It is essential in a global market, where the ability to reach customers in their language and cultural context is critical. So, localization fits into this transition because it has gone from being a niche service to a necessity for any company that wants to compete internationally. A localization agency is something that a company needs to launch a product into a local market so that it has been adapted to the local language and culture. It’s also part of a more extensive process, going from a niche market to a necessity.
This article on the increasing importance of localization elaborates on case studies of successful localization projects, challenges typically faced during the localization process, and solutions to overcome the hurdles. It concludes with an overview of the localization industry and how companies can benefit from localization agencies to help communicate with their audience more effectively, thus avoiding cultural incongruity in their messages. With the demand for localization increasing daily, it is essential for companies to understand these dynamics to make their presence felt on the international stage.
The Growing Importance of Localization
- Economic Benefits
The flexibility that localization can provide in diversifying risk across international markets helps companies mitigate the risk of losses during domestic economic downturns: companies that scaled back during the COVID-19 pandemic experienced much more revenue loss than those that retained their localization efforts.
- Consumer Preferences
This supports studies showing that localization is practically a no-brainer in the eyes of consumers. More than 65 percent of non-native English speakers are more likely to engage with a piece of content in their native language, even if it appears alongside an equivalent English version they would also understand. The same goes for culturally relevant elements such as images and product names, which must often be translated to fit local tastes. If all this is done correctly, a company’s social media content will see a 2,500 percent boost in organic performance.
- Global Market Trends
The language industry is enormous—worth $57 billion as of 2022 and growing fast. Europe and North America are leading the way, with many businesses now looking to localize their marketing for more diverse demographics. This is particularly the case in Asia, as local cultural knowledge and adaptation are vital for companies that want to gain market access to some of the world’s fastest-growing markets.
Case Studies of Successful Localization
- Revolut
Localization has been critical to Revolut’s expansion into different markets and is a crucial strategy in its hypergrowth above. The company launched its first version of its app in English across the EU and then expanded to offer it in more than 30 languages. Combining a broad linguistic scope and localized marketing has enabled Revolut to reach different global markets, improving user experience and adoption rates.
- LumApps
An excellent example of localization in the digital workplace is LumApps, which has achieved a significant level of global success through digital-first localization, integration with the most popular enterprise business applications (such as G Suite and Microsoft Office 365), and a high level of customer input (e.g., branding and style). Localization has also been a decisive factor in driving business growth and securing LumApps’ leadership in the market. The message is clear: localization is necessary for sustaining a competitive advantage in today’s digital world.
- Ding
By leveraging the localization platform Lokalise to localize its product, Ding has seen its product development cycles rapidly shoot up from one language to 18 new languages, a significant increase that has led to a substantial boost in the quality and speed of rolling out new languages. The impact this has had on its global reach, and the satisfaction of its users cannot be overstated.
Challenges and Solutions in the Localization Process
- Technical Challenges
Technical challenges such as localization – writing software to adapt to right-to-left languages and fitting text into user interface elements – demand a well-prepared foundation in the form of internationalization, the process of encoding the code and interface of a piece of software to make it work in multiple locales and with numerous different languages and cultural conventions. Text must be expanded or contracted depending on the new spatial limits of the text.
- Cultural Sensitivity
Cultural sensitivity is critical: getting things wrong here can lead to a poor perception of the product or service, even offending users and damaging the brand. Language, customs, values, and social norms are all part of what makes a culture what it is and need to be considered in localization. Depth research, collective input, and advice from cultural specialists are necessary to get this right, and pre-and post-launch testing with local users is a must to check and refine the approach.
- Choosing the Right Tools
Tools for localization must be chosen carefully: modern translation management systems and quality assurance software can streamline and improve the efficiencies of translating and adapting content for languages and cultures. These tools enable consistent localization and integration and help manage updates and expansions. In choosing translation tools, quality assurance solutions, and other localization-enabling systems, it is essential to consider their translation memory capacity, how well they integrate with existing systems, and whether they can handle large projects effectively.
Conclusion
The story of the localization industry has shown us how this niche market has become an absolute necessity to the global economy and an integral part of a successful business strategy. The case studies about Revolut, LumApps, and Ding reveal that localization is the key to conquering the global market and winning customers’ hearts. Localization during downturns is a pillar of the economic resilience strategy and a lever of growth. Consumers still prefer localized content. This summarizes the story of the localization industry and its future as a global business.
In the face of technical adaptation, cultural sensitivity, and the selection of appropriate tools, the localization industry will continue to innovate and refine its processes. Focusing on cultural touchpoints and leveraging technological solutions will be the core of overcoming obstacles in the localization process. Given the accelerated digitization of our globalizing world, localization is paramount to enabling global comms and commerce. The call to action is clear: Make localization a strategic imperative to achieve the ability to compete and the opportunity to thrive on the world stage so that products and services are designed with global audiences in mind.
