Going glocal

Following on from my blog last week on the rise of individualism in retail, I've been chewing over the topic of localisation - particularly in grocery - and how that drives success (or not!).

If we take three global behemoths - (1) my alma mater Tesco, (2) Walmart and (3) Carrefour - it's interesting that while all three aggressively expanded into international markets, Tesco and Walmart in particular have largely retreated from the majority of their overseas businesses while Carrefour, particularly in Brazil, continues to go from strength to strength.

This isn't just a case of western businesses entering growth markets and failing - Tesco Thailand for example was hugely successful, while Tesco USA (Fresh & Easy) was a well-documented failure; so what are the unique characteristics that have made some overseas ventures successful while others have failed? While Walmart continues with its divestiture of ASDA (among other markets), what is driving Carrefour's success to the extent it has continued to invest in Brazil (acquiring Grupo Big from Walmart in March 2021, in fact)

I'm not going to turn this into an academic paper on different international expansion strategies, however in my musings I came across this interview , from last July, with the CEO of Grupo Carrefour Brazil. The line that stood out for me: "More than the biggest food retailer in Brazil, we are a business ecosystem." A business ecosystem that has retail and cash & carry, a bank, real estate, multiple retail banners, ecommerce, fuel forecourts alongside a digital recipe business (CyberCook) and various partnerships with startups and fintech businesses.

This ecosystem mindset has enabled Carrefour Brazil to effectively serve many different market segments through sensitively and effectively localising the products, services and experiences Carrefour offers. It's this localisation that's going to become even more important in attracting and retaining customers.

Take EG Group, somewhat thrust into the spotlight last year around the acquisition of ASDA, they've quietly and successfully built up a business of over 5,000 sites globally. Delving into the business some more, you see an extensive network of partners (particularly in food service, like Burger King and Starbucks) as well as strategic acquisitions of Leon ?and Cooplands. These not only provide EG with a USP and access to a new audience (like Leon) but also with significant capability (bakery manufacturing). It's this expansive ecosystem - both owned and partnered - that allows them to offer many different combinations of brands, products and experiences at their sites - really localising for each of their stores.

What are your thoughts on who does localisation well? What do you think has driven the success of some global brands - and the failure of others?