Trade has grown remarkably over the last few decades as businesses transform digitally and global economies tumble. Research shows that about 1/4th of total global production gets exported. These trade transactions include tangible goods, intangible commodities, and, quite recently, digital solutions.
This has been a metamorphic process as this international trade generated gains and vital distributional repercussions for small businesses. The production chains for modern goods and services have become increasingly complex, especially considering the fact that 30% of the value of worldwide exports comes from foreign contributions.
Businesses that don't have outsourcing, global resourcing, and global operations in their strategy, are set up for failure from the get-go. Add to this equation other factors like fierce competition, unpredictable economic conditions, and ever-changing bureaucratic elements. It isn't easy to succeed, no matter what the industry.
It's no wonder that most startups these days are facing unprecedented problems throughout their business cycle and still don't prioritize serving an international audience. However, they can adopt specific growth strategies to grow, find their audiences and become profitable. Localization and globalization are two of these crucial tactics for success-hungry startups.
The benefits of expanding operations to other parts of the world can easily be seen in numbers.
Global ventures have access to more customers, which ultimately means more sales, revenue, and profits. The higher volume of sales can offset costs, which maximizes your returns. Moreover, working for a global clientele is a great way to come up with new ideas and find hidden growth opportunities.
It's also a good way to reduce risk. Your presence in several different nations is a buffer against recession and economic hardships in your country. And having globalization as a part of your business strategy allows you to move into more markets faster and get a foothold before your competitors can. Another way to look at it is this: when a competitive product or service pulls out of a market, you are already there and ready to take on its share of the market.
It's never too early to take your business idea to a global clientele.
Technology innovation has made it feasible for startups to expand outside of national borders. Many startups have big, multinational goals, and localization gives them a chance to compete on a global level. As part of globalization efforts, products must be able to attract the target audience with locally relevant content and in the local languages.
Some of the most well-known household names have gotten their start from being able to act globally while thinking locally - such as the following examples.
It was founded by three Australian co-founders and is one of the most compelling success stories for startups that turned into giants.
From having only 50,000 subscribers during the beta test in 2013 to generating 40 billion dollars in profit in 2022, Canva has achieved a lot thanks to localization strategies, including automated translation management systems and computer-aided translation tool stores. They believe that localization is the key to successful user acquisition and retention.
Canva powers creativity across the globe through multilingual features. These numbers are proof: 120 designs are made on Canva every second, and over 7 billion designs have been created on the platform thus far.
Canva is shattering its own records as monthly active users have grown to around 60 million in more than 190 countries.
Let's look at how Airbnb, a successful startup venture, turned into a billion-dollar global business with the right growth strategies.
The company considers localization a key element in improving its foundation. An example is outsourcing all of its translation work to one localization provider, Translated, allowing for better efficiency and increased quality in the translation process while reducing costs.
In addition to getting the language right, they localized sign-up methods to the most relevant platforms in the country. When Airbnb was first launched, the owners started by renting air mattresses, and they have 31 billion dollars in profits today. This success can be attributed to their belief that "proper localization is a key ingredient in championing [their] mission of belonging anywhere."
Airbnb not only launched the translation feature, but to provide customers with a warmer and more personalized experience, they hired in-house Localization and QA experts to ensure the authenticity of their company voice.
The success of Zendesk is a testament to the fact that global expansion can be facilitated by making minor adjustments to your app's code, website layout, and email configuration. Even little changes, such as limiting the use of regionally specific idioms and cultural allusions, can make it easier to localize your writing.
Zendesk, a customer care software firm, has had a successful worldwide development plan, as seen by its $9.62 billion dollar market cap as of January 2023. Like Airbnb and Canva, they have made global audiences a key component of their growth strategy.
Localization has played a vital role in the globalization of the tech startups detailed above.
With the right strategy and resources, it is very much possible to take your startup to the world, inspiring trust and securing investments as you go along. Marketing in different languages and providing localized features can allow you to sell to people from every corner of the world.
If you’re looking to bring your product to global markets, we’re here to help! Contact Commit US to learn how our team of experts across the globe can provide you with a cost-efficient, scalable development solution.