Member Article

How to build a cross border brand

It goes without saying that the advent of the internet has broken down locational silos. What was once a small surf shack on a beach in Polzeath which existed to serve local beach goers in Cornwall, now finds itself selling to surfers as far afield as Australia through its online presence (which is exactly what happen to TJ’s). As a result cross border branding is increasingly becoming an issue for more and more businesses. However, unfortunately it is not as simple as buying up .country domain names and offering free shipping. Globalisation has long foxed global brands. Powerhouses such as Coke, P&G, Nestle etc. are forever changing the way they approach their markets in order to best capitalise on the opportunities afforded by each whilst also benefitting from economies of scale. Too far one way and the costs escalate, too far the other and the brand becomes divorced from its audiences. The objective of market expansion is always growth. However, a common mistake that happens time and time again is the lure of short-termism. Often an organisation’s desire to move fast means that they fail to build a solid foundation to make growth focused and effective. Brand is viewed little more than a logo rather than a strategic lever to help shape the offer, customer experience and organisational culture.

A problem specific to brands looking to enter new markets is their tendency to treat the region as if it is homogeneous. For instance I recently observed a well-known UK brand’s entry into Asia. In its home market it would never have been naïve enough to try and lump the UK and France together, but it was surprised when its brand failed to translate to a Singaporean audience having first tailored it to Malaysia. Whilst on paper these countries may look similar and share a border, in reality they are hugely different in culture, identity and consumer behaviour and therefore must be treated individually. Westerners also often fall into the trap of believing just because two cities are in the same country they are similar. Take for instance Hong Kong and Harbin, yes they might both be in China, but they are thousands of miles apart, in different time zones and as different as Ohio is from Florida.

A good example of a business that is getting it right is beauty brand LUSH. The organisation currently has over 900 stores in 49 territories. However, back in 2017 it realised that its Hong Kong business was not doing as well as it should – particularly since the market was so attractive; Neilsen research showed that 96 per cent of female consumers in Hong Kong spend an average of HK$4,021 (US$512) a year in the purchase of skincare or makeup products. After a review of the strategy the brand went back to its founding principles and reimagined them for the market. The new focus point for the business in Hong Kong was to make shopping locally relevant. People needed a reason to go to shops and LUSH provided one by creating a special shopping experience that was responsive to their needs. As a result the setup of each LUSH shop, whilst all looking similar and adhering to the no packaging principle it is famous for, have distinct differences. Merchandising is governed according to domestic market needs, so the most wanted products are the prominent focus.

Another iteration of how it using the brand to steer localisation is in it social activism. This has always been a core part of the LUSH brand and is something the company is well known for, like Benetton was before it. At the time of the Hong Kong refresh the mission-driven campaign in the UK and Europe was focused around the issues associated with undercover policing. This did not translate to the Asian market, but having a cause to support in Hong Kong was important because of the organisation’s DNA. Research was conducted and animal protection was found to be a significant issue of concern for local residents, so the cause centred around welfare for dolphins, buffalo, cats and dogs amongst others. Ultiamtely, the campaign became a way for LUSH to connect and communicate with the local community and provide them with a voice.

LUSH’s continued success in Hong Kong shows that an organisation with a strong brand at its core can be interpreted to suit individual markets, without diluting what the organisation stands for. Or in other words leveraging the brand in order to curate the right customer experience and offer for consumers. It is a mistake to believe that in today’s globalised business world that brand is just about the outward appearance of a company. It is in actuality the spine of any organisation and for savvy business leaders a lens through which all business decisions are made. This approach means that the identity of the organisation is woven through every single aspect of the business from workplace culture to logistics and financing decisions, not to mention the template that can be used to ensure a cohesive, but individual approach for different markets. When market expansion is on the agenda, so too must brand.

This was posted in Bdaily's Members' News section by BrandCap .