JBS_013.

qxd 9/6/12 5:58 PM Page 126

Bridging brands and borders:

Trends and tactics to connect
global brands with Asian
consumers
Received (in revised form): 23rd January, 2012

CRAIG BRIGGS
is Managing Director, Asia of Brandimage Desgrippes&Laga, a division of Schawk Inc. He joined international
branding and design firm DesgrippesGob Group in 2000, and was responsible for the companys Japan and Korea
operations. Under his stewardship, the companys Asia network quickly grew into into Greater China, and expanded
its mix of strategic design services. Prior to Brandimage, Craig spent 16 years with McCann-Erickson in the USA,
Hong Kong and Japan. He is a recipient of the HK McCann Award for Leadership Excellence. Craig is a graduate of
the American Graduate School (Thunderbird) and Auburn University.

Abstract
There is a challenge facing global brands as they move across borders seeking new customers in new
markets how much must a global brand change in order to connect with a local culture? Must a global
Craig Briggs brand re-invent itself in order to succeed across borders? How much is too much, and how much is not
enough? While marketers would like to have a handy formula to quantify what degree of change is required
for their brands to succeed abroad to define empirically how much a brand should change to fit local
customer needs there is no precise formula. However, global brands that attempt to reinvent their
brands, drastically changing their global brand properties, do so at great risk. For global brands, in many
different categories, there is an inherent power and advantage in their international-ness when travelling
across borders.Yet, equally, global brands that enter new markets without seeking some degree of
customisation to meet local market needs, also do so at great risk. Many global brands coming to Asia have
leveraged their international brand natures, and allowed for some degree of customisation. Ultimately, global
brands moving across borders should consider customisation, but not outright localisation, for success.

Keywords
international brands, Asian brands, brand customisation, brand adaptation, bridging brands and borders,
brand localisation

BRAND ADAPTATION market. The consultant made several

Craig Briggs,
Brandimage,
Desgrippers & Laga,
25 Fl.,The Pemberton, 2226
Bonham Strand East, Sheung Wan,
Hong Kong
Tel: +852 2285 8285
Fax: +852 3106 0991
E-mail: cbriggs@brand-image.com
When Starbucks looked at international
expansion in the mid-1990s, they chose
Japan as the first overseas market in which
to open a caf. The Japanese market
seemed an ideal fit it was already infused
with a strong tea and coffee culture, and
the Japanese consumer possessed a strong
appreciation for unique foreign concepts of
premium quality.
Starbucks hired a reputable local busi-
ness consultant to study the Japanese
strategic recommendations as to how the
Starbucks brand would need to adapt in
order to succeed in Japan: how the brand
would need to change in order to res-
onate with the Japanese consumer.
Among these recommendations were to
increase the density of seating for the
Japan Starbucks and create a smoking
environment in the caf.
Their reasoning was based on sound
market observations. First, Japanese

