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Entrepreneurs who continue to look for ways to expand their global presence often encounter a major hurdle: the language barrier and the risk it presents. Misunderstandings and miscommunication can lead to costly mistakes, lost company time and missed opportunities.
As CEO of INS Global, I have witnessed first-hand thousands of success stories of companies successfully making the leap into multilingual markets. While it may seem counterproductive at first, bridging the language barrier and expanding into a new market can be one of the most profitable ways to grow a business today. Strategically preparing your company to overcome language barriers will set you up for long-term success in future markets.
Related: Going global? 3 strategies to ensure nothing gets “lost in translation”
Identify linguistic and cultural challenges
Current employees' lack of language skills in the target market's language is the most obvious obstacle for companies expanding into a new market. Therefore, the most obvious solution to identifying language barriers is to simply “hire bilingual employees,” but this short-sighted and reductionist reasoning may not be the best long-term solution. Bilingual employees will certainly make communication with customers, suppliers, and coworkers easier. However, cultural nuances can complicate matters, as what is considered polite or respectful in one culture may be offensive in another.
The potential risks of miscommunication are significant and can lead to lost sales, reputational damage, or even legal problems. For example, marketing campaigns that take the easy way out with literal translations run the risk of not fully reflecting phrases used in other countries, which could offend a target audience. In the 1980s, when KFC first launched in Beijing, the company made a translation error with its logo. While “finger-lickin' good” chicken sounds appetizing, the literal translation was “eat your fingers off.” Learn from similar embarrassing literal translation errors made by international companies like McDonald's, Clairol, Sony, and Rolls Royce, and be sure to consider both linguistic and cultural nuances in your workflows.
Effective communication strategies
To overcome such language barriers, companies that prioritize effective communication as a business strategy are likely to have more success with their new target market. Here are some practical strategies:
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Translation services: Using professionally certified translators ensures that messages are conveyed accurately. While machine translation tools have improved, human translators are better able to handle nuances and cultural contexts, ultimately saving you time and money by getting it right the first time.
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Language training: Investing in language training for employees who interact with customers, suppliers or partners can significantly improve communication. This can be done through online courses, language exchange programs or face-to-face classes.
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Multilingual customer support: Providing customer support in multiple languages shows that you are committed to serving customers worldwide. This can be achieved by hiring multilingual employees or partnering with a customer support provider that offers multilingual services.
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AI-powered translation software is becoming increasingly sophisticated, providing more accurate and natural-sounding translations. This software can also be used by website chatbots in multiple languages to assist with customer service and troubleshooting.
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Cultural sensitivity: Understanding and respecting cultural differences is essential for effective communication. Companies should conduct cultural research early in product development and marketing campaigns and train employees to be sensitive to cultural nuances, especially when employees live in multiple countries and work for the same company.
Related topics: Multilingualism and cultural agility are the drivers of tomorrow's workforce
Localization for success
Localization is the process of adapting products, services or marketing materials for a specific market. It's not just about translating content literally; it also requires consideration of cultural preferences, local customs and legal requirements. For example, a company that sells food may need to adapt ingredients or packaging to suit local tastes and dietary restrictions.
Netflix used localization to its advantage when it entered the video-on-demand streaming market in India in 2016. The company deliberately went beyond just translation services to enter the market and also considered the cultural and consumer ecosystem in India. Netflix strategically used local social media influencers, dubbed its shows in Indian dialects (in addition to translated subtitles), developed an improved, budget-friendly mobile app for TV tailored to Indians' viewing habits, and even developed original content for this new market.
To increase its market share in India, Netflix not only bought the rights to Bollywood films but also considered the Indian market as a core market and not just an “additional” market. According to the Q2 2024 earnings report in July, India is now the second largest market for Netflix.
By localizing their operations to a new market and taking consumer preferences into account, companies can better engage their customers and increase their chances of success in new markets.
Partnerships as a solution
By partnering with a company that regularly works with a multilingual workforce, companies gain the security and market-specific intelligence they need to break through with minimal risk and maximum benefit.
Companies like INS Global can partner with companies looking to expand into multilingual markets by offering valuable support and expertise. As an Employer of Record (EOR) provider, we offer localized HR solutions, including payroll, benefits, and compliance, ensuring that language barriers and local regulations do not impact employee engagement or operational efficiency. For example, by leveraging an EOR, companies can get help hiring local talent, giving them access to skilled professionals who understand the language and nuances of their new target market. EORs can also ensure that companies comply with local regulations, including wages, overtime, benefits, and tax requirements.
Related topics: Multilingual support: speak your customers’ language
By implementing effective communication strategies, localizing and leveraging like-minded partnerships, companies can successfully overcome the challenges of operating in multilingual markets and minimize unnecessary risks. Overcoming language barriers should be viewed as the next and best path to achieving sustainable growth.
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