About this Author
John Yunker is founder of Byte Level Research and author of the widely acclaimed book, Beyond Borders: Web Globalization Strategies and editor of Global By Design. He has covered the emerging field of Web globalization for half a decade and has published a wide range of reports dedicated to best practices in Web localization and internationalization.
About this blog
Going Global focuses on the risks and rewards of expanding into new geographic and cultural markets, from Web globalization to international marketing to global usability.
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Monthly Archives
January 31, 2005
Posted by John Yunker
According to Computerworld, Microsoft has come under fire from European regulators for the proposed name of its mandated Media Player-free operating system. Microsoft had planned to call the OS the Windows XP Reduced Media Edition but the EC is not amused.
While I agree with Microsoft that the proposed name is certainly descriptive of the package, the company certainly knew that it would irritate regulators. And now Microsoft has pledged to work closely with the EC on the revised OS name, something it could have done from the start.
I also think it's important to note that the stripped-down OS that Microsoft is developing for emerging markets won't be called a "reduced" edition? Why not? Because Microsoft actually hopes to sell a few copies of that software.
I won't be lining up for a "reduced" copy of Window, but whatever the ultimate name is, this is a silly game for such a large company to be playing on such a large stage.
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Posted by John Yunker
A recent article in Slate reports on a study that finds that not all American companies are perceived to be equally American by consumers outside the US. This is hardly news, but certainly worth a read.
The study features a graph that charts which American brands are in danger and which are not. You'll notice that MasterCard is safe while American Express is in danger.
According to the article: The danger of Americanness is explicit when you compare MasterCard and American Express. They offer similar and unobjectionable services. But MasterCard is safe while American Express polls in the danger zone. "If you look at MasterCard/Visa, it is localized globally," said Ken Pick, director of global project research at GMI. Visas issued in Germany are linked to German banks. By contrast, American Express shouts out its American citizenship. "Companies that don't localize the brand are the ones that are going to be at risk of suffering in the long run," said Pick.
Perhaps American Express should launch country-specific cards, along the lines of German Express, French Express (in their native languages, of course).
Yet the reporter is not fully sold on this study, writing: I don't think a simple algorithm of Americanness adequately explains the results. Take a look at the safe quadrant. It seems that Europe, the metrosexual continent, is willing to overlook national biases when it comes to personal grooming and pampering. Personal hygiene companies Gillette, Kleenex, Colgate, and Procter & Gamble all avoid trouble. So do apparel companies Calvin Klein, Ralph Lauren, and Estée Lauder. (Maybe the French think Estée is français?)
The question every company must ask itself is: How important is it that we be identified with a given country? Is country of origin is part of the brand, itself, like a Jack Daniels or Dom Perignon? Or do you want your product to be culturally agnostic? Both approaches can be equally successful and neither is necessarily right or wrong.
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January 30, 2005
Posted by John Yunker
A good NY Times article about the growth of home video sales outside the US. In Japan I've seen theaters charging roughly $18 for an adult ticket; at these prices I would certainly consider waiting for the movie to come out in stores.
Here's an excerpt from the article:
By most estimates and anecdotal evidence, revenues from international home video sales are the fastest-growing part of Hollywood's business. The most reliable estimate comes from Screen Digest, a British data company, which calculated that the home video divisions of the United States studios garnered $11.4 billion in wholesale revenues from the $24.6 billion that overseas consumers spent buying and renting home video products in 2004.
What is more certain is that the windfall from overseas home video sales is affecting how the movie business is run. It is inflating budgets for films with big international potential (like the upcoming "Batman Begins"), changing how top stars negotiate their take of the profits and prompting studios to spend millions fighting piracy - particularly in Asia and Russia - that they fear will threaten lucrative developing markets.
The article also reveals that Shrek 2 was DreamWorks' top international film in 2004, selling 27 million units of which 13 million were sold outside the US.
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January 25, 2005
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The Long Tail In India
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Posted by John Yunker
I've spent the past week in Japan and have had such a great time watching how US-based companies market products in this country. One company that has spent a great deal of time in this market is Coca-Cola. But it is only relatively recently that Coke has developed products specifically for the country, focusing heavily on the types of drinks that the Japanese want rather than trying to push additional cases of soda.
Japanese are not soda freaks like Americans, but they do have an affinity for coffee in a can. Enter a product from Coke called Georgia.
Now, if you don't know that Coke is based out of Georgia, you have to look pretty close to tell that this can of coffee is part of Coke's global empire. Here is the Coca-Cola logo, in 7-point type:
The majority of vending machines that I've seen in Tokyo and Kyoto feature Georgia products (there is an entire product line around this brand) and few vending machines feature Coca-Cola.
Speaking of coffee, Starbucks seems to be everywhere. I've spotted four in Kyoto already (more on this later)...
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+ TrackBacks (0) | Category: Business Globalization | Cultural Issues
January 24, 2005
Posted by John Yunker
Here are some entertaining tidbits from the excellent Christian Science Monitor story on the strange things that happen with Western business meets Eastern culture.
