Culture Counts: Preparing Your Business for a Global Audience

    What really drives people’s buying decisions? According to international marketing guru Clotaire Rapaille, who has worked with companies like Boeing, Honda and Kellogg, it’s not what we think about a product per se, but what that product triggers in our subconscious—an emotional response that varies from one culture to another.

    Perhaps you’re already among the 43 percent of NAWBO members who engage in importing or exporting. Or perhaps you want to invest in an overseas location or expand your reach via the Internet. Whatever your strategy, one thing is certain: cultural differences will have an impact on your success.

Understand How Locals Think

    In a study commissioned by AT&T, Rapaille has found that while “quality” is important, the concept of “quality” can mean different things in different countries. In Japan, where expertise and dedication are prized traits, it stands for “perfection.” In the U.S., where improvements are often based on trial-and-error, it’s “something that works better than previously.” In France, it’s associated with “luxury,” while in Germany, it’s “made according to the standard.” When marketing your product or service overseas, it’s best to use ideas and philosophies that resonate with your target market.

Adapt to Local Customs and Business Practices

    Mannerisms can be a cultural faux pas. In countries like Iraq, Saudi Arabia and India, for example, the left hand is considered unclean. It is offensive to use it when shaking someone else’s hands, accepting an offering or taking food from communal dishes. Likewise, while giving a thumbs-up is a good sign in most of North America and Europe, it is seen as an obscene gesture in most of the Middle East and parts of Africa (notably Nigeria).

    Colors can also carry hidden meanings. While red is used to signify danger in the West, it symbolizes prosperity and luck in the East. And while white is the traditional color for weddings in the U.S., it is associated with death and mourning in China. It is only in recent history that Chinese brides have begun to wear white—a byproduct of globalization and the growing influence of other cultures.   

    As you expand your market, consider how your Web site design, advertisements, packaging and even customer service methods can be perceived overseas, so that you can maximize your impact and avoid coming across as distasteful or offensive.

Speak the Local Language

     While English is often used in business communications in many parts of the world, you will likely need to address your customers, suppliers or partners in their own language at one point or another, be it in your brochures, Web site or other transactions. If you don’t speak the language, seek help from a good interpreter or translator. Remember that you cannot just translate verbatim, as this may lead to embarrassing connotations. KFC’s advertising slogan “finger-lickin’ good,” for example, meant “eat your fingers off” in Chinese characters.

     Also, keep your wording clear and simple. Describe exactly what you do, and what benefits you offer. Don’t use tired slogans, jargon, industry buzzwords or American acronyms, as they may not make sense or may mean something else entirely in other countries.

Build Local Partnerships

    Good relationships are key to going global. More often than not, you will need to use the help of “intermediaries” to penetrate the local market and gain trust. And it cannot be just anyone. Your local partner must have a certain clout and be equipped in helping you deal with a host of issues, such as finding the right location, navigating legislation and red tape, sourcing, infrastructure, talent, etc.

     As an executive of an international apparel company that expanded to South Korea notes, “Respect is important. It is essential that you have the right introduction and that you approach a company through a mutual friend or colleague at the appropriate level.”     

Seek Help from the Home Front

     The good news? Despite the recent economic slowdown, international trade is on the rise. The United States, currently the third-largest exporter of goods and the number one exporter of services, set a record-breaking $1.84 trillion in total exports in 2008. And while large multinationals still dominate in dollars, a whopping 97 percent of U.S. exporters are actually comprised of small and medium-sized businesses. Helping these businesses expand internationally is key to continued trade growth, according to a recent U.S. Chamber of Commerce report.

     “It is truly amazing that from Savannah to Seattle, many U.S. companies are not aware of the government services available to help them break into new markets,” says Liz Reilly, director of the U.S. Chamber’s TradeRoots program. “If more U.S. small businesses were able to seize export opportunities, the gains could be immense.”

     How can you take advantage of these services? You can apply for a trade loan from the Small Business Administration or the Export-Import Bank. Or, you can go to your local U.S. Export Assistance Center. USEAC trade specialists can help you: 1) identify the best markets for your products; 2) develop effective market-entry strategies; 3) determine appropriate distribution channels, pricing factors, relevant trade shows, etc.; and 4) get trade financing from federal government programs, as well as access to state, local, public and private-sector entities. For more info or to schedule an appointment, call 800-USA TRAD(E) (800-872-8723) or visit www.export.gov.