Introduction
Going global is increasingly becoming necessary for products and businesses alike as the world is fast becoming a global village.
You probably have come across the abbreviation i18n and wondered what it is. I18n (I -eighteen letters- n) is the short form for internationalization.
In recent times, we have seen more companies spin out products that serve the global market as opposed to the traditional way of building for a product's immediate environment. This becomes increasingly necessary to accommodate as many users as possible.
Internationalization has become an essential aspect of business strategy for companies seeking to expand their customer base, grow revenue, and stay competitive in the global marketplace. One key component of internationalization is building cross-border products, which involves developing products and services that can be used by customers across different countries and cultures.
In this article, we will explore what internationalization is, the benefits, challenges, and best practices of internationalization for building cross-border products. We will also look at an example of a successful internationalized product and how it achieved its global appeal.
What is Internationalization?
Internationalization is the process of transforming a business or product from a localized entity to a globally relevant and adaptable entity that effectively navigates the complexities of diverse markets, cultures, and regulatory frameworks. It involves creating a sustainable and scalable model that prioritizes inclusivity, adaptability, diversity, and flexibility while leveraging technology, innovation, and collaboration to achieve cross-border success.
internationalization is essential for businesses and individuals who want to succeed in the global marketplace and make a positive impact on the world.
Why is Internationalization Important?
Internationalization enables businesses, organizations, and individuals to expand their market horizons and operate in a global market at a global scale thereby creating value for both businesses and customers alike.
Customers can benefit from having more choices, better quality, lower prices, and greater convenience. Internationalization can also foster cross-cultural understanding, cooperation, and innovation among different countries and regions.
Here are some reasons why internationalization is important:
Revenue Boost: A product built with a global scope has potential access to more revenue than a product restricted to a particular geographical location. When a product is built with a global market in mind, it opens the door to the international market which in turn generates great returns as revenue.
Product Diversification: Internationalization helps businesses diversify their operations and reduce their dependence on a single market or region. This can help businesses manage risks and adapt to time-to-time changes happening in the global economy.
Access to new markets: Internationalization helps businesses access new markets and customers beyond their domestic region or geographical location. This allows businesses to increase and grow their customer base which may times positively affects the revenue same.
Talent Acquisition: When it comes to hiring for business, bringing in the best hands surely helps a business to scale and grow faster. Internationalization allows businesses to access a larger pool of talent from around the world. This can help businesses find the best employees with the right skills and experience to help in having a successful business.
Product Innovation: Innovation and improving on feedback as relates to improvement makes a business thrive. Internationalization exposes businesses to new ideas, diverse customer feedback, technologies, and business practices from around the world. This can help businesses innovate and stay ahead of their competitors.
What Challenge to Expect in Internationalization?
One of the major challenges of internationalization is Financial and operational risks. Expanding into new markets can be expensive and requires significant investment in infrastructure, staffing, and resources.
As it is relatable that building a global business cannot be done all at once but it has to go through iterations and sectional market release. Entering into a new market poses a huge financial risk as the market, albeit beta testing has been done, hasn't gotten a full view of acceptance. This requires a lot of capital and financial risk. It is an investment that may or may not pay off in the long run.
Businesses must carefully manage financial and operational risks, including currency fluctuations, political instability, and economic volatility.
Best practices of internationalization for building cross-border products
Research local markets: Businesses need to conduct thorough research on the local market, including the cultural and linguistic subtle difference, user behaviors, and market regulatory requirements. This can help businesses tailor their products and services to meet the specific needs and preferences of customers in different markets.
Design with localization in mind: Businesses should design their products and services with localization in mind, which means making them adaptable to different timezones, languages, currencies and cultural differences. This can involve using flexible and modular design approaches and building in translation and localization features from the product's initial iteration.
Test and iterate: Businesses should test their products and services in different local markets to identify issues surrounding product experience and opportunities for improving product quality. This should involve user testing (could be beta testing with a small group of people initially), customer feedback, and other forms of market research available in the product space.
Develop a global team: Businesses should build a global team with diverse expertise and cultural backgrounds to help them navigate the complex landscape of international business. This can involve hiring local talent, partnering with international firms, and building cross-functional teams that can collaborate across borders to achieve the same goal.
Maintain compliance: Businesses need to be aware of the regulatory and legal requirements in different markets and ensure they are compliant with local laws and regulations to avoid sanctions from authorities which many times paralyze businesses. This can involve working with local legal experts and developing policies and procedures that are aligned with local regulations.
Example of Internationalization
When building products, it is important to respect the culture and representation of each country and region, for instance in the United States the date format is MM/DD/YYYY (September 27, 2023) which differs from DD/MM/YYYY (27 September 2023) used in some other parts of the world. Taking note of these little things can be seen as customer empathy. That means products built for a global market should shoe date formats according to the user's region or country.
Also the obvious and probably the most popular concept of internationalization is providing an option to switch to a language of choice that makes users comfortable navigating with a product.
An example of a product that is successful in internationalization is Airbnb. Airbnb is an online marketplace that connects travelers with hosts who offer short-term accommodation. They have successfully internationalized their product by adapting to local cultural and regulatory differences in each market. They have localized their platform by offering translations in multiple languages, different time zones, cultural adaptation and tailoring their search results to account for local laws and customs. They have also built a network of local experts to provide support and guidance to hosts and guests in different markets.
Conclusion
Internationalization can easily make your product a global one if you adhere to its rules which in turn provide your product or business the desired global revenue and access to diverse demography users. Overall there are more benefits to it than drawbacks. This development can boost your business revenue, diversify your product, give you access to new markets, and a wealth of available talent options and gear your business towards innovation.