Corante

About this Author
CORANTE 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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October 26, 2006

The Transcultural CEO

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Posted by John Yunker

Quote from the dean of INSEAD, Frank Brown:

"The world's next generation of leaders must have transcultural skills. They need to have an appreciation and understanding of cultures, and know, for instance, how to relate and behave when they walk off a plane. This is a well-honed skill, not a crash-and-burn exercise."

From Chief Executive Magazine.

Comments (0) + TrackBacks (0) | Category: Business Globalization

September 26, 2006

News Localization: Sometimes The Truth Hurts

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Posted by John Yunker

Thanks to fellow Mizzou J-school graduate Matt Hilburn for pointing this out. If you visit the home page of Newsweek.com, you'll see the front pages of this week's issue from around the world, as shown here...
newsweek_covers.gif

Outside the US, the lead story is Afghanistan. Inside the US, the lead story is an entertainment piece on Annie Leibovitz.

Is Annie Leibovitz more important to US readers than Afghanistan?

Newsweek execs would probably say in their defense that they have simply localized the US edition for the needs and wants of this market. After all, Americans get enough negative daily news.

Annie Leibovitz will likely move more issues off the newstand than a war that is not going particularly well these days. And those folks who buy the Annie Leibovitz issue will still get the Afghanistan feature -- which is an end that should justify the means.

Localization is, after all, about adapting your product to the needs and wants of your customers. However, when this product is news, everything gets a bit more complicated.

The plain and simple truth is that newspapers and news magazines have become more and more like People Magazine. And, sometimes, the truth hurts.

Comments (0) + TrackBacks (0) | Category: Business Globalization

August 27, 2006

Quechua Has Friends in High Places

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Posted by John Yunker

Quechua is the language of the Incan Empire and is spoken by roughly 10 million people throughout South America, the majority of whom live in Peru and Bolivia.

Recent developments suggest that this “minority” language is not going gently into that good night.

Google currently supports Quechua with a localized search engine.
google_quechua.jpg

And it is not the only software company to support this language.

I read this morning, via Michael Kaplan’s blog, that Microsoft now supports Quechua in Windows and its Office software. It will be announcing this language support with the newly elected president of Bolivia, Evo Morales, who is an Indian. I should note that this level of support only applies to menus and commands; I don’t expect to see a knowledgebase translated anytime soon. Still, a little support is much much better than no support.

In addition, The Economist features an article on Quechua, noting that a recently elected member of Peru’s Congress is now speaking Quechuan instead of Spanish.

This high-level support for the language will help ensure that multinational companies provide support as well, a positive sign for the one of the world’s oldest surviving languages.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Software Localization

August 25, 2006

The World Population: Think Inside the Box

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Posted by John Yunker

Bettina Speckman has created a rectangular map of the world's poputation, in which the size of the rectangle is relative to the size of a given country's population.

world_cartograph.jpg

It really puts into perspective how big China and India are relative to the rest of the world. You can check it out here

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July 25, 2006

eBay Tries to Expand Globally Without Offending Locally

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Posted by John Yunker

eBay, despite doing business in more than 20 countries, still earns the bulk of its revenues from US sellers, folks who have been increasingly unhappy about steadily increasing listing fees. When eBay North America president Bill Cobb confirmed recently that eBay wasn't charging transaction fees to sellers in China, sellers in the US were none too pleased.

Om Malik has a good take on the situation, one that underscores the transparency of Web globalization and the importance of treating all markets equally.

Of course, no company treats all markets exactly the same. Bigger markets get more attention. And eBay needs to grow quickly in China. While eBay's marketplace revenues in the US dipped this last quarter, international revenues more than made up for the slack. eBay is playing catch-up in China and believes that it needs to lower the barriers to sellers in a market that is extremely price resistant.

So does this mean eBay must start charging sellers in China exactly what it charges sellers in the US?

Not necessarily. Every market is different and will require a different strategy. And emerging markets will generally get subsidized by developed markets.

While any fee increase is going to anger sellers, I wonder if eBay could have mitigated the damage somewhat by helping US sellers understand what it was trying to accomplish in China -- and what it is up against in this market.

I think the larger issue here is lack of cultural communication. On absolute terms, US sellers and Chinese sellers are not being treated equally. But most sellers in China can't expect to see the revenues that sellers in the US are currently seeing. And there is a cultural resistance in China to conducting transactions online. Americans don't seem to have much of an issue with online transactions; but not so in China. And competition in this market is ruthless. How can eBay succeed if competitors aren't charging transaction fees?

The issue isn't about eBay stealing from one market to subsidize another market, but about localizing strategy (and pricing) for each market.

What if eBay doesn't succeed in China? Will sellers in the US ultimately suffer from fewer potential buyers? Or, will sellers in the US benefit from fewer competitors?

The major lesson I take from this is that if you can't treat every country equally, at least do a darn good job of educating every country as to your reasons why.

Comments (0) + TrackBacks (0) | Category: Business Globalization | China | Web Globalization

June 23, 2006

Google Cashes Out of Baidu

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Posted by John Yunker

Baidu is the "Google" of China with 51% of the market (according to CNNIC). Awhile back, Google bought a small chunk of the company, before it went public, presumably with the intention of using Baidu as its point of entry into China. Apparently, the powers that be wouldn't let that happen, which led Google to launch Google China (and suffer the wrath of negative publicity from outside of China).

According to AP, Google just sold its share of Baidu putting an end to that dream. Google made money on the deal -- $55 million -- but I'm guessing it would have rather owned 100% Baidu and 0% Google China. But that's all history now and millions of Chinese are brand new to the Internet -- still plenty of time left for Google to out-Google Baidu.

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June 20, 2006

McDonalds in China; Elle in the Middle East

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Posted by John Yunker

The Wall Street Journal features two articles on business globalization and localization -- from McDonald's building drive-thrus in China to Elle publishiing a Middle East edition.

For Elle, the challenge is complex because there is no one "Middle East" market when it comes to fashion and cultural dress codes. Says the article, "Clothing customs vary widely throughout the region. In some countries like Lebanon, many of the clothes shown in Elle might be worn on the street. In others, like Iran and Saudi Arabia, they'd be reserved for private gatherings of women. Accessories, from designer shoes to handbags, scarves, sunglasses and jewelry, are permitted almost everywhere."

McDonald's got started in China in 1990 and plans to have 1,000 locations open by the Beijing Olympics in 2008. Roughly half of all future locations will have drive-thrus. But because this is still a new concept in China, McDonald's is treading carefully. For its first drive-thru, it had a human taking orders rather than that garbled box we Americans have barked into for years. The larger issue is that the Chinese look at restaurants as gathering places and not pass-thru places, at least not yet. Says the article...

    McDonald's has spent much of its time in China learning to slow down from its fast-paced U.S. roots. The company's new restaurants have Internet connections, play areas for children and special seating for their mothers, all of which are designed to reinforce their role as gathering places. "We eat McDonald's when the kids want to," says Luo Wenwei, a housewife from the prosperous southern town of Dongguan, who drives a Volkswagen.

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April 10, 2006

The .eu Domain is Spawning .edu Hacks

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Posted by John Yunker

I should have seen this one coming. According to Bret Fausett's blog, the .eu domain is being registered by individuals hoping to capitalize on Web users who leave off the "d" when typing in their favorite college URL.

For example, the UCLA.eu domain is not owned by UCLA. The same goes for Vandy and Texas. And someone in the Netherlands grabbed the domain for my undergrad alma mater: missouri.eu. Why didn't I think of that?

Now, I have to believe that people will still find their way to their university Web sites, despite the efforts of those who have registered the .eu domains.

By the way, the folks at Harvard were on the ball and locked up their domain.

If you want to check out your school, visit whois.eu.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Web Globalization

April 7, 2006

The .eu Land Rush Has Begun

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Posted by John Yunker

I'm not surprised to see the feeding frenzy over .eu. This article reports that more than half a million domains were registered within the first hour of sales. According to the article, "EU Commissioner Viviane Reding said the Commission hopes the new ".eu" name will one day rival the ".com" name."

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March 24, 2006

Will The Economist Become Too American?

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Posted by John Yunker

The Economist has just made its US editor John Micklethwait the new editor-in-chief. According to this NYT article the promotion will result in greater coverage of the US market...

    The Economist has bureaus in Chicago, Los Angeles, New York, San Francisco and Washington and has hired what Mr. Micklethwait called a "super stringer" in Austin, Tex. Mr. Micklethwait said he was also contemplating opening more bureaus across the country.

I just hope that this added US coverage doesn't come at the expense of non-US coverage. After all, that's why I read the magazine and why I suspect many of the other 569,000 American subscribers do. The US is now the magazine's largest subscriber market, which I believe is due to the fact that US papers have closed their foreign bureaus over the years (a myopic error of epic proportions in this age of globalization).

There is no shortage of coverage of the US, but if I want to know what's going on in Tanzania, I first turn to The Economist. So here's hoping that every new bureau the magazine opens in the US is matched by a bureau abroad.

The magazine is also testing a somewhat localized ad campaign in Baltimore right now. Here's one ad:

economist_baltiimore.jpg

Apparently the headline "Topical Solution" was created just for the US market. It didn't make much sense to the Brits.

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February 27, 2006

Expand Globally; Hire Locally

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Posted by John Yunker

The Wall Street Journal features a good article on companies hiring locally as they expand globally. Although the article focuses on China, I suspect that it would apply to many emerging markets these days.

Says the article:

    According to Taihe Consulting Co., of Beijing, about 70% of foreign firms' top positions today are filled by Chinese workers. In the mid-1990s, almost all such posts were filled by non-locals.

    In recent years, more Chinese have studied or worked overseas, strengthening their English-language and leadership skills and making them more suitable for management positions, executives at multinationals say. "My first choice will always be local," says Niklas Lindholm, human resources director for Nokia Corp.'s Chinese investment unit in Beijing. "We are an international company and we need the variety."

And it's not as if there are hundreds of thousands Americans learning Chinese for the opportunity to work abroad. According to this USA Today article, " In China, more than 200 million students study English. In the United States, just 24,000 American kids are studying Chinese."

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February 25, 2006

Google Payments Stat

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Posted by John Yunker

The Google Blog says that "over the past four years, Google has billed advertisers in 65 countries more than $11.2 billion in 48 currencies, and made payments to advertising partners of more than $3.9 billion. "

While the margins are what the financial analysts focus on, I'm more impressed by the geographic reach: 65 countries. While the revenues from many of these countries is just a sliver of the total pie, Google has done a nice job of seeding these markets.

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February 24, 2006

English as a Second Language. English as a Global Language.

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Posted by John Yunker

A few years ago I spoke with an executive at a Fortune 500 company who confidently explained why his company wasn't translating its Web site: "The world will all be speaking English soon enough," he told me.

His Web site has since been translated.

So perhaps the world won't all be speaking English anytime soon. But it's safe to say that English is becoming the lingua franca of the world. It’s the most popular second language being taught in Europe and much of Asia. But the thing to keep in mind is this: Even if the world does all one day speak English, for most of the world, English will still be their second language.

This is an important point. It’s one thing to expect the world to learn new languages; it's another thing to expect the world to give up their native languages.

Which is why I was excited to see The British Council publishing a book on the future of English by a guy who has been writing about this issue for many years. His name is David Graddol and the book is called Next English.

english_next.jpg

The book is free and you can download a copy here. I'm still working my way through, but here are some items that jumped out at me:


    -> A massive increase in the number of people learning English has already begun, and is likely to reach a peak of around 2 billion in the next 10–15 years -- nearly a third of the world's population.
    -> Monolingual English speakers face a bleak economic future, and the barriers preventing them from learning other languages are rising rapidly.
    -> The competitive advantage which English has historically provided its acquirers (personally, organisationally, and nationally) will ebb away as English becomes a near-universal basic skill. The need to maintain the advantage by moving beyond English will be felt more acutely.

Here's the link.

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February 22, 2006

Wal-Mart: 15 Countries and Counting

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Posted by John Yunker

Wal-Mart is currently doing business in 15 countries, but that number is going to grow. The company has certainly had some ups and downs overseas -- ups in Mexico and downs most everywhere else.

Still no ecommerce site yet for any other market than the US. But when you figure that the US Wal-Mart site just surpassed a whopping $1 billion in revenues, it's just a matter of time before the company tackles new markets.

Here's an excerpt from their Q4 2005 call:

"During the fourth quarter, we also continued our international growth through acquisitions. We acquired the Sonae retail operations in Southern Brazil; we increased our ownership of Seiyu to 53%, resulting in the consolidation of Seiyu in our financial statements beginning in January of 2006. We are now in 15 countries and we expect that number to increase. We acquired 545 new international stores and 50,000 new associates in just one week through our acquisitions, and we will build or relocate another 220 international stores in fiscal 2007."

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February 20, 2006

Lowering the Language Barrier: From eBay to Dekadu

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Posted by John Yunker

I just came across a press release from an eBay drop-off chain called QuikDrop. The release says that it will be providing translations services for sellers from English into eight languages, beginning with Spanish and French (I'm trying to learn more about pricing and what vendors they will be using).

Last year, I published a global profile of eBay and emphasized the need for translation services. At the time I thought that this might be a business eBay would want to get into -- not as a provider but as a facilitator of the service. Right now, there are quite a few Web portals that match freelance translators with buyers of translation. This is a service that eBay could get into and use to provide its merchants with translation, and make a few additional dollars along the way.

Laurel Delaney has some thoughts on the globalization of eBay and a link to an article on the challenges of selling your products internationally.

And it is a challenge. QuikDrop promises a partial solution to the language barrier -- translating content so an English speaker can sells products to speakers of eight other languages. But that's just eight languages. What if, for example, a Polish speaker wanted to sell to a German speaker? Is QuikDrop going to provide Polish <-> German translation anytime soon?

I doubt it.

Enter Dekadu

dekadu_logo.jpg

Dekadu bills itself as "the only worldwide, cross-border C2C platform operating in multiple languages and multiple currencies, and allowing for seamless cross-border trading."

The company went live last month. It's not an auction site. Prices are fixed. Dekadu acts as an intermediary managing payments, to mitigate fraud and manage currency conversion. But what makes the site unique is that it supports language pairs like Polish <-> Czech and German <-> French. American companies tend to focus only on language pairs that involve English. And while that's fine and good, there are many more language pairs out there that don't involve English. Which is why Dekadu sees a nice business opportunity.

The company's founder, Jack DeNeut, tells me that Dekadu allows you to "buy from, and sell to, users all over the world, and not just in one's home country. Items listed for sale in Germany, for example, are visible to buyers on all Dekadu platforms worldwide, and buyers in Germany can buy from sellers in other parts of the world, while still enjoying the convenience of using the site in German and paying in Euro. Other sites (e.g. eBay.com) do allow for some cross-border trade, but they require at least one side of the trade to use a foreign language or a currency other than their native currency. That requirement shuts a large portion of the world's internet users out of the market for cross-border C2C."

Now, I can imagine the costs involved in supporting translations among all these language pairs. But this is where things get interesting. If you figure that most content on eBay, for example, are fairly predictable text strings, like "high quality" and "never been used," all you really need to do is translate most of these boilerplate strings and you'll have strings that can be re-used again and again. Which is what this site does.

Here is an excerpt from my interview with Jack:



What products do you see succeeding particularly well on this type of business model? For instance, DVDs have issues with standards across certain borders.
DVDs definitely have issues with region codes, although we find they are doing well so far (we have only one month of data, so take with a grain of salt). The supply of DVDs in Region Two (Europe) is much smaller than Region One (US and Canada), and so even Czechs are ordering things like TV shows on DVD that they could never get in Europe. Region-free DVD players are fairly common in Eastern Europe.

The real positive with DVDs is that in Europe, to save manufacturing costs, many studios (especially Warner) just make a single disc for the whole of Europe that has more than a dozen languages on it (e.g. http://www.dekadu.com/product/1008028). The only thing that has stopped the cheap Polish DVDs from getting to, say, the U.K. (both Region Two countries) has been currency and language issues. Well, Dekadu solves that, so we see a lot of East-to-West trade in these kinds of items (CDs are also much cheaper wholesale in Poland than in the U.K.).

What's been selling best so far are cosmetics (http://www.dekadu.com/cat/53130000), especially high-end brands like Chanel and Lancome. This is exactly the kind of product I had in mind while building the system - small (easy to ship), high-value, and grossly overpriced in a lot of countries. We also see items like memory cards for digital cameras selling well (for some reason, they cost twice as much in Prague as in NYC, and they weigh less than an ounce).

What future markets are in the works?
Definitely Scandinavia. They have everything -- disposable income, broadband, and credit cards. Mentioning Scandinavia was where most meetings ended when I talked to investors in the U.S.: "They don't need you. Everyone up there already speaks English". It's true that many people in Scandinavia do speak English, but the research I've seen (especially a recent paper from the EU) shows that overwhelmingly people in that region prefer to use a site in their own language if possible.

I also like some of the Asian markets like Japan and Korea, where the language barriers to buying from Europe are very high, and where we can provide a lot of value to the consumer by getting rid of that friction.

And what's involved in adding a market/language?
I think this may be one of the strongest parts of our technology, and something I worked very hard to make easy to do. Given a translator, and postal rates for the new market (which we can get from the web), we can launch a new market, fully-localized, in less than a week. Not many multinationals can do that.


So is Dekadu going to pose a threat to eBay? Who knows. What I do know is that eBay could be expanding into new markets more quickly. My concern is that it's spending so much time and money on China that it's overlooking smaller markets that, collectively, could add up to significant revenues five years from now.

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February 14, 2006

Starbucks Takes On the World

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Posted by John Yunker

starbucks_logo_cn.jpg

According to this WSJ interview, the Chairman of Starbucks, Howard Schultz, says he plans to significantly increase the number of Starbucks locations in the years ahead to 30,000 (from 11,000 today), half of which will be located outside of the US.

Currently, about a third of all Starbucks stores are located outside the US, in 37 countries. Only 209 stores are based in China, but that's where the bulk of the expansion will take place. Schultz didn't say how many locations are planned for China, but I wouldn't be surprised to see China account for 20% of those 30,000 locations, which translates to 6,000. Of course, that's an easy number to come up with when there is no target date given. And the underlying assumption is that China will continue its robust growth and local competitors don't make a large dent.

But so far so good. Starubucks has taken a page from McDonald's global playbook and improved it: It has the same global ambitions but has largely freed itself from any US-centric branding. But as Starbucks grows abroad it will need to pay close attention to undercurrents back home. I'm still a Starbucks regular, but I order Peets by direct mail. And the minute they open a store in the neighborhood, my daily habits may change.

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February 10, 2006

Two Barriers to Global Online Sales are Falling

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Posted by John Yunker

For an online retailer, going global isn't easy. That's because retailers have to figure out how to deliver products to consumers around the world cost effectively and how to process payments online while minimizing risk. Now this sounds simple enough -- just take credit cards and use FedEx -- except that international shipping isn't exactly cheap and not all customers around the world are comfortable using credit cards.

But these two barriers appear to be falling, as shippers get more affordable and the world increasingly adopts credit cards. According to Internet Retailer, ecommerce spending on Visa cards increased a whopping 44% last year, up more than $20 billion.

And Batteries.com worked with DHL to lower intl. shipping costs by more than half. This is allowing the company the go after those 11 foreign markets that it departed from just last fall.

As the many global barriers to success -- payment processing, delivery, customer support, returns management -- continue to fall, the pressure on retailers to look beyond borders will increase. That's not to say going global is going to be easy, but it will at least be doable.

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January 26, 2006

Globalization Is Good for UPS

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Posted by John Yunker

UPS just reported a very strong quarter. While US volume grew 6.2%, "internationally, average daily package volume rose 25.1% to 1.8 million a day. Export volume was again strong with a 15.4% increase reflecting significant gains across all regions of the world."

And because UPS earns higher profit margins on international shipments, its future is looking very healthy. And what about FedEx? Although I haven't checked their latest numbers, I think it's safe to assume that this rising tide that is globalization will lift both boats.


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January 6, 2006

You Say Euro; I Say Eiro

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Posted by John Yunker

euro.jpg

Latvia has "localized" the spelling of the euro to better fit its national language. Says this article...

    "The 'eu' diphthong is alien to the Latvian language. We don't have such a sound, so we will use 'eiro'," Education Minister Ina Druviete, a trained linguist, told a cabinet meeting at which ministers unanimously opted for the "ei" word over the "eu" one.

And that's not all; apparently Latvia is not alone. Malta will spell it "ewro" and Greeks spell it "EYPO" -- when will the madness end?

I don't see what the big deal is with these changes. I don't speak Latvian but I think I could figure out what eiro stands for. Even for those who don't, surely the little euro symbol will allevitate any doubts.

I think its human nature to modify and mutate names to make them your own. And, once you do localize something to fit your needs, you truly make it your own, which is a positive sign for the long-term survival of the euro, or eiro, or ewro.

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January 4, 2006

Amazon: Now Serving 200+ Countries

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Posted by John Yunker

Amazon gave out some highlights from 2005 Xmas season and it looks like they had a very good quarter. What jumped out at me was that they shipped products to more than 200 countries.

Here's the press release.

I also came across this release in which Joyo.com (Amazon China) will be testing a lower threshold for free shipping; it will now be roughly US$13 to quality - a 50% decrease, and much more realistic amount.

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December 30, 2005

Intel's New Logo, Via Samsung

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Posted by John Yunker

So I read today about Intel's new branding campaign set to launch next week during CES. I had no idea that when Intel hired Samsung marketing chief Erik Kim to take over their branding that he would bring his love for angled ovals with him. But, sure enough, the new Intel logo appears to be channeling Samsung:

Intel's soon-to-be-old logo...
intel_logo_old.jpg

plus Samsung's current logo...
samsung_logo.gif

equals Intel's new logo
intel_logo_new.jpg

So here's what I think Samsung should do, just to keep things interesting...

samsung_logo_new.gif

After all, angled ovally logos are old news.

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December 14, 2005

Globalization Lessons from Sesame Street

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Posted by John Yunker

sesame_fr.jpg
According to this New York Times article on the globalization of Sesame Street...

    Last year, more than 68 percent of Sesame Street's revenues came from income from licensing of products. Japan started its own version of "Sesame Street" last year, and Sesame Workshop's 4 percent jump in revenue last year came largely from licensing agreements in Japan. Today, "Sesame Street" appears in more than 120 countries, and about 25 of them are co-productions. France had a more American version of "Sesame Street" in the 1970's and early 1980's, but stronger local competition pushed it off the air.

Now what does Sesame Street have to do with Web globalization?

Plenty.

Here are a few lessons that I take from my favorite childhood show...

Local competition forces you to localize better.
As Sesame Street has learned, the days of dumping dubbed videos onto other markets is coming to an end. Local competitors may not have the production values but they will beat you with the simple fact that they know their audience better than you do. So it's not enough to do one iteration of globalization - be it product or Web site - and be done with it. The competitive bar will continue to escalate. That's the great irony of globalization -- on one hand we see commodization and harmonization as Starbucks, and the like, blanket the world, but we also see differentiation of a different kind as global brands reinvent themselves locally.

Think about how well your name will travel.
Sesame Street has basically had to rename itself for every new market, driven in large part by that pesky "street." A brand name like Starbucks effectively avoids those difficulties. Of course, this isn't Sesame Street's fault -- and it's not necessarily a bad thing -- but if you're naming a new brand today, think how well it will travel.

Be prepared to sacrifice your stars.
In France, Big Bird was replaced by Nac and in India, Big Bird was replaced by Boombah. Why? According to the article...

    "If it is to work in India, the Indian kid watching it should not feel it is American or foreign," said Niret Alva, president of Miditech, who said that the American version never made the leap beyond a niche channel in India to reach an audience of children estimated at more than 157 million."

I imagine the Sesame Street execs went through some real angst when considering whether to give Big Bird the axe. But the fact is that local partners are playing a key role in the creation of new local characters, driven in large part by new licensing opportunities. Which leads me to...

Local guides will make or break your local business.
Sesame Street has made itself open to local partners, which means sharing revenues, sharing risk, and investing a lot of time and energy. The French show took over a year to launch but my guess is that this time was well spent. Choosing a local partner is part art, part science -- with a fair amount of luck thrown in. And it can make all the difference.

PS: Keep your eyes out for a documentary titled The World According to Sesame Street.

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December 8, 2005

Is This the Quarter eBay Intl. Beats eBay US?

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Posted by John Yunker

Could eBay now be generating more revenues from outside the US than from within the US? I suspect so. If not, it's going to be REAL close.

This from the Wall Street Journal:

    Though its domestic business continues to expand, much of eBay's growth is attributable to its international business. In the third quarter, international net revenue rose 43% from the year earlier period, to $408.9 million. U.S. marketplace revenues increased 29% to $449.5 million. Dutta said that eBay "absolutely expects" the international segment of the business to surpass the domestic part. He cited a strong performance in eBay's core international market, Germany, and said the company's user base in China is growing quickly. The company is eager to make inroads in China, where it faces stiff competition. In the third quarter, eBay added 2 million new users in China, bringing the total to 15.1 million at the end of September, Dutta said.

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December 2, 2005

If It's Feta, It's Greek (to me)

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Posted by John Yunker

According to the EU high court, "feta" is not a generic word; it is unique to Greece. Which means only the Greeks can make and market feta, kinda like "champagne" in France. Here's the article and an excerpt:

    Despite its many imitators, Greece remained the main European producer and consumer of feta cheese, the court said. "The production of feta has remained concentrated in Greece, with more than 85 percent of (European) Community consumption of feta, per capita and per year, taking place in Greece,"

I find this sort of thing fascinating, but also troubling. As the article noted, where will this all end? Who will lay claim to mozzarella, gouda, bie -- you get the idea.

It seems to me that you shouldn't need a court to help you brand a product. And just because people can only get "sparkling wine" from a California vineyard doesn't mean you don't think of it as champagne anyway. But you can't blame the Greeks for trying to protect their cheese. They even have a Web site up: FetaMania!.

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November 21, 2005

Starbucks Wins Back Brand in Russia

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Posted by John Yunker

According to the Moscow Times, Starbucks "has regained the right to use its brand on coffee houses in Russia after a protracted legal battle with a trademark squatter who was asking $600,000 for the logo, the intellectual property agency said Thursday."

So I think it's safe to say that there are going to be a number of Starbucks locations opening in Russia in 2006. Starbucks already supplies a few hotels in Moscow but little else thus far. And a recent research report I've read said that the coffee culture in Russia is rapidly emerging, along with the country's economy.

Next stop: Ukraine.

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November 14, 2005

UPS Helps eBay Users Sell Globally

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Posted by John Yunker

UPS announced today that it has expanded shipping options for US-based sellers on eBay to include international delivery.

"The UPS shipping tools allow eBay sellers to calculate costs, request a UPS pick-up, track shipments, review transit times and print shipping labels for international shipments, all at the point of transaction."

Cross-border transactions make up a large and growing share of eBay's revenues. The UPS deal is one way to help accelerate this trend. The other tool that eBay hopes will help cross-border transactions is the recent acquisition of Skype.

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October 26, 2005

10% of the World Shops Online, Says ACNielsen

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Posted by John Yunker

According to an ACNielsen study of 21,000 people in 38 countries, more than 627 million people have shopped online, including over 325 million within the last month.

Highlights of this very interesting study are:


    Europe and North America have the highest incidence of online shoppers, with Germany, Austria and the UK topping the list, with at least 95 percent of Internet users having purchased online. In the UK and Germany, about two-thirds of these web users have made a purchase within the last month. (UK and Germany also happened to play a major role in eBay's strong 3Q revenue numbers)

    In Asia Pacific, South Korea and Taiwan rank highest, with at least 90 percent of respondents claiming to have ever made a purchase online, at least six in 10 of whom have done so within the last month.

    Methods of payment vary dramatically by country. While credit cards are the preferred method globally, Cash-on-delivery is the most popular payment method in China. In Japan and Taiwan, payment through a convenience store is an important online purchase payment method.

    South Koreans are also the most likely to buy cosmetics/nutrition supplies online (34%), three times higher than the global average of 10%.

And I'll leave you with a quote that should serve as a call to action for any business that thinks ecommerce is something largely practiced only in developed markets...

    “Our recent e-commerce studies clearly show an upward trend in global online shopping,” said David Boyd, vice president of Internet Industry Research at ACNielsen. “While there is growth in nearly all global markets, we see that the lesser developed markets are maturing faster than many of their more developed counterparts. It will not be long before we have a nearly level playing field across the globe.

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October 25, 2005

Starbucks Thrives in the UK and Tea Suffers

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Posted by John Yunker

Years ago I remember listening to the pundits who said that Starbucks wouldn't make it in the UK - a country where tea was the default beverage of choice. But Starbucks is proof that just because a market appears predisposed "not" to like your product, that doesn't necessarily mean they won't like your product. Habits change and every new generation likes to set itself apart from the generation that came before.

Deborah Ball of The Wall Street Journal wrote a good article on the impact that Starbucks is having on tea sales in the UK. According to the article...

    Starbucks coffee has invaded England, upsetting the tea cart in a country famous for its afternoon tea. London already has some 200 Starbucks outlets, surpassing New York City, which has 190. All told, there are 466 Starbucks in the United Kingdom, as well as many fast-growing local chains with such names as Caffe Nero and Coffee Republic. Meanwhile, U.K. tea sales have declined 12% in the past five years, according to market-research firm Mintel.

And here's an interesting cultural tidbit:
,ul>For Starbucks Corp., the British are ideal customers because about 80% of them stay in the store to drink their coffee. That gives Starbucks a chance to sell them food, says Martin Coles, president of Starbucks International. In the U.S., by contrast, 80% of the customers buy their drinks and leave.

So now Starbucks is going after China, another market known for its love of tea. Based on anecdotal feedback so far, the company is doing quite well there as well.

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October 12, 2005

Starbucks "Coffee in a Can" in Japan and Taiwan

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Posted by John Yunker

Starbucks Japan has launched its first ready-to-drink (RTD) coffee, shown here:

starbucks_RTD_japan.jpg

Starbucks "Discoveries" will initially be offered in two flavors, Seattle (latte) and Milano (espresso) and will be sold in the refrigerated section of convenience stores. According to the company, "In developing this new RTD coffee beverage, Starbucks conducted research and found that Asian consumers perceived chilled cup coffee as the highest quality of all RTD coffee beverages. Starbucks Discoveries is made fresh and is kept refrigerated, with a short, 14-day shelf life, one of the shortest on the market today. Additionally, during consumer research most Starbucks customers in Asia believed that chilled cup coffee was the best way for Starbucks to enter the market outside of their retail stores. The launch of Starbucks Discoveries represents Starbucks first entry into the chilled cup coffee segment anywhere in the world. The Company took more than a year to create a superpremium ready-to-drink coffee designed to appeal to the local taste preferences in Asia, using the same high-quality coffee found in all Starbucks retail stores and coffee-based products worldwide."

