INTER-CULTURAL BRAND MANAGEMENT

When international brands seek advice about entering the Turkish market, the first question I always ask, regardless of its international popularity, is “What does this brand mean in Turkey?” Headquarters usually believes in the importance of homogeneity and tends to absorb cultural variations. This approach protects brand unity and makes cross-border management easier. However, a brand can be successful in a different culture for an entirely different reason. In emerging markets, where you have big socio-economic disparities, there are major cultural differences in consumer purchasing patterns.

A sportswear brand may be purchased to enhance sports performance in the U.S. or Germany. The same brand can be purchased as a casual wear “status symbol” in Greece or Turkey, where participation in sports activities accounts for only 20 percent of total sales. I have seen ultra-light, specially designed running shoes worn this way. Another good example is the luxury segment. The meaning of these brands in Asia is totally different than in Europe. Obviously brands cannot change their value propositions per market, but if you are aware of these perceptions, you can manage the perceptions in your favor.

Purchasing power parity is another misleading area. People do not realize how an administrator in Istanbul can afford to buy a luxury handbag. The answer is very cultural. Male or female, until you get married, in Turkey you live with your parents cost-free. In all southern countries, outerwear and accessories are very important status symbols. That’s why mobile phone penetration is also quite high in these markets despite per capita income. The device carries meanings other than communication in some cultures. Emerging market populations are much younger than other market populations, and their common decision-making criteria are also quite different. Being aware of the combination of these three factors can open many doors for brands that are willing to understand the new environment rather than just respond to it.

Consumers in emerging markets pay for almost everything in installments. They start at three months and go up to a year in some cases. In South Africa, if you buy a pair of sneakers in 12 installments, the owner gives you either the left or the right shoe—according to your preference—once you pay the first six installments. Putting this kind of “mortgage” on future disposable income is the most common way of doing business. If you do not stay away from it you can lose business because of its depreciating effect on your brand. However, there are always local solutions to local problems. Advanced banking processes in Turkey provide great services that enable you to keep your head high and still sell in installments. They reflect the future payments as an attribute of their credit cards. It is so common that no one attaches this to any brand purchased.

The list goes on and on, and includes merchandising, pricing, visual merchandising, store concepts, communications, and location preferences. If you pay attention to cultural dynamics and established systems, you can create an optimum balance between your core values and high, sustainable sales. In other words, you can provide the left and right shoe at the moment of purchase, thereby creating brand loyalty and collecting the payment at the same time.