Glocalization is the combination of the words “global” and “localization”. It refers to the process of adapting a product or service to meet the needs and expectations of a local market while still maintaining a global perspective. Think of free-trade or free-movement agreements. Businesses can benefit from glocalization in several ways. So let’s explore what it means. 

Glocalize your reach

First, glocalization allows businesses to tap into new markets and reach new customers. By adapting products and services to meet the specific needs and preferences of a local market, businesses can expand their customer base and increase their revenue. Many countries might not have access to a specific product or service, giving your business an edge. Sometimes, glocalization will even be necessary. Every market has a ceiling or cap. Sometimes expansion is the only way to keep growing.

Strengthen your relationships

Second, glocalization can help businesses to build stronger relationships with their customers. By understanding and catering to the unique needs and preferences of a local market, businesses can establish a deeper level of trust and loyalty with their customers. This can lead to increased customer satisfaction and repeat business. A “Glocal” business has the advantage that consumers in other countries might still see it positively even if it’s foreign. While stereotypical, French and Italian food and German machines all carry certain, positive attributes in consumers minds. Similarly, if you are selling in a neighboring country, the residents might see you as foreign, but already familiar.

Stay competitive

Third, glocalization can help businesses to stay competitive in a global marketplace. By understanding and adapting to the local market, businesses can stay ahead of their competitors and maintain a strong market position. As the previous point mentioned, proximity and familiarity, which set glocalization apart of globalization, can give you an advantage over certain competitors. It can also help offset advantages “local” companies might have.

Glocalize your communication 

Fourth, glocalization can also help businesses to reduce the risk of cultural miscommunication and misunderstandings. By understanding the cultural context of a local market, businesses can avoid making mistakes that could damage their reputation or lead to lost business. In addition, by glocalizing, businesses can also improve their supply chain and logistics, as well as better understand the regulations and laws of different countries.

Some limitations

However, it is important to note that glocalization is not just about adapting products and services to meet local needs, it also involves considering the global perspective. This means considering the environmental and social impact of products and services on a global scale and taking steps to minimize negative impact and promote sustainability. Expansion also brings in some risks. Diversification is normally beneficial, but it also means possibly more regulatory oversight, different tax and legal liabilities. Certain regions, like the EU or groups of treaty signatories, like NAFTA, may have certain rules in common. But it is always important to do risk mitigation research when planning to expand to a new region. 

What should companies do?

In conclusion, glocalization is a valuable strategy for businesses looking to expand their reach and build stronger relationships with customers. By understanding and adapting to the unique needs and preferences of a local market, while still maintaining a global perspective, businesses can increase their revenue, stay competitive and build a better reputation.

Ideally, companies should learn from their peers and explore how to prepare for the future. The Global Summit on Scope 3 Emissions Reduction will bring together key industry experts to learn more about reporting strategies & carbon data management in a small-scale, industry-driven event, on 20-21st April 2023 in Amsterdam, the Netherlands. The two-day, hybrid event features in-depth case studies of supply chain transformation, carbon accounting, and networking breaks dedicated to exchanging insights and expertise on tackling Scope 3 emissions. Visit and or follow us on our social media to track other energy use and decarbonization events.




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