RTD coffee is big in Japan. Coke, for example, has done well with its Georgia brand of RTD, shown here:

Kyoto_georgia.jpg

But it looks like Starbucks is going after the high-end coffee-in-a-can market. This makes good sense because I doubt it will be able to squeeze its way into the vending machinese anytime soon and becaue Starbucks has done well by taking the high (margin) road.

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September 30, 2005

Intel's Global/Local Advertising Campaign

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Posted by John Yunker

The WSJ writes about Intel's new global advertising campaign, which is being locally tailored using regionally and/or locally recognized celebrities. The tagline "Experience entertainment in your lap" features the likes of Seal, Tony Hawk, and Chinese celebrity Tony Leung seated on the laps of others.

intel_ad_cn.jpg

According to the article...

    The campaign, made by Interpublic Group's McCann Worldgroup, is Intel's answer to a problem that has long vexed big marketers: Should advertising be local, global or somewhere in between? Companies such as McDonald's and Procter & Gamble use local and pan-regional techniques in international markets to push their offerings. Coca-Cola has swung back and forth between local and global ads.

    Intel's double-duty approach is a departure for a technology company, as they tend to rely on a single global campaign designed to unify the messages seen by travelers, Web surfers and company employees alike. For example, Apple Computer pitches its iPod digital music player with the same dancing silhouette ads in Beijing as in Boston.

A few thoughts:

1. The laptop has gone global. This ad campaign isn't pushing desktop computers. No sir. It's all about the laptop now, where margins are higher and, with Wi-Fi, computers are truly mobile. While old timers like me first got to know a computer at a desktop, most of the world's computer users will know only a laptop. This alone I find amazing.

1. Only the ad for China actually features someone speaking in Chinese. All of the other markets feature dubbed translated content. This clearly underscores how important China is to Intel. But does that mean that Germany, for example, is that much less important that Intel couldn't use a German celebrity speaking in his or her nature tongue? I'm not trying to pick on Intel because I don't know of any company that localizes every global ad campaign to that extent, but I do think we're headed in that direction.

2. Why use a western URL? The URL used on the Chinese spot is intel.com/cn/centrino. This strikes me as odd because Intel could have just as easily used the more Chinese-specific URL: www.intel.cn/centrino. Many global marketers insist on using .com globally, but that adds another layer of navigation to users who must first go to .com and then navigate to their local market, wasting time and potentially getting them lost.

One other thought: Intel could also have used a domain name in Chinese script. These URLs do work although they are at best workarounds still.

3. In search of the truly global ad Finally, the article mentions above how Apple uses the same ad everywhere as if Apple is ignoring the localization of its advertising. While I think Apple could do a better job of translating content for its target markets -- both on its Web site and in its stores -- I think the dancing silhouette ad is actually a great example of a "global by birth" ad -- one that requires little in the way of localization. If you can remove all dialogue, use models that are not specific to any nationality (like silhouettes), and still end up with an ad that is locally appealing (on a global basis), you've created a very special global advertisement. While these ads aren't easy to come by, when companies and their agencies do come by them, they're going to get maximum global bang for their advertising buck.

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September 28, 2005

McDonald's Scores with "McRice Burger"

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Posted by John Yunker

mcds_riceburger.jpg

The Taipei Times (by way of McChronicles) reports that McDonald's Taiwan has sold 5 million units of its home-grown rice burger after only six months on the market. Not bad.

More important, McDs is looking to expand its new burger globally. Could it play in the US? Apparently, the burger consists of a choice of either chicken or beef sandwiched between rice buns. So much for the vegetarian market.

But let's take a look at the calorie content:

rice burger: 378 calories
Big Mac: 529 calories

It certainly can't hurt to give it a shot. After all, the Happy Meal was concocted by a Kansas City ad agency as a one-time promotion and look where that ended up.

The article also notes that "McDonald's Taiwan has developed several products in the past, including Japanese style pork burger, kimchi burger, grain burger and others, but none of the products have had the success of the rice burgers."

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September 9, 2005

What the World's Listening To, According to Apple

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Posted by John Yunker

Apple has posted a list of the top 10 songs purchased from its growing list of country iTunes stores. Even if you don't use iTunes, you can view the list at www.apple.com/euro/itunes/charts/top10songs.html.

"You’re Beautiful" by James Blunt is number one in France, Germany, Switzerland, and elsewhere but, oddly, not in the UK. I say oddly because the song is in English and the singer is from the UK.

Pop music can be funny that way...

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August 19, 2005

Looking for VC Cash? Go Global

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Posted by John Yunker

According to the Deloitte and NVCA 2005 Global Venture Capital Survey, VCs are increasingly looking outside their borders when making investments.

deloitte_vc.jpg

What this non-intuitive exhibit shows is that US VCs will be boosting non-US investments signficantly, most heavily within China and India, while non-US VCs will be increasing their investments in the US. So it seems the US is going to see no shortage in VC money anytime soon. But one of the keys to tapping into this money will be having a global business strategy in place. And a global Web site certainly couldn't hurt either. Web globalization is often viewed as something only large multinationals invest in; but I believe that start-ups stand to benefit the most from Web globalization.

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August 11, 2005

Muji: The Un-Brand

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Posted by John Yunker

muji.jpg

Business Week features an article about the "secret" brand that is Muji. According to the article, "Muji is short for mujirushi ryohin, which translates roughly to 'no label, quality goods,' and its mission is to provide well designed, useful products at affordable prices." Muji currently has 285 stores in Japan with 61 others in the UK, France, and China. And it is contemplating setting up shop in the US. I believe it already has some products at MOMA.

Anyway, here are a few pics from my pilgrimmage to Muji back in January. These are from the main Kyoto location.

I really wanted this bike.
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The cafe was reasonably priced and had lots of great take out snacks. For some reason the Muji bottled water just tasted better than other brands.
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The clothes didn't fit my non-localized body. But I did buy a pair of glasses. They had these mix-and-match stations set up and I really enjoyed building my own specs.
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And one more shot before I left...
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What I most liked about Muji is how uncluttered the place felt. And I realize now that it was because you didn't have all these little products everywhere screaming out at you with their unique logos and color schemes and oddball shapes. At Muji, because they make and "unbrand" all their products, the color schemes, the labeling, the layouts are all very simple, consistent and serene.

I miss Muji.

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Dell Reports Strong Global Growth

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Posted by John Yunker

Dell didn't report the revenues that analysts were hoping for but it certainly posted solid non-US revenues.

According to its earnings release today...

    Revenue from outside the United States accounted for 39 percent of Dell's total for the quarter and grew 24 percent year-over-year.
  • Asia-Pacific and Japan (APJ) revenue grew 24 percent year-over-year.
  • In Europe, the Middle East and Africa, revenue was up 21 percent over last year.
  • Excluding the U.S., the Americas region revenue grew 34 percent year-over-year.

Dell plans to double manufacturing capacity in China next year.

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August 7, 2005

Can Baidu Out-Google Google?

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Posted by John Yunker

As the stock offering for Chinese search engine Baidu quadrupled on its first day of trading on the NASDAQ, I couldn't help but wonder what the folks at Google are thinking right about now. They sure must be sick and tired of others ripping off their austere design...

Baudu
baidu_400.jpg

Google China
google_cn_400.jpg

The rumor is that Google tried to buy Baidu at one point. I wouldn't be surprised. eBay bought its way into the market, as did Amazon. One thing is for sure -- this battle between Baidu and Google China is going to be a great case study in Web globalization and localization. Look at how Baidu describes itself and its uniquely local mission...

    Baidu chose a poetic Chinese name because it wants the world to remember its heritage. As a native speaker of the Chinese language and a talented engineer, Baidu focuses on what it knows best - Chinese language search. Applying avant-garde technology to the world's most ancient and complex language is as challenging as it is exciting. At least people here at Baidu think so. As having diligently disclosed in the Prospectus of our recent Initial Public Offering, we believe there are at least 38 ways of saying "I" in Chinese. It is important that we master all the ways of addressing oneself in Chinese because our users depend on us to address every one of their daily queries. And trust us, pin pointing queries in the Chinese language is an art rather than a science.

    To improve user experience, we constantly make improvements to our products and services. For example, we introduced "phonetic" or "pin-yin" search which allows our users to type in Chinese keywords using English alphabets. This feature is designed to skip the switching from English inputting to Chinese inputting and for when the user is not sure of the written form of a keyword. Our users definitely notice the many little things that we do differently to ensure a simple and reliable search experience every time.

I first asked can Baidu out-Google Google? Perhaps the question really should be: Can an outsider like Google out-Baidu Baidu?

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August 3, 2005

And iTunes Japan Makes 20

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Posted by John Yunker

The long-awaited iTunes Japan site is up and running..

itunes_jp_flag.jpg

Japan is the 20th country store now available. Plenty of room left to grow. The site offers 1 million songs which cost roughly ¥150 each.

So now that Japan is live, who's next? Australi? New Zealand?

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August 1, 2005

Think Globally; Develop Locally

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Posted by John Yunker

That's what Intel plans to do as it opens up design centers in India, China, Brazil, and Egypt, according to CNET News. Says the article, "the so-called definition centers will examine local conditions and economies and then try to design PCs, components and software for the people who live there."

Intel is simply following the money; more than 70% of its revenues come from outside the US. And in this brutally competitive and increasingly commoditized environment, Intel knows that localized products will give it a competitive edge.

The fact that Egypt is one of the target markets is also telling. I'm seeing early signs that multinationals are awakening to the Middle East market, both through product development and Web localization.

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July 29, 2005

AOL Latin America: How Not to Go Global

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Posted by John Yunker

The recent bankruptcy announcement of AOL LatAm draws to an end a six-year case study in how not to expand a business into new markets. This article touches on many of the challenges that AOL encountered when it ventured south (some local and some self-inflicted).

According to the article, AOL's strategy of mass-mailing software CDs to every household didn't make much sense in markets with very low PC and credit card penetration. Says the article, "A former AOL Latin America executive, speaking on condition of anonymity, agreed that AOL's U.S. strategy hadn't translated well in the failed venture. The executive noted that CD mailing costs were about 30 percent to 40 percent higher in Latin America and response rates about half those in the United States."

And then there is the local compeitition. In Mexico, for example, there is Telmex, which is not only a virtual monopoly but also a pretty creative company. It sells the Prodigy Internet service and has enjoyed great success by selling a package that includes the service along with a low-priced PC. And, the last I heard, Telmex is now the largest distributor of PCs in Mexico. While AOL was pushing CDs to people who may or may not have had a PC, Telmex was selling a total solution.

So what are lessons other companies can take away from AOL's saga? For starters, it's probably best not to call yourself a regional player until you truly are one. Better to pick one market and expand from there.

Next, be prepared to ditch the strategy that made you a success in your home market. If you're not prepared to do that, then maybe you should look at just those markets that will support your home-grown strategy.

And be prepared for the locals to work together to see that you fail. Nothing unites local competitors like a foreign competitor with deep pockets. AOL clearly faced a tough, and not entirely fair, fight in every market it entered.

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July 25, 2005

Wal-Mart in China

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Posted by John Yunker

This month's issue of Fortune magazine has an in-depth piece on Wal-Mart's adventures in China. Despite having been operating in China since 1996, the company has just 43 locations operating today (it has 3,719 locations in the US). But it was only recently that foreign retailers got the official green light to expand outside the large cities. The race is on.

And this excerpt pretty much sums up how much Wal-Mart has riding on this country...

    Wal-Mart can't sustain the astronomical U.S. growth rates of the past decade forever. Sooner rather than later, the company will need help from overseas. But the Beast of Bentonville has yet to emerge as a dominant player in any of the foreign markets that account for about 20% of its global sales. In Germany it is still struggling to stanch losses at the two retailers it acquired in the 1990s. In Japan it has yet to articulate a clear strategy for its 38% stake in the troubled Seiyu chain. The company has had better luck in emerging economies, such as Mexico, where there are fewer entrenched incumbents. But executives have long viewed China, with its vast population and booming economy, as their best bet for long-term global growth. In an interview with FORTUNE last year, former Wal-Mart CEO David Glass proclaimed China "the one place in the world where you could replicate Wal-Mart's success in the U.S."

As for the Internet, Wal-Mart is in need of a truly global Web design and management strategy. Currently, Web sites are managed locally and have little in common except for the logo. A more consistent template will allow for greater sharing of content between countries and greater efficiencies all around.

PS: Wal-Mart plans to have 90 locations by the end of 2006.

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July 20, 2005

More on eBay Intl...

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Posted by John Yunker

From the eBay investor call today...

-> eBay now has more than 157 million registered users worldwide.

-> eBay Spain now has 1 million registered users.

-> Europe: 40% growth year over year.

-> The UK achieved first-ever $100 million revenue quarter.

-> France and Italy combined equal Germany in size.

-> Launching a new PayPal fraud protection service in Germany in August. Launching in Germany first before other markets.

-> eBay China (EachNet) added 1.6 million users in Q2, giving it a total of 13.2 million users.

-> No more details on China. eBay is "pleased" with progress thus far.

-> PayPal China is now live (includes buyer protection service). PayPal China is offered free right now. They believe direct payment will be more popular than credit cards in China than in other markets, which will minimize risk.

-> India: 1.7 million registered users.

-> No mention of eBay taking another stab at Japan.

-> US PayPal Merchant Pro service: Meg says merchant feedback is good and the price is right. (I found the documentation for this product both light and confusing, though the pricing is very good).

-> Meg says eBay is one of the "top two" paid search advertisers globally.

-> Meg mentioned that they put a priority on sharing best practices across country units.

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eBay Reports Strong Intl. Growth

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Posted by John Yunker

eBay's non-domestic revenues continue to climb upward. In Q2,

According to their press release:

    -> U.S. Marketplace net revenues totaled $423.6 million in Q2-05,
    representing 27% year-over-year growth.
    -> International Marketplace net revenues totaled $418.8
    million in Q2-05, representing 51% year-over-year growth.

(And if you look just at net transaction revenues, non-US revenues passed US revenues in Q2.)

The fastest growing non-US sites were the U.K., up 94%, and Korea, up 78%.

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July 12, 2005

Pepsi's Global Growth Spurt

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Posted by John Yunker

It has been a good quarter for PepsiCo, driven by a healthy spike in international sales. According to this article...

    In the standout international division, snacks volume rose 3 percent, while drinks volume jumped 10 percent. PepsiCo said it saw strong snacks growth in developing markets like India, China, Russia and Turkey, while drinks volume growth was led by the Middle East, China and Argentina.

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July 7, 2005

The 2005 Web Globalization Survey

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Posted by John Yunker

If your company offers a multilingual Web site (or plans to offer one), I encourage you to take a moment to complete our landmark Web globalization survey. You can participate by clicking here.

In return for your valuable time, you will receive a free executive summary of the survey. You will also be entered in a drawing in wich we will give away three copies of our popular 2005 Web Globalization Report Card.

If you are a translation agency, please tell your clients, as we are also conducting a study of vendor awareness among all those who take the survey.

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July 3, 2005

Burger King Enters China

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Posted by John Yunker

mcd_china_detail.jpg

While McDonald's has operated in China for some time now, Burger King now appears close to opening its first branch in the country -- in Shanghai. BK has high hopes for the country, as do other fast food chains.

According to the Wall Street Journal, Wendy's is scouting out locations and Hormel Foods is looking at opening hot dog stands.

But the article notes that not all restaurants have thrived in China. Schlotzsky's Deli withdrew from the market and McDonald's recently cited "weakness" and put in a new management team. And then there is pricing. BK is charging 40% to 50% less than what it charges in the US.

Nevertheless, it's safe to say that any multinational fast food chain has little choice but invest in China. BK has 7,956 locations now operating in the US, so there's not much room left to grow. China, despite the risks, despite the low margins, despite the inevitable cultural missteps, is where the action is.

What about the BK China Web site?
While McDonald's offers a China Web site, Burger King does not. It's early yet of course, but BK does not have the best track record in Web globalization. If you visit the corporate site you'll be hard-pressed to find links to the country sites. As best as I can tell, many countries that BK does business in do not have localized Web sites.

To complicate matters, Burger King is known as Hungry Jack's in Australia.

hungry_jacks.jpg

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June 24, 2005

Apple iTunes Sells 50m Songs in Europe

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Posted by John Yunker

Apple's globalization of iTunes appears to be moving right along. According to the press release, "iTunes Music Stores were launched in the UK, France and Germany in June 2004, and now operate in 17 European countries including Austria, Belgium, Denmark, Finland, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and Switzerland. The European iTunes Music Stores have catalogs of over one million songs each, and feature content from all major music companies and over 1,000 independent record labels."

Now we wait for Apple to tackle Asia. Sites for Australia, New Zealand, and Japan are expected this year.

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June 23, 2005

eBay Sheds Light on Translation Plans

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Posted by John Yunker

eBay held its annual developers conference and, according to this article, is not close to launching any translation service for sellers. Here's an excerpt:

    Another questioner wanted to know if eBay had any plans for a translation feature, saying it was difficult for sellers to sell in a multi-cultural, multi-language region, for example on a European site where browsers might be from Germany, Italy, Spain, etc. Steinhorn responded they hadn't thought through all the ramifications of such a service, for example, if eBay's translation was "less than spectacular." Don Durbin suggested a good approach might be to partner with someone within the country to do the translation, and indicated one seller had created a tool with tabs within a listing for different languages such as English, Italian, etc. She said she did not expect eBay would be offering translation services in the near future.

And eBay's loss of Japan to Yahoo! is clearly still a source of pain:

    Cobb and Jordan's answers seemed to highlight the international focus of much of the conference. The "biggest blight" on the record of international has been Japan, said Cobb. "We were late" in the Japanese market, said Jordan. The Japanese didn't respond to an English-written product with dollars," he said wryly, to laughter from the audience.

What eBay doesn't highlight is that their classified portal, Kijiji, is already localized for Japan; so to some extent they are trying to get back in. And, I believe, they really have no choice but take another shot at Japan. I wrote about this earlier this year in our eBay Global Profilereport.

On a separate note, eBay has partnered with B-B trade portal in China, Global Sources. You can read about the deal here.

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Web Globalization Tips for Translation Agencies

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Posted by John Yunker

I spent Saturday at the Association of Language Companies conference in Pasadena and gave a talk on Web globalization. I'm glad I went. I'm seeing more and more agencies trying to grab a share of the rapidly growing Web globalization industry. My presentation was on the "Web globalization opportunity (and risk)."

Because I had so many requests for the presentation, I've posted it online here: www.bytelevel.com/global.

alcus_webglobalization.jpg

The key takeaways from the presentation are:


    1. Web globalization is inevitable for most companies and, as a result, a huge opportunity for translation agenices.
    2. Many translation agencies avoid Web globalization because they think they don't have the skills or tools. And yet many Web globalization projects are surprisingly easy to manage.
    3. If you want to hone your Web globalization skills, start by globalizing your own agency Web site. Doing so sends a message to prospects that you are skilled at Web globalization. You don't have to translate your entire Web site - a "brochure" Web site in a few languages will do the trick. Be sure to include Chinese or Japanese (or both); Arabic is a hot language these days as well.
    4. When selling Web globalization services, remember that your buyer may be new to translation. They may not know the difference between internationalization and localization and they may not appreciate it if you assume that they should know it. That's why I use the term Web globalization or web site globalization. People get it. When selling Web globalization services, you're going to have to invest the time to educate your clients. So many companies are just dipping their toes into these waters.
    5. Just because you are already the "agency of record" for a company does not mean you'll also get the Web globalization account. It's important that you stay in touch with the marketing and Web teams so they know to include you in the RFP.
    6. Along these lines, Web globalization is often the "back door" for aggressive vendors into new accounts. The danger of ignoring Web globalization opportunities is that you allow competitors to develop a relationship with your clients. And, since so much content is moving toward to the Web, you risk being marginalized down the road.
    7. If you think you're too late to the Web globalization game, think again. Most companies are just getting started localizing their Web sites. Opportunities are enormous.

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June 21, 2005

Disney and China: How Local is Too Local?

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Posted by John Yunker

There was a great article recently in the Wall Street Journal that describes the challenges that Disney faces in launching Hong Kong Disneyland later this year. According to the article, there are more than 290 million consumers in China under the age of 14. Imagine the number of Mickey Mouse hats they could sell!

And yet Disney has had very mixed results with theme parks outside the US. On one hand you have Paris, which is still struggling to make ends meet; on the other hand there is Tokyo, which is a massive success. The big question is whether China's culture will embrace Disney's culture. This article excerpt illustrates the uphill battle that Disney faces:

    While Hong Kong's relatively wealthy 6.8 million citizens are well versed in Disney's cartoons-and-Cinderella culture, the brand is far less pervasive in mainland China. Many Western media and consumer-products companies have stopped exporting their Western goods, choosing instead to develop more locally tailored fare. Chinese consumers are drawn to luxury, but still want culturally relevant products. And sometimes the government demands Chinese goods: It recently proposed banning foreign-made cartoons on prime-time TV.

    Britney Spears doesn't burn up the charts in China. Today, 70% of music and 90% of all programming on Viacom Inc.'s MTV China is made in China. At Yum Brand's KFC, 85% of the menu is unique to China, with some cross-cultural hybrids, such "Dragon Twisters" with Peking duck sauce.

So Disney is making some attempts to localize the experience for its Asian guests, like creating more photo opportunities and changing "Main Street, U.S.A." to "World Bazaar." And let's not forget the now-infamous "shark fin soup" episode; Disney recently agreed to take that item off its menu after pressure from outside Asia. Which begs the question: How local can you be to one culture without offending another culture?

Cultural speed bumps are inevitable these days. I am glad to see Disney putting the effort into balancing its global culture with China's culture. My prediction is that Disney will do well in Hong Kong and exceedingly well when it sets up shop in Shanghai. That is, until a local competitor builds a "Chinaland" equivalent, trying to beat Disney at its own game.

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June 19, 2005

Will Google Wallet Force PayPal to Accelerate Global Expansion?

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Posted by John Yunker

The announcement by the WSJ that Google is prepping a payment service is big news in the ecommerce world and, I think, good news for consumers.

According to the article, "Exact details of the search company's planned service are not known. But the knowledgeable people say it could have similarities with PayPal, which allows consumers to pay for purchases on Web sites by funding electronic-payment accounts from their credit cards or checking accounts. Some consumers like PayPal for the security it offers, since it allows them to share their banking or credit-card numbers only with PayPal without having to divulge the information to merchants."

PayPal is a great service. My company uses it and it has allowed us to accept payments from all over the world. My only concern has been the flood of PayPal phishing spam and what effect it is having on user trust and behavior.

But now we have Google getting into the game, with a service possibly called Google Wallet. At the very least I believe that Google Wallet will pressure eBay to rethink its global expansion strategy for PayPal. Currently, PayPal follows in the footsteps of eBay. When eBay launches a country Web site, it's just a matter of time before PayPal supports that market.

However, PayPal might be wise in expanding into markets ahead of eBay because Google has a track record of "going global" at a blistering pace. eBay knows well, after ceding Japan to Yahoo! a few years back, how being a late entrant into a market can hurt. And yet Google is going to face its share of roadblocks along the way. The reason PayPal has gone global relatively slowly is not so much technical but legal. PayPal needs to forge partnerships with local banks and get regulatory approval in these markets before it can enter, and you can imagine the time and lobbying involved; I've heard that this process alone can take up to 18 months per market. There is still no PayPal China.

I would imagine that Google is going to have to do jump through the very same hoops that PayPal has jumped through, unless it is taking a different approach altogether.

Regardless, I'm glad to see Google getting into ecommerce in a global way. It will push PayPal to be even better, most likely keep processing fees low, and keep the folks at Visa, MasterCard, et al at bay.

Comments (2) + TrackBacks (0) | Category: Business Globalization | China | Web Globalization

June 15, 2005

Starbucks in Russia

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Posted by John Yunker

According to the Moscow Times, Starbucks has opened its first retail location in Russia.

No Russian Web site yet, but I have no doubt that one is in the works. That makes it 19 countries (and counting) for Starbucks.

starbucks_gate_jun05.jpg

And, after a brief trip to Osaka, I have to say that Starbucks is doing very well in Japan. The chain is not nearly as ubiquitous in Osaka as it is in Tokyo, but it's getting there...


UPDATE: I stand corrected. There are more than 30 countries around the world that include at least one Starbucks. Here is the current list (Russia not yet included):


  • Australia
  • Austria
  • Bahrain
  • Canada
  • Chile
  • China
  • Cyprus
  • France
  • Germany
  • Greece
  • Indonesia
  • Japan
  • Jordan
  • Kuwait
  • Lebanon
  • Malaysia
  • Mexico
  • New Zealand
  • Oman
  • Peru
  • Philippines
  • Puerto Rico
  • Qatar
  • Saudi Arabia
  • Singapore
  • South Korea
  • Spain
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • United Arab Emirates
  • United Kingdom
  • United States


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June 14, 2005

Microsoft China: Localization or Capitulation?

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Posted by John Yunker

china_msn.jpg

The news that Microsoft's new China MSN blogging portal is censoring "prohibited language" such as "democracy, freedom and human rights" is unsettling to say the least.

    "MSN abides by the laws, regulations and norms of each country in which it operates," said Brooke Richardson, MSN lead product manager.

Every country has its rules that companies must play by, but what if these rules are just plain wrong? I understand that Microsoft is desperate to do business in China and I understand that if Microsoft doesn't play by China's crazy rules that some other multinational most certainly will (see Yahoo!, eBay and countless others). Privately, many executives tell me that they are playing nice with China in the hopes that these rules one day are relaxed. But by playing by the rules aren't you giving China less incentive to relax them?

The mark of a great company is one that is not afraid to turn away business if it violates their sense of ethics. When American-based companies assist a government in banning the use of words like "freedom" and "democracy" these companies have become part of the problem and not part of the solution. This isn't localization; this is capitulation.

Comments (0) + TrackBacks (0) | Category: Business Globalization | China

June 5, 2005

DITA Becomes a Standard (Now What Is It Exactly?)

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Posted by John Yunker

The standards organization OASIS recently approved Darwin Information Typing Architecture (DITA) version 1.0 as an OASIS Standard -- a "status that signifies the highest level of ratification."

So what exactly is DITA?

According to the press release, "DITA consists of a set of design principles for creating "information-typed" modules at a topic level. DITA enables organizations to deliver content as closely as possible to the point-of-use, making it ideal for applications such as integrated help systems, web sites, and how-to instruction pages. DITA's topic-oriented content can be used to exploit new features or delivery channels as they become available."

Still not clear?

I'm afraid this is one of those standards that only an information architect could love. Fortunately for me, I did have the benefit of an Idiom presentation on DITA recently. The presentation illustrated how the standard will aid in managing content across languages as well as across departments and media (Web, print, mobile).

And there is a real need among enterprises for an XML standard that allows them to "chunk" content in a way that allows for such wide-scale reuse and translation. I'll know more when I see some real-world success stories, of which there are none as of yet. But I'm sure the folks at Idiom and Arbortext are writing up their case studies as we speak.

So where will we be seeing DITA commercially?

Here are the principal vendor supporters: Idiom, Arbortext, BMC, IBM, Intel, Nokia, Oracle, and Sun. The ones to watch are not just these folks but also the folks not on the list, particularly Documentum, Interwoven, and Vignette. It will be interesting to see if other CMS vendors jump on the DITA bandwagon.

If you want to learn more, and have a few hours to spare, here are the tech specs on DITA.

Comments (1) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Software Localization | Translation | Web Globalization

June 4, 2005

PayPal Launches in Spain

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Posted by John Yunker

PayPal continues its strategy of following in eBay's footsteps by lauching PayPal.es to support eBay.es.

paypal_es.jpg

According to the press release the "new site (https://www.paypal.es) is written in Spanish, offers information customized for Spanish PayPal account holders, and enables payments in Euros, the common currency in Spain."

PayPal currently supports six currencies: U.S. Dollars, Canadian Dollars, Pounds Sterling, Euros, Japanese Yen, and Australian Dollars. I find it very interesting that PayPal supports Yen even though eBay offers no Japan Web site (yet).

PayPal Spain joins the list of 11 PayPal countries currently supported. There is plenty of room left to grow, as there are more than 22 eBay country Web sites (and counting).

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May 28, 2005

Will Google Kill the Translation Industry?

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Posted by John Yunker

Last week I received a "Factory Tour" invite from Google but didn't give it much thought. I wish I had because I missed a preview of the company's ambitious machine translation (MT) efforts.

Thankfully, Philipp Lenssen includes a great recap of the Webcast at this site: Google Blogoscoped. It's worth a read.

Apparently Google is taking massive libraries of source and target text and dumping them into a database where the relationships between source and target text are analyzed and memorized. This database is then leveraged to translate new source text. Philipp explains it better than I...

    This is the Rosetta Stone approach of translation. Let’s take a simple example: if a book is titled “Thus Spoke Zarathustra” in English, and the German title is “Also sprach Zarathustra”, the system can begin to understand that “thus spoke” can be translated with “also sprach”. (This approach would even work for metaphors – surely, Google researchers will take the longest available phrase which has high statistical matches across different works.) All it needs is someone to feed the system the two books and to teach it the two are translations from language A to language B, and the translator can create what Franz Och called a “language model.” I suspect it’s crucial that the body of text is immensely large, or else the system in its task of translating would stumble upon too many unlearned phrases. Google used the United Nations Documents to train their machine, and all in fed 200 billion words. This is brute force AI, if you want – it works on statistical learning theory only and has not much real “understanding” of anything but patterns.

This sure is brute force MT. I'll be very interested to know just how long a string a text Google can effectively translate. More important, how will Google handle the flood of brand names, oddball terms, and local slang?

But let's just assume that Google does make this ambitious project a success; how will this affect the translation industry in general and Web globalization in particular?

Assuming this all does work moderately well, companies will be incented to pull all text out of graphics to make the most of this free translation service. After all, if Google is providing users in Vietnam a free translation of your company's Web site, why not do what you can to make everything translatable.

This would also be yet another blow to Macromedia Flash, not that the emergence of AJAX isn't doing enough damage.

