group’s comments in real-time.

Watch a video of international online qual in action here:

The solution attracted a lot of attention, not least from seasoned qual researchers who finally admitted that “the online solution did seem to have something going for it”.

Respondent engagement was another key theme. Vendors such as Ugam Research and Toluna introduced their online platforms which aim to improve respondent engagement through easier and more intuitive user interfaces. An interesting sub-sect to this theme is mobile data collection. We have been watching this space closely since the mobile platform is predicted to have a major effect on respondent engagement.

International expansion was on the agenda for several exhibitors. We met several exhibitors that are based outside the UK such as uSamp, which announced its expansion in Europe, SIS Research from NYC, plus field services firms from Bulgaria and other parts of Eastern Europe.

The Insight Show was noticeably busier this year with footfall up 30% on last year. From the conversations we had it seems that research and consumer insight are moving up marketeers priority lists. One potential explanation for this is social media which is bringing brands closer to their consumers. Online user-generated content is growing at an explosive rate particularly in developing markets such as the BRIC countries. There’s a tremendous opportunity for brands to interact with large audiences at much lower cost per impression than traditional marketing.

The improved economics make marketing via social media a compelling option for companies wishing to expand or develop their presence in overseas markets. Through Language Connect’s first-hand experience, we can help your company understand the international social media environment, translate and publish content and listen to what consumers have to say in other languages. For more information, please contact us at info@languageconnect.net. You can also follow us on Twitter for news on international social media.

May 2012
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