{"id":1291,"date":"2019-01-18T12:35:38","date_gmt":"2019-01-18T07:05:38","guid":{"rendered":"https:\/\/www.ulatus.com\/translation-blog\/?p=1291"},"modified":"2019-01-18T17:24:42","modified_gmt":"2019-01-18T11:54:42","slug":"get-globalization-right","status":"publish","type":"post","link":"https:\/\/www.ulatus.com\/translation-blog\/get-globalization-right\/","title":{"rendered":"Get Globalization Right. Focus on these 5 Emerging Markets."},"content":{"rendered":"

The desire to be a global brand in itself is not enough to reach the goal. There are a number of factors a company has to consider when expanding their business to new markets. Along with the demographics of the region and demand for your product, several other policy and regulatory factors play an important role in a brand\u2019s globalization strategy. These factors include economic and political status of the region, ease of doing business score, cost and time needed to set up a business or get an electric connection, and ease of availing credit to name a few. In 2018, countries such as Djibouti, China and Azerbaijan showed immense progress in their economic and regulatory reforms in an effort to attract foreign business. Some others like Yemen and Somalia continued to be difficult countries to do business in. This blog lists top emerging countries you should consider when planning your expansion and globalization strategy in 2019.<\/p>\n

But first, what is Globalization?<\/strong><\/p>\n

Globalization is the process that addresses the issues associated with launching a product or brand globally and starting business operations that cater to people of more than one country.<\/p>\n

To put it in simple terms, globalization is selling your products and\/or services in countries other than the country of origin.<\/p>\n

While most companies dream of having a truly global brand, a lot goes into making people of a country feel connected to it while keeping the brand\u2019s voice and tone consistent in all regions. Strategists and marketers call this a Glocal<\/a> strategy.<\/p>\n

Take Starbucks\u2019 globalization strategy for example; as of 2019, the coffee giant has more than 20,000 stores across 63 countries and boasts of being the world\u2019s most popular coffee house. While most believed that the coffee joint was taking steps towards its own demise given the cultural differences in all the countries, Starbucks has been standing tall in countries like China since 1999 where tea dominates the beverage industry. They battled the general dislike for coffee in China<\/a> by introducing coffee-free drinks. And in regions of South-Asia, the company introduced adaptable seating for larger groups giving it a truly local feel while maintaining brand consistency.<\/p>\n

Examples of successful Glocal strategies are plenty like Dunkin Donut\u2019s dry pork and seaweed donuts for China, Coca \u2013Cola\u2019s FIFA World Cup campaign featuring local celebrities and cultural references, Ikea\u2019s tatami floor mats in Japan.<\/p>\n

Building a global brand isn\u2019t easy, but with countries simplifying procedures and a greater understanding of the local population, it is definitely more achievable than it was a decade ago. As of 2018, it is easiest to set up a business and operate in most European countries, New Zealand, Singapore and a few others. But the demand and growth in these markets is far less as compared to emerging countries.\u00a0 Emerging markets easily offer a growth rate<\/a> of 4-5% per annum whereas developed countries can offer only about 2-2.5%. Emerging markets are therefore important aspects of your globalization strategy.<\/p>\n

Here\u2019s a list of the most viable and sought-after emerging markets in 2019:<\/strong><\/p>\n