But what about the impact on translation vendors? i don't think they have much to worry about, yet. The need for high-quality, human-edited translation isn't going away anytime soon. Long term, however, all bets are off. Google should be on every translation vendor's radar; this company has lots of money, lots of smarts, and lots of incentive to provide the world's text in all the world's languages.

Comments (8) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Translation | Web Globalization

May 19, 2005

The Global Branding Continuum

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Posted by John Yunker

Here's an interesting article about a book that might be worth checking out: The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses. Okay, it's not the most exciting title, but the article is worth a read.

It introduces the concept of a global branding continuum, which basically means that there are "various levels of being truly global. It is not always achievable, nor desirable, to go the full extent. Some form of local adaptation may be necessary, either in the product/service that is offered or in the positioning relative to competition."

Here's a good example of this concept:


    What kinds of products do not lend themselves to global brands? Food is one category where, literally, differences in tastes from culture to culture compel global companies to adapt to local conditions, according to Day. At the other end of the spectrum is a company like Intel, whose products and markets make it easier for executives to establish a truly global brand with a memorable catch-phrase: "Intel inside."

Naturally, you could extend the continuum concept to Web globalization. While Intel uses a consistent global design template across most countries, a fast food company like McDonald's may be more likely to "go local" with the design. Compare McDonald's China to McDonald's US and you'll get the idea.

I would still argue that McDonald's can still use a global template while remaining locally effective (and save a ton of money along the way). Besides, its use of bandwidth-heavy Flash in markets where broadband penetration is relatively low doesn't make much sense. But I digress...

I like the global branding continuum concept because it emphasizes the immense complexity of taking a business global.

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What Do Dell, HP, and Intel Have In Common?

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Posted by John Yunker

Strong overseas growth, that's what they have in common.

In fact, when you look at their quarterly numbers, had it not been for robust overseas growth these companies would not have hit their global growth targets. And I don't thinnk it's coincidence that these three companies have global Web sites that rank in the top 25% in our 2005 Web Globalization Report Card. HP finished second overall.

While there is always room for improvement, these companies have invested more than most companies in selling their products abroad, from localization of product documentation to Web-based support to in-country sales offices -- particularly in emerging markets. And their efforts are paying off...

Intel
According to CNET News, Intel is looking well beyond the US in product development opportunities...

    The market ... is an increasingly international one that will be driven by developing markets, (CEO Paul Otellini) said. In 1995, Intel had dealers in four cities in emerging countries. Now it has dealers in 1,275 such cities. A decade ago, 15 percent of PCs ended up in emerging nations; today, the percentage has risen to 38 percent.

    To this end, Otellini said, the company is trying to develop new products that will fit the circumstances of these markets, both economically and otherwise.

    "We found that selling products designed for North America isn't the best recipe," he said. "They need to be much more rugged, much more sensitive to dirt, much more sensitive to power interruption."

Dell
According to this InfoWorld article Dell enjoyed a very nice quarter thanks to "rest of world" ...

    The increase in revenue was driven largely by a 21 percent increase in sales to businesses and consumers outside the U.S., said Kevin Rollins, chief executive officer, on a conference call following Dell's earnings announcement. Customers outside the U.S. now account for 42 percent of Dell's total revenue, he said. Shipments in Europe, the Middle East, and Africa increased by 26 percent compared to last year, while shipments in Asia-Pacific, including Japan, increased 27 percent.

HP
Despite job cuts on the horizon, HP managed to turn in decent numbers for Q2. Why? Credit an EMEA market that grew twice as fast as the Americas...

According to InfoWorld...


    HP said revenue in Europe, the Middle East and Africa grew by 10 percent, year-over-year, to $9.1 billion for the quarter, which ended April 30. In Asia, revenue was up 9 percent, to $3.6 billion. Both regions outperformed the U.S. which grew by just 4 percent during the period, totalling $8.8 billion.

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May 9, 2005

Expedia in China

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Posted by John Yunker

Expedia does not offer a Chinese Web site, yet. It does have the next best thing though, a majority share of eLong, a Chinese-based travel Web site.

elong_logo.jpg

Here is an interesting article about the brewing battle for dominance of one of the fastest-growing travel markets in the world.

In fact, if you book a hotel in China using Expedia, you may already be using eLong and not even know it. According to the article...

    Justin Tang, chief executive of eLong, says his company has begun supplying some of the Chinese hotel inventory in Expedia. It has also entered into an alliance with Visa, becoming the first Chinese online travel site to accept payment by credit card.

But Web-based travel sites are still largely a novelty in China.

    ...foreign business strategies do not always work in China. The Chinese online market is unique - 70 to 80 percent of online travel reservations originate on the telephone, he says, and not on the Internet.

    Nevertheless, the market is young and expansion appears inevitable. Currently, only 5 percent of all hotel bookings and 1 or 2 percent of airline reservations are done online.

    Survey firm iResearch forecasts the online travel market will grow to 2.8 billion yuan by 2007, nearly five times' last year's 610 million yuan.

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May 5, 2005

iTunes Oz on Hold

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Posted by John Yunker

The much-anticipated launch of iTunes Australia is on hold due to, who else, a record company. Or, more specifically, a record company's lawyers.

According to the Courier-Mail:

    A source said yesterday Apple had planned to launch an Australian version of its popular online music store last Thursday, as widely touted, but the launch was thwarted by one unnamed major record company that refused to sign an agreement in time.

    The hurdle reportedly forced Apple to cancel radio advertisements ordered for the date, and it is expected to delay iTunes's launch by days, or possibly weeks, as song and album prices and payments are negotiated with the holdout label.

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May 2, 2005

Amazon Continues Intl. Growth Spurt

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Posted by John Yunker

International revenue growth for Amazon continues to outpace domestic growth, according to their Q1 earnings release:

"International segment sales accounted for 45% of worldwide net sales, up from 40% for the trailing twelve months ended March 31, 2004."

By this time next year more than half of Amazon's core segment revenues will come from outside the US, which is signficant when you consider that Amazon is only doing business in seven markets outside the US.

So what's the next market for Amazon? India? Russia? Italy?

I'm betting on India. They already have a development group there to assist with localization...
amazon_india.jpg

I'd also like to see a fully localized Spanish site for the US market, which wouldn't take great expense to develop. The company already sells Spanish-language products, but only through an English-language interface.

To some extent, Amazon has little choice but continue entering new markets. Even emerging markets will become mature eventually; when that happens, revenue growth starts to decelerate.

This is from the Wall Street Journal...

    Amazon's business appears to mirror the slowdown that Internet auctioneer eBay Inc. witnessed in its recent first-quarter earnings report. EBay, San Jose, Calif., has acknowledged slowing growth rates in its two oldest markets, the U.S. and Germany.

    In the first period, Amazon saw a deceleration in its international sales, which, for most Internet companies, promises to be a big driver of revenue growth. International sales rose 28% to $875 million. Excluding the effects of foreign-currency fluctuations, the international sales rose 24%, which is down from 58% a year earlier.


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May 1, 2005

Disney Acting Local in Hong Kong

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Posted by John Yunker

The NY Times has a great article about the making of Disneyland Hong Kong

disneyland_hk.jpg

It looks like Disney learned some painful but important lessons about the importance of localization from the Euro Disney disaster.

Writes Laura Holson...

    When Disney opened Disneyland Paris in a former sugar beet field outside Paris in 1992, the company was roundly criticized for being culturally insensitive to its European guests. Now Disney burns incense ritually as each building is finished in Hong Kong, and has picked a lucky day (Sept. 12) for the opening.

This may seem silly to Westerners, but imagine Disney opening a new park in the US on Friday the 13th. Other details include a liberal use of the number 8 and an avoidance of the number 4. You won't find a fourth floor here.

I'm glad to see a more humble Disney localizing itself to the world. And I love this quote: "It used to be Disney was exported on its own terms," said Robert Thompson, a professor of popular culture at Syracuse University. "But in the late 20th and early 21st century, America's cultural imperialism was tested. Now, instead of being the ugly Americans, which some foreigners used to find charming, we have to take off our shoes or belch after a meal."

Now, about that Web site...

I couldn't help but notice that the Disney Hong Kong and Disneyland Hong Kong Web sites place their language navigation in the "sweet spot" of the upper right corner. This is the perfect location; here is a screen grab from the Disney Hong Kong page:

disney_hk_gate.jpg

Perhaps the folks who manage Disney.com will follow Disney Hong Kong's lead. Today, if you visit Disney.com you'll have to look really hard to find the "global gateway." It's buried in a pull-down menu at the bottom of the Web page:

disney_us_gate.jpg

Now why is this a big deal? Because Web and marketing professionals are finding that up to half (and sometimes more) of their Web traffic to the .com page originates from outside the US. It's critical that these visitors find their languages and countries as quickly as possible. Disney Hong Kong gets it and I believe that Disney.com will get it too, eventually.

Comments (0) + TrackBacks (0) | Category: Business Globalization | China | Cultural Issues | Web Globalization

April 30, 2005

Global Retail Trends: Are Americans Too Slow?

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Posted by John Yunker

According to Deloitte's 2005 report on the retail industry, the "need to go global" is one of the top 10 issues facing retailers. Here are two interesting excerpts...


    Globalization gained further ground in 2003. Currently, these 250 retailers sell in 135 different countries. The average retailer sells in 5.5 countries. This average does not include the six retailers who are truly “global” in scope, operating in nearly all major countries around the world. In comparison, the 1997 results showed that retailers back then operated in only 4.5 countries, on average.

    International sales have become important to many retailers’ growth strategies. Published reports noted that Tesco showed a 30 percent growth rate outside of Britain compared to 7 percent at home. Almost 49 percent of its square footage is overseas. Wal-Mart’s international division saw a 17 percent increase in sales for 2003; the division now represents 18 percent of Wal-Mart’s total sales.

Despite Wal-Mart's growing international revenues, the report does question why American retailers have been relatively slow to expand globally. I would agree. The US market is so vast that many companies have only recently awakened to the world outside their borders. Best Buy will soon be dipping its toes in China.

And I would argue that Wal-Mart, for one, should be in 30 markets right now instead of its current nine. There is a real urgency these days to get into these emerging markets early. In retail, there is a first-mover advantage, because you can get the best real estate at the best prices, developing partnerships with the best suppliers and distributors, and, more important, develop relationships with customers. In the long run, Wal-Mart's slow expansion could hurt, because European retailers, like Germany's Metro, aren't sitting still.

The report notes, "European retailers, on the other hand, have been far more adventurous, first gaining multicultural experience across national boundaries within Europe, and then applying the lessons learned by investing globally. Today, a visit to modern shopping areas in emerging markets in Asia, Latin America or Eastern Europe will involve seeing many European retailers, but few Americans."

Comments (0) + TrackBacks (0) | Category: Business Globalization | China

April 28, 2005

The Book is Flat: A Review of "The World is Flat"

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Posted by John Yunker

Perhaps I expected too much. I loved The Lexus and the Olive Tree, and when I heard the title of Tom Friedman’s new book back in the fall, I got my hopes up. Just by the title, I knew what he was getting at, and I was thrilled to see such a high-profile columnist calling attention once again to this phenomenon that is globalization.

But now, having read The World is Flat, I’m a little disappointed. And yet I will recommend the book (three stars on Amazon) because I agree with his message, and I think it’s critically important that we have writers like Tom out there explaining the many ways that globalization makes the world a better place to live.

However, the book could have been much better with some ruthless editing. As a reader, I don’t like being talked down to, and I feel that Tom does that a bit too much, primarily by repeating many of the same concepts and buzzwords over and over again. For example, he explains why the world is flat early on. It’s a good metaphor, but Tom proceeds to attach "flat" to everything he sees. He sees customer service reps in India "flattening" their accents. He writes of the "coefficient of flatness" and "compassionate flatism." I felt as if Tom tried way too hard to make his flat metaphor stick. And maybe it will stick.

Here are a few nuggets from the book that did stick with me:

  • "In the future globalization is going to be increasingly driven by the individuals who understand the flat world, adapt themselves quickly to the processes and technologies."
    This is such a key point. The interesting thing about globalization is that it empowers individuals, even more than countries.

  • Tom stresses that globalization helps the small firms as much as the big firms, perhaps even more. As the owner of a small firm, I agree. Tom quotes UPS CEO Mike Eskew: "You know who the majority of our customers and partners are? Small businesses. They are asking us to take them global. We help these companies achieve parity with the bigger guys."

  • Tom talks about Eriksen Translations, a New York-based translation firm featured in my firm's Savvy Client’s Guide to Translation Agencies. Tom mentions how Eriksen embraced Skype, the VoIP service that is revolutionizing the telecoms industry. After the first six months of using Skype, the company cut phone costs by 10%. I only wish Tom had talked a bit more about translation agencies – these firms have been outsourcing work for decades and have always been early adopters of new technologies, from email to VoIP.

  • "The Indians and Chinese are not racing us to the bottom. They are racing us to the top." The Lenovo/IBM deal is one example. And just wait until Chinese automakers start making their way into the US…

  • "China has more than 160 cities with a population of one million or more."
    Wow.

While I didn’t love this book, I liked it. If you’ve been reading The Economist for the past few years then much of this book will come across as old news. But if not, it’s worth a read. Tom is truly passionate about all that is good about globalization, and it comes through in his writing. The world needs more voices like his to prevent the US (and other nations) from knee-jerk protectionism as we collectively slouch toward a more connected world.

Comments (1) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Globalization Vendors | Translation | Web Globalization

April 24, 2005

Globalization is Good

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Posted by John Yunker

This LA Times article nicely sums up many of the reasons why globalization has been good for US businesses, that is, those US businesses who take full advantage of globalization. Here's an excerpt:

    Take General Electric Co., where rising profit from foreign operations pushed overall earnings up 25% in the first quarter. And last week Caterpillar Inc. in construction equipment, Intel Corp. in computer chips and EBay Inc. with an enormous rise in international auction trading all reported sharply higher earnings thanks to global growth.

    Indeed, a quarter of all U.S. corporate profits, or about $225 billion, were earned outside the United States last year, according to the federal Bureau of Economic Analysis.

GE was a pioneer in embracing global markets (although its global Web site could use some improvement). And eBay is betting big on emerging markets like China, Poland, and (I predict) Russia by the end of this year.

By this time next year, companies like eBay, Amazon, and Google could be earning as much (or more) of their revenues from outside the US as they do from inside the US. This is a profound transformation, in which smart and aggressive companies will transform themselves from US companies serving foreign markets to global companies serving local markets. Globalization is good for companies that see it as much of an opportunity as a threat.

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April 22, 2005

Earnings Roundup: International Revenues to the Rescue

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Posted by John Yunker

Based on a recent batch of Q1 earnings numbers, it's safe to say that strong non-US revenues is the recurring theme. In eBay's case, non-US revenues are especially critical as the US growth continues to slow. Here are a few earnings updates...

eBay (from the NY Times)
EBay, which has been growing swiftly in the United Kingdom, South Korea, France and Italy, reported strong international sales. Revenue outside of the United States was $393.8 million, up 52 percent from the first quarter of 2004. EBay added more new users in China than from any other country, and it's now the No. 1 e-commerce company there. Whitman said eBay would debut PayPal in China soon, and it is already promoting an escrow payment service similar to one in South Korea.

Google (from the WSJ)
"International operations represented 39% of Google's revenue, compared with 35% the previous quarter, partly because of a recent agreement with the AOL Europe division of Time Warner Inc."

UPS (from earnings press release)
"International operating profit jumped 25.6% to $348 million, while U.S. domestic operating profit increased almost 13% to $1.03 billion."

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March 31, 2005

The Chinese Cars Are Coming! The Chinese Cars Are Coming

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Posted by John Yunker

According to the Journal it looks like Europe will be seeing Chinese auto imports by the end of this year...

    While Chinese cars generally aren't available for sale in large numbers in Europe, they are beginning to show up in Russia, one of Europe's fastest-growing car markets in recent years. Earlier this year some Russian car dealerships began selling sport-utility vehicles made by Great Wall Automobile Co. at prices that are as much as 35% below those of other Asian imports, even after accounting for the high tariffs on imported vehicles in Russia.

Here's one from Brilliance China:
brilliance_china_auto.jpg

US automakers will be watching closely -- and nervously. It could be 2007 before the automakers come knocking on US doors, but they are coming. And they could be escorted by a partner such BMW, which has partnered with Brilliance China.

With model names like the Great Wall Sailor and the Chery, the automakers have a long way to go in establishing trustworthy brand names. But if prices are low, they'll certainly get plenty of attention. And then they'll try to follow the template set in stone by Honda and Toyota and "move on up that value chain."

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March 29, 2005

CNET Continues China Expansion

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Posted by John Yunker

According to Pacific Epoch, CNET is about to acquire yet another Chinese Internet property. This one is PChome.net; the article says that CNET is paying $10 million for a 51% stake (CNET is, not surprisingly, mum on the deal).

Assuming the deal does happen, this will be the 8th property that CNET controls in China; contrast that against the UK, with three CNET properties, and Japan, with just two:

cnet_cn_properties.jpg

And yet there is still lots of competition out there, and more on the way. So it's anyone's guess if all this buying will be worth it three years from now.

But I can see why CNET does want more real estate in this market -- because US advertisers are willing to pay for space in this real estate, as you can see here:

pchome_detail.jpg


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March 23, 2005

Starbucks in Oz

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Posted by John Yunker

My correspondent in Australia took some pictures that illustrate the ways that Starbucks has localized itself for the market.

It's Our Shout!
starbucks_au3.JPG
Translation: "It's On Us"

A Local Drink Concoction
starbucks_au2.JPG

And Another...
starbucks_au.JPG

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March 20, 2005

Hey Bud, Let's Party!

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Posted by John Yunker

According to the St. Louis Post-Dispatch (my old hometown paper), Anheuser-Busch (A-B) has reason to celebrate -- it just won a small victory against that tiny little Czech brewery that could: Budvar.

budvar_bud.jpg

A few months back I wrote about the never-ending feud between A-B and Budvar.

I'm no trademark lawyer and I know even less about EU trademark law but it seems that Budvar was trying to use some EU regulation to sidestep A-B's trademark protections in the EU. The EU stepped in and sided with A-B. But that's not the end of it by any stretch.

Here are some great excerpts that illustrate just how bitter this conflict is:

    Anheuser-Busch is fighting Budvar over the Budweiser trademark in more than 40 nations.

    A-B's most recent win was in Austria, where a court ruled late last year that the St. Louis brewer could use Bud. The decision is under appeal. The company, which markets Budweiser under the name Anheuser-Busch B in that country, had been blocked from using Budweiser and Bud.

    A-B started using the Budweiser name in 1876, which was 19 years before the Czech brewery opened. But the Czechs say that Budweiser refers to Budweis, the original German name of the city where Budvar is located, and that the name commonly referred to beer brewed in that area hundreds of years before Anheuser-Busch started making Budweiser. In the United States, Budvar must sell its beer under the brand name Czechvar.

Personally, I think these trademark battles should be settled not in court but by a taste test. And, in the interest of furthering corporate peace, I'll be happy to volunteer a few hours or my time to assist.

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March 19, 2005

Maturing Internet Markets Warrant Increased Web Globalization, Says Nielsen//NetRatings

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Posted by John Yunker

That's what Tekrati has to say about Nielsen//Netratings' latest global Web usage report.

Their research shows that people in the US (and a few other markets) are spending the same (or less) time online, while people in markets such as Italy, Japan, France and Australia continue to increase their time spent online, as shown below:

nielsennetratings.jpg

Nielsen tries to sugarcoat their findings by saying that the "US is primed for the next ‘big thing’ to spike Internet usage." Perhaps.

But I believe the next big thing has less to do with the US than markets outside the US. Web globalization is still under the radar of most media and even many large corporations, but I'm seeing more research reports point to opportunities abroad and am talking to more Web globalization managers who tell me that they can't add languages fast enough. Web globalization is indeed a revolution, although because it is a multilingual revolution, it is easy to miss.

Finally, I have to take issue with one item on the Nielsen press release. It refers to global markets as "low hanging fruit." Nothing can be further from the truth. One of the most painful mistakes companies make about Web globalization is assuming that it's easy. It's not. If it were, Amazon would be in a dozen markets right now instead of five.

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March 18, 2005

Globalization Hurts; Globalization Helps

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Posted by John Yunker

Here's a good article on the upsides and downsides of this thing called globalization. And a few excerpts that jumped out at me:

    In recent years, about 100,000 software-writing jobs have moved from the U.S. to India alone, according to the Economic Policy Institute. Those jobs would have paid a combined $136 billion a year in wages. By the end of 2005, one of every 10 jobs at U.S. information technology vendors and service providers will have moved offshore, according to data from the Bureau of Labor Statistics, Gartner and Morgan Stanley. Another 400,000 back-office jobs have already moved offshore and 3.3 million should move by 2015, according to Forrester Research.

    Vivek Paul, vice chairman of Indian IT giant Wipro, figures that over the next five years, 7% of U.S. white-collar jobs could be moved overseas, and a whopping 60% of software jobs. "There's very little economic rationale for having those jobs in the U.S.," he says.

Globalization is a truly gut-wrenching experience for those who get made globally redundant through no fault of their own. What concerns me is that there appears to be a gold rush mentality about outsourcing these days. Everybody's doing it, which is why I can't help but wonder if we're witnessing a sort of offshoring bubble.

But, bubble or no bubble, a lot of people are now living out localized versions of the American dream...

    Cruel to Westerners, offshoring is cause for celebration in Asia. This migration of jobs is one of globalization's greatest achievements-a fast-rising living standard in poor countries that is propelling better-educated Asian workers into an expanding middle class.

    In Shanghai and Kuala Lumpur, in Delhi and Bombay, white-collar denizens of the offshoring boom now gather at hip bars and pricey restaurants. It is as if the exuberance of Silicon Valley has moved to Asia. They spend their new paychecks on trendy Western clothes, trips abroad and new cars. Every month, two million more Indians and five million more Chinese carry cell phones as their countries grow richer. Young college graduates job-hop for ever-higher pay. The future has never looked brighter. While Chinese computer programmers splurge to buy the latest consumer goods, many will live with their parents until they are in their 30s, saving three-quarters of their $5,000-a-year salaries to buy a home or a car. That is not a sacrifice for them. It is an improvement.

These are the best of times; these are the worst of times. And it all depends on which side of the world you're standing.

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March 16, 2005

Wal-Mart: Taking Bad PR Global

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Posted by John Yunker

While I realize that Wal-Mart is a lightning rod for publicity, both good and bad, I'm constantly amazed at just how poorly the company manages to avoid the bad variety.

Now it seems it has generated a fair amount of negative press in Germany thanks to a new "ethics code" it has distibuted to its German employees. Apparently Wal-Mart's ban against personal relationships among co-workers (quite common in the US) isn't so common in Germany. And the locals aren't too happy about it.

You can read all about it at the Always Low Prices blog.

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iTunes: Some Good News and Some Bad News

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Posted by John Yunker

First, the bad news...

According to the WSJ the EU is investigating whether iTunes overcharges UK customers. The price of a song in the UK is about 20% more than it is on the continent. And because iTunes does not allow cross-border transactions (CBT), this has become something of or sore spot.

Personally, I'd love to see iTunes embrace CBT. It sure works well for eBay.

And now for the good news...

According to CNET, Apple won the iTunes.co.uk domain after a lengthy battle with a company it had accused of cybersquatting. I'm not sure this is over just yet, as appeals may yet reverse the ruling, but for now it qualifies as good news for Apple.

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March 13, 2005

Let’s Put “Rest of World” To Rest

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Posted by John Yunker

Emerging markets are making the world a lot less easy to label

In the old days of global commerce, before the Internet, an international marketing director could focus on a handful of “strategic markets” and group all of the other countries into a “rest of world” (ROW) category. It wasn’t an elegant solution, but it fit the times.

And then along came the Internet. Suddenly, any market with a growing Internet penetration and disposable income broke through the ROW clutter. Ten years ago, the international marketing director may have focused on six or seven strategic markets. Today, there are typically no less than a dozen markets worth serious marketing attention. And this list will only grow as Internet penetration grows. For example, it is not a question of whether eBay will develop more than 50 localized Web sites, it is just a question of when.

I never much liked the ROW label because it lumped together countries such as Vietnam, Chile and South Africa, countries that are unique, growing, and worth getting to know in their own right. In the years ahead, it will be those companies that put aside the ROW mindset that will be best positioned to capitalize on all emerging markets, no matter how big or small.

In a global economy there is no Rest of World.


(Note: This was first printed in Global By Design.

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March 11, 2005

Borders Looks Beyond Borders

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Posted by John Yunker

Greg Josefowicz, CEO of the Borders book chain, has looked into the future and he sees India.

According to this article, the Ann Arbor-based chain is betting on international expansion to help it continue growing. The company already has stores in the UK, Australia, New Zealand, Puerto Rico and Singapore.

Currently, Borders has less than 100 international stores in the United Kingdom, Australia, New Zealand, Puerto Rico and Singapore. It plans to open a store this year in Malaysia. But it looks like the company is going to ramp up investments to accelerate the rate of store openings in selected markets.

Here's a great quote that illustrates how quickly foreign revenues can grow from zero to significant...

    In 2003, the international business made a profit for the first time of $100,000. The final profits for this year will be released Thursday, but the company has said it will earn between $4 million and $6 million and the expectation is that international stores will be as profitable as domestic stores by the end of the decade or sooner.

    In 2003, Borders had total profits of $120 million, so the $100,000 profit from the international business was negligible. But this year's profit from stores abroad will contribute significantly to the company's earnings.

Josefowicz also noted that the success of their Puerto Rico stores may lead them to look at additional Spanish markets. And speaking of Spanish, I expect Amazon to launch a Spanish-language site for the US market within the next 18 months. This will be a nice complement to Borders Spanish-market efforts.

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March 8, 2005

eBay Launches Kijiji, Challenging Craigslist

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Posted by John Yunker

eBay has launched of an international classified ads Web site called Kijiji, which the company says means "village" in Swahili.

kijiji_logo.gif

Kijiji is available for 50 cities in Canada, China, France, Germany, Italy, and Japan. Oddly, Kijiji doesn't support any cities in which Swahili is widely spoken; perhaps those Web sites are on the way.

My first thought when visiting the Web site was that eBay is trying to beat Craigslist to the world. I realize that eBay owns a piece of Craigslist, but not a majority interest. Meanwhile, Craigslist has been steadily launching sites for a number of international cities, from Bangkok to Montreal. However, Craigslist has to this point only launched English-language Web sites, which renders many of these international sites largely useless to the majority of the population. I'm also told that the categories have not been localized either, rendering them not only useless but downright silly.

eBay has the language skills in place to do international classified ads and it will be interesting to see if the Web sites generate the type of enthusiastic traffic that Craigslist has achieved.

Kijiji also creates an interesting dynamic in some markets. Consider Montreal. If you speak English, you have Craigslist; if you speak French, you have Kijiji.

One final thought: With Kijiji, eBay has officially re-entered Japan. eBay gave up on Japan a few years back, ceding the market to Yahoo! I'm glad to see eBay taking another crack at the market; it is simply too big to ignore.

PS: My company is close to publishing an in-depth analysis of eBay's globalization efforts; contact me if you'd like more information.

Update: Here is a Reuters article on the launch.

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If You Can't Beat 'Em, Compete With 'Em

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Posted by John Yunker

The Journal writes about Hollywood's strategy to (finally) begin discounting DVDs in China in an effort to be more competitive with the pirated DVDs.

The discounted DVDs will still cost roughly three times what the pirated versions cost, but at least we're in the same general ballpark. I suspect a growing number of newly affluent Chinese will pay a premium for a higher-quality movie, not to mention all those DVD "extras."

But what is particularly interesting is Warners' plan to coordinate DVD releases in China with theatrical releases in the US. According to the article...

    Warner Bros. plans to release more than 125 movies this year in China, including hoped-for blockbusters like "Batman Begins," around the time of its U.S. theatrical release. They will sell at two price points: $2.65 for relatively basic discs, with English and Mandarin dialogue tracks, and $3.38 for fancier versions with extra footage and language enhancements.

So this means that Chinese consumers will have a head start on Americans in getting the newest DVDs. I wonder if we'll see an underground market develop as Chinese begin selling these DVDs back to Americans.

Despite the inherent risks though, the studios have little choice but begin testing lower prices. Even at these cut-rate prices, there is a good potential for profits should enough Chinese begin bypassing pirates for Hollywood.

Hollywood is not alone in its struggles with emerging markets. Microsoft is working on a lower-priced operating system for countries such as Thailand, India and Indonesia, referred to as Windows Lite. I'm less optimistic with Microsoft's approach because instead of just cutting prices (which is what Hollywood is doing), Microsoft is cutting features.

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March 6, 2005

Getting to Know Global IA

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Posted by John Yunker

I'm at the IA Summit in Montreal and have been pleased to find that IA (information architecture) professionals are tackling the challenges of content globalization in a big way. And this is a great thing, because the IA industry is critical to the evolution of truly successful global Web sites.

I'm not much of an IA guy, so I've been getting up to speed on industry buzzwords like facets and taxonomies and folksonomies. And the presentations by far have been terrific.

There were a total of four sessions that spoke directly to content globalization, touching on everything from translation testing to global IA (I gave a talk on one of my favorite topics, the global gateway). And there were a good number of attendees across these sessions -- mostly internal IA professionals and their agency counterparts. I did not find one localization industry professional (besides myself), but I expect that to change in the years ahead.

Thanks to the efforts of Louis Rosefeld, Peter Van Dijck, Jorge Arango, Livia Labate, and many others, I expect we'll see some really exciting things coming out of the IA industry, which will have a large impact on the localization industry. My personal goal will be to do what I can to get the localization industry and the IA industry to work more closely together to share insights and do a better job of advancing global Web sites, from taxonomy to translation.

PS: I spoke with more than a dozen IAs who are all working on brand new multilingual Web projects (from IT to services to apparel), another strong sign that companies have awakened to the importance of Web globalization. I said it before and I'll say it again: 2005 is the year that Web globalization goes mainstream.

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March 2, 2005

Web Localization Into English

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Posted by John Yunker

Because I spend the bulk of my time talking to US executives about expanding globally, my focus is typically on creating non-English Web sites. But Web globalization cuts both ways. If you're a Russian company, for example, you'll need an English-language Web site if you want to expand in the US. Most companies do this by default, but it's no less challenging than an American company launching a Russian-language Web site. Often, companies do a fairly poor job with their English-language sites the first time out.

According to this article, the Moscow Interbank Currency Exchange (MICEX) just launched an improved English version of its Web site.

micex.jpg

I took a look at the MICEX site and it's clear they put a lot of effort into it. Everything from press releases to the feedback form and FAQ are in English.

