Expanding your company’s reach into the United Kingdom is a great business opportunity. However, if you don’t adapt to the UK’s local colour/color and flavour/flavor, your expansion can be bumpy, at best, and a dismal failure, at worst. A good rule of thumb is to be aware of the many cultural and business differences and approach with a larger worldview. This applies to all facets of your business, including your marketing and sales strategies and your product.
Understanding globalization and localization is imperative to successful international expansion. In a nutshell, globalization is impacting the world the same way at the same time. This, of course, means being respectful of the nuances of each population centre/center. And this is where localization comes in. Localization is drilling down to the specifics of the culture, such as adopting their currency, language, time zone, etc. in order to make it seem as if your product was made there, for them.
Doing this well will help to ensure your product is not marked “other” and will present one less obstacle for people to overcome as they make a purchasing decision. And this can literally be the difference between success and failure. As proud as you might be of your local language, once you decide to spread into a new market, the more generic its origination can be, the better.
So how can we strip some of this away, to keep the focus on the most important thing, your product? Below are some tips to know about localizing for the UK market.
Market Validation
UK consumers don’t necessarily have the same needs or even shop the same way US customers do, so you shouldn’t assume anything. Research and preparation matter. The more you understand the culture, the more success you’ll see, with less effort. Ideally, you want to expand into markets that have a large population of people who are likely to purchase your product. So, consider factors such as disposable income, age, education, buying behaviors, and your own market readiness.
Remember that UK consumers, in general, are more cautious spenders than US consumers, meaning they won’t spend as much as US consumers and their spending decisions often involve more consideration.
Cultural Localization
Cultural localization is important but often overlooked by US companies expanding into the UK. Many companies presume, incorrectly, that UK culture is the same as or similar to US culture. Important cultural differences to consider include manners, behaviors, gestures, expectations, and beliefs. Humor is just one example of the huge cultural difference between the UK and the US.
Cultural localization should play a big role in your marketing and sales strategies. Your marketing strategy must consider the way in which people expect to learn about your products (e.g., email, tv, internet advertising) and the ways people purchase products like yours (e.g., online or in-store). The good news is UK consumers learn about many products online and are comfortable making online purchases.
To throw in another wrinkle, the UK is made up of several very different cultures. That is to say, the English are British, but not all British are English. For example, saying someone is from Scotland is English is a no-no. It is better to identify people as coming from an individual country, i.e., Scotland or Northern Ireland, than to say English or even British. Even within each of those countries, there are strong regional differences that can impact your business.
Language Localization
Although most people in the UK speak English, there is a big difference between the English spoken in the UK and the English spoken in the US. This includes the use of different words, different spellings, different meanings, and different pronunciations. For example color and colour; localization and localisation; and theater and theatre.
Product Localization
Test and validate before making major changes to your product, website, or marketing and advertising materials to determine what modifications you must make in order to appeal to your UK customers. It could be as simple as including a section on your website with UK pricing, email customer support, and slightly altered marketing materials. Or to be competitive, more complex localization, might require a new product for the market, different packaging, new regulatory approvals, 24/7 localized customer support, and completely different sales and marketing methods.
Currency
Of course you know that the currency in the UK is the pound. You should keep up with currency exchange rates to ensure your prices are reasonable and competitive. It is a direct one-to-one change from the dollar to the pound. The rates fluctuate almost daily. You should be diligent to keep your finger on the pulse and adapt, accordingly. Charging too much can price you out of the market, but, charging too little may render the market nonviable.
Another thing to consider is your pricing model. In the UK, most consumers expect that the “shelf price” includes taxes (called VAT in the UK), whereas in the US most “shelf prices” do not include taxes.
Legal
Working within a new legal environment often has a steep learning curve, with perhaps a misstep or two. To keep your missteps from drowning your company, it is imperative you understand your legal obligations around data protection and privacy, marketing, advertising, and sales. A local attorney is the best resource for learning and complying with local laws and regulations. Globig can connect you to some of the best legal experts around the world.
The UK market represents a great opportunity for most companies. It is often the first step a US company takes into the European market because of its similarities to the US market, including consumer similarities. But, it is that false sense of similarity and familiarity that often hinders a company’s growth or leads a company to failure in the UK. That is why it is still important to understand the need for and degree of localization required. Your localization plans should include the localization of your marketing and sales strategies, as well as the localization of your product.
Related Articles and Content You Might Like:
Basic Global Localization For Mobile Apps and Websites
A Quick Guide to Business Etiquette in the United Kingdom
Product Localization in the UK
Cultural Localization in the UK
Podcast: Doing Business in the UK
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