126 HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 2, 126130 SUMMER 2012
JBS_013.qxd 9/6/12 5:58 PM Page 127
customers were not culturally accustomed
to drinking beverages on the go, so
Starbucks had to expect the overwhelm-
ing majority (almost all) of their beverage
and food sales to be consumed on the
premises. There would be few takeaway
sales, so the number of tables and seats
would need to be greatly increased.
Secondly, the Japanese kisaten the
coffee shop/diners that sprang up after the
Second World War, and were now a fix-
ture on virtually every corner in every
major Japanese city, all had smoking envi-
ronments. Starbucks could not expect to
attract sufficient store traffic with a non-
smoking environment.
These recommendations were solid, and
based on market observations. However,
they were also strongly contrary to the
Starbucks ethos, of providing a comfortable,
smoke-free, social lounge environment.
Starbucks largely rejected the consul-
tants recommendations, and opened the
first Starbucks in the Ginza, replicating its
trusted brand concept to great fanfare and
success. They did hedge on the smoking
issue, briefly creating a smoking area in
the first store. But, Starbucks Japan closed
the smoking section after six months, and
today all 900 Starbucks Japan locations
have remained smoke-free environments
with the same density of seating as in the
rest of the world.
Over time, Starbucks Japan has tailored
its product offering to appeal to the local
customer, featuring many unique, and often
seasonal products that are tailored to the
Japanese palate, such as the Matcha Green
Tea Latte and the Coffee Jelly Frappucino.
This case is instructive, as it highlights
the challenge facing global brands as they
move across borders seeking new cus-
tomers in new markets how much must
a global brand change in order to connect with
a local culture? Must a global brand re-invent
itself in order to succeed across borders? How
HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 2, 126130 SUMMER 2012
BRIDGING BRANDS AND BORDERS
much is too much, and how much is not
enough?
While marketers would like to have a
handy formula to quantify what degree of
change is required for their brands to suc-
ceed abroad to define empirically how
much a brand should change to fit local
customer needs there is no precise for-
mula. However, global brands that attempt
to reinvent their brands, drastically chang-
ing their global brand properties, do so at
great risk.
For global brands, in many different
categories, there is an inherent power and
advantage in their international-ness
when travelling across borders.This inter-
national halo effect exists across multiple
sectors such as technology, entertainment,
sports, infant nutrition, soft drinks, and
fast food.
The Apple innovation and style/design
halo is palpable, with its products enjoy-
ing a premium status above local Asian
innovators like Samsung and Lenovo. In
the infant nutrition category, multi-
national brands from Danone, Nestl,
Mead-Johnson, and Japanese brands,
enjoy a quality halo above local brands.
(This is further enhanced by the milk
powder scandals in China.) Disney and
Coca-Cola likewise enjoy emotionally-
driven halos around their products that
create the sense of magic, enchantment
and happiness.
CUSTOMISATION
Yet equally, global brands that enter new
markets without seeking some degree of
customisation to meet local market needs
(beyond language customisation, which is
clearly essential), also do so at great risk.
Many global brands coming to Asia
have leveraged their international brand
natures, and allowed for some degree of
customisation, to great success. These
127
JBS_013.qxd 9/6/12 5:58 PM Page 128
BRIGGS
customisations tend to occur in four key
areas:
functional customisation;
delivery customisation;
format customisation;
perceptual customisation;
Functional customisation
The functional customisation of a global
brand entails customising the ingredient
mix in a product or service better to suit
the consumer needs and desires in the
market. This does not require changing
the brands emotional attributes only
its functional attributes.
In China, Frito-Lay has achieved great
success via the functional customisation of
its Lays potato chip brand. The brand has
made a strong connection to Chinese con-
sumers by creating imaginative flavours
for their potato chips that cater to local
tastes and preferences. While the original
flavour of Lays remains the local favourite,
flavours like cucumber, blueberry, lemon
tea, numb and spicy hotpot, and hot and
sour fish soup all demonstrate the brands
innovative approach to the local customi-
sation of flavours. The brand remains dis-
tinctively Lays in look and feel; and, in its
innovative approach to making snacking
satisfying, delicious and engaging. Flavours
change, but the brands global DNA
remains constant.
Another example in China is Sprite
the clear, carbonated soft drink from The
Coca-Cola Company.A recent customisa-
tion was to introduce a green tea flavour.
The brand remains youthfully irreverent
and bold, yet with a nod to local trends
and tastes.
One more example is Rejoice from
Procter & Gamble, also in China. This
popular regional hair-care brand is
infused with traditional Chinese medicine
128 HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 2, 126130 SUMMER 2012
ingredients that add local relevance and
interest, all the while supporting the
brands global platform of shiny, healthy
and beautiful hair.
Delivery customisation
The delivery customisation of a global brand
concerns the convenience attributes of
the brand. In Asia, convenience transcends
simple location, and moves to ease of
access and choice. Responding to these
unique needs allows a global brand to
adapt and succeed in markets that are
more complex than most developed west-
ern markets.
McDonalds is a great example of a
brand that respects its global brand concept
in every market it serves. Product quality,
customer service and brand cues are
remarkably consistent. As with Starbucks,
Rejoice, Sprite and Lays, McDonalds is
experienced with functional customisations
(eg Shogun burger). But McDonalds has
also pioneered two meaningful delivery
customisations in Asia, with 24-hour
restaurants and home delivery. The home
delivery concept, in particular, is uniquely
responsive to Asian needs, and builds a close
bond between consumers and McDonalds
as a global brand that gives you a choice.
Similarly, consider the case of IKEA in
Japan, where the company made its
market entry by duplicating its global
offering big box stores with inexpen-
sive, simple and quirky furniture and fix-