According to the press release...


    ...new English version of the MICEX’s web site will help to raise the transparency of the Russian financial market, which, considering Russia’s growing investment rating, is essential for attracting the attention of international investors.

It's all about money. If you want money from people who don't speak your language, translation is step one.

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Feed Pruning, or, The Zero-Sum Game of Blogging

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Posted by John Yunker

I find it amazing how quickly a person can adopt a technology and, after having adopted it, grow impatient with it when it isn’t used to maximum effect. Take email for instance. In the early days of email I felt the urge to reply to nearly every email I received to let the sender know that I had received it. Today, replies are by necessity only. We are assaulted with emails so we don’t want our fellow emailers to waste our time.

Which brings me to blogs. Now that I have more than 100 blogs that I scan daily, I find it necessary to prune a few blogs from time to time. I have no formula for how I decide which blogs to keep and which blogs to delete from my RSS reader, but there are some traits common to those blogs that I have parted ways with.

After all, because time is a finite resource, there are only so many blogs a person can follow on a daily basis. Which means that every blog I add tends to come at the expense of a blog that I delete. Which means that I expect the bloggers that remain to not waste my time. There may be a billion blogs out there, but from the reader’s perspective, it’s a zero-sum game.

I’m really only referring to those blogs that purport to be about something, like VoIP or travel or Web usability. I subscribe to these blogs to learn more about these topics or issues and I tend to get annoyed when the authors spend more time writing about their personal lives than the actual topics. Occasional off-topic postings are just fine (like this one, for instance) but too much off-topicness and I will consider pruning that particular feed. A year ago, I was much more tolerant than I am today. Either I’m getting more cranky or I’m becoming a more demanding blog reader.

So here is my advice to bloggers who want to avoid being pruned…

Have Something To Add
If all you do is point to other news stories you have to ask yourself – are you adding value or are you just aggregating? Aggregation is fine on occasion (I’ve certainly done my share), but eventually you’ll be made redundant by someone who both aggregates and adds value.

Some Things Are Better Left Unsaid
I love bloggers precisely because they don’t have editors. I like the unfiltered thoughts, ideas and predictions. When I want an edited piece of work I read the paper. However, sometimes I wish bloggers would do a little bit more self-editing. For example…

Don’t blog to tell the world:
1. you are not feeling well today
2. you are tired today
3. you are tired of all the blogging you’ve been doing lately
4. you are going out of town for a few days
5. you just got back from having been out of town for a few days
6. you will be offline for the next two hours
7. your server went down and that’s why we haven’t heard from you for the past two hours

You get the idea. A writing teacher of mine used the term furniture moving to refer to wasted prose. These types of posts strike me as furniture moving.

Anyway, I’ll step down from my soapbox, prune a few blogs and get back to back. I’ve got lots to do as I’m getting ready to go out of town for a few days!

Just kidding.


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GE Betting On Emerging Markets

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Posted by John Yunker

I wrote about GE's global growth plans in our February edition of Global By Design and I'm thrilled to see the Journal writing about it as well.

GE expects to have 60% of its revenues coming from emerging markets over the next decade, compared to just 20% a decade ago. And GE is not alone. Here's an excerpt from the article...

    GE's outlook is echoed by most multinationals, many of them rivals such as Siemens AG and Philips Electronics NV, and financial-services giant Citigroup Inc. Like GE, these companies are dealing with how to grow in the face of a slower U.S. and European economy. For most of them, that means moving deeper overseas -- in some cases, building manufacturing plants and buying materials in those countries while selling lower-price products such as medical equipment. It also could mean more job cuts in the U.S., and even Europe, as the multinationals seek new markets for their products.

    Deane Dray, an analyst with Goldman Sachs, says, "It's not by choice but by necessity. Developing countries are where the fastest growth is occurring and more sustainable growth."

"It's not by choice but by necessity."
A great quote and equally relevant to Web globalization. Companies aren't taking their Web sites global for thrills; this is about following the money. And those companies that sit on the sidelines too long are going to have a steep learning curve ahead of them.

GE, by the way, could stand to improve its global Web site. More on this later...

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March 1, 2005

120 Million Internet Users In China in 2005

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Posted by John Yunker

According to CNET, the MII, China's equivalent to the US' FCC, says that there will be 120 million Internet users in the China this year. That keeps them on track to easily surpass 200 million by 2007, as reported earlier.

The statistics that come out of China are simply mind-boggling. Consider the following:

    China is the world's second-largest PC market. IDC predicts that roughly 30 million PCs will ship in 2005.

    China is the world's largest cellular market, with more than 340 million subscribers in January of this year.

Not surprisingly, American companies are pouring money into the market. eBay is investing $100 million and UPS is investing $600 million, building 20 new warehouse and distribution facilities over the next two years.

A lot of experts warn about China's economy cooling off, or stalling. Eventually this will happen, but for the time being there is still plenty of "headroom" for growth, as bizdev people like to say.

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February 27, 2005

Hooters Goes Global

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Posted by John Yunker

Could Hooters become the next Hard Rock Cafe? Judging by the pace at which it is spreading around the world, anything is possible. Believe it or not, there are now Hooters in 15 countries, including Argentina, Austria, Brazil, Canada, the Caribbean, England, Guatemala, Mexico, Switzerland, and Venezuela.

Hooters India
hooters_india.jpg

Hooters Taipei
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And now you can add China to that list.

Hooters China opened on October 24, 2004. This is the first of seven potential Hooters locations in China. But here's where you've got to hand it to the management of Hooters for localizing the restaurant to fit the market. In China, Hooters is not about busty women, it's about good service.

According to The Christian Science Monitor, "Hooters Shanghai succeeds in a completely different way: by emphasizing welcoming friendliness, not sex appeal. In a country where overworked and underpaid wait staff are not known for their sweetness, Hooters offers something new: courteous, attentive service with a smile. And local patrons love it."

According to John Weber, Executive Vice President of Operations for Hooters of America, the company has only just begun to go global. "We are working with franchise groups worldwide and plan on bringing the Hooters concept into 10 new countries by the end of 2005. You should expect to see a Hooters restaurant in Croatia, Germany, India and Greece in the near future" stated Weber," said Weber.

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February 17, 2005

Levi's Fatal Flaw

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Posted by John Yunker

Levis has been losing money for eight years now; that has to be some sort of record.

Fashion is fickle and there is very little Levis can do when the young people of the world decide your brand just isn't hip anymore. Maybe it was the Levi stores that popped up in every mall that made them uncool. Maybe it was the years of awful advertising.

But what really bothers me is that Levi Strauss & Co. closed its last American manufacturing plant last year. The company is trying go high end; it pulled out of Costco and now it thinks it can compete with the likes of Diesel. If it were still made in the US I'd say it had a shot. There will come a time when more people will want an authentic American brand and will pay a premium for it. Perhaps Levis can play up its ancient history while sidestepping its recent history, but I doubt it.

Levi's fatal flaw is that it got obsessed with cutting costs instead of increasing margins. I still don't see the long-term logic of the Wal-Mart deal.

I suspect that Levis will open a US plant again, perhaps just to crank out "small batch" brand of jeans. And it won't have to compete with the Chinese on price because people will pay a premium for made in the USA.

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To Every Country A Sesame Street

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Posted by John Yunker

According to the AP, a "Bengali version of the longrunning American children's programme Sesame Street will be broadcast from April featuring Muppet characters drawn from Bangladeshi folklore."

sesamest.jpg

Sesame Street is seen in 120 countries and localized for 30 of those countries.

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February 16, 2005

The World Is Getting Flatter

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Posted by John Yunker

worldisflat.jpg

Tom Friedman's much-anticipated new book, The World Is Flat is just around the corner and Zack Lynch offers a preview.

Tom proposes that we are entering a third era of globalization, as follows:

- Business 1.0: 1492-1800 countries globalized
- Business 2.0: 1800-2000 companies globalized
- Business 3.0: 2000-2040 individuals globalized

I agree. The exciting (and frightening) thing about globalization is how it pits you against the world (and vice versa).

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February 14, 2005

It's Not Too Expensive; You're Just Too Cheap

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Posted by John Yunker

How's that for a great slogan. I saw it on the side of a Stone Brewery truck here in Escondido. This is an appropriate slogan for a brewery that produces Arrogant Bastard Beer.

arrogantbastard.jpg

It's a great beer by the way. I love local breweries. When I was in Boston I drank Harpoon beer. When I moved to Escondido I wondered what I would do without my favorite local brewery. And then I discovered Stone.

What does all this have to do with globalization? Not much, except I can't help wondering if I would have been as excited about Stone had it not been local. It's a great beer no matter where it's from, but there is always something a little extra special about knowing that you're supporting a local institution.

I study the localization of products and Web sites a great deal and I've seen companies succeed by doing it well, but I also suspect that there is only so much a company can do to compete against truly local companies, like a Stone Brewery.

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Global Newspaper Index

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Posted by John Yunker

If you need to know what are the "best" newspapers available in countries around the world, check out NewspaperIndex.com. Journalist Hans Henrik has created a fairly extensive database and made it freely available.

As an added bonus, the interface has been localized into four languages.

newspaperindex.jpg

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February 10, 2005

Gmail In Emerging Markets

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Posted by John Yunker

Richard Koman for SiliconValley Watcher writes about the potential of Gmail in developing markets.

The greatest reason why I think Gmail has a good shot at popular usage is Google's expertise at localizing the platform for developing markets. I don't expect Microsoft to localize Outlook for Bihari, Tonga or Swahili anytime soon, but Google is well on its way toward supporting these languages on its main platform.

It remains to be seen if Google throws the resources fully localizing Gmail, but the potential is certainly there.

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eBay Bets $100m on China

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Posted by John Yunker

At the eBay analyst briefing today, the company announced that it was investing $100 million in growing its business in China, a market Meg Whitman said will define global success over the next ten years. In other words, if you can't make it in China, you can't make it anywhere.

ebay_cn_logo.jpg

She's exactly right and this is one bet that will pay off huge for eBay. The company also believes that the UK will be "the next Germany," meaning that UK could equal the success of the German site, currently the largest non-US eBay Web site. The company also is investing in Italy and France, the rising stars in eBay Europe.

My only concern is that the company is overlooking emerging markets in Eastern Europe and Latin America and will suffer down the road from local upstarts. I also am not convinced that eBay is doing the best job in regards to global navigation.

I'll have a full global analysis of eBay in the February issue of Global By Design.

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February 9, 2005

Starbucks Egg & Cheese

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Posted by John Yunker

I read in the Journal this morning that Starbucks has been testing hot breakfasts at 80 locations in Seattle and are getting close to a national rollout.

What wasn't mentioned is that Starbucks already offers hot breakfasts in Japan and they were quite popular with this particular gaijin.

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February 6, 2005

GE Needs Growing Markets to Keep Growing

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Posted by John Yunker

From the WSJ:

    Jeff Immelt, chief executive of General Electric Co. (GE), said at the Advancing Enterprise 2005 conference in London that 60% of the company's growth over the next decade will come from the developing world, whereas 80% presently comes from the developed world.

    Immelt added that he saw "massive opportunities" in China and India, but said India needs to fix its infrastructure and China needs to develop its microeconomic system.


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February 4, 2005

McRiceburgers in Taiwan

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Posted by John Yunker

According to the Taipei Times (by way of Reveries), McDonald's has added rice burgers to its menu. The burgers consist of chicken or beef patties sandwiched between two rice cakes.

mcds_tw.jpg

The burgers join a long list of localized menu items that McDonald's has developed over the years. Here are a few of the more memorable items:

-> Japan: TofuBurger; Green Tea Shake
-> New Zealand: KiwiBurger
-> Mexico; McBurrito
-> Greece: Greek Mac
-> New England, USA: McLobster

McDonald's is not the first chain to offer rice burgers. It will be competing against Mos Burger (which is big in Japan) and 7-Eleven.

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February 3, 2005

Le Meridien Bets Big On India

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Posted by John Yunker

The Le Merdien hotel chain plans to double the number of properties in India from 10 to 20 over the next four years. According to the press release, all Le Meridien hotels in India are profitable with average occupancy last year at 83 percent.

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February 2, 2005

McDonald's Celebrates 15 Years in Russia

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Posted by John Yunker

I vividly remember the news when the first McDonald's restaurant opened in Russia. The place was mobbed with customers eager for a taste of American fast food. It was a very optimistic time in America, with the fall of the Berlin Wall and American goods selling strongly in practically every new market they entered. Hard to believe that it was 15 years ago.

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Much has changed since 1990. Companies can no longer depend on pro-American sentiment to drive sales; many companies are working hard these days to appear less American and more local.

McDonald's now offers highly localized menus for each market. It also relies more heavily on local food suppliers, ensuring higher quality and engendering good will with customers.

Today, there are 127 McDonald's restaurants in Russia across in 37 cities. McDonald's is not enjoying the type of growth that it enjoyed 15 years ago, but it still has a lot going for it, perhaps more so outside the US than inside the US.

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January 31, 2005

Windows XP Passive Aggressive Edition

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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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How American is Your Brand?

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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

Studios Tap Into Global DVD Sales

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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

Of Coke, Japan and Coffee in a Can

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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.

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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:

georgia2.jpg

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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January 24, 2005

East Meets West

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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

Random House Setting Up House in India

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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

Starwood Checks In To China

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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.

starwood_gate.jpg

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Lenovo Outsources Management And Celebrates Birthdays

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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

The World's Number One Starbucks Fan

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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...

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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 12, 2005

Speaking Hinglish

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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

Chevy, Meet Chery

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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.

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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

Web Globalization in Three Basic Steps

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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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December 30, 2004

US Population at 295 Million

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Posted by John Yunker

According to the US Census Bureau, the US will finish 2004 with a population of 295 million, up roughly 3 million over the year before. Thanks to international migration, the US population will continue to grow at the rate of one additional person every 12 seconds.

There is an outside chance that the US will surpass 300 million in 2005, though 298 million is a more conservative estimate.

While this may seem like a lot of people, keep in mind that China already has more than 300 million cell phone users.

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December 21, 2004

Predicting 2005: From Amazon to Apple

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Posted by John Yunker

As the end of 2004 draws near, I feel compelled to toss in a few predictions for the year ahead...

Web Globalization Goes Mainstream
Based on surveys I’ve conducted, discussions with executives at Fortune 500 companies, and a few recent discussions with reporters, the signs are pointing toward a very public year for the field of Web globalization. You may remember that Web globalization was a hot topic back in the heady days of 2000. But this time around, growth will be driven by real revenues. Amazon could see more than half of its revenues come from outside the US by the end of 2005, and definitely by 2006. And it won’t just be the virtual companies that embrace Web globalization; we’ll see companies from industries such as hospitality, retail and financial services launch multilingual Web sites – another sign that this emerging field has crossed over from luxury to necessity.

Amazon Adds Spanish
The CFO of Amazon said recently that the globalization of Amazon.com is a “significant opportunity” and promised additional local Web sites. The question is: What new Web sites and when? The company did acquire a Chinese bookseller, Joyo.com, over the summer, but has largely been quiet otherwise. Many people don’t know that Amazon already sells around the world – shipping goods from its many local stores to more than 200 countries; the more languages Amazon supports, the greater sales it will do. Next year, I expect Amazon to begin supporting Spanish for the US market. They simply cannot afford to ignore the 30+ million native speakers of Spanish; furthermore, the language gives the retailer a platform on which to expand into Latin America. I also will not be surprised to see Amazon enter the Korean market, although I suspect they are predisposed to a local acquisition. Amazon spent enormously to get the Japanese Web site off the ground, and it is treading much more cautiously these days. But Spanish for the US market is one area the company can get off the ground relatively cheaply and see immediate results.

Apple Launches iTunes Korea
We’ve been told that Apple will be launching iTunes Japan in March 2005, but Apple has been silent about the rest of Asia. Korea is a natural next step and will be particularly important should Apple release the much-rumored iPhone handset. This all is a run-up to the ultimate launch of iTunes China, which will be led not by the iPod but by the iPhone.

The Global Gateway Finds the “Sweet Spot”
Six years ago I coined the term “global gateway” to refer to the pull-down menus that companies were just beginning to use to direct Web users to their specific languages or countries. Over the years, the global gateway has evolved dramatically, although until recently most companies still largely overlooked its importance in driving traffic to localized Web sites. But based on conversations I’ve had over the past few months with a wide range of companies, I believe 2005 will see the global gateway become a priority on a larger number of Web sites. The “sweet spot” for a global gateway is the very top of the Web page, usually to the right side. We’re going to see more and more Web sites “promote” their global gateways to this location; this is a positive development for companies and Web users alike.

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December 18, 2004

Bowne Global Solutions and Salesforce.com

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Posted by John Yunker

Bowne Global Solutions, one of the "big 3" in the content globalization industry, uses Salesforce.com to manage its global sales team. I have found over the past two years that more and more globalization companies have begun using Salesforce.com, and it is no coincidence that the software is now available in nine languages.

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December 8, 2004

Los Increibles

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Posted by John Yunker

Cool News reports on some fairly sophisticated movie localization at Disney. The studio recently dubbed its hit movie The Incredibles for Argentina using well-known local personalities.

losincreibles.jpg

    This extra Argentine effort was a first for Disney, which "began dubbing specific versions of its films for Mexico, its fifth largest market," only two years ago. The studio also began dubbing "two additional versions in 'neutral' Spanish, one for Central America -- including Colombia, Venezuela and Peru -- and another for the Southern Cone countries of Argentina, Uruaguay, Paraguay and Chile."

Note that a "neutral" Spanish is not without its risks. Many a marketer is lured by the prospect of a "one size fits all" language because they stretch their translation/dubbing budgets. What translators do in these cases is attempt to remove any truly local phrases, slang and so on. The danger of a neutral language is that it can end up sounding generic, which might work just fine for an instruction manual but not so with a film. Sometimes less neutral is more interesting.

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December 6, 2004

When Is iTunes Not iTunes?

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Posted by John Yunker

When a British company owns the rights to http://itunes.co.uk/ and won't sell it to Apple.

Apple wants that domain name real badly and is using all legal means it its disposal. Unforunately, according to this article, Apple was simply too late in registering the name.

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China Blocks Nike's Shot

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Posted by John Yunker

First, Nike caused a stir at bus shelters in Singapore. Then it moved onto Chinese airwaves; this time, the authorities were not so amused.

According to this AP article, the Chinese government has banned a Nike TV ad in which LeBron James does battle with a kung fu master (and wins).

lebron.jpg

Here's why...


    The advertisement "violates regulations that mandate that all advertisements in China should uphold national dignity and interest and respect the motherland's culture," the State Administration for Radio, Film and Television said on a statement posted Monday on its Web site.

And I thought the FCC was long-winded.
The article continues...

    It did not say why the advertisement was considered offensive. But communist officials are sensitive about the use of Chinese cultural symbols by Westerners, and might have been especially angered that the Nike advertisement showed the foreigner winning the fight.

Perhaps Nike was hoping for a reaction like this. It's hard to know these days; after all, bad-boy publicity isn't always a bad thing.

UPDATE: Here's an interesting blurb in The Wall Street Journal about mistakes made by other advertisers in China:


    Past ads, usually marketing Japanese companies, have also run afoul of political sentiment and were voluntarily removed. In December of last year, Toyota Motor of Japan had to pull and formally apologize for 30 magazine and newspaper advertisements made by Publicis Groupe SA's Saatchi & Saatchi depicting stone lions, a traditional sign of Chinese power, saluting and bowing to a Prado Land Cruiser sport-utility vehicle. A similar fight erupted this fall about an outdoor display made by Publicis's Leo Burnett showing a sculptured dragon that was unable to keep its grip on a pillar coated in Nippon Paint's smooth wood coating paint.

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December 4, 2004

Lenovo's Global Aspirations

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Posted by John Yunker

The news that Chinese computer manufacturer Lenovo is in talks to purchase IBMs computer business is of great concern to Dell and other computer manufacturers, but it is also a lesson to all multinationals about globalization.

Globalization cuts both ways. The forces that allow US-based companies to quickly expand into foreign markets also allow foreign companies to quickly expand into the US market. And Lenovo is simply tearing a page from the corporate playbook: If you can't grow market share, buy market share.

Lenovo has had global aspirations for some time. About a year ago it changed its name from Legend Computer to Lenovo in an effort to avoid trademark battles in overseas markets. But in the midst of expanding into new markets, the company began treading water in its domestic market. Dell has invested heavily in China and is growing quickly. Should Lenovo takes it eyes off its home market for too long, it could lose market share quickly (it currently has 29%).

So that's why the IBM deal makes such great sense. IBM is a well-regarded brand globally and there is lots of room to get aggressive on pricing.
But if Lenovo does win IBM, I hope it does a good job of retaining the people within IBM who have been so successful over the years in international marketing. The IBM Web site, for example, is one of the best global Web sites around, while the Lenovo Web site is one of the worst.

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December 2, 2004

iCanada

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Posted by John Yunker

The iTunes Canada store is now up and running. That makes it a total of 14 local iTunes stores now available. Here is a screen shot of the iTunes global gateway:

itunes_dec04_b.jpg

To give you an idea of how quickly Apple has been expanding globally, here is a screen shot of the iTunes global gateway back in September:

Yep, just four stores were live in September. Talk about rapid globalization.

A Japan iTunes store is in the works, but that country won't be as simple as Canada. Character set challenges are never easy, particularly when it comes to text input, output and search engines. Nevertheless, Apple is going at a blistering pace and I won't be surprised if I see 30 stores by the end of 2005.

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November 29, 2004

Google Is Best Global Web Site (Again)

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Posted by John Yunker

All Web sites are, by default, global. But which Web sites do the best job of truly speaking to the world? That is, which Web sites support the most languages, make navigation effortless for non-English speakers, and provide Web users around the world with fast-loading Web pages?

These are the questions I began asking a few years ago when my firm produced the first report on this topic, The Web Globalization Report Card. We studied 121 Web sites, ranging from Amazon to GE to Sony.

Google emerged as the best site overall.

Yesterday we published the 2005 Web Globalization Report Card and, sure enough, Google is tops once again. Frankly, I wasn't surprised to see Google at the top of the list. It's not a perfect Web site, but it does a great many things right -- from providing users around the world with a fast-loading Web page (much faster than Yahoo!) to using a consistent, global interface to supporting 97 different languages. As I've said before, Google is arguably the most global commercial Web site yet developed.

But it is not the only successful global Web site out there. Here are the top 10 Web sites:

1. Google
2. HP
3. American Express
4. Philips
5. Skype
6. Ericsson
7. Procter & Gamble
8. Cisco Systems
9. IBM
10. E*TRADE

Companies like Wal-Mart, Coca-Cola, Qualcomm and Disney did not fair so well. All finished near the bottom of our rankings. Being a global company or having a global brand does not ensure a successful global Web site.

If your company is planning to dive into the Web globalization waters, I encourage you to take the time to review these 10 Web sites.

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To Dell and Back

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Posted by John Yunker

Over the years, Dell has developed what is now one of the best global Web sites. The Dell site made our top 25 list in the 2005 Web Globalization Report Card and it is a major reason why Dell keeps hitting its numbers year after year. Emerging markets are fueling Dell's growth and the future looks bright.

Until the lawyers come knocking...

DE Technologies is suing Dell for patent infringement.

Apparently DE Technologies has a patent to a specifc way of managing international transactions, something it calls the BOES (Borderless Order Entry System). Here's the patent in question. I'm not a patent attorney but this appears like such a far-reaching and vague patent that virtually any ecommerce company could be sued by DE Technologies.

If there is merit to this suit this is a big deal for Dell (among others). Roughly 36% of Dell's revenues comes from outside the US. DE Technologies claims that more than 4,500 export transactions are handled daily by Dell, generating upwards of $50 million.

DE Technologies wants a percentage of Dell's sales and, I'm assuming, a percentage of sales from any other company it deems in violation of the patent.

I really hate to see these patent disputes. And I'm wondering if we're going to need an open source project just for international ecommerce. Perhaps we will, and perhaps Dell would be wise in getting the ball rolling. For less than what it will likely pay its lawyers, it could launch such a project, open it to the world and not have to deal with the likes of DE Technologies any more.

UPDATE:
I registered for a demo of DE Technologies' BOES service and just received this email:

Thank you for your interest in DE Technologies BOES/ECBS technology (U.S. Patent No. 6,460,020). This demo site which reflects the technology supplied to the United States Foreign Commercial Service of the Department of Commerce under Task Order No. 2051-056-001 (1998) Electronic Commerce Backbone System is no longer accessible.

Due to pending patent infringement litigation to protect our intellectual property and stop the rampant piracy of it we are now restricting this area.

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November 26, 2004

Thinking Globally; Offending Locally

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Posted by John Yunker

The Wall Street Journal reports that Nike has unleashed a poster campaign in Singapore that creates a graffiti-like appearance in bus shelters.

lebron.jpg

According to the article, the "page-size posters featuring anime-style images of NBA star LeBron James were pasted helter-skelter over the ad panels of 700 bus stops, shocking commuters who are used to the ultratidy shelters. At least 50 commuters have called or written to complain, said officials at Clear Channel Communications Inc., which owns the advertising rights to the bus shelters."

Sometimes, the goal of marketing is not to fit in with the cultural norms. It appears that young people have responded to the promotion by collecting the posters. And, hey, the free publicity alone is golden.

However, this doesn't mean a multinational company can't simply ignore cultural noms around the world. For a campaign like this to succeed, you still have to know what those cultural norms are and how far you can go in tweaking them.

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November 24, 2004

Happy Thanksgiving from Air New Zealand

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Posted by John Yunker

How's this for a localized promotion? I just received a Thanksgiving email from my friends at Air New Zealand:

airnewzealand.jpg

I'm touched, really.

More important, I'm reminded of the importance of local holidays and their potential marketing value. What is your company doing to take advantage of holidays around the world?

Boxing Day? Bastille Day? San Juan Day? Lucia Day? It seems like every day is a holiday somewhere.

For more information, here's a list of holidays around the world.

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November 22, 2004

Will Der Polarexpress Play in Deutschland?

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Posted by John Yunker

Would you believe that the Tom Hanks' film The Terminal turned a profit?

I wouldn't have believed it, not until I read this Wall Street Journal article (paid subscription required).

The Terminal did indeed tank in the US, but it turned a profit overall, thanks to the foreign markets. No wonder movie stars are racking up the frequent flyer miles plugging their films around the world. Overseas revenues were once viewed as little more than gravy on top of domestic revenues. No more.

Here's an article excerpt:


    It's the foreign box office, stupid. While movie attendance has been stalling in the U.S., it's growing in other parts of the world, making Prague as much a bellwether for Hollywood as Peoria. The box office for movies in Europe, the Middle East and Asia will grow at an annual compounded rate of 4.7% to $8.3 billion over the next five years, according to estimates from PricewaterhouseCoopers. That's slightly below projected box-office rate growth in the U.S., but it's significant enough to buoy movies that sink stateside, especially when the movies feature stars who have a bigger following outside the U.S.

    The focus on the foreign market has even caused studios to change who gets cast and where movies are made. "Ocean's Twelve," which will be released Dec. 10 and is the sequel to the 2001 caper flick, "Ocean's Eleven," was deliberately set in Europe and filmed in Amsterdam, Paris and Rome, to "enhance the movie internationally," says Alan Horn, president of Warner Bros. Pictures. "Ocean's Eleven" pulled in $183.4 million at the U.S. box office, but $267.3 million overseas. Mr. Horn says he expects "Ocean's Twelve" to do more overseas than "Ocean's Eleven" did.

What we have here is a complete transformation in the way Hollywood does business, a transformation that is resulting in:

  • Simultaneous global releases. Studios launch films globally at once to minimize the "piracy tax" and maximize revenues. It used to be that foreign markets had to wait half a year, or more, to get the latest Hollywood flics. Not now. Ocean's Twelve, for example, is opening in Germany just six days after it opens in the US.
  • Film Web sites going global. A number of studios already have global corporate Web sites (most of which are poorly executed). But until recently those individual film promotion Web sites were available in English only. This too is changing (see below). This is great news for translation and localization vendors.
  • Deep, artsy, subtle filme? You can forget about those, not that Hollywood was making many to begin with. The films that work globally consist of sex appeal, thin plots and chase scenes. Hollywood wants stories that don't get lost in translation (no pun intended). But the larger question is this: If studios are now developing movies for global audiences, where does this leave the US audience?

Anyway, if you're traveling to Berlin this winter, you might want to check out Der Polarexpress, playing at a cinema near you...

derplarexpress.jpg

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November 21, 2004

Budvar vs. Budweiser

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Posted by John Yunker

I am from St. Louis, where a tiny little brewery known as Anheuser-Busch (AB) is headquartered. Needless to say, I've followed the growth of the company for years now and I've always been particularly fascinated by the story of Budvar vs. Budweiser.

AB rolled out Budweiser way back in 1876 and registered the brand name in the US. Back then, the idea of exporting beer internationally was akin to the idea of a moon landing.

But Budweiser turned out the be the most successful beer brand ever created. It survived Prohibition (some say thanks to a deal with Al Capone) and eventually AB began exporting its beer internationally.

budvar_bud.jpg

And that's when it rubbed shoulders with another brand of Budweiser, sold by the Czech brewery Budvar. Back then, the two breweries basically agreed to leave each other alone; Budvar would stay out of the US if AB stays out of much of Europe. That turns out to be an agreement that AB sorely regrets today.

For the past fifty years, lawyers have dominated this battle. Both companies have gained some ground, made some compromises. You may have noticed that Budvar sells "Budvar" in the US now and AB sells "Bud" (not Budweiser) in Europe.

Anyway, I read the other day in this New York Times article that this battle is now part of a much-larger battle between the World Trade Organization (WTO) and the European Union.

Apparently the EU protects the identity of 41 European products throughout Europe, such as Parma ham, Champagne and, yes, Budvar beer. The WTO, which looks at global copyright issues, says that the EU should also extend this type of protection to non-European products, such as, say, AB's Budweiser.

This is all preliminary thus far, but stay tuned. Global copyright and trademark protection is a very important issue with no easy answers. But there are real winners and losers in these cases. I, for one, wnat to see Budvar win its battle.

PS: For a good article on the Budvar vs. Budweiser history, check out the Brand Channel.

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November 19, 2004

Thinking Local in China

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Posted by John Yunker

China, as this Wall Street Journal article notes, is no longer a place companies go just to make things. Thanks to its booming economy, China is now a place to sell things. Here's an article clip:

    "The biggest error in the past that the multinational firms have [made] in the Chinese market is they haven't had a sufficient enough appreciation of the domestic market," says Sean Debow, who tracks technology companies and trends in Asia for international investment bank UBS. Now, he says, "people are focusing on adapting products designed abroad to meet the specific needs of China."

