A Step by Step Guide to De-Risking Product Globalization

Today's issue is delivered by Radek Zaleski , Senior Partner at Netguru

Sometimes your product is so niche that you can’t generate enough profit if you only offer it in one market. The good news is that you no longer have to rely on local interest only, but go for global demand.

English may be the “international business language,” but 78% of internet users do not speak it as their native language, and 75% prefer apps in their local language.?

As you consider going global with your product, it's crucial to localize experiences to tap into new customer demographics, diversify risks, and increase sales. Expanding internationally not only opens up opportunities to dominate specific niches but also attracts investment, fueling further growth.

Here’s a list of the few main questions that Yael Barak, VP of Product Management at Worldpay, says every decision-maker needs to ask themselves before going international.

How similar is the customer in the expansion markets?

The more they differ, the higher the chances you’ll need to build your customer personas from scratch. This largely comes down to cultural context and what people, society-wise, assign the most value to. To put it more bluntly, your most popular feature in one market might have little significance in another.

A perfect example of this is how you would have to go about launching a financial app in Muslim-dominated markets. In Shariah law (Islamic financial law), interest on loans is considered haram (forbidden), based on the principle of riba (exploitative gain). Including such a feature could not only offend users but also get you banned from the market. As you can see, research is key before making any expansion plans.

Does my product need to be supported in different languages?

As of 2024, there are 101 different countries that recognize more than one official language. So, the more markets you enter, the more frequently you’ll need to consider which languages to support.

Take Switzerland, which has four official languages. Launching a German version would only cover 62% of the population – can you risk ignoring the remaining three languages? It’s not always about choosing a language everyone can understand, but considering how the prioritization of one language over the other could affect users.

Do I have partners that will support me in entering a new market?

Globalization has definitely made the world more interconnected, making entering foreign markets a crucial strategy for growth. Diving into the ‘unknown’ is tempting but not without challenges.

It’s always better to team up with a partner or a local player, who’ll help you navigate the unfamiliar market. They understand the market dynamics and will tell you how to adjust your product or service to fit local tastes.

If you consider how competitive the global marketplace is, entering a strategic partnership is truly necessary for effective market expansion. Not only will it spare you from a few costly mistakes, but also help you gain market share and enhance your purchasing power.

Is there a partner that can support me in multiple markets?

If you want to enter tens of markets simultaneously, choosing a local partner in each market isn’t your only option. There are plenty of services that help companies not only with paperwork and setting up your local branch (if needed), but also those that can help localize your app.

I recommend looking for a partner who’s helped companies in your sector before.

Going with this approach will spare you a lot of time in the future, as you won’t have to start over from scratch every time you enter a new market.

To cite our Disruption Forum guest, Bernard Golko, GM & Acting Management Board Member at Solution One Fund, “understanding the heartbeat of the market is key”.

Markets that offer a favorable entrance point have a few common characteristics, like a culturally and linguistically-unified population and a network of local business partners.?

Most importantly, the country must also have legislation that is not only investor-friendly, but also makes it relatively easy to achieve regulatory compliance.?

To sum up, product globalization isn’t an easy process, so take it one step at a time.

Best,

Radek?