Is your brand global or local? Or can it be both?

Dear reader,

The attitude of customers towards global or regional brands is not only interesting in theory - it can determine the success of entire business areas, even companies. A very clear picture has emerged in recent years: "Perceived brand globalness" is generally advantageous, especially in emerging countries and growth markets, where brands that are available worldwide are seen as having greater quality and status. At the same time, however, there is also the opposite effect of ethnocentrism: customers prefer regional or national brands because such brands help them to express their identity. And as emerging countries and the self-confidence of their inhabitants continue to develop, the demand for local brands also increases.

These correlations can now be observed time and again - and regardless of whether it's cars in China or seeds in Brazil, management is faced with a difficult task: should they focus on the global brand in the long term? Or change the strategy in the medium term and acquire regional brands? Or build them up yourself? The matter is not made any easier by intensified competition as a result of digitalization, and barriers to global trade due to protectionism, tariffs and wars.

So what to do? A recent study now suggests that global vs. local may not mean either-or. The "coalescence effect" shows that global and local elements can be successfully combined in brand management in order to signal globally recognized quality as well as proximity and regional identity. However, the combination of these elements must not lead to "hybrid" brands whose defining elements then reflect the common cultural denominator; instead, the brand elements must be carefully put together. In any case, we think that such questions of global brand management are particularly important at the moment; whether you focus on globalness, ethnocenticity or coalescence will have a decisive influence on the success of your brands and your company. What do you think?

And here is the link: https://www.ama.org/research-insights/optimizing-global-branding-by-combining-local-and-foreign-elements/