Take Matsushita (Panasonic). The company had been steadily losing market share in China because it was trying to sell the Chinese the same products it was selling to its Japanese customers. No more...

    So Matsushita has changed its strategy. Rather than designing all products from start to finish in Japan, it has begun hiring local engineers to alter them, coming up with new models for the Chinese market.

    The Chinese design centers are proving to be crucial in areas such as cellphone handsets, where manufacturers produce a huge variety of styles -- there are several hundred on the market -- and the phones are viewed as fashion accessories. To compete, foreign concerns must churn out their own wide and diverse lineup. The development centers also allow the company to study cultural preferences. Employees realized, for instance, that Chinese consumers like brighter, vermilion phones compared with the darker red preferred by the Japanese.

Panasonic may be making progress with its product localization but it does still need help with its Web localization. I am now wrapping up a study of 200 global Web sites and Panasonic is ranked in the lowest quadrant.

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November 18, 2004

iTunes Japan in 2005

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Posted by John Yunker

According to News.com, Apple is launching iTunes for Japan in March 2005.

As I reported a few weeks agoiTunes is already localized for 12 European markets. Japan, however, will not be quite so simple due to the inevitable character set challenges.

Also, here are my initial thoughts of how effectively Apple is localizing each store.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Software Localization | Web Globalization

November 15, 2004

Google Taking Blogs Global

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Posted by John Yunker

Google appears to be doing for blogs what it did for search engines. According to this InfoWorld article, Blogger, which is owned by Google, is going to be localized for 9 languages "soon." The languages are Japanese, traditional Chinese, simplified Chinese, Korean, French, Italian, Spanish, German and Brazilian Portuguese

This can't be good news for the folks at Six Apart. Although they have a head start over Blogger, having already localized TypePad for six markets, I can't imagine they can hold that lead for long.

Here is where TypePad stands today:
typepad_langs.jpg

It will be interesting to see how many locales are supported six months from now and where Blogger stands in relation. Google, as I've said before, is arguably the most global commercial Web site ever created. With 97 language interfaces, it truly speaks to the world. There is no reason why Blogger can't also be available in 97 languages; but can TypePad (and the other blog services) keep up?

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November 14, 2004

Debunking Local Myths In Asia

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Posted by John Yunker

According to this New York Times article Asians have one more thing in common with Americans -- love for the ol' credit card.

The consumer credit business is booming in Thailand and throughout Southeast Asia. And, unlike Americans, defaults are unusually low -- welcome news to the lenders. Citibank was one of the pioneers in this region; not surprisingly, the company also has a fairly sophisticated Thai Web site. (As an aside, I just completed an exhaustive analysis of 200 global Web sites and Citibank finished in the top 25.)

Which leads me to wonder what other cultural or local myths are simply business opportunities in disguise?

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November 11, 2004

eBay Goes Dutch

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Posted by John Yunker

According to CNET, eBay is purchasing Markplace.nl for $290 million in cash. Founded in 1999, Marktplaats.nl averages roughly a million listings.

marktplaats.jpg

This purchase gives eBay an instant presence in the Netherlands, something that has been lacking. eBay currently supports 24 local Web sites and 9 languages. If I were to predict where eBay is headed next, I would take a nice long look across Eastern Europe. Although many of the markets are quite small, that is where the growth is.

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November 8, 2004

Xbox Globalization

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Posted by John Yunker

Here is an interesting Q&A with Peter Moore, global marketing chief of Microsoft's Xbox. They have offered a subscription-based, online Xbox service for a couple years now and we find that Microsoft now offers the service in 24 countries and has over a million subscribers. Not too shabby.

Here the most relevant excerpt from the interview:

    We are trying now to globalize our marketing message, something that has never been done in our industry before. Typically, the marketing message has been regional, if not local. Now we have this incredible vehicle called Xbox Live, which gives us the opportunity to speak with one voice to a consumer, whether in Beijing, Bangkok, or Barcelona.

    ... Certainly soccer was one area we felt required no translation, no real localization and no explanation of the rules. It crosses all boundaries, all continents, and the ability for someone to play a game against somebody else 5,000 miles away -- the identical game and they both totally understand what's going on -- it's an incredible experience. Having already done it myself -- it blows me away.

    So, that and some other media deals that we haven't announced yet are great examples of the things that we're trying to do to globalize our message so that when you get off a plane anywhere in the world you feel that Xbox has the same positioning, the same statement to the consumer, and stands for the same things. Typical to our industry, it's been very, very regionalizing. You can even see different taglines depending on which continent you're on.

    You've hit a little rough patch in Japan. Why is that?

    Well, we've issued mea culpas weekly. I was just there two weeks ago giving my latest mea culpa. We made some fundamental errors -- which we're very cognizant of, and don't hide behind -- on some industrial design and some content strategy. As a result, we got off to a very rough start, and the Japanese market is somewhat unforgiving. They are very, very quality-focused consumers -- perhaps the most quality-focused in the world -- particularly in regard to consumer electronics.

    Our launch was less than stellar in the areas I've just mentioned, and it's difficult to recover. However, we've been doing a tremendous amount of work to make sure that when the next generation arrives, that Japan is a very, very important part of the next generation for us. I can guarantee we won't make the same mistakes the second time around. We're a company that's pretty good at getting it right, if not the first time, certainly the second time.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Wireless & Video Game Globalization

November 7, 2004

All Lucky Numbers Are Local

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Posted by John Yunker

Every culture has lucky and unlucky numbers. In the US, you'll be hard-pressed to find the 13th floor in New York City.

According to CNN, someone in China paid $215,000 for a lucky cell phone number. He got a number with the maximum number of 3s, which is a lucky number in China. The number 8 is even luckier, but because Chinese phone numbers begin with "!3", the grouping of 3s is apparently even more valuable.

Just as 3 and 8 are lucky numbers, 4 is highly unlucky. When pronounced in Cantonese, it sounds similar to the pronunciation for "death." Two Chinese cities went so far as to ban the number 4 from license places. And you won't find the 4th or 14th floors on many Chinese buildings.

That leads me to a story about how numbers relate to business strategy and branding. Palm recently released the Tungsten T5 handheld, the successor to the T3. Why no T4?

Well, it used to be that marketers would ask: "Does it play in Peoria?" before launching a new product. Today, they also must ask: "Does it play in Shanghai?"

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Translation | Web Globalization

November 5, 2004

Apple iTunes Globalization, Continued

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Posted by John Yunker

About a month ago I wrote about how iTunes had currently been localized for three markets.

My how time flies. The last I checked the iTunes Music Store now supports 12 markets outside the US. Not too shabby.

itunes_nov04.jpg

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November 4, 2004

Business Beyond Time Zones

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Posted by John Yunker

Fast Company features a short article on the challenges of managing global teams. This is a real challenge that global Web teams face. Conference calls must be shuffled constantly to adjust for changing schedules and to give people in certain time zones a break from late-night calls.

And then there's the challenge of managing across cultures. Here's a very interesting exerpt:

    Francisco D'Souza, COO of Cognizant, makes it a rule that new hires must have lived outside their own cultures. His newest 10 employees, for example, are fresh graduates from a dozen U.S. universities, who represent five nationalities. They'll spend a year in India before spreading across the world. The move has another purpose. "Our team in India gets exposure to different cultures," D'Souza says.

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November 3, 2004

Language Weaver Scores More CIA Cash

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Posted by John Yunker

Language Weaver, a San Diego-based developer of machine translation software, scored additional funding from In-Q-Tel, the VC arm of the CIA (yes, even the CIA likes to gamble). It appears that Language Weaver has made great strides in creating software to effective machine translate Arabic. Given the CIA's backlog of untranslated Arabic intelligence, this software can't be delivered a minute too soon.

I noticed that the press release sizes the MT market at $4 billion. Not sure where they came up with the stat, but it certainly sounds nice. But I would agree tha MT appears to be coming into its own finally. Note to translators: I'm not implying you'll be out of business anytime soon. But I am saying that MT is going to find its niche and this niche will grow exponentially. There is simply not enough translators in the world to handle the content necessary in this increasingly global economy.

Here's the press release.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Translation

November 2, 2004

Internet Users by Country, According to Nielsen

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Posted by John Yunker

Nielsen/Netratings released its latest count of Internet users by country. Keep in mind that some of the most booming markets are left off this chart, such as China, India and Russia:

nielsen_sept04.jpg

Also, I was surprised to see the US show a decrease. But I'd like to know their methodology, as I'm not sure I buy it.

Finally, something to keep in mind moving forward is the penetration of cellular handsets. I believe the US is approaching 200 million users and an increasing number of these will have Internet access.

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October 29, 2004

SDL Helps Philips Go Global Gracefully

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Posted by John Yunker

SDL announced that it helped Philips simultaneously launch new product marketing communications materials (Web site, collateral, etc) in 29 languages using SDL software and services.

I've only just skimmed the new site but it does appear to be an improvement and I'm pleased to see a global gateway splash page included (shown below).

philips_gateway.jpg

I'll have a full review of the site shortly. Here is the SDL press release:

    SDL International, the world's leading provider of translation services and technology solutions, announced today that Philips Consumer Electronics, a division of Royal Philips Electronics, has successfully launched new product marketing communication materials simultaneously in 29 languages using SDLWorkFlow 2004 and SDL translation services.

    SDLWorkFlow 2004 integrates with Philips XML-based authoring, content management systems to automate product marketing translation management, ensure maximum re-use of translation assets and enable rapid translation of any type of content. This includes product leaflets, website and call center support documentation, with translation overhead reduced 85% and translation costs 35%. The increased automation of processes from authoring to publication has enabled the simultaneous launch of consumer web catalogues in 29 languages in support of Philips' new "sense and simplicity" marketing campaign.

    "Our new 'sense and simplicity' campaign is one of the most significant marketing investments ever made by Philips," commented Luuk de Jager, Senior Manager for Global Content Management at Philips Consumer Electronics. "By concurrently launching in 29 languages we are able to reinforce our global brand, communicate consistently with our customers wherever they are located and achieve economies of scale in our product, marketing and e-business operations. This has provided our customers with immediate access to appropriate product literature. We could not have achieved this without our strategic language technology and services partnership with SDL."

    "Philips is leading the industry in utilizing XML-based technology to improve its product and marketing communications processes," said Terry Lawlor, Vice President Worldwide Marketing at SDL International. "Our software, consultancy and language services have helped Philips reduce the cost of translation by over 30%, achieve faster time to market and creating consistent quality across multilingual business communications. The simultaneous launch in 29 languages would not have been possible without the advanced capabilities of SDLWorkFlow 2004 and the rapid turnaround, high quality translations from our services operations."

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October 28, 2004

eBay And Amazon Have The World To Thank for Their Success

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Posted by John Yunker

eBay and Amazon both reported solid Q3 numbers. But if you dig a bit you'll find that the growth engine behind both of these companies is non-US sales.

eBay

eBay reported that revenue from total transactions was $779.2 million up 51% from $517.1 million in the year-earlier period. Revenue from international transactions surged 82% to $282.3 million in the recent quarter.

Amazon

International sales increased 52% and now accounts for 44% of all sales. Contrast that against US sales, which rose only 15%. Next, compare "Media" sales between US and International segments. US Media sales came in at $564 million while international sales came in at $530 million.

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October 12, 2004

Briggs & Stratton Accelerates Translation

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Posted by John Yunker

Just as “time to market” has accelerated across all industries, so too has “translation to market.” After all, you can’t promote a new product globally if the marketing collateral and support materials aren’t available in the necessary languages.

When it comes to the Internet, the content management system (CMS) plays a critical role in accelerating (or decelerating) translation to market.

briggs.jpg

Up until recently, Briggs & Stratton was clearly suffering under the weight of its CMS. Briggs was using a now-defunct product called Eprise, from the now-defunct company Divine. Managing translation workflow through the software was cumbersome, time-intensive, and prone to error; translating a Web page into five languages could take a week or more, not because of the actual translation but because of the software overhead.

Briggs & Stratton turned to Northwoods Software Development for an XML-based software solution. Now, when a Web page is added or modified in the source language, Briggs’ translation agency (Cogen) is automatically notified. But that’s just for starters. Because the CMS is native XML, Cogen can export pre-translated text strings and re-import them when the job is complete. Only those text strings that need to be translated are exported saving a great deal of time; what used to take a week now can be managed in hours.

I spoke with Pat Bieser, CEO of Northwoods. He said that Briggs first looked at Vignette, Broadvision, Microsoft CMS, and a number of smaller vendors before selecting Northwoods. “They choose us because of our reasonable price and because our feature set compared well to the high end products,” he said. “It also didn't hurt that we have had 300 installs in the past two years, including ome big names like Snap-on, AIG, VISA, Time Warner, and the City of ilwaukee. “

Pat believes the translation workflow feature will become a critical feature of their CMS platform in the years ahead: “All of our clients who do business overseas have an interest in our translation process and multi-language CMS.” However, he does not believe that the feature alone will drive sales. Translation workflow support is well down the priority list with most companies: “Unfortunately, this feature is often a ‘next year’ or ‘next phase’ option.”

I found the Briggs & Stratton deployment interesting for three major reasons:

  1. For starters, Northwoods appears to be growing rapidly despite the presence of global heavyweights like Vignettes. This tells me that there is plenty of opportunity for smaller vendors to succeed and to conintue to exert pricing pressure on the large vendors, as well as the globalization management software vendors like Idiom and Globalsight.

  2. Translation services vendors have an opportunity to gain new business through these new developments. Although Cogen kept the Briggs account throughout this transition, they could have been unseated had Northwoods entered with a services partner. Cogen appears to have had a strong enough relationship that Briggs did not “throw out the baby with the bathwater.” Other agencies in this situation may not be so fortunate.

  3. Speed kills. Multinationals will “kill” their existing software and service vendors if they can’t help them get translated content out to the Web sites as quickly as possible. Vendors would be wise to leverage “speed” as a marketing device to “kill” the competitioin.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Translation | Web Globalization

October 2, 2004

Asian American Market 101

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Posted by John Yunker

Kang & Lee, a multicultural marketing agency, offers a number of informational resources on its Web site, including an Asian Americans 101 primer.

Here are some interesting stats:

  • Between 1990 and 2000, the three fastest growing Asian groups were (in rank order by population growth rate): Asian Indians, Vietnamese, and Chinese. (Source: US Census Bureau, Census 2000)

  • On average, Asian Americans spend $635 per trip, nearly 50% more than the average spending per trip among all U.S. travelers. (Source: The Minority Traveler, 2000)

  • As of 2000, and for the first time in history, Chinese is now the second most prevalent foreign-language spoken in US households. (Source: US Census Bureau, Census 2000)

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Globalization Vendors

October 1, 2004

Nokia Going Global With Ad Campaign

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Posted by John Yunker

According to The Wall Street Journal, Nokia is launching its first fully global ad campaign. The slogan "1,001 reasons to have a Nokia imaging phone" will find its way into print, broadcast and Web sites across Europe, Asia and Africa, with the US following in a few months.

Speaking on behalf of the US market, the slogan hardly rolls off the tongue. It feels a bit like a "slogan by committee" which may very well be the result of trying to come up with a slogan that appeals to everyone. Nevertheless, global ad campaigns are a clear trend and it will be interesting to see how Nokia fares.

A photo of a baby will be used in some Nokia ads, as previewed here:

nokia_1001.jpg

Of course, the nationality and ethnicity of that baby is a big deal in many markets, which is why Nokia wisely plans to localize the campaign as necessary. Here's an excerpt from the article:

    To combat concerns of losing local flavor, Nokia is making some tweaks for different cultures. The current campaign will employ actors from the region where the ad runs to reflect the look of the local population, though they will say the same lines, Mr. Rantala says. He also said local settings would be modified when showcasing the phones, such as using a marketplace in Italy or a bazaar when advertising in the Middle East.

Cost savings is one driving force behind global ad campaigns. Nokia would like to cut back on the number of advertising agencies it relies upon around the world. For this campaign, it relied on just two firms - one for Asia and one for EMEA. The company also wants to achieve some economies of scale on advertising production, although with the added localization required for each market, I'm dubious that production costs will be decreased significantly.

The true measure of success won't be cost savings but revenue increases. In other words, does a global ad campaign help a company sell more product globally?

It all depends on the campaign. Few advertising campaigns ever become breakout hits regardless of their geographic focus. It's a tough business and consumers are harder to reach than ever before.

However, it is important for companies considering global ad campaigns to consider the risks and rewards of doing so. A global ad campaign is the biggest bet a marketing manager can make. If the campaign fails, it fails BIG.

Contrast the global campaign against a myriad of local ad campaigns, none of which promise global success but also none that will result in global failure. Another upside to launching a number of local campaigns is the opportunity to discover a hit campaign in one market that can be expanded into other markets.

Using the baseball analogy, the global campaign is the equivalent of players trying to hit a grand slam while local ad campaigns are the equivalent of a number of base hits. The tactics are different but the goal remains the same.

I'm not confident that this particular campaign will be a grand slam for Nokia, but I applaud them taking a big swing.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Web Globalization

September 22, 2004

The Rise of the Multilingual MBA

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Posted by John Yunker

The MBA has for years been a largely American phenomenon, but this is changing. The Wall Street Journal/Harris Interactive ranking of corporate recruiters' favorite MBA programs has this year added a new category: the international MBA program. I predict that the international MBA category is going to overshadow (or replace) the North American category. After all, what company today does not want an executive with a strong understanding of and appreciation for global markets? Granted, the top US schools certainly offer their share of international business courses and draw students from around the world (MIT Sloan is one excellent example), but there's something to be said for immersing US students in foreign programs and forcing them to learn different languages and cultures. So here are the top five international schools:
  1. IMD International (Lausanne, Switzerland)
  2. London Business School
  3. ESADE (Barcelona, Spain)
  4. HEC School of Management (Paris)
  5. MIT Sloan
And here is an interesting excerpt (subscription required) from The Wall Street Journal:
    Some schools received kudos for encouraging students to be multilingual. "ESADE stipulates that part of the M.B.A. curriculum includes knowing two languages [English and Spanish] by graduation, which in my opinion, should be a requirement for every M.B.A. graduate in the world," says James Dress, a survey respondent and brand manager at Grupo Panrico, a food company in Barcelona.
Language should absolutely be a component of an MBA program these days. I'm not suggesting that students need to be fluent in multiple languages, but a healthy appreciation for various languages will only help students appreciate various cultures. It also underscores an important point I find often overlooked at business schools: knowing how to read a culture is just as important as knowing how to read a balance sheet.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Web Globalization

September 21, 2004

China: 1.3 Billion People; 2 Million Credit Cards

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Posted by John Yunker

This Reuters article illustrates some of the greatest obstacles to expanding into new markets: payment and fulfillment.

Localizing a Web site can seem downright trivial when compared to navigating complex finance laws and regulations, selling to people who don't have credit cards, and delivering products when there are few reliable services. Welcome to China.

Here are some interesting stats from the article:

  • China's online shopping market was worth 4.2 billion yuan ($507.5 million) last year and is expected to double this year, according to market research firm Shanghai iResearch.

  • Only 10 percent of China's estimated 90 million-plus Web surfers buy things on the Internet, compared with 38 percent in the United States, according to industry executives.

  • Global Internet giants including eBay, Yahoo, and Amazon.com have all taken the China plunge in the last year, paying a combined $375 million to acquire domestic start-ups.

  • The nation's credit card holders now number a scant two million, a fraction of its 1.3 billion people.

eBay, which is already in China, is close to launching PayPal in China, which will help fuel ecommerce in the country. And China Post appears to be opening the courier business to the likes of DHL, UPS and FedEx.

When going global, companies need to look well beyond their Web sites.

Comments (0) + TrackBacks (0) | Category: Business Globalization

September 17, 2004

Cox Begins "Transcreating" Spanish

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Posted by John Yunker

Cox Communications announced yesterday that it is rolling out Spanish-langauge bills in selected markets. Here is the press release.

I found an interesting new term in the release: transcreating. This is just another term for localization, and I'm not sure I like it any better. But its use does underscore the limitations of terms like localization and internationalization. Here is the quote:

    Cruz noted that Cox is the first major cable company to offer customers a

    "bundled bill" in Spanish, meaning that the new billing feature is available

    with not only Cox Cable, but also Cox Digital Telephone and Cox High Speed

    Internet. As with Cox's current billing options, customers of multiple Cox

    services who choose the new Spanish-language bill can elect to receive a

    single bill or separate bills for each service.

    "Certainly, there is much more to offering a billing statement in Spanish

    than simply translating the existing bill. We took great care in

    'transcreating' our statement to ensure that every section is clear,

    understandable and culturally relevant to our Spanish-speaking customers,"

    Cruz noted. "We also looked carefully at our customer service functions to

    ensure we offer excellent customer care at all levels of contact. This

    includes having customer service representatives who speak Spanish. We've also enhanced our web site, http://www.cox.com , to allow customers to view their Spanish- language bills and access other online customer support features in Spanish."

When Cox launches the Spanish support pages for the San Diego market, I'll provide more detail. However, if all they're doing is adding a language preference option on the customer's account information page, I doubt that this will be enough to ensure widespread usage. Cox needs to launch a full-scale Spanish Web site. Perhaps support is the first step.

As a side note, in our recent report we found that marketing initiatives tend to be what drive Web localization, not support initiatives. Cox appears to be an exception to that trend.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation

September 14, 2004

A Cautionary Tale About the US Spanish Market

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Posted by John Yunker

The Wall Street Journal features an excellent article on one man's attempt to capitalize on the booming Hispanic market in the US. He purchased Spanish broadcast rights to the Boston (this is the year) Red Sox and has found it a lot harder to make ends meet than he expected. His company is the Spanish Beisbol Network and here's an article excerpt:

    "It looks so easy from the outside, but it's not," says Amaury Pi-Gonzalez, the Cuban-born voice of the San Francisco Giants and Oakland Athletics, two teams that have stumbled in their Spanish broadcasting ventures.

    A combination of factors contributes to baseball's Spanish slump. Demographics play a role: Cities where Mexican immigrants dominate el barrio are more likely to listen to soccer than baseball.

There are countless outstanding Mexican restaurant here in San Diego and I have yet to enter one that has a San Diego Padres game (or any other baseball game) on the air. It's always a soccer match.

Sports are intricately tied to culture, which means any major shift usually requires a generational shift as well.

Now if the Red Sox make it into the playoffs, Spanish Beisbol Network will make it into the black. Prediction: This will be a profitable year for the Spanish Beisbol Network.

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September 7, 2004

iTunes Going Global

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Posted by John Yunker

The iTunes Music Store is slowly but surely extending its global grasp. iTunes is the software companion to the iPod, allowing users to buy songs and books a la carte over the Internet.

As the iPod has been expanded into new markets, so has the iTunes store. According to recent news reports, Apple is on track to launch a pan-European iTunes application in October. However, this application will be in English only.

To date, Apple has localized iTunes for three markets: Germany, France and the UK. Japan is no doubt close behind. Here are a few scree shots of how iTunes directs users to the country-specific iTunes apps.

First, here is the Apple iTunes Web page promoting the localized software applications:

itunes_web.gif

Once you install and run the iTunes application, you can switch between country Web sites by clicking on the flag gateway, shown here:

itunes_gateway_detail.jpg

And here is a larger screen shot of the iTunes Germany home page.

itunes_de.gif

Finally, once you click on the flag gateway, you're taken to this page offering you a colorful selection of flags:

itunes_gateway.jpg

Flags are clearly the navigation icon of choice. As you may already know, I'm not a fan of using flags as navigational icons, although they do have more relevance in this case due to copyright law. It seems that the major obstacle to Apple taking iTunes globa isn't so much language as legal issues. Copyright laws vary by country, which makes the use of flags much more important from a legal "cover our rear end" perspective.

Flags is as a navigational icon, do not scale well. I'll be interested to see how Apple manages navigation once it has iTunes in two dozen countries. And given the recent launch of Microsoft's music service, there is more urgency to get there quickly. Ideally, the coming European iTunes application would be localized for each market, but it appears that Apple is simply in a rush to launch the darn thing before Microsoft gets any momentum. FIrst came the legal hurdles, language comes later.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | Web Globalization

August 30, 2004

Outsourcing: Looking Beyond India

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Posted by John Yunker

This InfoWorld article cites a recent Gartner report that predicts that India will lose market share "from its current 80 percent to about 55 percent by 2007."

Who's going to be nipping at India's heels? Countries to watch include Ghana, South Africa, Mauritius, Fiji, Malaysia, the Philippines, Australia, New Zealand, and China.

Here's what I found most fascinating about the article. Apparently Indian outsourcing firms are now outsourcing their outsourced work to other markets. Here's the quote (FYI: BPO stands for Business Process Outsourcing, the business buzzword de jour):

    The growth of the BPO business in other offshore locations is also likely to be fueled by Indian companies setting up operations in other countries. The BPO initiative in Sri Lanka, for example, is led by two Indian companies setting up operations there

Globalization truly is a double-edged sword.

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August 27, 2004

Global Gateway Notes

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Posted by John Yunker

As you know, I'm an active proponent of the "global gateway." The global gateway refers to the many visual and technical elements that collectively direct Web users to their country- and/or language-specific Web pages.

Whenever I run across a good, bad or just plain weird global gateway, I make sure to take a screen grab. Here are three gateways worth mentioning:

First is the Japanese home page of the Honshu-Shikoku Bridge Authority (don't ask how I ended up here). This is a great Web page for English speakers who don't speak a word of Japanese. Why? Because the page features an "English" link in what I refer to as the "sweet spot" of global navigation.

bridge_authority_jp.jpg

This Web page illustrates just how important a highly visible link -- in the user's native language -- is to effective navigation. Had this link been buried at the bottom of the page, I'm not sure I would have found it so quickly, or at all.

Next, we have a not-so-good example of a global gateway. This link, on the Uniden home page, has an informal "Hey you!" feel to it. Worse, the link is provided only in English, which is a slight to French-Canadian speakers.

uniden_gateway.jpg

Finally, we have the gateway from the Exel Web site. It is an animated map that changes appearance based on cursor movement. Fun to look at, but a static map would have been more usable. And Exel could have skipped the text altogether. The global gateway needs to be usable to the widest number of people, which necessitates a more visual and less textual solution.

exel_gateway.jpg

Know of any gateways that you think are good, bad or just plain weird? Please send us an email at info@bytelevel.com.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | Web Globalization

August 20, 2004

Microsoft's Global Blunders

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Posted by John Yunker

CNET News features an entertaining article on some of the creative ways that Microsoft has offended people around the world through cultural and linguistic blunders. These anecdotes come from a recent presentation by a Microsoft executive, who is probably now being reprimanded.

Here are two blunders from the article that are bound to be endlessly repeated by localization vendors and consultants (such as me) for years to come:

  • Microsoft has also managed to upset women and entire countries. A Spanish-language version of Windows XP, destined for Latin American markets, asked users to select their gender between "not specified," "male" or "bitch," because of an unfortunate error in translation.

  • When coloring in 800,000 pixels on a map of India, Microsoft colored eight of them a different shade of green to represent the disputed Kashmiri territory. The difference in greens meant Kashmir was shown as non-Indian, and the product was promptly banned in India. Microsoft was left to recall all 200,000 copies of the offending Windows 95 operating system software to try and heal the diplomatic wounds. "It cost millions," [Microsoft's Tom] Edwards said.

In Microsoft's defense, mistakes like these are endemic to most companies. Expanding into new markets always looks a great deal easier than it is.

If there is one lesson to be taken from Microsoft, it is that poorly managed localization is almost always more expensive in the end than no localization at all.

PS: Here's another Microsoft anecdote from the Taipei Times:

    One mistake that caused catastrophic offence was a game called Kakuto Chojin, a hand-to-hand fighting game. The fighting went on with rhythmic chanting in the background which in reviewing the game Edwards noticed appeared to be Arabic.

    "I checked with an Arabic speaker in the company who was also a Muslim about what the chant meant and it was from the Koran. He went ballistic. It was an incredible insult to Islam," Edwards said.

    He asked for the game to be withdrawn but it was issued against his advice in the US in the belief that it would not be noticed.

    Three months later, the Saudi Arabian government made a formal protest. Microsoft withdrew the game worldwide.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Software Localization | Translation

August 19, 2004

Amazon: If You Can't Beat 'Em, Buy 'Em

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Posted by John Yunker

According to Bloomberg, Amazon is about to acquire China's largest online bookseller, Joyo.

joyo.jpg

Amazon is paying $75 million for the company. This is not the first time Amazon has bought its way into a new market; Amazon made similar acquisitions in the UK and Germany.

Amazon could have built a Chinese site from scratch, just as it did with its Japan site, but I understand that the project took them well over a year to pull off, and was a brutal learning process. And timing is critical given the rapid expansion of China's economy. This acquisition makes good sense.

I'll leave you with a few juicy quotes from the article:

  • There were 87 million Internet users in China in June, 28 percent more than a year earlier, according to the China Internet Network Information Center, a government-sponsored information center.

  • EBay, the largest Internet auctioneer, has invested more than $180 million in China, purchasing Eachnet, an auction site, as well as opening its first research and development center outside of the U.S.

  • Internet retailers will sell $8.59 billion worth of merchandise in China this year, according to International Data Corp. That's less than one-tenth of sales in the U.S., the world's largest market.

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August 17, 2004

PayPal Speaks French

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Posted by John Yunker

The Wall Street Journal (subscription required) covers the recent launch of PayPal's French Web site.

paypal_fr.jpg

Two things I found interesting:

1. PayPal is wisely following in eBay's footsteps. As eBay expands its global precense, PayPal follows closely behind to offer payment services. So now that eBay is planning a Chinese Web site, it's safe to say the PayPal China site is not far behind.

2. Like many other Internet companies, PayPal expects international revenues to outpace US revenues. The only question is the timing. Here's a quote:

    "E-commerce is much more hindered in Europe, therefore a good payment tool like PayPal has huge potential, not only for eBay but for e-commerce in total," said Mr. Entenmann (managing director for PayPal International). He added that PayPal's international business should exceed its U.S. business in the long run, though he declined to specify a time.

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August 15, 2004

Lowe's Conducts Bilingual Marketing Research

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Posted by John Yunker

Since relocating to San Diego, I've been a regular at Lowe's. During my last visit I was asked to particpate in an online study.

