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Localization China

This document discusses localization strategies for western companies expanding into China. It uses Apple Inc. as a case study. Localization involves adjusting products and marketing to suit a foreign culture and language. China's market is large but difficult for western firms due to cultural differences. Apple struggled initially but has improved results by better tailoring its approach to Chinese consumers, such as through localized marketing campaigns. The document outlines various localization considerations and strategies for succeeding in China.

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Ioana Voineag
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137 views

Localization China

This document discusses localization strategies for western companies expanding into China. It uses Apple Inc. as a case study. Localization involves adjusting products and marketing to suit a foreign culture and language. China's market is large but difficult for western firms due to cultural differences. Apple struggled initially but has improved results by better tailoring its approach to Chinese consumers, such as through localized marketing campaigns. The document outlines various localization considerations and strategies for succeeding in China.

Uploaded by

Ioana Voineag
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IOANA VOINEAG

LOCALIZING WESTERN ENTERPRISES IN CHINA

What localization strategies can western


companies adopt when expanding to China?
A study based on the example of Apple Inc.

This paper was wri!en in order analyse the possible localiza"on strategies western
companies can adopt when trying to expand to China. In this regard, it will focus on the role
transla"on plays in the localiza"on process.

China represents at present one of the biggest markets in the global economy. Because of
factors like size, growth rate and commercial infrastructure, many western companies try to
penetrate the Chinese market. While the rewards of succeeding are great, western
companies need to invest big to get there. It is known that China’s market recep"vity,
meaning the openness to foreign products, is among the lowest in the world. In this sense,
big investments are allocated to market research and analysis but also to localiza"on.

The business dic"onary defines localiza"on as “The prac"ce of adjus"ng a product's


func"onal proper"es and characteris"cs to accommodate the language, cultural, poli"cal
and legal differences of a foreign market or country.” According to this adapta"on strategy,
each individual is regarded as a “cultural being” (GALA 2018) - a person whose behaviour
and values are influenced by the discourse of the culture they belong to. Through
localiza"on, companies can be!er understand consumer behaviour and preferences. Thus
they can adjust their products and offers in order to fulfil consumer needs in the markets
they want to penetrate.

The localiza"on process consists of mul"ple elements: transla"on, adapta"on of graphics


and layout, adapta"on of content, conversion to local requirements and applica"on of local
regula"ons and legal requirements. Thus, localiza"on aims to make target customers feel
like the localised products were created especially for them (GALA 2018).

There is a long history of non-localised products or marke"ng campaigns that lead to


unsa"sfactory results for companies. That is because the products could not address the
needs of target customers or because the campaigns were misunderstood by local
audiences. This proved to many mul"na"onals how important considering local norms and
prac"ces is.

Failure in entry or in expansion due to localiza"on is a common problem for western


companies when it comes to the Chinese market. This occurs because mul"na"onals tend
to overlook the importance of cultural differences. One of the companies that has a history
of ‘trial-and-error’ experiences with their expansion in China is Apple Inc. Although the tech
giant is monopolising the global smartphone market, it has shown poor results in China.
Thus, the company has made special localiza"on efforts to improve their situa"on.
IOANA VOINEAG

This paper will take a closer look to what localiza"on is and what localiza"on strategies
there are and to the Chinese culture and market. Te paper will further analyse how Apple
Inc. changed its localiza"on strategies over "me in order to gain a bigger share of the
smartphone market in Mandarin-speaking China. Following the analysis, the paper should
offer insights on useful localiza"on strategies for China, respec"vely for the Chinese
market.

Structure

1. Introduc"on

2. Localiza"on Theory
2.1 Transla"on theory
2.2 Specialized Transla"on
2.3 Localiza"on

3. Understanding China
3.1 Chinese Culture and Language
3.2 Characteris"cs of the Chinese Market
3.3 Adver"sing in China - Laws and Restric"ons
3.4 Localizing in China - What to consider

4. Apple
4.1 Apple Inc. - Brief History and Corporate Image
4.2 Apple Localiza"on Strategies
4.3 Localizing in China - Strategies and Hurdles

5. Conclusion

6. Bibliography

Bibliography

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De Mooij, Marieke. 1998. Global marke"ng and adver"sing: understanding cultural


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Geringer, Michael/ Beamish, Paul 1989. Diversifica"on Strategy and Interna"onaliza"on:


Implica"ons for MNE Performance. Strategic Management Journal, 10:2.
IOANA VOINEAG

Kanso, Ali. 2002. Adver"sing Localiza"on Overshadows Standardiza"on. Journal of


Adver"sing Research. January 2002.

Kelly-Holmes, Helen. 2005. Adver"sing as mul"lingual communica"on. New York : Palgrave


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Tiefenbacher-Hudson, Christa. 2006. The intersec"on of transla"on and adver"sing in


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Zhang, Yong et al. 1997. The influence of culture on adver"sing effec"veness in China and
the USA: A cross-cultural study. European Journal of Marke"ng.

Zhang, Zigang. 2004. Cross-cultural Challenges when Doing Business in China. Singapore
Management Review, 26(1): 81.

Online Articles

Coffee, Patrick. 2017. Apple Shi$s Global Marke"ng Strategy, Restructures Its Rela"onship
With TBWA\Media Arts Lab. AdWeek. Retrieved under h!ps://www.adweek.com/brand-
marke"ng/apple-shi$s-its-marke"ng-strategy-to-focus-on-digital-and-regional-campaigns/

Counterpoint. 2018. China Smartphone Market Share: By Quarter. Retrieved under h!ps://
www.counterpointresearch.com/china-smartphone-share/

Culpan, Tim. 2018. Apple Finally Gets How to Play the China Market. Bloomberg. Retrieved
under h!ps://www.bloomberg.com/opinion/ar"cles/2018-09-13/apple-finally-gets-how-
to-play-the-china-market

Cushing, Christopher. 2017. Apple names new managing director for China amid
localiza"on drive. Reuters. Retrieved under h!ps://www.reuters.com/ar"cle/us-apple-
china-moves/apple-names-new-managing-director-for-china-amid-localiza"on-drive-
idUSKBN1A4078

Delaney, Robert. 2018. US should focus on China’s cybersecurity law, not its tech
programme, says group represen"ng Apple, Google and more. South China Morning Post.
Retrieved under h!ps://www.scmp.com/tech/china-tech/ar"cle/2160749/tech-sector-
hopes-focus-us-a!en"on-chinas-cybersecurity-laws
IOANA VOINEAG

Doland, Angela. 2015. A glimpse at how Apple is localizing its message in China. Adage.
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Dormehl, Luke. 2017. Apple is making a big change in its adver"sing strategy. Cult of Mac.
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adver"sing-strategy/

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china-and-west-cultural-studies-essay.php?vref=1

Jed, John. 2018. Huawei dominates China smartphone market in Q2 2018 with 27% shares
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