The Key to Becoming a Global Brand: Investing in Minds
As advancing technology rapidly increases access to information, economic and social boundaries are disappearing. The world becoming a single market is one of the main reasons for the shift in perspective we observe in the business world.
In such an era, the path to competing globally requires properly managing not only the company but also the world in which the company operates. To this end, brands need to redefine their strategies by considering the cultural values, dynamics, social expectations, lifestyles, and habits of the markets they are in.
When we look at companies that are global brands, we see that the most important element behind sustained success is 'exporting innovative ideas' and 'making a difference' with these ideas.
In open economic conditions, the prerequisite for taking a positive place in the minds of globalized consumers is producing sustainable and innovative solutions to their needs, because our world is no longer made up of geographies defined by borders. Therefore, becoming a global brand requires touching the hearts of people beyond borders, creating value, and reflecting modernity, prosperity, development, and trust. For this reason, we can say we are in an era where those who invest in minds succeed in becoming 'global brands.'
The Nine Rules of Becoming a Global Brand
Brands make a difference and become lasting when they create 'value' beyond products and services. The brands that have managed to write success stories around the world are those that have created this value. Let's look together at the nine common characteristics of brands that have written global success stories.
Setting a genuine purpose. The first step on the journey to becoming a global brand should be setting your genuine purpose, because in the digital era we live in, 'earning trust,' 'credibility,' and 'sincerity' come before all other concepts. Understanding customer expectations, needs, prejudices, and dreams, and developing the service in line with these is the other fundamental key to success. You need to focus on how you can improve people's lives, communicate with real people in this process, and design how you can improve their lives.
We see that customer-centric, well-designed projects succeed worldwide. Research also shows that brands with a purpose grow faster. Brands without a purpose cannot go beyond being a 'product.' Therefore, it is very important for brands to use the power they have to create the right perception in society in line with their defined purpose. For example, Whirlpool, through its Care Counts program, donated washing machines to schools. In doing so, it helped children who could not attend school because they lacked clean clothes return to education. This both removed obstacles to children's education and contributed to making the brand a globally trusted brand.
Having a sustainable business model. Sustainability stands out as indispensable for being lasting in the world we live in. The efficient use of limited resources, creating social benefit, adding value to humanity, and producing solutions to global problems are the most important components of business models. Considering the changing rules of the game, profitability of your business and working for a better world should be in first place. One of the most concrete examples of this is Unilever: The company recently pledged 100 percent recyclable plastic packaging by 2025. The company's brands such as OMO and Dove, which it defines as 'brands that support sustainable living,' accounted for nearly 80 percent of the brand's growth in 2018.
Being fast in a world where borders are disappearing. With globalization, borders are disappearing, and the whole world is evolving toward a single market. It is necessary to closely observe this change, follow the different needs of different markets closely, and approach these markets with the right business strategies. Partnerships with players in the local market provide companies with great advantages in this process. Understanding the local and being flexible, being able to meet the expectations of each culture, and correctly understanding the differences between cultures are critical. For example, Starbucks is a good example of a brand that has succeeded in demonstrating its difference by teaching the whole world how to order Starbucks-style while also adding local preferences to its product portfolio.
Being innovative. Brands like Uber and Airbnb changed business models globally by producing solutions to people's different needs with an innovative perspective. In the experience economy era we live in, it is not possible to create customer loyalty with standard services or become a global brand with monotonous services. Therefore, being able to offer customers different experiences is very important. If we want to achieve success on a global scale, we need to be ready to innovate on top of the strengths of our brands. At this point, the Foldhome concept brought to life by Nef, meaning 'foldable house,' allows all rooms that would not fit in a home to be folded and incorporated into the home, producing innovative solutions to different needs. Thus, it creates significant value for both the future of housing and the sharing economy.
Creating the right perception. According to research, the global perception of companies that differentiate in quality, power, and social responsibility is much more advanced. In today's world, consumers' expectations of global brands are higher. Consumers no longer accept a global brand making mistakes or not prioritizing society and people, and they prefer not to buy products from brands that pollute the seas, cut down trees, or employ child labor. There are many examples of this in the world. On the other hand, this approach brings great responsibility to the brand and brand managers. Companies on the path to becoming global brands need to be much better and more responsible because in the digital era we live in, consumers can easily access all information about brands. Therefore, for brands to be trustworthy, it is very important to be transparent and to reflect their true values. The example given by the US-based consulting firm Studioriley is striking: According to the consulting firm, today's consumers do not want to buy Nike's Air Jordan sneakers without being sure they were not produced by a child laborer in Vietnam!
Closely following global trends. Creating a global brand requires closely following what is happening in the world. For example, in the luxury sector, sustainability and accessibility have come to the fore recently. The concept of luxury has moved to a much more individual point, independent of price tags, and one that the masses can access more easily. The main drivers of this are technological progress, the general increase in wealth, and globalization. Luxury is no longer associated with social status and material wealth; on the contrary, it is perceived as a lifestyle. Brands must accurately assess this change and meet rising customer expectations at appropriate price ranges, transforming yesterday's 'luxury' into today's accessible service. Michael Kors is an important example for understanding this process. By offering luxury at accessible prices, Kors managed to bring its accessories to consumers around the world. Thanks to this approach, it added British accessory brand Jimmy Choo and Italian giant Versace to its portfolio.
Existing in the digital environment. The world is rapidly globalizing. It would not be wrong to say that the most important factor accelerating this globalization process is digitalization. Furthermore, thanks to digitalization, a democratization covering every sector is being observed. All experiences are now shared at the speed of light in the digital world; people can access news, services, or even events anywhere in the world without leaving their rooms. They can sell products to the other end of the world or buy products from the other end of the world. Therefore, the way to reach the world is through existing in the digital environment and being able to tell your story correctly. While giant e-commerce sites like Alibaba and Amazon accelerate this process, leading fast-fashion brands like Zara, Mango, and H&M are focusing on applications to support online sales.
Forming the right partnerships. One of the indispensables of becoming a global brand is forming the right partnerships. The needs of the world we live in require partnerships across various fields. These partnerships are important for accessing different consumers, making a difference in service, and strengthening brand impact. The Mercedes-Benz and Lufthansa Technik partnership aimed at maximizing passenger flight comfort, and H&M releasing joint collections with haute couture brands like Balmain, are examples of this.
Working with the right people. Becoming a global brand requires thinking big. Thinking big means making a difference, creating the right perception, competing, providing social benefit, and bringing people's dreams to life. The fundamental value you need for this is 'people.' You should never forget that the most important elements that make a brand are human intelligence, human ideas, and human power. One of the most important elements in managing a brand and making it a global brand is making sure you are with the right people and have built the right team.
Countries grow stronger through the brands they have. At this point, a solid brand having a solid story plays a determining role. Creating the story our country needs and establishing it in minds is the task of us business people. As NEF, we have defined our story as 'the effort to give back to life with love what we have taken from it.' Our goal is to carry the value we have created for our country and people beyond our own geography and continue our journey of becoming a global brand.
HBR Turkey - Global Strategy