I went home, plugged in the URL and here's what I found:

lowes_research.jpg

A bilingual marketing research study. I'm glad to see it. Coincidentally, I pitted the Spanish Web sites of Lowe's and Home Depot against one another in our recent report, Web Globalization and the World's Largest Companies.

The Lowe's Web site did quite well, but there is plenty of room for improvement. This market research study is a sign, to me at least, that Lowe's is just getting started with its online Spanish marketing efforts.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | US Hispanic Market | Web Globalization

August 9, 2004

Case Studies in Globalization

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Posted by John Yunker

CNET features an in-depth Knowledge@Wharton article on the adventures of American-based Internet companies as they expand globally.

Here's an excerpt...

    As growth in the United States inevitably slows, companies like eBay, Yahoo and Amazon increasingly have to expand internationally to support their stock valuations. Each company, however, will face unique hurdles. For eBay, it may be local laws restricting ties to banks and other financial institutions. Yahoo may have to restrict certain types of advertising deemed unacceptable to a local government. Amazon needs local ties to suppliers and facilities with customized systems.

    "We have relatively little experience in purchasing, marketing, and distributing products or services for these market segments and may not benefit from any first-to-market advantages," says Amazon in its filings. "It is costly to establish international facilities and operations, promote our brand internationally and develop localized Web sites, stores and other systems." Nevertheless, Amazon adds that it will continue to expand abroad over time. It will have to because the opportunity may be too much to ignore.

The lesson of the story: global expansion may be inevitable but global success is not.

Here are a few of the many dangers that face Internet companies expanding abroad:

    • Cultural differences

    • Longer payment cycles

    • Laws favoring local competitors

    • Credit risk and higher levels of payment fraud

    • Legal and regulatory restrictions

    • Currency exchange rate fluctuations

    • Higher costs

    • Diverting management attention

You can read the article here.

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August 6, 2004

¿Habla español? A Directory of Spanish-language Web Sites for US Hispanics

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Posted by John Yunker

The statistics are compelling. According to the US Census Bureau, there are

nearly 40 million native Spanish speakers in the US. By 2010, this number will easily surpass 50 million.

So it's no surprise that American-based companies and organizations are

responding to this trend with Spanish-language Web sites. I've commented on

a number of these Web sites over the years, and I'm now collecting these Web

sites in one place.

So here it is: www.bytelevel.com/global/es

The collection is small at the moment, but with your help I expect it to

grow. Please take a look and let me know if there are any Web sites worth

adding. I want this directory to be an ongoing resource for documenting who's

offering Spanish content, as well as how successfully they're doing so.

Email me at jyunker@bytelevel.com.

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market | Web Globalization

August 4, 2004

Oracle Selects Idiom (Again?)

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Posted by John Yunker

The title of this latest Idiom press release makes it sound as if Idiom just won the Oracle account. However, if you read past the first paragraph you'll find that Oracle is not a new account. The deal appears to be an expansion of an existing software deployment. Make no mistake, this is very good news for Idiom. Still, I wish the PR folks would turn it down a notch.

Here is the press release:

    Oracle Chooses WorldServer to Help Reduce the Time, Cost and Complexity of Translation and Localization



    Aug. 2 /PRNewswire/ -- Globalization Management Systems

    (GMS) leader, Idiom(R) Technologies, Inc., today announced that Oracle(R), the

    world's largest enterprise software company, has selected Idiom

    WorldServer(TM) as an integral component of its "Translation Factory", the

    translation infrastructure used by Oracle to simultaneously ship products, Web

    content, collateral and documentation in 32 languages across all geographies.

    Oracle first purchased WorldServer in 2002 to support a strategic

    initiative to better deliver its online content globally. The success of the

    Oracle.com globalization effort suggested that similar benefits might be

    achieved if WorldServer was used for other types of content that required

    globalization. After an evaluation of competing GMS offerings, WorldServer

    was again selected for a multi-month pilot project that focused on delivering

    globalized product help, documentation and training material. This extensive

    pilot confirmed that the same WorldServer benefits could apply to all of

    Oracle's translation and localization efforts, based on its ability to address

    the following needs:

    • Accelerate Time-to-Market: The pilot showed that WorldServer could be

      seamlessly integrated with Oracle's internally developed globalization

      tools, thereby delivering the process automation needed to achieve

      "SimShip".

    • Improve Translation Quality: Oracle also found that it was able to more

      consistently reuse commonly translated terms, phrases and sentences and

      that they were able to share these translation assets across more

      content types. As a result, they were able to eliminate translation

      inconsistencies that often result from working with multiple third

      party vendors from project to project.

    • Simplified Vendor Management: The pilot also showed that with

      WorldServer, Oracle would be able to simplify the management of its

      vendor base for many content types thus reducing the workload on its

      internal staff.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Software Localization | Translation | Web Globalization

August 3, 2004

GlobalSight Adds Content Management Partner

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Posted by John Yunker

GlobalSight, a developer of globalization management software, announced today that it "has entered into agreement with enterprise content management software provider, Mediasurface, for integrating end-to-end Web content creation into GlobalSight's Ambassador product. The new functionality will be sold as an add-on module to Ambassador."

Who stands to gain the most from this deal? I'd say that would be GlobalSight. Mediasurface has 300 clients while GlobalSight is hovering at around 30.

This is the second OEM deal that GlobalSight has announced this year and these deals certainly don't hurt. But I have only seen one new client announcement this year and I'm starting to wonder how long this company can hang in there. Granted, many new clients these days prohibit any splashy announcements, so the company could be selling software left and right. But based on a survey I recently conducted, times are still a bit slow for globalization software management companies.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Web Globalization

August 1, 2004

A Closer Look at Google's Global Trajectory

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Posted by John Yunker

Google says that half of its Internet traffic emanates from outside the US. While this is significant, what really matters to Google is where the revenues emanate from.

Now that Google is on the verge of going public, it has finally coughed up some numbers. In 2003, roughly 25% of Google's revenues came from outside the US, shown here:

google_revenues_net.jpg

Judging by 2004 numbers thus far, I would predict that international revenues will surpass US revenues by Q1 of 2006. This trend becomes more apparent when you view geographic revenues as percentages of the whole, shown below:

google_revenues_geo.jpg

It's not hard to see the international column surpassing the US column fairly quickly. As I've written before, Google is probably the most global commercial Web site ever created; it offers more than 90 localized Web sites. Every one of these sites is a potential source of advertising revenue. So it is not a question of if international revenues will surpass US revenues, but when.

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July 29, 2004

Amazon's Global Growth Spurt

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Posted by John Yunker

Amazon recently released Q2 numbers, and, as we predicted, international sales are now solidly driving Amazon's growth. Take a look at the sales breakdown between North America and International:

amazon_financial.jpg

If the trend holds, by the end of this year international sales will surpass North American sales. And when you focus on just the core media business, international could outperfom North America in Q3.

Now, how will this trend affect Amazon and its competitors? Here are a few thoughts...

1. For the folks in charge of Web globalization, this is great news. I'm quite confident that Amazon has at least two new localized Web sites in the works and would not be surprised to see half a dozen new sites launched over the next two years. What countries will be next? I would look for China, India, Russia and Spain.

2. Amazon will launch a more effective "global gateway" on its .com Web site. I have long felt that Amazon needed better global navigation on its .com Web site because studies consistently show that international Web users often first visit the .com Web site of a company (assuming that there is no localized Web site or that there is a link to this Web site). I realize that Amazon advertises locally and hosts the sites using country-specific domain names, but more can always be done here. Ultimately, all first-time visitors to Amazon.com will be asked to select a country/language preference.

3. Tensions will rise between Seattle employees and international employees. I've witnessed this at other companies, and it can be difficult to avoid. The folks that work at headquarters get comfortable viewing the in-country offices as "satellite" offices. But these satellites are collectively going to be more important to Amazon's future than HQ. Will this lead to a loss of jobs in Seattle? Will people in the country offices get a boost up the corporate ladder? These are questions that everyone will be asking as Amazon transitions from a US company serving the globe to a global company serving the globe.

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Web Globalization Back on the "Front Burner"

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Posted by John Yunker

Two months ago I began interviewing executives at a number of large multinationals about their global Web sites. As you know, I've been following this industry for many years now, and it has certainly seen its ups and downs along the way.

But I can say now that Web globalization is definitely back on the "front burner," to quote one of the people I spoke with. Granted, most executives still believe that their global Web sites are underfunded and overlook a number of key markets (and I certainly agree). But they also believe that the momentum within their companies is shifting in their favor.

This is good news for globalization software and services vendors and ultimately good news for the companies themselves. Web globalization is inevitable for most companies, so it stands to reason that those companies who embrace it sooner rather than later will gain a competitive advantage.

The results of my interviews, as well as case studies of companies like IBM, Ikea, Wal-Mart and Starbucks, can be found in our latest report: Web Globalization and the World's Largest Companies.

wlc_cover_200.jpg

A free report excerpt is avaiable upon request.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Cultural Issues | Translation | Web Globalization

July 26, 2004

China: 80 Million Internet Users And Just Getting Started

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Posted by John Yunker

According to a new report from the China Internet Network Information Center (CNNIC) -- the country's Internet regulatory body -- China now has 31 million broadband Internet subscribers, an increase of 79% over the past six months. Total Internet users (broadband and narrowband) number more than 81 million.

Contrast that with the US, in which there are roughly 48 million broadband subscribers and more than 140 million overall Internet users.

The US is still in the lead, for now. But China is only just awakening to the Internet. In the CNNIC report, a wealth of demographic and usage data points to continued growth. The following exhibit shows Internet users by age. More than half of all users -- i.e., more than 40 million -- are under 24 years of age.

china_internet_users.jpg

And these young people love to shop. According to the report, more than half of Chinese Internet users plan to start shopping online in the coming year.

But don't expect these shoppers to go browsing English-language Web sites. Consider this statistic from the CNNIC report, showing language preference of these Internet users:

china_internet_users_language.jpg

Any company that is doing business in China or hopes to do business in China needs a Chinese-language Web site. That's step one. Step two will be to create a Chinese Web site that's better than the competition.

But first steps first...

The CNNIC report can be downloaded here.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | Web Globalization

July 5, 2004

eBay: Think Globally; Test Locally

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Posted by John Yunker

ebay_austrialia.gif

ZDNet News UK reports that eBay Australia will no longer allow sellers to set a reserve price. According to the article, "eBay maintains that reserves actually put off buyers, citing an August 2003 study which found auctions without a reserve had a 34 per cent higher sell-through rate."

Could Australia foreshadow the end of reserves in other eBay markets, specifically the US? I suspect so. But I find this development particularly interesting because it highlights the value of local testing, as well as the brutal transparency of the Internet.

eBay could have removed reserves globally in one fell swoop; instead, it begins with a much smaller market, one rather similar to the US, and it will soon discover if consumers embrace it or not. The more localized Web sites a company supports, the more opportunities that company has to test products, pricing and promotions locally. Global product launches or modifications aren't always the best idea.

Finally, the transparency of the Internet provides a warning for all eBay sellers in other markets to lock in your reserves now before it's too late.

Comments (0) + TrackBacks (0) | Category: Business Globalization

July 3, 2004

World's Largest Hotel Chain Expanding Global Web Sites

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Posted by John Yunker

Localization firm SDL recently announced that Best Western has signed up for SDL's "Knowledge-based Translation System" to better manage its global Web sites. According to the press release, the "implementation will involve translation of more than four million words on four thousand web sites plus daily updates into four languages: French, Spanish, Italian and German."

Best Western wants to increase the amount of localized content on each hotel Web site, but doing so manually is simply too expensive. SDL's solution involves using a mix of translation memory, machine translation and workfow software to keep translation costs and turnaround time low.

Both companies estimate that Best Western will save $2 million in translation costs within the first year of operation. Clearly, machine translation (MT) is playing a key role in the savings. But is machine translation really ready for prime time?

SDL thinks so, and I agree. The key to success, however, is workflow. You can't use MT as a last step or an only step and you need to carefully control the type of content you expect MT to handle. But if you do it right, MT can help you expand the amount of localized content without blowing the budget. The main reason I believe MT will succeed is that companies today simply have much more content than budget, and this won't chane anytime soon. MT can help companies get more localization bang for their buck, and this will translate into a real competitive advantage. However, the road to successful MT is long and many companies will fail along the way. It will be very interesting to see how Best Western does in the months ahead.

PS: Here is the current Best Western global gateway.

bestwestern_gateway.jpg

I like the globe icon, but this gateway will need to be improved to more effectively direct traffic to the localized sites. It needs to be moved to the top of the page and the pull-down menu needs rethinking. I recommend a splash gateway for starters. The global gateway may seem trivial, but it can make a big difference when it comes to traffic - the metric most often used to measure the success of local Web sites.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Web Globalization

July 1, 2004

Global Search Engine Tips

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Posted by John Yunker

Here's a short but useful piece in WebProNews on improving search engine results across foreign search portals. The most important tip is this: if you want to do well in other markets, you need to register your Web site in country-specific domains.

For the article, click here.

Comments (0) + TrackBacks (0) | Category: Business Globalization

June 3, 2004

Alienware Going Global

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Posted by John Yunker

You can't hide on the Internet, particularly when it comes to Web globalization. I was passing through the Alienware Web site the other day -- because they have the coolest-looking desktops on the market -- and I couldn't help but notice this in the upper right-hand corner:

alienware_gateway.jpg

Ah yes, the beginnings of a global gateway. I followed the links, and it turns out they've got a Canada Web site live and a Mexico site on the way. The Canada site is missing French content -- a big no-no. And I would advise that they do without the flags on the gateway.

I always enjoy watching companies as they ease their way into Web globalization. It will be interesting to see what happens after the Mexico site goes live. I bet they discover that many Spanish-speaking Americans begin using the Mexico site to get more information on products.

I also wonder how well their brand and product names will travel. Their computers have names like "Roswell" and "Area 51." Perhaps these have universal meaning for the alien followers of the world. And I believe some UFOs were spotted recently in Mexico -- sounds like nice timing!

And now I will leave you with one of their pricey but cool computers:

alienware.jpg

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May 25, 2004

US Hispanic Spending Nears $700bn

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Posted by John Yunker

According to a new report by HispanTelligence, U.S. Hispanic purchasing power has surged to nearly $700 billion and is projected to reach as much as $1 trillion by 2010.

hisp-purch-power.jpg

According to the report, the rate of growth is nearly three times the overall national rate over the past decade and will propel the aggregate disposable income of the nation's largest minority group to $699.78 billion in 2004.

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market

May 24, 2004

FedEx and UPS in China

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Posted by John Yunker

Steve Rivkin of the Naming Newsletter posted an short piece on why FedEx and UPS may be benefitting in China simply because of their names. Here's an excerpt:

    The name FedEx has a strong association in Mandarin Chinese with fei, which is flying – a desirable name hinting at speed. The U of UPS also has a good association: it sounds like yo in Mandarin Chinese, meaning excellent.

    Fed Ex’s “flying” nuance effectively expresses excellence with a picture of quickness in delivering, according to Andy Chuang, president of Good Characters in Fresno, California.

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May 21, 2004

Ford + AOL = Mi Negocio

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Posted by John Yunker

Ford and AOL have gotten together to launch the "first-ever Spanish language entrepreneur hub for Latinos."

It is called Mi Negocio ("my business") and is located at www.ford.com/go/minegocio

mi_negocio_thumb.jpg

Here are some juicy stats from Ford's press release:

    About 42 percent of all minority businesses are Hispanic-owned, which is more than any other minority group. Ranks of Hispanic entrepreneurship has jumped 30 percent since 1998, and one out of 10 small businesses will be Hispanic-owned by 2007 – jumping to two million from 1.2 million.*

    Hispanics also are among the most Internet-savvy of consumers. There are about 13 million Hispanics online, and the average time Hispanics spend online outpaces that of the general U. S. population, according to a study completed earlier this year by America Online and Roper ASW. The study says nearly half of Hispanics who are now using the Internet went online for the first time within the past two years, and now spend about 9.5 hours a week online. More than half say that access to content in Spanish is important to them.

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market | Web Globalization

May 19, 2004

Sony Betting Big on China

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Posted by John Yunker

According to an article in The Wall Street Journal today, Sony is doubling its marketing budget in China to "help boost its sales there by at least 50% and keep it on track to reach the $10 billion mark in fiscal year 2008-09."

Sony China Web site (www.sony.com.cn)

sony_cn_thumb.jpg

Currently, China contributes only 3 to 4% to Sony's consumer electronics revenues. But even so, the company sells more high-end digital cameras in China than anywhere else in the world.

Here is the link to the article (subscription required).

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May 11, 2004

Byte Level Included in 2004 Bull Market

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Posted by John Yunker

Seth Godin has published a very useful guide of business consultants, in which we are happy to be included.

bullmarket_cover.jpg

It's a great idea, and I encourage you to download a copy. Like most Seth Godin "idea viruses," this one is free!

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May 7, 2004

Is the US Losing Its "e-readiness"?

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Posted by John Yunker

Since 2000, the Economist Intelligence Unit has published an annual "e-readiness" ranking of the world’s 60 largest economies. A country’s “e-readiness” is based on a number of factors, such as mobile and broadband penetration, Internet usage, and the regulatory environment.

Here are the counties that made the top 20 this year:

ereadyness.jpg

Clearly, the Nordic countries have fared quite well. The US, despite being sixth, is the highest-rated large country in terms of populatioin and land mass. When you spread a large population over a large land mass, broadband coverage is a much more expensive endeavor than it is in, say, Britain.

Here's what the EIU has to say about its rankings:

    When the e-readiness rankings were introduced in 2000, the US was the indisputable leader. In each year since, its position has eroded as other developed countries, particularly in Northern Europe, have advanced. In 2003 the US lost the pole position to Sweden, and in this year’s ranking it falls back to a humbling sixth place, bested by the four Scandinavian countries and the UK. Decay in the world’s Internet superpower? Or is something else going on?

    There is. Despite the dotcom bust and pummelling of the IT industry, which hurt the US disproportionately, the US continues to make strong strides in e-readiness. Its decline in the ranking is a result of other countries making faster progress. Northern Europe, and the Nordic countries above all, are experiencing accelerated penetration of high-speed Internet infrastructure and advanced e-business services. The Internet is transforming the ways in which people interact, in both the commercial and public realms. Scandinavia is remarkable for the way in which citizens have incorporated Internet technology into their daily lives, completely altering how they work, shop and communicate with officials.

    The changing fortunes of northern European countries, on the one hand, and the US, Canada and Australia—the Internet pioneers that led our earlier rankings—on the other, is the most salient development over the five years of our e-readiness rankings. The most remarkable gains have been registered by Denmark and South Korea--up nine and seven places, respectively, since we substantially revised our methodology in 2001. In the same period, Japan, Russia, Egypt and Peru have fallen almost as far as Australia, by seven places each. While these countries have under-performed against their peers, it is not a case of decline, but rather of stagnation or slow development compared with more aggressive e-leaders. Indeed, nearly every country in our ranking is making progress. Whether they are progressing as quickly as their neighbours is the question.

To download a copy for yourself, click here.

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May 6, 2004

Life Sciences Translation Demand Booming

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Posted by John Yunker

Bowne Global Solutions cites the results of a study it commisioned through Capgemini that finds translation demand booming in the life sciences industry. The ever-expanding European Union is driving this demand, as all medical devices and pharmaceuticals must be translated into the language of each member country.

Here are the most interesting findings from the study:

    Ninety percent of life sciences companies believe their need for translation services will increase during the next five years, and 23% of those companies expect their need to increase drastically, according to a new report produced by Capgemini, one of the world's largest providers of consulting, technology and outsourcing services.

    Among survey respondents, 80% indicated that international markets comprise at least 25% of their total company revenue. This statistic reflects the foreign market growth that has exploded in recent years, driving demand for translation and localization service companies. However, despite the existence of translation firms, 77% of life sciences companies prefer to handle translation duties in-house, citing a desire to retain control of the process.

Naturally, Bowne wants more life sciences companies to outsource their translation work. And based on anecdotal feedback, Bowne has done an excellent job of winning over this industry. There are a number of smaller translation firms that specialze almost exclusively in the life sciences industry, but Bowne is bringing its massive scale to bear, and winning a growing number of accounts.

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May 3, 2004

Frito-Lay in China

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Posted by John Yunker

Cool News of the Day excerpts a recent Forbes article on Frito-Lay's struggle to sell potato chips in China. It's worth a quick read. Here's an excerpt:

    First off, "China bans potato imports," forcing Lay's to open a couple of farms and grow its own spuds. Then there is the matter of adjusting potato chip flavors to match native palates. "A key right now is the local flavors, such as red meat," says David Wong, who leads the charge for Frito-Lay in Shanghai. Lay's (which is pronounced "Leshi" and thereby translates into "Happy Things") is responding with taste sensations such as 'crispy fragrant French chicken wings," and "fresh crispy seafood."

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April 27, 2004

The Rebirth of Web Globalization

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Posted by John Yunker

Although the Web globalization industry has been around for half a decade, it is still very much in its infancy. The past few years have been particularly challenging for those executives in charge of global Web sites, as budgets have largely been on life support.

However, this year Web globalization appears to be making a comeback, driven by a rebounding global economy and emerging markets.

I have spoken with a number of executives who tell me that Web globalization is back on the “front burner.” And every week it seems that another American multinational announces signs of “strong growth” abroad. Consider the following:

  • eBay president Meg Whitman recently announced that her company would produce a full-scale Chinese Web site staffed by employees in China. She said she believes that China could eclipse Germany and England and become eBay's second largest market within 10 to 15 years.

  • Amazon reported that Q1 2004 revenue in the US rose 20 percent to $847 million while revenue from its international stores (United Kingdom, Germany, France, and Japan) jumped 80 percent to $684 million. At this rate, Amazon could be generating the majority of its revenues from outside the US by the end of 2005.

  • Coca-Cola, which already brings in more than two-thirds of its sales and four-fifths of its profits from overseas markets, is pressing ahead with its global expansion. Management stressed last month that Asia and Europe are the two markets it is most focused on these days.

The United States is a massive but mature market. Companies in search of long-term, double-digit growth have no choice but to pursue emerging markets such as China, India, and Eastern Europe. As a result, Web globalization is becoming an essential piece in the global marketing puzzle.

But even as companies increase their investments in Web globalization, they are doing so with more realistic goals and budgets. Every additional Web site is expected to generate additional revenues but also cut customer support costs. Today, I find that companies are asking fewer questions about building multilingual sites and more questions about how to use translation memory, and content management tools and how to measure return on investment. These are all great questions – and questions I plan to address in the months ahead, with your help.

What are your Web globalization plans?

I am going to be speaking with a number of small and large companies over the next few months about their current and planned Web globalization activities. Every company that participates will receive a free copy of my findings when the report is completed. If you would like to participate in what I believe will be an invaluable survey, please contact me

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April 25, 2004

Siemens and Translation: Outsourcing vs. Insourcing

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Posted by John Yunker

Large companies are in a constant state of flux about how to best manage translation. Should they do the work in house or should they outsource it to a translation agency? Ask any translation vendor and they will passionately tell you that outsourcing is the only way to go. Ask any in-house translation team and they will argue the opposite.

Some companies, such as Siemens, rely on a combination of both internal and external teams. As an $80 billion company, Siemens has plenty of translation work to go around. Although Siemens has had an internal translation division for years, it did not require its divisions to use them. Similarly, this internal translation team was not required to work only on Siemens projects; today, roughly 25% of its revenues are generated by non-Siemens work.

But this arrangement came to an end on April 7th, when Siemens formally spun off (or “carved out”) its translation agency. According to the press release, the move was part of Siemens’ “continuing strategy of concentrating on its core portfolio.” This new company is known as LS Language Services GmbH (www.ls-international.com). It has 20 employees and manages up to 70 different language pairs. In 2003, the company generated sales of 9 million euros -- a very respectable figure for a firm this size.

I suspect that this move was largely driven by Siemens’ stated goal of reducing head count, but I also believe there are other factors at work here.

I spoke with Ilona Wallberg, head of sales and marketing at LS Language Services. Although LS Language Services is still owned by Siemens, she believes that it now has a degree of independence that will help it win new business. In the past, her company lost out on non-Siemens projects because of conflict-of-interest concerns. For instance, a telecoms vendor would naturally be reluctant to give translation work to a division of a company that it competes closely against.

Wallberg believes these concerns will be less of an issue now that her company has a new name and an independent business plan. She expects that in five years approximately 50% of the company’s revenues will be generated by non-Siemens work. She also believes her firm will expand its industry focus far beyond IT and telecoms.

So what does this development signify, if anything? Here are a few thoughts…

    Some skills may be better kept in house

    While I realize that companies are always looking for ways to reduce head count, I can’t help but wonder if Siemens is outsourcing a skill set that would be better off kept in house. Consider the value-added services that a translation division could provide to a large company, if it were effectively used. Translators and project managers could educate the many marketing and product development teams to better understand the cultural issues of each market and region. It could even provide high-level cultural and linguistic analysis of every new product name, color, positioning statement – just the types of services already being outsourced to naming and brand consultancies (many of which do not have global expertise).

    Granted, most in-house translation teams do not provide these types of services today. They translate text and manage print and electronic localization projects and that’s about it, which is why they are so easy to “carve out.” But I do believe these are the types of services that companies increasingly need and are not getting from their conventional translation agencies. This in turn opens the door to consultants (such as Byte Level Research).

    Who’s going to manage that Web site?

    LS Language Services is one of many handlers of the Siemens Web site. Wallberg notes that there are hundreds of people involved with updating content to the site and only a handful of those people are professional translators or project managers. Last year, in our Web Globalization Report Card, we gave the site a score of 62 on a scale of 1 to 100. The site clearly has room to improve, and I’m not convinced it will get there any faster by outsourcing all work. In fact, I believe it will be increasingly important to have full-time Web content managers in house to work hand-in-hand with product developers and marketing managers.

    Translation agencies are not viewed like advertising agencies – which is both good news and bad news for the industry

    In advertising, it is rare to find competitive companies using the same agency. For example, the agency that has the Verizon Wireless account won’t also have the AT&T Wireless account. Companies view their agencies as consultants or partners, privy to high-level strategic intelligence and planning.

    Now look at the translation industry. It is much more common for a translation agency to do work for competing companies simultaneously. Companies may have their concerns about such an arrangement, yet these concerns are not as frequently an issue. Non-disclosure agreements are signed, and that’s the end of it. On one hand, this is great news for a translation agency, as it can thrive by focusing on specific industries. But it is also bad news because it means that companies do not view translation agencies as highly as they view advertising agencies. In other words, a translation agency is akin to a print shop, not a partner.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | Web Globalization

April 15, 2004

Krispy Kreme Going Global

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Posted by John Yunker

While Krispy Kreme continues its seemingly slow migration across the US (Boston only recently saw its first location), it is aggressively expanding outside the US. It already has stores in Australia, the UK and Canada, and recently opened a store in Mexico City (the company plans to open 20 stores in Mexico over the next six years).

It has even localized its Web site for the new markets:

krispykreme.jpg

Next Stop: Japan

According to the Wall Street Journal (subscription required), the company is in negotiations with a potential Japanese partner. No doubt the company has witnessed the success that Starbucks has enjoyed in Asia. According to the article, Japan "is the largest market outside the U.S. for McDonald's Corp. and coffee chain Starbucks Corp. But others, such as Burger King Corp., failed to attract Japanese consumers."

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March 28, 2004

Pull-Down Menus Are A Global Problem

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Posted by John Yunker

As companies add more and more localized Web sites to their portfolio, they are increasingly resorting to using pull-down menus for navigation. Yet as the FedEx gateway (below) illustrates, pull-down menus are no panacea; they may in fact cause more problems than they solve.

fedex.jpg

The FedEx gateway includes more than 170 countries from which to choose. For residents of the US, the menu is rather easy to use - as the US has in effect jumped to the front of the line. But what if you are a resident of Sweden, Taiwan, or Venezuela? I'm afraid you have a lengthy bit of scrolling to do.

Pull-down menus simply do not "scale" well. In addition, this particular menu does not list the countries in their native languages - also not a good idea; this raises a more vexing problem - how would you alphabetize the list of countries if they were in their native languages?

Finally, FedEx makes a major (but common) mistake by placing the U.S.A. at the top of the menu. This display of favoritism may benefit the bulk of its Web users, but its does not create the appearance of a globally agnostic company. I've spoken with more than a few non-US residents who resent this strategy.

So what's the solution? The 3Com gateway offers a very good alternative:

3com_gateway.gif

Notice how the gateway groups the countries by region, thereby avoiding any patent displays of favoritism. The site also presents the countries in their native languages - a huge usability boost.

Granted, the page only includes a fraction of the countries that the FedEx menu includes, but I believe that it could be expanded to include an equal number of sites.

While I realize that the pull-down menu takes up very little real estate, it's simply not a valid solution for global gateways. For our recent presentation on this hot topic, check out The Art of the Global Gateway.

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March 27, 2004

Localization Down Under

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Posted by John Yunker

Here is a very nice article by Evelyn Olsen on the New Zealand translation industry.

Her company is NZTC, and for those who manage competitive companies, I recommend taking a look at their Web site (excerpt below).

nztc

They present bios of their teams divided by language specialty - a nice touch. Translation companies increasingly run into prospective clients who naively believe that translation work could easily be managed by computers. By emphasizing the people behind the scenes, NZTC makes it very clear what value they add to the process.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Globalization Vendors | Software Localization

March 4, 2004

Beware The Globalization Bubble

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Posted by John Yunker

New York Times columnist Tom Friedman has neatly divided globalization into three software-like stages, as follows:

    The first era, from the late 1800's to World War I, was driven by falling transportation costs, thanks to the steamship and the railroad. That was Globalization 1.0, and it shrank the world from a size large to a size medium. The second big era, Globalization 2.0, lasted from the 1980's to 2000, was based on falling telecom costs and the PC, and shrank the world from a size medium to a size small. Now we've entered Globalization 3.0, and it is shrinking the world from size small to a size tiny. That's what this outsourcing of white-collar jobs is telling us — and it is going to require some wrenching adjustments for workers and political systems.

Tom does have a penchant for creating buzzwords. And while I typically agree with him on globalization, I believe he dangerously oversimplifies things.

Globalization 3.0 did not begin just a few years ago. He would have been wise to speak with a few translation or localization firms, which have been outsourcing work globally for more than three decades. And for the past five to seven years, most of this work has been outsourced via Internet applications. Yes, the technology today makes outsourcing tremendously easier and more cost effective -- hence, more attractive to upper management -- but the trend has been in place for some time. It is simply affecting more and more industries and people within those industries.