--> Self-tanners are not the popular item they are in the West. In China, white skin is in. A tan face signifies the status of a lowly peasant who has worked in the fields all her life. Thus, the whitening products from Chanel and Kanebo sell well here.
--> McDonald's offers a triangle-shaped tortilla wrap holding sliced beef, teriyaki sauce, and hash browns, as well as with a new pork-patty sandwich smothered in black pepper sauce (the sauce has been a Western-style favorite in Shanghai since the mid-19th century).
--> KFC was one of the early and most successful American imports into China. But it's the Colonel's bony wings that sell best here, not the white-breast portions preferred in the US. KFC has further modified its menu to include local favorites such as congee (rice gruel soup) and stubby cobs of unbuttered, unsalted corn.
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January 18, 2005
Posted by John Yunker
According to this article Random House is going to set up a publishing operation in India.
"It's time a publishing house like Random has a presence in India. It will be publishing for India and in India," Simon Littlewood, international director, The Random House Group.
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January 17, 2005
Posted by John Yunker
Starwood Hotels & Resorts announced that the first Four Points by Sheraton hotel has opened in China. This brings to 30 the number of properties Starwood owns and/or manages in China and a claim that Starwood is "the largest upscale international hotel company in China." The company also claims that tourist arrivals hit an all time high of 9.5 million in 2004 and tourism revenue increased by 50% over 2003
So how will this affect Starwood's global Web site. Judging by their global gateway, they've yet to add Chinese-language support to the Web site.
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Posted by John Yunker
Interesting article in the NYTimes on Lenovo outsourcing management to the folks at IBM (despite the fact that the division lost a few billion dollars in recent years.
The beginning of the article pretty much sums up the challenges that any company faces when expanding into new markets:
"Inside the shimmering headquarters of the Lenovo Group, China's largest computer maker, workers are carting birthday cakes over to three office cubicles.
These days, every employee here gets a birthday gift, something a multinational company might be expected to do in this age of feel-good corporate management.
The problem is that people in China do not traditionally celebrate birthdays. (NOTE: This is incorrect; see below)
But that is changing. And so is Lenovo. It is trying to become a global company with its purchase of I.B.M's personal computer business for $1.75 billion, and handing out birthday cakes is just part of the process of evolving into a multinational corporation."
UPDATE: The NY Times Article is wrong
First of all, the Chinese do celebrate birthdays. I had given the article the benefit of the doubt by assuming the reporter was only referring to the lack of birthday celebrations within offices. However, that is a mistake as well. I just received an email from a former Lenovo employee who says that the company regularly celebrated birthdays in the office with birthday cakes. This was standard operating procedure long before IBM ever entered the picture.
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January 16, 2005
Posted by John Yunker
Thanks to the Internet, I recently stumbled upon Starbucks' number one fan. His name is Winter and he has visited more than 4,500 Starbucks in five countries. His goal is to visit every Starbucks on this planet and, at the rate the company is growing, he has a lot of traveling left to do.
He documents his travels here, meticulously photographing every location he has visited. He also maps the US stores he has yet to visit...
So what exactly does this guy do for a living? Apparently I wasn't alone in wondering that because he offers an FAQ page.
I was mostly curious to know more about his global experiences with the chain, looking for ways Starbucks has been localizied in each of the markets he visited. Here's what Winter had to say...
How are the Starbucks locations outside the US localized for those markets?
Menus are of course in the local language. Some beverages and pastries are only available in that country, like the Moka Praline in France and Spain, French toast in Paris, the Marshmallow Mocha in Japan. Conversely, the canned DoubleShot is only available in the U.S. The foreign markets I've seen include the short (8 oz) size on the menu, while the U.S. took it off years ago (but still offer it on request). The interior designs are pretty much identical to the U.S., with local posters and art in the local language. The differences are in fixtures, because foreign buildings have different types of lights, bathrooms, etc and in the exteriors, because Starbucks in old cities like Paris and London have to fit into the existing buildings. Many more stores with upstairs and downstairs than in the U.S.
Of all the locations you've visited, which is your favorite and why?
I cannot possibly choose a favorite store. It's as if I had 4,000 children and were asked to choose a favorite. No, that's a horrible analogy. Still, I do have favorites in certain areas. For example, in Alexandria, VA, the store in Old Town is my favorite in the area because it is built in a historic red brick building formerly owned by an associate of George Washington. I like Starbucks in old buildings.
Or in Seattle, I like the Phinny Ridge store.
What is your favorite non-US Starbucks store, and why?
Again, I don't have a favorite, but I like the first store in Paris, the one on venue de L'Opera, because it is the first, and because I like the city of Paris, and France, and the French language.
A second choice would be the Ginza store in Japan, the first store in Japan, but also a cool red brick design.
What non-US locations are next on your travel list?
