Before the advent of digital channels, global brands primarily consisted of a rigid corporate structure with local market-specific brand strategies. However, the rise of social media has changed that and has shifted the focus from structure to culture. As a result, firms increasingly involve consumers in developing their global brand strategies. According to a recent survey by Hitachi, 27.4% of major European organizations have been working with customers on collaborative projects over the past 12 months. In addition, 58% of businesses piloted such projects and said they improved their financial performance and social impact.
Companies can start by identifying the most common elements of their brands in different countries. Then, companies can group their country-specific brands into global brand teams based on similarities or competitive contexts. This allows them to focus on critical elements while maintaining synergies across the company's global brands.
While creating a global brand is a complex process, it can be a competitive advantage. By leveraging the global power of a brand, companies can create a stronger position in each country. For example, Honda represents quality in the U.S., whereas it represents youth and energy in Japan. To successfully build a global brand, companies need to define the essence of their brand and its meaning. This means understanding the market and its nuances.
Global branding is an increasingly important consideration for companies. As companies expand internationally or add new products to their offerings, their global brand strategy must be flexible. Companies need to consider a global brand's globalization history and international operations to determine the best way to achieve tremendous success for their business. In addition, a global brand's advertising strategy should be consistent with the company's overall global strategy.
A new breed of global brands is emerging, a testament to the strength of the international business. Gone are when globalization meant identifying high streets, May Day protests, and Starbucks on every corner. Instead, in the post-recession era, globalization has become a source of strength in fragile markets and a crucial part of international business.