My major concern with Tom's column is that it will encourage executives to leap into the globalization waters without realistic expectations. I would hate to see thousands of executives around the US thinking they can lay off half their IT staffs and outsource everything to India without so much as a speed bump along the way.

For a sober analysis of one company's outsourcing efforts, the Wall Street Journal recently profiled a software company that nearly failed in outsourcing jobs to India. The article is here (subscription required). But here is an excerpt that I found most relevant:

    ValiCert's experience offers important insights into the debate over the movement of service jobs to lower-cost countries, such as India. Such shifts can save companies money and hurt U.S. workers. But the process is difficult, and the savings typically aren't as great as a simple wage comparison suggests. Some jobs cannot easily or profitably be exported, and trying to do so can risk a customer backlash: In recent months, Dell Inc. and Lehman Brothers Holdings Inc., for example, moved several dozen call-center and help-desk jobs back to the U.S., after employee and customer complaints.

Globalization is inevitable, but let's not get reckless

I believe that globalization is ultimately good for the world and world peace. It forces countries, through commerce, to do what their governments are so often incapable of doing -- get along. Yes, globalization is messy and people absolutely lose jobs as a result. But people also gain jobs as a result. When a Hollywood blockbuster earns $50 million abroad, are there protests in Seattle? Is it fair for one country to sell its products to the world and then not expect anyone but its own people to benefit from its growth?

Globalization is painful because it forces us all to reexamine our worth -- to our employers and our countries. It also opens our eyes to a more competitive world. My advice to executives is that globalization is unavoidable, but it is also no panacea.

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March 1, 2004

Google Watch: More Tools; More Languages

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Posted by John Yunker

Google continues its global growth campaign by launching News Alerts in four additional languages:

Google also has localized its popular search toolbar into 35 languages -- from Arabic to Welsh. You can download your toolbar by clicking below:

googletoolbar.gif

And for those in desperate need of a change, Google offers toolbar versions in Pig Latin, Elmer Fudd and Hacker.

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February 27, 2004

Microsoft: Death by a Thousand Languages?

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Posted by John Yunker

Microsoft likes to make a big deal of how global a company it is, and for good reason. The company now makes more money from outside the US than from within. But the company still has a long way to go before it is truly a global company and, as this CNET News article makes clear, the company may face a tough road getting there.

Right now, the company offers its operating system in 47 languages. This is no simple feat -- localizing software into a new language can easily exceed a million dollars in engineering and translation costs. But at 47 languages, Microsoft is still only serving a small portion of the world; there are more than a thousand languages in use today.

As the CNET article points out, most small and emerging markets have been overlooked by the folks at Microsoft.

Enter OpenOffice, an open-source alternative to Microsoft's office software suite. A grassroots effort has been gradually localizing the software for more than 30 languages, with many more on the way -- from Basque to Kinyarwanda (Rwanda).

openoffice.gif

With open source software, anybody with the time and expertise can assist with software localization. So what we are witnessing are people volunteering their time to do something that Microsoft won't spend a dime on -- creating software for people who don't speak a major language. This is a noble cause and one that will inevitably add to the growing global resentment toward Microsoft.

While I can understand why a company decides that the ROI (return on investment) of software localization doesn't add up for certain markets, I don't understand how Microsoft can justify turning its head, given how many billions of dollars it has stashed in the bank. In one year, the company could localize its Office suite into 100+ languages without breaking much of a sweat, yet it doesn't, and in not doing so it opens the door a little wider to open source software -- software that one day may lead to the downfall of Microsoft as we know it.

PS: If you'd like to join the open source localization effort, go to: 10n.openoffice.org/localization_responsibilities.html

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February 6, 2004

Globalization Notes...

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Posted by

I'm getting caught up after a very long trip and came across a few interesting items worth mentioning:

* From the law firm Baker & McKenzie:

As of March 1 2004, it will become possible to apply for the registration of domain names containing special Hungarian characters (á,é,í,ó,ö,o,ú,ü,u). However, this will only be useful for Hungarian language websites aimed at Hungarian readers.

* Tex Texin offers an excellent resource on "currency internationalization": http://www.xencraft.com/resources/multi-currency.html

* Software firm PeopleSoft signed a deal with localization firm SDL for "on demand" translation across all 24 country Web sites. While I haven't spent much time reviewing the sites, it appears that PeopleSoft is wisely using a consistent global design across countries. I hope to speak with them to learn more.

* And also from Baker & McKenzie:

Afilias, a global provider of Internet domain name registry services, will launch the first registrations of German domain names with umlauts in the '.info' domain at the end of February 2004 (a few days before the German domain registry services are expected to launch). The move will allow users of the German language to register words containing umlauts (ä, ö, ü) without having to refer to the ASCII code for "ae", "oe" and "ue".

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January 11, 2004

What You Need to Know About The Translation Industry

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Posted by John Yunker

We've just wrapped up production of The Savvy Client's Guide to Translation Agencies. This guide is now in its second edition, which is a testament to the demand out there for objective information on selecting a translation agency.

What's new with this edition?

For starters, we completely updated the agency directory. There are now 53 agencies included. It's worth noting that some agencies included last year are not included this year, such as Luz and Lionbridge. We certainly wanted to include these agencies but they never provided us with the information we requested. Agencies did not have to pay to be included in our directory, but they did have to supply us with some basic information to aid potential clients.

Also new in this edition are:

  • A Q&A section with American Translation Partners on the dangers of "back translation"

  • Five things you should know about your translation agency

  • Web globalization trends

Demystifying the translation industry

I have worked in a number of industries over the years and I find that the translation industry is among the most mysterious. Ten years ago, when I first purchased translation services, I assumed that the agency kept a staff of full-time translators on hand, ready for the next job.

Today I know better. Most translation work is outsourced to freelancers. Sometimes freelancers will outsource work to other freelancers. It's an industry dominated by thousands of one- to three-person firms that earn less than $500,000 annually. What does this mean? It means that there is little consistency among firms, no industry-wide standard for measuring or controlling quality, and ruthless price competition.

If you're looking for a translation agency, don't rush into it. The extra hours you invest in screening your potential vendors could save you thousands of dollars in "change orders" and countless headaches down the road.

And check out our guide. There is nothing else out there like it and it has already helped countless companies successfully navigate the mysterious world of translation.

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December 25, 2003

Web Site Review: Dura Automotive

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Posted by John Yunker

We received a press release this week from DURA Automotive Systems regarding their Web globalization efforts. Here is an excerpt:

With locations in more than 14 countries, Web-based communication transcending the barrier of language is critical for DURA Automotive Systems. Developing and maintaining a Web site for multiple languages can, however, be a time intensive and costly endeavor. With the development of a Web-based administrative tool by Logic Solutions of Ann Arbor, visitors to DURA's website will be able to view the website in the language of their choice simply by selecting it from a dropdown menu. And, more importantly, DURA will have seven or eight dynamic Web sites with the maintenance of one.

First Comment: This press release was issued prematurely.

According to this release, Logic Solutions is providing both a software tool to help DURA manage the eight sites more easily and a navigation tool that will help visitors to the site easily find their specific locale. Yet when we visited the site, there was no navigation tool to be found. Here is the home page:

dura_us.gif

Although the administrative tools may very well be in place, the navigation aid for visitors is absent. For example, to get to the German site (shown below) we had to input the URL directory: www.duraauto.de.

dura_de.gif

Second Comment: A global template will ease the management burden.

We still need to learn more about the backend management tools. Yet just by looking at the English and German sites we see widely different layouts. Should DURA adopte a global template, it could save significantly in maintenance costs because promotional blurbs and visuals can be prepared to fit globally consistent layouts.

Final Comment: Translation firms beware; Web development firms are coming!

It is interesting to note that these Web globalization tools were prepared by a Web development firm and not a localization or translation firm. As more companies invest in global sites, we expect more Web development and integration firms to enter the fray.

What has long been the domain of the translation industry could be co-opted by other industries. That's not to say that translation firms don't have an important role to play; they do. But the question is: will translation firms be kept behind the scenes as low-end vendors, or will they become valuable business consultants? My gut says that most translation firms will not move up this value chain (more on this in 2004).

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December 20, 2003

Starbucks in Strange Lands

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Posted by John Yunker

The Wall Street Journal recently interviewed Starbucks CEO Orin Smith about the company's experiences in new markets. I was impressed by Smith's candor. Starbucks is learning the hard way what most American-based companies are learning the hard way -- that someone may speak English and act American and still have little in common with Americans. As Smith noted, even the "Canadians are not Americans. They are different."

However, Smith also notes that different cultures do often share the same tastes in beverages.

Here is an excerpt from the interview:

WSJ: You've opened more than 1,000 stores outside the U.S. What lessons have you learned?

Mr. Smith: The biggest lesson is not to assume that the market or the consumers are just like Americans, even if they speak English or otherwise behave as if they were. They're not. This happened in the U.K., [and] it has even happened in Canada. The Canadians are not Americans. They are different.

We took to some of these English-speaking countries the same operating concepts and practices [as in the U.S.], and they just don't work the same way in all markets. For example, in the U.S., our real-estate strategy was to find the best corners in the best markets and open the stores. It worked very, very well. If you go to the U.K. and find the best corner, it's probably on High Street. You'll do a great volume of business but you can't afford the real estate. If you locate there as we did, in a number of places, it's a big mistake.

WSJ: Did you have to relocate those stores?

Mr. Smith: No, it's harder to change your mind after you've committed in the U.K. We're locked in for a long time. Eventually we'll work our way out of it.

WSJ: It's one thing to sell a good cup of coffee to an American; it's quite another to sell it to an Italian. How do you sell Starbucks coffee in Italy and France and other countries where people have definite ideas about how to make coffee?

Mr. Smith: There is already in those countries some built-up demand for the Starbucks experience. In countries where we don't yet have a presence, there are Starbucks look-a-likes that appear to be doing very well. Paris is a great example of this.

WSJ: Is the Starbucks coffee one drinks in the U.S. the same as the Starbucks coffee in Japan or the U.K.?

Mr. Smith: Yes.

WSJ: Do you serve drinks that cater to local tastes?

Mr. Smith: We do try. For example, we have green tea Frappuccino in Taiwan and Japan. It's the largest-selling Frappuccino in those countries. We don't offer it anywhere else.

WSJ: Have there been products you've offered overseas and then brought to the U.S.?

Mr. Smith: Yes, and there will be more. The vanilla Frappuccino was popularized in Asia. We will be introducing strawberries and cream [Frappuccino] out of the U.K. next year. That one will be extremely popular here. It's an amazing Frappuccino.

WSJ: How much does your product-mix vary from country to country? You've been selling alcohol in one outlet in Japan. How is that going?

Mr. Smith: First of all, there isn't a great variation from country to country. Outside the U.S., you find that food is a bigger part of the business -- much more important in China, Japan and the U.K. than it is in America. Frappuccino-kind of products are popular everywhere. You have a little bit less drip coffee in some markets because they are more espresso drinkers. In other countries, we don't sell as much whole-bean coffee. They're not into as much home brewing as we are here. We are trying to change that. We don't have any intention of rolling out establishments with liquor.

WSJ: What has been most surprising to you about consumer tastes in other countries? Did you have to change any of your assumptions?

Mr. Smith: The biggest surprise for us is how quickly they accept the kinds of products that we've introduced in the U.S. It isn't just the lattes and the cappuccinos or drip coffees. The Frappuccino is extremely popular. It catches on almost immediately. So do some of the very sweet drinks, the caramel editions and so forth.

We thought that in Asia, for example, they wouldn't like those beverages as much as we do here, because they would be too sweet for the palate of many Asians. Not true. We're a lot more alike sometimes than we believe.

WSJ: Do you think your biggest audience abroad is Americans traveling who miss their Starbucks at home, or locals who find this an American novelty?

Mr. Smith: It will be the locals. The first store or two will attract a disproportionate share of international types. It's not just the U.S. missing [Starbucks] anymore: It's the Japanese missing it and people from a lot of other countries where we now do business.

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December 11, 2003

Localized Washing Machines

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Posted by John Yunker

The Reveries Web site has an interesting piece on Whirlpool and its localization efforts in Latin America. Apparently the company has had great success in Brazil by creating a low-cost "people's washer" with features unique to the marketplace.

Here's an excerpt:

Whirlpool's research also revealed that aesthetics were important because washers are considered status symbols. In China, the looks factor is multiplied because "many families keep appliances in the living room." There's no place else to put them. In Brazil, Whirlpool jazzed up the control panel with bright yellow buttons and blue lettering. They also carefully selected appliance colors based on by-country preferences . Wash cycles were named on a by-country basis, too (in India, the delicate cycle is called the "sari" cycle, for example). What does one of these machines cost? Just $150 to $200 (about half the average cost in the U.S.). So happy are low-income Brazilians to have these machines that some are said to "treat the washer like a member of the family, referring to her as 'my little princess' and my 'little girl.'"

And here's a picture of one such machine:

brazil_washer.gif

For the full article, go to: http://www.reveries.com/coolnews/2003/december/dec_9.html

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November 29, 2003

Coke's Native Product Launch

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Posted by John Yunker

According to this interesting Dow Jones article, Coke is recently launched a new beverage in Argentina that takes advantage of the local fondness for the yerba mate plant. Called Nativa, the drink is designed expressely for the market and none other, and interesting contrast from product development strategies designed to appeal to as many markets as possible.

Here's an article excerpt:

Coca-Cola, which spent 4 million pesos ($1=ARS2.875) to develop Nativa, is pitching the new drink as a natural beverage that taps into the core of the Argentine identity. The company has a similar strategy in Brazil, where it also makes a product for the local market - Kuat, a soda made from extract of the Brazilian guarana berry.

nativa.gif

For the full article, go to: http://biz.yahoo.com/djus/031120/1601001494_2.html.

PS: Thank to the Reveries Web site for pointing me to the article.

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November 15, 2003

Most Global Countries

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Posted by John Yunker

A.T. Kearney, Inc. and Foreign Policy magazine recently released their list of the top 20 most global countries. The survey takes a number of factors into account, such as politics, travel, technology and economic integration. This is the second year in the row that Ireland came out on top. The US is holding steady at 12.

THE GLOBAL TOP 20

1. Ireland

2. Switzerland

3. Singapore

4. Netherlands

5. Sweden

6. Finland

7. Canada

8. Denmark

9. Austria

10. United Kingdom

11. Norway

12. United States

13. France

14. Germany

15. Portugal

16. Czech Republic

17. Spain

18. Israel

19. New Zealand

20. Malaysia

Here's a handy visual (click for the full-size version):

globaltop20.gif

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November 4, 2003

Bilingual Ads Arrive

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Posted by John Yunker

The San Antonio Express-News has an article on the growing number of bilingual (English and Spanish) ads.

Here's an excerpt:

There are "more Latinos in the United States than there are Canadians in Canada," Sosa said.

The Census Bureau has announced Hispanics are the nation's largest minority group, with a population of 38.8 million. And the Santiago Solutions Group, a national multicultural business strategy team, estimates the purchasing power of Hispanics will hit $675 billion this year.

"We find that smart marketers are doing crossover work more and more because they are recognizing the influential role that Hispanics have," said Manuel Machado of Miami-based Machado/Garcia-Serra Publicidad and president-elect of the Association of Hispanic Advertising Agencies based in Virginia.

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November 1, 2003

Kola Real Takes on Coca-Cola

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Posted by John Yunker

For anyone who says that globalization is a one-sided game in which American is always the winner, I submit Kola Real.

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Kola Real, known formally as Industrias Ananos, is giving Coca-Cola a run for its money south of the U.S. border. Based out of Peru, Kola Real has succeed by creating a product a lot like Coca-Cola, but cheaper.

According to an article in the Wall Street Journal, Kola Real is doing pretty well outside of Peru too. It now has 4% of the Mexican cola market - the number one market for Coca-Cola. And it is only just getting started.

Here's an excerpt:

Coke and Pepsi once vied primarily with each other. Today both are fending off down-market alternatives -- either so-called B-brands such as Kola Real or private-label drinks sold by Wal-Mart and other big retail chains. These cheaper rivals can cut into Coke and Pepsi's profits and make it harder for them to raise prices to offset slowing sales.

The trend goes beyond Latin America. Big retailers in Germany, Great Britain and other European markets are selling more private-label cola, and B-brands are aggressive in Poland and Hungary.

One big reason: the switch to plastic. In the 1990s, plastic bottles largely replaced glass, offering a cheaper alternative that lowered newcomers' cost of entry in the soft-drink industry. Plastic also allowed larger bottles that could be sold cheaply in supermarkets. Supermarkets provide an important outlet for new competitors because Coke and Pepsi often dominate smaller stores.

Kola Real's strategy is simple: offer big sizes at low prices. In a Carrefour supermarket in Mexico City, a large display of Big Cola beckons shoppers with a price of about 75 cents for a 2.6-liter bottle. Nearby, bottles of Coke go for about $1.30 for a slightly smaller 2.5-liter bottle. On a recent day, housewife Lourdes Avila put four of the Big Cola bottles in her cart and said: "For that price, I'll try it."

In a few years we will see many more Kola-Reals take root and succeed against the major multinationals. Perhaps it is human nature (supporting a local company and an underdog) that helps fuel the success of these start-ups. And perhaps it's just common sense to go with the cheaper brand of cola. Most likely it is a little of both.

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market

October 31, 2003

Chinese Hoops

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Posted by John Yunker

According to a recent press release, last year more than 15 NBA teams incorporated Asian American marketing efforts into their overall marketing plans. And the timing isn't due just to Yao; today, there are three Chinese players in the NBA: Yao Ming of the Houston Rockets, Wang Zhizhi of the Los Angeles Clippers and Mengke Bateer of the Toronto Raptors.

There are more than 2.4 million Chinese residents in the U.S. And the NBA needs all the fans it can get these days. Here's an excerpt from the press release:

"The timing is perfect for the NBA to take this important step in reaching out to the Chinese population in the United States," said Saul Gitlin, executive vice president-strategic services at Kang & Lee Advertising. "Not only are Chinese the largest Asian group in the country, but they have an unusually high level of education and boast a median household income of $51,444 - almost $10,000 ahead of the median for all households in the country. The intense passion for basketball within the Chinese community presents many opportunities for the NBA."

The NBA has also done a fine job of marketing itself globally. Jordan wasn't the world's most popular athlete by chance. The NBA had been pumping game highlights globally during most of his reign. And now, the NBA is awakening to Web globalization...

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The NBA has enjoyed tremendous popularity in China. During the 2002-03 season, a record 14 telecasters televised NBA games and programs in China, with NBA programming reaching a total of 314 million TV households. The league also launched NBA.com/china, a comprehensive internet destination, written entirely in Chinese.

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eBay's Global Plans

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Posted by John Yunker

InternetNews featured a brief article on eBay's expansion plans. It includes a great quote from an industry analyst:

"Globalization is the next logical path for growth, they do have to be cautious," Alvarez (Meta Group) told internetnews. "So long as they don't make the typical mistake of thinking that the rest of the world behaves as the U.S., I think they should be able to localize their business model overseas and bring the community flavor to auction sites everywhere."

Alvarez also noted that eBay's success overseas could hinge upon how the company continues to leverage the PayPal online payment service. eBay acquired PayPal in October 2002, and since then, the service has unveiled a localized payment service in the United Kingdom. At the conference, Whitman said she expects to grow PayPal services across eBay's other international Web sites, and to champion further penetration of PayPal transactions on eBay in the U.S.

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Global Brands Don't Always Start Out That Way

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Posted by John Yunker

The executives at Wal-Mart may be accused (and guilty) of many bad things, but I have to give them credit for sucking up their pride when going global. This article talks about how Wal-Mart decided against using its brand name in Japan; quite simply, Wal-Mart means nothing in the market. Instead, Wal-Mart wisely partnered with an established retailer, Seiyu.

Too many companies are too full of themselves to even consider partnering with local companies. But all too often, this modest approach makes the most sense. So what if you're the number one company in the U.S. - in another country you're nobody. But humility (and open-mindedness) is one of the keys to global success.

Here's an excerpt from the article:

"For Japanese customers, the name Wal-Mart doesn't mean a lot. The Seiyu name means a lot. For the near future, we'll go with the Seiyu brand," said Billie Cole, spokesman for Wal-Mart International Holdings.

Wal-Mart, which operates in 10 nations besides the United States, has adapted its approach to different markets, making itself more visible with Wal-Mart stores in places like China, while taking a lower profile in Mexico and Britain, where it has chosen partners as it has in Japan.

But nowhere else is the total invisibility of Wal-Mart quite as apparent as in Japan, the world's second-largest economy, where foreign brands are sometimes embraced - among them, Coca-Cola, Louis Vuitton, Walt Disney, the Gap - but often face failure verging on total rejection.

Eventually, I imagine that Wal-Mart will re-brand Sieyu. But the key word is eventually.

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October 23, 2003

General Motors Does it Again

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Posted by John Yunker

The brain trust that is General Motors will have to rename its latest brand, the Buick LaCrosse for its Canadian market. According to this article in the Toronto Sun, GM did not realize that LaCrosse is slang in Quebec for masturbation. Here's an excerpt:

GM vice-chairman Bob Lutz, who was in Toronto yesterday to address a gathering of GM dealers, said he wasn't aware of LaCrosse's racy roots although he speaks French and spent three years living in Paris.

"I thought I knew every expression existing in the French language for self-gratification, including the crudest ones known to man," said the outspoken Lutz.

The article also cited the Nova snafu from years past. Now I've been told repeatedly that the Nova example is an urban legend. However, when I wrote about it for my book I went to the person who first documented this story. He told me that he spoke with GM right after the incident and that it did in fact occur and that GM did in fact remove the Nova nameplates from the cars in at least one Latin American market.

That said, it is very easy to make fun of companies when these mistakes happen. But coming up with names that work in multiple markets isn't easy, particularly if you have to navigate the ever-changing world of slang.

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October 18, 2003

I'm Loving It

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Posted by John Yunker

McDonald's has a new slogan "I'm Loving It." I'm not fan of the slogan - and am not sure McDonald's even needs a slogan any more -- but I do enjoy watching how companies extend their slogans across markets.

So far, I've found that McDonald's translated the slogan into Spanish as "Me Encanta." In Spanish, the slogan feels a bit more elegant. It will be interesting to see what the company does for other languages/countries, if anything.

Companies are largely better off skipping slogans altogether if comes down to using these vague, meaningless phrases, particularly if they are going to need these slogans to work globally. It's hard enough to get a slogan to succeed in one country let alone a half dozen. Nike ended up not translating its "Just Do It" slogan because it had such a tough time translating the meaning across languages/cultures.

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October 15, 2003

Would You Like Fries With Your Greek Mac?

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Posted by John Yunker

In 2001, the McDonald's in Greece launched the "Greek Mac." The Greek Mac consists of two burgers wrapped in a pita with yogurt sauce, tomato slices, iceberg lettuce and onions.

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According to a recent press release, McDonald's claims the sandwich is becoming just as popular as its Big Mac counterpoart. Not only that, but its popularity has grown beyond national borders. It is now served in Belgium, the Czech Republic, Spain, Cyprus and Portugal. I would bet that Melbourne, Australia, with its large Greek population, might not be far behind.

And here's a quote that pretty much sums up the challenges and opportunities of doing business globally...

“The Greek Mac sandwich is a delicious example of how we as an international company cater to local tastes while maintaining the universal appeal of our brand," said Stavros Petropoulos, Managing Director of McDonald's Hellas.

Question: how long before the Greek Mac hits North American shores?

PS: Even McDonald's boilerplate company description emphasizes the "localness" of the company:

McDonald's is the world's leading foodservice retailer with more than 30,000 restaurants, serving nearly 46 million people each day in over 100 countries. More than 80 percent of McDonald's restaurants around the world are owned and operated by independent, local businessmen and women.

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October 12, 2003

Coca-Cola: Hecho en Mexico

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Posted by John Yunker

Globalization is funny. Just when you think you've created a global brand, people start yearning for its "localness." Take Coca-Cola. According to this article in the Philadelphia Inquirer, expat Mexicans are paying a premium for imported Coke.

Here's an excerpt:

"It has a different taste," owner Adela M. Trinidad, 30, explained in Spanish.

It's common for immigrants to seek out and buy products shipped from their homelands. For them, brand names such as Chandrika or Jarritos re-create Bombay in a bar of soap or Oaxaca in a fizzy tamarind drink.

But the attachment to Coke, Mexican-style, is another story.

The company is, after all, based in Atlanta. It is so symbolic of Uncle Sam that writer Salman Rushdie famously coaxed its consonants into a word for America's global dominance in economics and culture: Coca-Colonization.

What's more, cans and plastic bottles of the soda are a dime a dozen in the United States - or, actually, $7 a dozen. The Mexican Coca-Cola sold by Philadelphia-area distributors costs $10 to $12 a dozen.

I guess you just "can't beat the real thing."

PS: Ironically, Coke, with more than 50 country Web sites, does not offer a site for Mexico.

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October 11, 2003

BMW & BYD: Separated at Birth?

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Posted by John Yunker

I recently came across the Web site of BYD Automotive in China. Now I have to believe the lawyers at BMW are well aware of this logo, though I'm not sure what they can do to stop it.

It certainly made me look twice:

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Multilingual PR

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Posted by John Yunker

I am on a number of mailing lists. This year I noticed that a few multinational organizations have begun sending releases in more than one language. While it would make more sense to have recorded my language preference and sent only the language I prefer, the multilingual approach is a step in the right direction.

Included below is a recent release from the World Trade Organization in English, French and Spanish (why not German, Russian, Japanese...?). Obviously, you can't blast out every language, but it's a start.

========================================

Now on the WTO website:

BRIEFING NOTES ON THE MINISTERIAL AND THE MAIN ISSUES

These briefing notes describe the situation as it exists at the time of

going to press (mid—August 2003). They are designed to help journalists

and the public understand the key issues of the Cancún Ministerial

Conference.

> find out more:

http://www.wto.org/english/thewto_e/minist_e/min03_e/brief_e/brief00_e.htm

(Click on the links or copy and paste them into your browser.

Alternatively, you can go to our home page http://www.wto.org and follow

the links.)

TIP: When pages are newly published you might at first have difficulty

viewing them. Try clicking your browser's reload or refresh button. If

that still does not work, try again a bit later.

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Health Care en Español

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Posted by John Yunker

The trend of American companies building Spanish-language Web sites is now in full swing. We are now seeing health care organizations getting into the act, with Delta Dental of California now offering a Spanish site:

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I always find it interesting to observe how Web sites incorporate their first localized Web sites. They rarely revise their navigation menu to point to the new site; instead, they create a special button or graphic that points to the page. Navigation almost always comes later, and even then this "global gateway" does not become a major element until there are several localized sites involved.

As shown here, the Spanish site maintains the same layout:

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I would have recommended pulling the text out of the graphics to save time in localization. Assuming that additional language-specific sites are created, the less "embedded text" you have, the less work the localization will be.

Still, I'm happy to see more organizations dedicating resources to Spanish localization. With 40 million native-language speakers in the U.S., it's just a matter of time before most organizations follow suit.

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market

October 10, 2003

Pampering Russia

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Posted by John Yunker

This is a great article about Procter & Gamble's adventures in Russia.

While currency devalatuations have been challenging, the economy has since stabilized and sales are growing at 50% annually (although revenues are still a fraction of US revenues). Products such as Pampers, Tide and Pantene have been very successful (though they must be priced aggressively).

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Here's an excerpt that highlights the complexities of marketing in Russia:

...P&G must alter marketing strategies that have worked for decades in the United States.

Alex Nasard of Procter's Moscow marketing office said the company uses straightforward pitches rather than the entertaining, nuanced ads aired in the United States. Nasard said Russians are more immune to propaganda because of years of communism.

P&G also has left English labels on most products, to maintain the company's global branding as well as appealing to Russian customers' desire for anything American.

Here's the article.

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October 6, 2003

FYI: Trade Events Listing

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Posted by John Yunker

The US Dept. of Commerce has compiled a fairly hefty list of domestic and international trade events. The list is located at http://www.export.gov/comm_svc/eps_events.html.

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September 28, 2003

Starbucks in Paris

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Posted by John Yunker

Starbucks continues its global expansion with its first French locations, set to open in early 2004. Many pundits have warned that Starbucks will face anti-American resistance throughout the country.

I disagree. Starbucks will succees in Paris, just as it has in other parts of Europe, such as Spain, Austria, Germany and Switzerland. This is because Starbucks isn't perceived as a typical American retail chain; in fact, it now goes out of its way not to market itself even as a Seattle-based chain. Here is it's "About Us" statement:

What we are all about

Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily through its company-operated retail stores. In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company's objective is to establish Starbucks as the most recognized and respected brand in the world.

Starbucks, with 7,000 locations around the world, knows full well that it needs a global market in order to continue its rapid growth. As such, it will sidestep many of the potholes that other American multinationals have fallen into as they expanded abroad. McDonald's initially succeeded abroad as a uniquely American company, which is one (of many) reasons today why it is also struggling abroad. Starbucks won't face this legacy issue.

However, Starbucks will need to do a better job of designing a global gateway. As shown here, the gateway is stuck at the bottom of the left-hand navigation column.

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I predict that a year from now this global gateway will be moved to the very top of the page. For more information on global gateways, check out this latest presentation.

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September 7, 2003

Is Globalization Good?

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Posted by John Yunker

According to a recent study by the Pew Research Center, people around the world generally approve of increased international trade. They also "think positively" of international and multinational organizations, such as the World Trade Organization. (Respondents were not too fond of WTO protestors.)

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The study also notes that "majorities, in most cases strong majorities, in 34 of 44 nations thought the availability of good paying jobs had gotten worse in the last five years. And substantial majorities--82% in France, 67% in the United States, 63% in Mexico--thought the gap between the rich and the poor had worsened."

What does this all mean? Like all studies, it should be held at arm's length. After all, a person's experiences with globalization can vary widely. For intance, it's not such a bad thing if you save 50% of your stereo equipment, because of increased trade with China, but it's not such a good thing if you just lost you job to a call center in India.

Globalization is not all good and not all bad, like a lot of forces that have shaped this planet - languages, political movements, technologies. It is a double-edged sword that some countries are more skilled at swinging than others. The U.S., for example, has known how to swing that sword to its advantage for some time, but now other countries are honing their skills -- China, India, Russia. It will be most interesting to see how America reacts in the years ahead, as more and more countries start swinging their figurative swords at it.