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  1. China<\/strong>: With a population of 1.4 billion, China offers the largest customer base for your company and brand. According to a Forbes<\/a> and an Emarketer<\/a> report, the Chinese consumer is turning to healthier habits, demands premium products and is willing to pay a high price for luxury. The Chinese are also spending more on services like entertainment and relaxation as compared to physical products.
    \nTo improve the business scenario in the republic, the Chinese government has made it easier for foreign companies to set up shop in the country and trade with neighboring nations. A bunch of reforms such as faster electric connections, online payment systems, improved construction approval processes and easier cross \u2013border trade have been implemented resulting in faster business cycles for foreign companies. These reforms have helped China move up to the 46th<\/sup> position in World Bank\u2019s     Doing Business 2019<\/a> report with an increase of +8.64 points. This makes China 2019\u2019s top emerging market to do business in.
    \n\u00a0<\/em><\/li>\n
  2. Indonesia:<\/strong> In 2017, it took about 23 days to start a business in Indonesia as compared to 53 days back in 2015. Standing tall at number 73, Indonesia has combined social security registrations, reduced notarization fees in both Jakarta and Surabaya, reduced the time taken to solve disputes over land, enhanced land registry transparency and improved access to credit information to make the country an important centre for global business.
    \n<\/strong>Emerging economies provide more business opportunities and in Indonesia, sectors like infrastructure, transport, hospitals and medical facilities, and high value commodities are expected show an increase in demand. Being blessed with an abundance of raw materials and commodities, it will be easier for manufacturing companies to source material at cheaper costs in Indonesia. A relatively stable political scenario, a young, large and burgeoning population and low labor costs make Indonesia an important hub for international business in 2019.<\/li>\n
  3. Vietnam: <\/strong>Vietnam is one of the more politically and socially stable countries in south-east Asia, promising a safe environment for your business. Vietnam has a population of 95Million comprising of a fast-growing middle class with a high purchasing power. Vietnam has shown a strong interest in being part of global trade organizations such as ASEAN and WTO and has made many regulatory, political and economic reforms to be accepted in the group. The country has also been working hard to make the business environment more friendly and simple for foreign companies.
    \nRecently, the country introduced a number of reforms such as: a) reduced the cost of registering a business, b) made starting a business easier by publishing the notice of incorporation online c) reduced tax liability of a company by reducing the employer\u2019s contribution to the labor fund d) made paying taxes easier by omitting the need to submit a hard copy of the VAT return and d) made provisions for joint payment of the business license tax and VAT. Foreign companies have already shown trust in the country by pledging more than     11.2 billion as FDI in 2018<\/a>. It now takes about 17 business days<\/a> to set up shop and start operations in Vietnam making it 69th<\/sup> easiest country to do business<\/a> in 2019.
    \n\u00a0<\/strong><\/li>\n
  4. India: <\/strong>With a population of 1.3 billion India ranks second among countries with the highest population. This massive pool of lower middle and middle class people has the potential to be a target group for companies representing a number of industries. According to a\u00a0McKinsey Global Institute<\/a> report, by 2025, 69 cities in India will have a population of over one million each increasing the demand for businesses to support their livelihood. With the government\u2019s focus on economic development and growth, ease of doing business in India has increased to a great extent.
    \nThe World Bank\u2019s Doing Business report of 2019 ranks India at number 77 with an ease of doing business score of 67.23. India has implemented a number of reforms like a) replaced VAT with GST and made GST registration simpler b) abolished the practice of site inspections for registering companies under the Shops and Establishments Act c) streamlined the process and reduced cost of obtaining a building permit d) made it easier to get an electric connection and e) made it easier to avail credit in the country. These reforms, coupled with India\u2019s young workforce and a strong startup ecosystem make India an important option for your globalization plans.<\/li>\n
  5. Georgia: <\/strong>Georgia is the only emerging country to rank in the top 10 countries for ease of doing business. Similar to New Zealand, it takes a day to open a business in Georgia, the least in the world. The country has implemented economic and governance reforms earning it the status of a \u201cStar Reformer\u201d. Georgia has good trade relations and agreements with the EU and China, proving favorable for international trade. It is also supporting companies catering to the energy, tourism and agribusiness industries. The government of Georgia is making efforts to redevelop the country and make every village or town a 4 star location for residents and tourists.
    \nThis opens new avenues for the construction, transportation, energy and tourism industries. With a population of 3.7 million and the government giving a push to economic development and growth, this emerging market should definitely be considered in your globalization plans. <\/li>\n<\/ol>\n

    Once the countries are picked you have to remember that:<\/strong><\/p>\n