tures. The result was an expensive failure.
Upon re-entry into Japan, IKEA cus-
tomised its offering to resonate with the
Japanese market, with, among other
things, smaller furniture to fit the smaller-
profile Japanese home (functional cus-
tomisation). The delivery customisation
was to create a convenient, own-branded
IKEA shuttle bus connecting customers
between major metro stations and the
JBS_013.qxd 9/6/12 5:58 PM Page 129
store. These two changes, emphasising an
understanding of the Japanese living con-
straints and need for ease of access, pro-
duced a big win the second time around.
And the brand, IKEA, remained as it is
around the world accessible, friendly,
simple and affordable.
Format customisation
The format customisation of a global brand
allows an international brand to compete
more directly with local brands that hold
strong pricing advantages owing to lower
material and labour costs. Fast-moving
global brands that offer smaller packaging
as a sampling mechanism allow local con-
sumers to buy, try and connect to their
brands, while avoiding the pricing hurdle.
Smaller portions are more accepted in
Asia, too, so this customisation is more
readily appreciated by local consumers,
and it allows the global brand to retain its
brand essence with the only change being
one of volume.
A recent example of this is with Coca-
Cola in China. A formidable competitor,
Wahaha, launched a carbonated, caramel-
coloured beverage called Future Cola
similar to Coca-Cola in every way except
price, as it sold for a fraction of the cost of
the real Coke. Rather than consider alter-
natives that would have altered the Coca-
Cola brands global DNA, Coke created a
192ml version of the brand, in its iconic
glass bottle. With this reduced size, the
brand was now available for 1 renminbi
(16 US cents). Here, Coca-Cola is iconic,
refreshing, inspiring . . . and accessible. All
of its global brand attributes are intact, and
reinforced.
Nestl in China has also followed this
format customisation with their popular
Crispy Shark brand a crispy, rice-lay-
ered chocolate bar.To compete effectively
with lower-priced local-brand, copy-cat
HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 2, 126130 SUMMER 2012
BRIDGING BRANDS AND BORDERS
brands, Crispy Shark is offered as a single
stick instead of a two-stick bar, allowing
the brand to sell for 1 renminbi, and thus
allowing Chinese consumers easily to
enjoy Nestls international quality, taste
and fun (and perhaps get a Coke to
accompany it for just over 30 US cents!).
Perceptual customisation
The perceptual customisation of a global brand
is less common and more nuanced.Yet, in
Asia, where there is a fast-emerging middle
class with a seemingly insatiable desire for
premium-quality brands and products,
there is also the possibility for global brands
to reposition their same or slightly-modi-
fied brand offering in a more prestigious
manner. Some global brands with mass
positionings elevate to a masstige position-
ing. Others with a more prestige position-
ing may elevate to luxury positioning.
A case in point is the Godiva
Chocolatier brand in Asia. Godiva is a
global brand with a high awareness and
dedicated following around the world,
especially in Europe and North America.
The brand delivers a high-quality prod-
uct, highlighting its Belgian roots, as well
as its iconic Lady Godiva icon. Yet, its
recent and phenomenal success in Asia
can be partly attributed to Godivas deci-
sion to position the brand in China as a
luxury good. The Godiva brands attrib-
utes European quality, sensuality and
approachability are respected via the
products, service and branding elements.
But the China boutiques elevate the pre-
mium brand to luxury status via signature
elements in the new boutiques (materials,
lighting, merchandising, etc), and, impor-
tantly, the elevated luxury-level pricing
that is well above that of its European and
North American boutiques.
Mattels Barbie is another instructive
case of perceptual customisation. The
129
JBS_013.qxd 9/6/12 5:58 PM Page 130
BRIGGS
Barbie brand failed on first entry to Japan,
largely because the brands focus on the
Barbie toy figure did not resonate in Japan.
The brand returned to Japan years later
with Barbie Boutiques, selling clothing,
jewellery and accessories fashioned to the
Barbie brand lifestyle. The merchandise
appeals to 20-something Japanese women,
and will eventually lead to the sales of
Barbie dolls years later, when these Barbie-
fashioned women have children.Again, the
global brand is respected, but the tactics are
very local.The brand took advantage of the
kawaii culture in Japan, where young
women retain childlike affections for prod-
ucts well into adulthood. Ultimately the
Barbie toy figures will sell well in Japan,
and the brand takes a long-term view.
It should also be noted that brand cus-
tomisation in the opposite direction
moving a global brand from a higher per-
ceptual positioning to a lower perceptual
positioning is best avoided. There are
cases where global brand owners have
decided to enter lower tiers inside their
category. However, rather than compro-
mise their existing, global brands integrity,
the brand owners introduce second
brands, either through new brand creation
or by acquisition. Examples of this include
130 HENRY STEWART PUBLICATIONS 2045-855X JOURNAL OF BRAND STRATEGY VOL. 1, NO. 2, 126130 SUMMER 2012
LOrals Mini Nurse brand of skin care,
and Nestls Tai-Tai Le brand of culinary
products (with Maggi commanding the
higher tier), both in China; and, Frito-
Lays Poca brand of snack foods in
Vietnam. By having these second brands
that compete in a lesser tier of the same
category, the brands effectively have more
offerings to encourage consumers to trade
up to the higher tier over time.
CONCLUSION
The advantage possessed by global brands
entering foreign markets can be formida-
ble. However, brand owners need to
consider carefully what degree of change
is required for success. Recommendations
to alter dramatically a global brands
essence are best viewed with scepticism or
outright rejection.Yet a careful customisa-
tion of a global brand can create a
platform for long-term success. Equally,
an assumption that a global brand can
enter a new foreign market with no cus-
tomisation to its product or service is also
ill-advised.
Ultimately global brands moving across
borders should consider customisation,
but not outright localisation, for success.
Copyright of Journal of Brand Strategy is the property of Henry Stewart Publications LLP and its content may
not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written
permission. However, users may print, download, or email articles for individual use.