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Emerging Technologies and Markets

Product localization: Content, packaging and design

Published 16 April 2007, 06:30 AM

I recently bought some picture books for my daughter that were re-published by a local publisher under license from foreign publisher. The “foods we eat” page had pictures of foods that are rarely (if ever) eaten in India. There were a few other pages where there was a big cultural mismatch and I had to buy another picture book. If the publisher had localized a few pages in the book for the Indian audience, the book would have been much more useful.

Another example: The Thali is an Indian meal with bowls containing different dishes. The Thali is pretty ubiquitous in Indian restaurants but it is localized for different geographies and locations within India. There is the North Indian Thali (more emphasis on bread and north India vegetables), the South Indian Thali (mostly rice items). There are region specific Thalis such as the Maharashtrian Thali and the Gujarati Thali. When MNC food chains started making their appearance in India about 15 years back, I noticed people coming in, asking for a Thali and leaving when told that the restaurant did not have a Thali. A repackaging of the food offerings as a Thali might have helped.

A final example: When we bought a double-door refrigerator a few years ago , the ratio of the freezer compartment to the main compartment was the most important factor in the selection. We wanted a smaller freezer as we are vegetarians and had less use for a large freezer. Only one international company had a model with a ratio close to what we wanted, so the choice was automatic.

A few years back, the gap between locally produced products and imported products in the Indian market was quite large. This gap is narrowing quite rapidly and in some sectors, the Indian products are as good as or even better than those produced in other countries. In this competitive scenario, companies that go the extra mile to introduce features that are useful in the local context or repackage their content to fit local expectations will have an edge.

What are your experiences? Have you used products where the manufacturer localized the content, design or packaging? Have you used products where you wished the manufacturer had paid more attention to localization?
Posted By rkrish67 | 2 Comments | Trackbacks | Permalink


Comments

Very interesting post, Krishnan! I have a fun example of Disney theme parks. A person from Disney said that they had redesign their theme parks for Europe-- the reason was because it's much harder to impress people with castles in Europe than in the US! Also, some chains like Starbucks for the most part try to give the same experience world-wide. However, portion sizes are generally larger in the US than in Asia. The Starbucks drink sizes in order are called "short", "tall", "grande", and "venti". In the US, the largest drink size is a "Venti". However, I did notice that in some of the Starbucks coffee shops in Asia the largest size available is a "Grande".
# Friday, April 20, 2007 06:12 AM by Susie Wee
Interesting observations Susie. We dont have Disney theme parks (yet) in India, but some of the local theme parks are very similar to the US ones. Those of us who have visited theme parks in the US wish it were different in India. But they are still popular (even without much localization). Tim Harford's book "The Undercover Economist" has a interesting discussion on Starbucks. Apparently, it costs Starbucks the same to produce all the drink sizes (give or take a few pennies). By pricing them differently, they discover which customer is willing to pay more (and is less sensitive to prices). Asian customers (particularly in India and China) are very price (and value) sensitive. In India, a cup of coffee at a local restaurant can be had for about Rupees 5(about a dime). Some of the local coffee chains (Coffee day and Barista coffee) charge about Rupees 40(nearly a dollar) for a coffee and many restaurants offer a complete meal at that price (that too served by a waiter). Just for comparison, a cable TV connection or broadband connection costs about Rupees 250(five dollars). This is one of the problems that companies have in emerging markets; as they start to price products higher, they start competing against a totally different product category or even against labour and services. - Krishnan
# Monday, April 23, 2007 04:49 AM by Krishnan Ramanathan

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