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September 4, 2003

World Wide Madonna

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Posted by John Yunker

This article in the Wall Street Journal (subscription required) explains the logistics of Madonna's foray into children's publishing.

Madonna has never done anything small, so why should her first children's book be any different? Her book, "The English Roses," will hit bookstores in more than 100 countries in 30 languages simultaneously. This is a bigger launch, in languages, than even Harry Potter.

As expected when translating into so many languages, text expansion was a challenge:

The large number of languages led to some tricky moments for Editoriale Lloyd, because some translations needed adjusting to fit the space allocated around the illustrations -- Nordic languages, for example, can be particularly long-winded. That is one reason why such complicated simultaneous print runs are likely to be confined to children's books where a small amount of text is easily wrapped around pictures.

I found the logistics particularly interesting:

A plant in Ohio, for example, is printing all 750,000 copies of Callaway's English edition for the U.S., as well as a Spanish edition and a French edition for Canada, both for subsidiary publisher Scholastic Inc. In northern Italy, Editoriale Lloyd SRL is printing copies in 18 European languages, from French to Faroese, the tongue of the remote Faroe Islands (pop. 47,000) northwest of Scotland.

Because of the hefty print runs, the individual publishers save money: the printers can get better prices for paper and the publishers save up-front costs connected with processing the illustrations. H. Aschehoug & Co., the book's Norwegian publisher, expects to save at least 30% in printing costs on its initial 8,000 copies.

Apparently, the cost savings will make the effort worth it; of course, this all depends upon the book actually selling in mass quantities, which I'm not so sure is going to happen.

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September 2, 2003

Law & Web Globalization

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Posted by John Yunker

Thanks to Amy Campbell for pointing us to a note by Larry Bodine about the growing number of law firms with multilingual Web sites.

Apparently, Jones Day says it is the first law firm to make its Web site available in Chinese, which Larry says is not true. Regardless, it's nice to see the legal profession awakening to the importance of speaking to their future clients in their native languages.

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August 28, 2003

Nextel en Español

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Posted by John Yunker

Nextel recently launched a Spanish-language site to better market to Hispanic customers. Here is the site: www.nextel.com/espanol.

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This is good first step. But Nextel still has a long way to go. In all, less than 20 Web pages (by my count) have yet to be translated, putting it well behind competitors Verizon Wireless and Cingular, who both offer a great deal more Spanish content. But Nextel is still ahead of Sprint PCS, currently without any Spanish-language site.

One a picky but important note, notice how the URL ends with "espanol" not "español." URLs currently don't support accented characters, though this should change over the next two years. Nextel would have made things easier for itself and its users if it simply used the "es" suffix. See www.hrblock.com/es. Of course, it could be worse. Bellsouth offers no link at all on its home page to its Spanish-language site: www.miportal.bellsouth.net. And Verizon Wireless uses this cryptic URL: http://espanol.vzwshop.com/gw/.

Overall, Nextel is off to a good start. Now when is Sprint PCS going to catch up?

Comments (0) + TrackBacks (0) | Category: Business Globalization | US Hispanic Market | Web Globalization

Can You Find the Global Gateway?

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Posted by John Yunker

I'm a strong advocate for "global gateways." A global gateway is the term I used to refer to the navigation system that directs users to their language-specific or locale-specific Web sites. Once you offer more than one language or locale, you're going to need a gateway. (Here's our report on the topic.)

To understand the importance of the global gateway, I recommend visiting a Web site that offers multiple languages. Start with the Web page of a language you do not speak and see how easy it is to get to the English-language site. Here's a good test site: the Danish company TDC. Currently, the link to the English-language site is effectively buried. I've also included an excerpt below in case the site gets redesigned.

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As you can see the "English" link is located on the very bottom of the page. Only the most persistent visitor will be fortunate enough to find it.

Amazon uses a similar strategy:

Unfortunately, most Web sites -- even the most locally usable Web sites -- have a long way to go in creating globally usable Web sites.

Comments (0) + TrackBacks (0) | Category: Business Globalization | Translation | Web Globalization

August 10, 2003

Revenge of the Non-Native English Speakers

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Posted by John Yunker

Here is a very timely article on the growing relevance of multilingual, multicultural employees to the success of their companies within the U.S. and abroad. According to the article:

No longer is a non-native English speaker a secondary employee. Indeed, the cash-conscious survivors of the dot-bomb years are, of necessity, seeking to establish or expand their reach to a global audience—and are finding their multilingual employees more of an asset than ever.

The next major wave of growth for American companies will have to come from emerging markets and consumer groups. To ignore these opportunities is dangerous, not just for the potential in lost sales but for the room you'll give a potential competitor to gain momentum.

"I don't think anyone has a guarantee in business anymore. It comes down to looking for new markets both locally and globally," said Under Secretary of Commerce for Technology Cheryl Shavers, of the Department of Commerce. "People don't realize that Chinese companies are developing products sold only in China and vice versa. The successful businesses of the future will look beyond our own borders to increase their market share through e-commerce. Otherwise they'll be surprised to find their competition comes from abroad instead of next door."

For the complete article, go to: http://www.hightechcareers.com/doc501/speaking501.html

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July 20, 2003

Globalization Case Study

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Posted by John Yunker

An excellent article on the challenges of running a global team: CNET News

Here is an excerpt:

Even when employees have good language skills, they naturally interpret written and verbal communication through the filter of their own culture. Consider a situation that developed at Check Point Software, an Internet security software firm with most of its 1,200 employees split between offices in Israel and the United States:

"People in Tel Aviv asked me why their U.S. counterparts would sometimes seem upset by e-mail exchanges," said John Alexander, the company's Redwood City, Calif.-based director of human resources. A major problem? Not exactly. But Israelis, who tend to be rather direct, and even blunt, were sending e-mails that seemed, well, a bit rude to their American counterparts. And, he said, the Americans were sending e-mails that seemed wishy-washy.

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June 15, 2003

New Generation Latinos

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Posted by John Yunker

Corporations, anxious for growth, are increasingly opening their eyes to the U.S. Latino market -- a market that now has its own Web site: New Generation Latino Consortium.

In the past two weeks alone we've seen two important new Web site launches:

Nissan launched a U.S. Spanish-language site: www.nissanusa.com/espanol.

According to their press release, the site took four months to localize and included more than 200 Web pages.

Verizon also launched a Spanish-language site: www.verizonwireless.com/espanol. Verizon also provides a dedicated team of Spanish-speaking customer service representatives and in many Verizon Wireless Communications Stores. It also recently launched blah!, a mobile chat service that supports English, Spanish and Portuguese.

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April 8, 2003

The Last Days of Brand America

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Posted by John Yunker

A few savvy American companies have known this for some time now, but it took the recent global protests of "American" products to make the rest of corporate America rethink how they promote themselves around the world.

Brand America isn't so popular anymore. And those companies most associated with the United States are billing extra hours with their in-country crisis PR firms. McDonald's is doing its utmost lately to stress its "un-Americaness." According to a recent New York Times article:

The French operators of McDonald's have worked hard to distinguish themselves from their United States parent, offering unique menu fare, designing the restaurants to look different from the American stores and even establishing a brand identity for McDonald's as "McDos." They also run campaigns stressing the local nature of their operations.

Boycotts cut both ways

Coca-Cola is stressing how local boycotts hurt the local economy more than they hurt the US. Also from the Times:

"Boycotts hurt the local economy, the local bottlers, the local employees" in the more than 200 countries outside the United States in which Coca-Cola products are sold, said Kelly Brooks, a spokesman for the Coca-Cola Company in Atlanta.

Ironically, Americans are also hurting American companies by boycotting "French" goods. Consider Michelin, which has seen sales drop as patriotic consumers boycott the products. The only problem is that Michelin North America is an American company headquartered out of North Carolina, with 20,000 employees working in seven states.

The lines between "us" and "them" are fading.

It is getting more and more challenging to tell what products are from what country. Chrysler is owned by a German company. Saab is owned by an American company. Nissan is largely controlled by Renault, a French company. And this is just the car industry.

The good news about globalization is that it's getting more and more difficult to ignore the world. Why? Because the world is increasingly populated by your customers. You need the French to buy your software and they need you to buy their wine. Every day, global, symbiotic relationships are multiplying, bringing companies and customers closer together.

The bad news about globalization is that companies need to work a little bit harder to be successful globally. When the world loved America, American companies didn't think twice about waving the flag, as long as it helped sell their products. But those post-Cold War days also made American companies a little bit lazy. In the year ahead, the companies that can balance global strategy with local sensitivity are going to succeed. The learning curve is steep, but the growth curve even steeper.

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February 9, 2003

Must-Read Book: "Another One Bites the Grass"

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Posted by John Yunker

I recently finished reading

Another One Bites the Grass:

Making Sense of International Advertising

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Yes, I know the title is a bit odd. Yet whether you create global advertisements, businesses, or Web sites, you should read this book.

Author Simon Anholt writes about the challenges of creating successful global advertising campaigns. Most companies fail miserably in this department, and he outlines the reasons why. He also provides a model for "smart centralization," which he believes international advertising agencies should follow. This model also makes a great deal of sense for the development and management of global Web sites, which is one reason I enjoyed this book. I also liked how Anholt explained the inherent tension of trying to be both global and local at the same time. Here's an excerpt:

The fundamental challenges of international marketing communications are about preserving the perfect balance between sensitivity to the culture of the brand and sensitivity to the culture of the consumers around the world. If you abandon or relax your grip on the first sensitivity, you end up with fragmentation, loss of identity, and loss of control. Abandon or relax your grip on the second, and you fail to communicate effectively, and fail to build a global brand.

I also liked what he had to say about the importance of translation:

So when the question comes up, why can't we just use English? I always ask this question: do you think that consumers should make the effort to understand us, or should we be making the effort to be understood by them? Are we more interested in being respected, or showing respect?

For more information, go to Amazon

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January 30, 2003

Passport Troubles

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Posted by John Yunker

The European Union has much stricter customer data restrictions than the U.S. Even Microsoft couldn't skirt those regulations, as reported in EU Business:

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The US software giant Microsoft has agreed to make substantial changes to its Passport system of accessing websites to meet EU data privacy concerns.

I don't think the Passport system will succeed because is will be a virtual magnet for hackers, and Microsoft is hardly a poster child for network security. Still, the changes that Microsoft has agreed to make should be noted by any company doing business (or planning to do business) in Europe.

Here are some of the changes users will see:

  • A "prompt box" that will appear on screen when users designate themselves as EU residents, summarizing key information about privacy policies within the EU
  • A link to the European Commission's Web site on data protection laws outside the EU
  • Increased options enabling users to choose the level of information they share with Passport and participating sites
  • Easy-to-follow guidance to help users create secure passwords
  • Many major American companies, despite what they tell the public, still take a largely cavalier approach to their handling of customer data. List swapping is still commonly practiced (though much less publicly). Yet if you localize your Web site for France and begin collecting data through that site, which dumps into your U.S. database, you could have some international problems on your hands should you swap lists. Customer data is one of the most valuable assets of companies today, so invest the resources in properly managing it and protecting it.

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    January 4, 2003

    China's Gold Rush

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    Posted by John Yunker

    When asked about his company's plans for 2003, Kirk Pond, the CEO of Fairchild Semiconductor, talked mostly about Asia, specifically China. His company already does 70% of its business in Asia; he calls China "the next big thing."

    Fairchild is hardly alone. China is Siemens' third largest market. China is the world's largest cellular market. And it's really just a matter of time before China is the world's largest everything market. There is gold in China, in the form of 1.2 billion consumers.

    According to today's New York Times, General Motors sold 110,000 cars in China in 2002. And that's just the tip of the iceberg. McDonald's and KFC have a combined 700 restaurants in China. Kodak does a sizable business there. And last week Ethan Allen announced the opening of its first store in China.

    But like every gold rush, a lot of people are going to get hurt along the way. China actively promotes "knowledge transfer," a euphemism for stealing your technology. Companies are often forced to open R&D centers and hire Chinese nationals, and most follow along because their competitors are doing the same thing. Piracy is still rampant and corruption is a way of life.

    But nobody said striking gold was easy.

    If you want to learn more about this market, I encourage you to subscribe to Rich Kuslan's weblog: Asia Business Intelligence. It's a terrific resource.

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    January 2, 2003

    Local Markets Change Channels

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    Posted by John Yunker

    Is American entertainment a bellweather for other American products around the world? American multinationals must certainly hope not, based on this recent article. It seems that American studios are no longer making "must see TV" for markets around the world. Here are a few key excerpts (in bold):

    The shift counters a longstanding assumption that TV shows produced in the United States would continue to overshadow locally produced shows from Singapore to Sicily. The changes are coming at a time when the influence of the United States on international affairs has chafed friends and foes alike, and some people are expressing relief that at least on television American culture is no longer quite the force it once was.

    I find these developments dramatic. It was assumed as late as early last year that American multinationals were going to swallow the world whole. And yet here we find local markets fighting back quite nicely, thank you very much.

    A worldwide economic boom has brought foreign broadcasters more advertising revenue, which they have invested in local programming. Initially, many shows emulated successful American formats. In Germany, for instance, a long-running hit called "Das Traumschiff," or the "Dream Ship," is a remake of the American hit "Love Boat." But increasingly, homegrown programs mined historical events that resonated with their audience or added local twists to popular myths.

    According to a survey by the European Audiovisual Observatory, the highest ranking show in Italy last year was "Uno Bianca," a dramatization based on a crime gang. No. 1 in France was "Julie Lescaut," a long-running detective series.

    So what does this mean for American studios? It means they have to work a little bit harder for their foreign revenues. Subtitles alone don't cut it. They need to localize entertainment.

    Some studios, like Sony, are countering the trend by opening production centers abroad to better create shows tailored to local tastes.

    "Mein Leben und Ich," a German show produced by Sony that translates as "Me and My Life," about the angst of a teenage girl, is shown on Friday evenings at 9:15 and is first in its time slot. "A Rich and Famous Governor," a Sony production about a kindhearted but bumbling government official, has just been approved for broadcast in Hong Kong and China.

    I'm quite relieved to see locally produced shows regaining popularity. About 10 years ago, I made my first trip outside the U.S., to Australia. I was certain that Australian television would be as exotic as the country itself. But when I arrived, most of what I found was American made, from Married with Children to Baywatch. Fortunately, there was a show that I could love: Neighbors.

    Here's to a few more Neighbors.

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    January 1, 2003

    Have a Mecca Cola and a Smile

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    Posted by John Yunker

    When the world loved America, American multinationals could do (almost) no wrong. Nike, Coke, McDonald's and the rest could sell their goods practically anywhere in the world and make a nice profit. But now that the world's love affair with U.S. has gone sour, a window of opportunity has opened for "un-American" products. Enter Mecca Cola:

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    A must-read article in the NY Times explains the sudden success of Mecca Cola. Here's a reaction from Coke:

    Coke acknowledges that the Arab boycott has hurt. Singling out North and West Africa, most notably Morocco and Egypt, the president of Coca-Cola Africa, Alexander B. Cummings Jr., told analysts in October that "our business in these countries has been hurt by the boycotting of American brands."

    Another Coke executive, asked about Mecca-Cola, said simply, "We are aware of Mecca, and we have felt the impact of the boycott of American goods."

    Also, take a moment to visit the Mecca site. Thanks to the power of globalization, Coca-Cola will soon be battling with Mecca Cola in stores around the U.S. Globalization is a door that swings both ways.

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    December 18, 2002

    Translating Fashion

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    Posted by John Yunker

    The French children's clothing store Jacadi is a case study in the craziness that is globalization. Here is a French store expanding into the U.S. market because its fashions are more popular here than at home. Furthermore, it is hiring personnel who speak Tagalog and Korean to better serve its target American audience.

    Consider the following from a recent New York Times article:

    About 55 percent of revenues are generated outside France, compared with 35 percent five years ago, he said, with the United States contributing about 20 percent of non-French revenue, up from 17 percent five years ago.

    Jacadi is reacting to growing competition in its home market as well as to a European trend away from expensive frills and toward less-expensive streetwear. Indeed, while Jacadi still stresses what Mr. Charpentier likes to call "bon chic, bon genre" — roughly, real chic, real style — it overhauled the collection two years ago to accommodate the streetwear trend. "The colors, the style, the cut are more modern," he said.

    Still, neither the streetwear trend nor the uncertain economy has yet crimped Americans' taste for the French children's look, and Jacadi has done well with velvet dresses that go for up to $79 or jumpers for up to $89. Part of its strategy is to aim at ethnic groups whose tastes may tend to the frilly. Its Web site, for instance, specifies that Tagalog is spoken at a Madison Avenue store and Korean at several other sites.

    Here's the Jacadi global gateway:

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    So if your product flops in your home market, don't give up. You may still have a hit on your hands in some foreign market. The trick is in finding that market. But, like Jacadi, you have to move quickly. Fashion is fickle, and so too is globalization.

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    December 13, 2002

    The EU: Bigger and Better

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    Posted by John Yunker

    The EU took a big step toward becoming the world's largest trading market, with 446 million people vs. NAFTA's 416 million. It put 10 additional countries on the track to EU membership: Latvia, Lithuania, Estonia, Poland, Hungary, the Czech Republic, Slovakia, Slovenia and the Mediterranean islands of Cyprus and Malta.

    That brings the total to 25 countries. But the big news is that Turkey is also on track for membership, although on a much slower track. Turkey is an important step forward for the EU because it would be the first Muslim country to join. Imagine what it would take to engineer a similar partnership with the U.S. and any other Muslim country.

    I am in awe of the EU. It is our century's "great experiment" and I truly hope it succeeds. Admitting poorer countries to the EU is a very generous act because the wealthy countries must contribute more in revenues than they get back. But I believe it is incumbent upon the wealthy countries of the world to be generous with the less fortunate. I would like to see the U.S. follow along and work toward bringing down the wall that divides it and Mexico. I think it is just a matter of time before Vicente Fox co-opts Reagan's speech and declares "Mr. Bush, tear down this wall."

    Walls everywhere must come down if people are to truly get to know one another, empathize with one another, and stop fighting one another. It's a very long and contentious journey, of course, but I think the EU has made some amazing strides.

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    December 8, 2002

    When Brand and Country Collide

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    Posted by John Yunker

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    McDonald's is about as American as apple pie, and that's not such a good thing in parts of the world where America not in vogue. Consider the following from the Toronto Star:

    Around the world, McDonald's restaurants have been burning. One was torched in Riyadh, Saudi Arabia, on Nov. 20. Another blew up in Moscow on Oct.19, while less than a month before, a small bomb ripped through a franchise in a suburb of Beirut.

    For more than three decades, the public's craving for those limp little hamburgers has fuelled a massive global expansion, making McDonald's the most recognizable company in the world, with franchises in 121 countries. There's a meat-free McNistisima menu for fasting Greek Orthodox in Cyprus, a McRye burger in Finland, a McNifica burger in Argentina, a kosher McDonald's in Israel, and in France, wine to set off the standard greasy fare.

    But since the end of the Cold War, that growth has also made it a global favourite for those looking to blow up their own little piece of the American empire. And along the way, the Golden Arches have become a Rorschach test of domestic and international discontent, mirroring anxieties at home and abroad. In the United States, the company is blamed for the obesity epidemic, today's hot-button medical panic.

    Businesses need to be wary of being too closely identified with their native countries. I'm not suggesting that a company should avoid wrapping itself in its native country's flag, but to be acutely aware of the risks associated with it. And to soften the blow of any national backlash, multinationals should 'act local' -- particulaly through Web localization.

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    December 4, 2002

    Go-slow Globalization

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    Posted by John Yunker

    A great article in the International Herald Tribune about Vietnam's approach to globalization:

    The country's 80 million people want their piece of global prosperity and the benefits that come from the free movement of capital, goods and people. They just want it on their own terms, and other developing nations might want to pay attention.

    That you also do not see such names as McDonald's, Gap or other cultural hints of Americanism here speaks volumes about Vietnam's go-slow approach to globalization.

    Officials here have seen how countries like Indonesia and Argentina listened dutifully to the Washington Consensus and rushed the process of opening economies. They have also seen those countries go from growth stars to basket cases.

    Vietnam wants to avoid that and stay, well, Vietnamese.

    Folks here want globalization, but they don't want to be overwhelmed by it. Someday investors may celebrate the strategy.

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    November 25, 2002

    It's Not a Matter of If, But When

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    Posted by John Yunker

    Ford Motor Co. is paying an ``incredible penalty'' for Britain's absence from the European single currency and its UK competitiveness will be hurt if the nation does not join, the auto giant said Monday.

    ``The longer we stay isolated, the more we lose,'' Britain in Europe campaign director Simon Buckby said.

    Read the article.

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    November 24, 2002

    Global E-commerce Update

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    Posted by John Yunker

    Internet users are expected to number 655 million worldwide by the end of 2002. That's a 30 percent increase over the previous year, with the developing world accounting for a full third of all new users.

    From the UNCTAD E-Commerce and Development Report:

    ecom.gif

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    November 9, 2002

    Big Mac; Little Mac

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    Posted by John Yunker

    Well, it appears that McDonald's has fallen on hard times.

    According to the New York Times, it is "pulling out of three countries and closing restaurants in about 10 other nations as part of a restructuring aimed at righting its flagging fortunes."

    At first glance, one might assume that globalization has backfired on this food giant. But context is everything. Despite all the gloom and doom about these cutbacks: "McDonald's operates in 121 countries -- soon to be 118 -- and has 30,000 restaurants worldwide, less than half in the United States."

    I think the issue is less about globalization than it is about a business that is maturing, even in foreign markets. And maturity is a tough phase of life, even for major multinationals. And I find that American multinationals find it a bit less painful to cut their foreign operations before looking closer to home. Easier to fire people you don't see as frequently. McDonald's didn't name the countries that it was abandoning, but said only that they were in the Middle East and Latin America.

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    November 6, 2002

    Amazon Loves Japan

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    Posted by John Yunker

    Want to know a big reason why Amazon is doing well these days? According to this article:

    Sales rose 33 percent to $851 million, helped by growth of some 90 percent from its international sites, most of which was powered by its Japanese unit.

    As a result, Amazon has just added a marketplace to the Japanese site:

    The amazon.co.jp website, the fastest growing of the company's sites outside North America, said it hopes nearly a quarter of its more than one million active users would come to use the second-hand goods market service.

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    November 2, 2002

    Brand Name Blunders

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    Posted by John Yunker

    In a global marketplace, the odds of a new brand name offending somebody somewhere multiply significantly. Do your homework before taking a brand name into new markets. And read Steve Rivkin's Naming Newsletter. Here's a recent excerpt:

    In August 2002, the British sportswear manufacturer Umbro was denounced as “appallingly insensitive” for naming a running shoe the Zyklon. That’s the same name as the lethal gas used in extermination camps during the Second World War.

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    October 31, 2002

    BellSouth Targets Hispanic Consumers Online

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    Posted by John Yunker

    "With more than 42.5 million people of Hispanic descent in the United States, representing nearly 15 percent of the entire population, it's important for us to provide this valuable audience with the choice of receiving BellSouth's high-quality services either in English or Spanish," said Tim Hill, director of Portal Services for BellSouth. "Our new Spanish portal has customized content specific to this audience with up-to-the-minute news and a simple, easy-to-use interface - all in Spanish."

    Here's the press release.

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    October 29, 2002

    Sizing the Translation Industry

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    Posted by John Yunker

    According to a new report by Allied Business, the translation industry is showin no signs of slowing down. They predict translation revenues will reach $9.5 billion annually by year-end 2002:

    Web Site localization – the business of translating Web Sites into multiple languages -- will grow to a $1.7 billion market by year end 2007. Web Site localization will represent 13% of the overall Language Translation industry by that time.

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    October 28, 2002

    Going Global Gracefully

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    Posted by John Yunker

    When companies first go global, they tend to select the richest foreign markets. After all, if you want to make money abroad, you follow the money abroad. Yet this strategy overlooks the bulk of the world's population. And it also pits all these multinationals against one another (why not try markets where you have less competition)?

    There are a few good souls out there struggling to show companies how to make money in poorer countries AND serve the greater good, as shown in this recent Fortune article.

    It's an uphill fight to convince companies to invest in emerging markets. Most American companies have yet to even consider the Arab Middle East as a potential market. Yet there are 200 million people here. So I ask: when will American companies (besides the oil companies) care about this market? Those companies that invest today will gain a competitive advantage tomorrow. It does take long-term thinking and it does take a large measure of risk, but globalization is inevitable; succeeding globally is not.

    Anyway, here are some interesting stats from the article:

    "The World Bank figures that people in low-income nations account for less than 4% of global private consumption; triple that figure, and it still doesn't offer much bounce to corporate earnings. Coke has been operating in Africa for almost 60 years, and the entire continent still brings in only 3% to 4% of its profits. Look at China. In the last 20-plus years, companies have piled into that country in the belief that its one billion people--consumer heaven!--would sustain growth for generations. Instead, it's been a money pit--and China is in much better shape than many other countries whose citizens cluster at the bottom of the pyramid. What about India? The arithmetic is sobering: India's economy needs to about double in size to add $500 billion to GNP; by contrast, America can add the same amount in just two years of slightly below-average growth."

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    October 24, 2002

    Will Wal-Mart Ever Stop Growing?

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    Posted by John Yunker

    Wal-Mart did $191 billion in revenues last year. By 2011, analysts expect it to hit $450 billion. It has more than 4,600 stores open around the world right now; it is already the largest employer in many states - with more than a million employees globally.

    Why are all these numbers important? Because Wal-Mart is more than corporation. In terms of population, revenues, and real estate - it's a virtual country, and a wealthy country at that. And this country, by itself, is taking on the world. Years ago it was popular to accuse McDonald's of doing the same thing, yet Wal-Mart has much more ambitous goals; it seeks to succeed at EVERYTHING - from clothing to car parts to groceries to DVD rentals.

    Wal-Mart has conquered the U.S., but in order for it to hit its ever-ominous sales targets, it has to conquer the world. And each country is a whole new world of its own; I'm not so confident that Wal-Mart will succeed as quickly abroad as it has domestically. It has struggled in Germany as of late and it has yet to launch a Web site to support its Chinese operations. Yet Wal-Mart has the inertia of Microsoft; the only company that will likely stop Wal-Mart is Wal-Mart.

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    October 22, 2002

    The Great Global Safety Net

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    Posted by John Yunker

    UPS is like a lot of American multinationals - its international business is not the core source of revenues, but is an increasingly vital source of revenues. This week, UPS released its quarterly figures: we find that while its U.S. business grew at a paltry 1.4% over last year, the international business grew 17%, thanks in part to a new hub in Asia.

    Granted, the international revenues do not make up the majority of global revenues, but they do keep growing. And if I were a manager at UPS and I wanted to have a bright future, I'd make sure I was in that international division. If you're interested in the nitty gritty...

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    October 17, 2002

    Is it Feta or is it Fake?

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    Posted by John Yunker

    I knew there were strict rules about what constituted actual "champagne" but wasn't aware there were also rules for feta. This from the EU:

    The label "feta" can only be used for the distinctive cheese from certain Greek regions under new rules announced by the European Commission on Monday.

    For details, visit the EU site.

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    October 11, 2002

    A Brand By Any Other Name

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    Posted by John Yunker

    A great interview with Andy Chuang of Goodcharacters.com in Fresno, California. His company specializes in Chinese naming and linguistic evaluation. The interview was conducted by Steve Rivkin; here's an excerpt:

    For example, Toshiba once had a commercial song in China that sang, “Toshiba, Toshiba…” However, it turned out that “to-shi-ba” sounded like “let's steal it” (tou-chu-ba) in Mandarin Chinese. People really made fun of it.

    Fortunately, Toshiba is a Japanese name and its corresponding characters, Dong-Ji, means “the East” and “nobility.” Now Toshiba uses Dong-Ji more and is careful when using the pronunciation of “Toshiba.”

    Some brand names travel more easily than others. Here are a few common war stories of brands that didn't fare so well abroad:

    A food company named its giant burrito a BURRADA. Big mistake. The colloquial meaning of that word is "big mistake."

    Ford had a similar problem in Brazil when the PINTO flopped. The company found out that Pinto was Brazilian slang for "tiny male genitals." Ford pried all the nameplates off and substituted the name Corcel, which means "horse."

    A leading brand of car de-icer in Finland will never make it in America. The brand name: SUPER PISS.

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    September 30, 2002

    Emerging Markets and Emerging Web Sites

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    Posted by John Yunker

    The computer industry is in a slump. People aren't upgrading their computers every 18 months and companies like Dell and Intel are rightly worried. Yet there is still hope to be had in "emerging markets." Here's what the president of Intel recently told the NY Times:

    "We believe that 50 percent of all the incremental units sold in the next five years will come from these markets," he said. There are now about 500 million personal computers in the world, he said, and with the help of the emerging markets the industry, over a long period, could still expect to see double-digit growth outside the industrial world."

    Now let's take a look at Intel's Web site and see how well it addresses these emerging markets. Here is the global gateway:

    It's got about 36 "worldwide sites" from which to choose. And while this certainly sounds like a great many sites, if Intel's goal is to target emerging markets, it still has a long way to go. There are only three countries from Africa/Middle East represented and only seven from all of Latin America. Where's Ecuador, Nigeria, Slovakia?

    Emerging markets do indeed promise significant growth opportunities, but too often I find that major companies don't invest enough resources in trying to reach these markets. Small countries don't promise major returns on investment so it's always more difficult ot justify Web localization costs. Nevertheless, to overlook a market in this economy is to overlook short-term sales and long-term success. As for Intel, they have indeed invested significantly in Web globalization, yet in many ways they've only just begun.

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    September 27, 2002

    Accepting payment accross borders

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    Posted by John Yunker

    Accepting payments in other currencies is a never-ending headache for companies, particularly small businesses. And although credit cards provide a nice alternative, many Europeans have yet to embrace them.

    So PayPal will soon allow you to transfer money in Euros, Canadian dollars -- even Yen. You can read more here.

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    September 21, 2002

    Globalization Cuts Both Ways

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    Posted by John Yunker

    Living in the U.S., it's easy to take a one-sided view of globalization, where U.S. companies expand into foreign markets. But globalization cuts both ways, and I always love to see foreign companies take on U.S. multinationals on their home turf. For example, how will KFC handle Pollo Campero now that it has gone local?

    Polo Campero is a Guatemalan fast food chain that just opened its first U.S. branch in Los Angeles. You can read the NY Times article here.

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    September 17, 2002

    Learning to Avoid a Deal-Killing Faux Pas in Japan

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    Posted by John Yunker

    A good article about Japanese culture (and American ignorance) in the NY Times.

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