No specific destinations, but I do hope for several trips this year. Possibilities are Mexico City, London again, and an Asian market like Tokyo, Taiwan, or Seoul where there are enough stores (nearly 100) to keep me busy.
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January 14, 2005
Posted by John Yunker
Michael Kaplan explains one of the major dangers of internatinalized domain names (IDNs): phishing. One of the tactics that phishers use to con people is to create URLs that look like reputable URLs (citibank.com; ebay.com) yet really aren't. They do this by either slightly altering the URLs or using characters that appear similar to one another (o vs. 0). The more characters you allow within the domain name system, which is what IDNs are all about, the greater the odds for phishing to be successful.
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January 12, 2005
Posted by John Yunker
I am pleased to be presenting a free Webinar hosted by Transware PLC on Wednesday, Feb. 9th at 1pm EST (10 am PST).
I'll be talking about Web globalization best practices and will draw on the findings from Byte Level's recent 2005 Web Globalization Report Card.
If your company has a global Web site or is planning on launching one, you can join the call for free. Simply send your name, company name and title to
webinar@transwareinc.com.
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+ TrackBacks (0) | Category: Events | Web Globalization
Posted by John Yunker
The International Herald Tribune reports that English and Hindi have, for a variety of reasons, merged into a sort of lingua franca in a country with more than a dozen popular languages. Hindi may be the national language of India, but it is not the only language, which makes it politically sensitive. However, if you water down Hindi with English, it becomes much more palatable to a wider audience.
According to the article, " in the mid-1990s, cable TV started rapidly spreading across India and indigenous music channels started using a mixture of Hindi and English in their programming. What began as spoofs on the English used by Indians were soon transformed into a fizzy mix of the two languages. Suddenly, Hindi with a smattering of English acquired status."
What I find particularly fascinating is that this new way of speaking, often referred to as Hinglish, is playing a growing role in advertising. According to the article, advertising has "started shifting from pure Hindi or English advertisements to Hindi with a few words of English thrown in. Thus the Pepsi slogan is "yeh dil maange more" ("ask for more") while Coke relies on "life ho to aisi" ("life should be like that")."
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January 4, 2005
Posted by John Yunker
According to the WSJ, the US will see Chinese-made automobiles by 2007. And we're not talking about Hondas or Dodges made in China, we're talking about a Chinese car company exporting to the US. The company is Chery Automobile and I'm sure the folks at Chevrolet are bristling at the brand name. I suspect they'll consider a new name for the US market.
The cars will be 30% cheaper than similar models and will have to overcome a great deal of post-Yugo customer fears. Still, I'll take a second look at any car that's 30% less expensive, so who knows. My bet is that the cars will have more in common with Hyundae than Yugo.
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January 3, 2005
Posted by John Yunker
I was recently interviewed by the folks at Marketing Sherpa on the basics of Web globalization. The article came out today and is available for free here until January 13th.
Anne Holland founded Marketing Sherpa back in 2000 and in a very short time grew the company into a prolific publisher of marketing-focused newsletters, reports and events. The company now claims more than 170,000 subscribers. If you're in marketing, you should drop by their Web site.
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Posted by John Yunker
Nike announced Q2 numbers and, sure enough, non-US sales are helping the company hit its growth targets. Asia is a bit sluggish but EMEA is booming, seen here:
A weak US dollar is certainly playing a large role in Nike's numbers, but the fact remains that Nike is doing well in emerging markets. The company cites China, Russia and Turkey (yes, Turkey) for its strong numbers.
Now if it can just get around to improving its global gateway. It is one of the most frustrating and time-consuming global gateways I have yet encountered.
What's worse is that the company doesn't store country or language preferences so each time I return to the Web site I have to renavigate that gateway.
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January 2, 2005
Posted by John Yunker
Measuring Internet traffic is a messy affair. There are competing companies happy to provide the service for a fee, but their numbers often diverge so widely that you can't help wonder if they're just pulling numbers out of a hat. So advertisers are calling for (once again) some sort of standardization in how hits, page views and other metrics are measured. This WSJ article has all the details. But the reason for this post is a passage buried at the very end of the article:
Ms. Spoonemore says NBA.com's internal logs show that less than half its traffic comes from the U.S. Global advertisers she courts would be more likely to buy space on the site if they knew the extent of the league's global reach, she says.
There was a time not very long ago when advertisers looked at that non-US Web traffic as garbage. No more. Companies want traffic from outside the US and will pay for some accurate measurements. Unfortunately, according the article "while the Internet is global, traffic measurement outside the U.S. is spotty. NetRatings now has panels in just 13 other countries, down from 29 at its peak during the dot-com boom. ComScore tracks panels in 33 countries, a number that has held steady for several years."
It's just a matter of time before these companies get their acts together and start measuring traffic from 60+ countries. After all, there are commercial Web sites now with upwards of 100 country Web sites.
Note to the NBA: Your global Web site still needs some work. According to our Web Globalization Report Card, the NBA site scored significantly better than the NFL Web site, but still finished in the middle of the pack.
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