L2 reports global brands are missing opportunities for localization in Asia

By Michelle Yeomans

- Last updated on GMT

L2 reports global brands are missing opportunities for localization in Asia

Related tags Global brands Japan South korea

According to market researcher 'L2 Think Tank', while China has taken over as the biggest market for e-commerce, most global brands present in the country have failed to capitalize on localized video’s potential.

With 15.9 per cent accounting for retail sales - more than twice the percentage in the U.S, brands have eagerly expanded in China and other growing Asian markets.

However, the market researcher reports that they have been slow to create localized content, and sophisticated websites in the U.S. have far more basic offerings.

Analysts say that customizing content based on region is far more extensive than translation. For example, investing in video is crucial in South Korea, where digital video viewer penetration is at 96 per cent. 

Only 15% of global brands tracked in L2’s upcoming Intelligence Report: Localization feature Korean-language videos, while 9% have produced videos with Korean subtitles or dubbing.

Missed opportunity

L2 says loyalty programs represent another missed opportunity in Asia, where luxury e-commerce is rapidly expanding.

A growing base of increasingly wealthy consumers prize personalized VIP treatment, but only one-third of brands offer loyalty programs in South Korea.

"That number is even less in China (26%) and Japan (19%)​," the firm's researchers report.

Exceptions are Estée Lauder, whose Chinese loyalty program includes access to a personal beauty consultant, and L’Occitane, which offers Japanese loyalty program members exclusive shopping rooms and consultations.

One of the least localized features of Asia-specific brand sites is user-generated content.

In China, close to 6% of brand sites feature local user-generated content; in Japan, not a single one does.

Unlike look books and videos, user-generated content is easy to create and could help brands localize their image without significant investment.

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