Top challenges brands face in localization: Why you shouldn’t wait

Localization isn’t just a translation exercise—it’s a strategic imperative that can either catapult your brand into new markets or leave you struggling to compete. And in today’s global economy, the stakes are high: every misstep in localizing your content or product can cost you market share, customer trust and ultimately revenue. 

According to Business Wire, 96% of companies that invested in localization reported a positive ROI.  CSA Research has also found that companies that invested in localization were 1.5 times more likely to experience revenue growth. 

If your brand hasn’t yet prioritised localization, the clock is ticking.

The hidden complexities of localization 

1. Navigating cultural nuances

It’s not enough to translate words – it’s about conveying the right message. Many brands overlook the subtleties of cultural context, resulting in campaigns that miss the mark or worse, offend. 

• When HSBC’s “Assume Nothing” campaign was mistranslated as “Do Nothing” in multiple markets, the banking giant spent $10 million to rebrand and repair the damage.  

Localization is not a one-size-fits-all process; it requires a bespoke approach to properly connect with the target audience. Adapting messaging to resonate authentically with local audiences is a critical yet complex challenge that demands a deep understanding of regional cultures and behaviours. 

2. Integrating technology with human insight 

The digital age has brought powerful tools for translation and localization management, but the technology often struggles to capture the nuance of human communication. Experts warn that relying solely on machine translation without human oversight can compromise localized content. This means that brands face the challenge of integrating machine translations with the indispensable insights of expert linguists.  

• Netflix combines AI-powered translation with human cultural consultants to improve the quality of their subtitles across the globe.  

• Similarly, Guildhawk’s machine translation tool, GAI Translate enables users to have their translations professionally reviewed by expert linguists with a click of a button.
  

3. Balancing cost and ROI

Localization projects can be resource heavy. The initial investment might seem scary – especially for brands managing multiple markets. But the real risk is underestimating the long-term ROI.  

Poor localization isn’t just a cost—it’s a missed opportunity to build lasting customer relationships. Looking at these investments through the lens of business growth, and not expense, is key to getting sustainable benefits. 

• Slack’s investment in localized product interfaces accelerated user adoption in key European markets. 

4. Overcoming fragmented processes

For many brands, the localization process is spread across different teams and systems, resulting in inefficiencies and inconsistency. Without a unified strategy, your brand risks sending mixed messages across various markets. Consolidating these processes into one workflow is not just a logistical necessity—it’s a strategic move to reinforce your brand’s global identity. 

• When Airbnb  launched their translation engine online, they improved the quality of more than 99% of Airbnb listings, ensuring consistency across their global platform.

5. Meeting regulatory and compliance requirements

Every market has its own set of legal and regulatory hurdles. Ensuring your localized content complies with local laws – from advertising standards to data protection regulations requires careful planning and expertise. 

Not doing so risks damaging your reputation and can also cost you big time. 

Business implications: The cost of inaction 

When brands ignore or inadequately address these localization challenges, the fallout can be significant. 

• Diluted brand image: Mixed messages and inconsistent branding weaken customer trust. For example, KFC's slogan "Finger Lickin' Good" was mistranslated in China as "Eat Your Fingers Off," leading to a negative perception among local consumers. 
• Missed revenue opportunities: Inaccurate or culturally insensitive content can alienate potential customers, stunting growth. Companies with localized websites are almost 3x more likely to convert international leads than those with English-only sites. 
• Compliance risks: Overlooking local regulations can result in legal issues that damage your bottom line.  

Your path forward: Implementing effective localization 

Successful localization requires a strategic approach: 

• Create a Centralized Localization Strategy: Salesforce, for example, built a global-first mindset by establishing a dedicated localization team that works with product development from day one. That's how they were able to release their product simultaneously in 37 languages. 
• Invest in the right technology stack: The most effective localization combines language AI tools with human expertise. HubSpot's localization platform does just that – integrating automated translation with in-market reviewers to reduce localization time. 

• Build regional partnerships: Microsoft's local partnerships in emerging markets have increased their market penetration compared to competitors using remote-only localization resources. 

Your next step: Act now to localize for success 

The global marketplace waits for no one. Every moment you delay refining your localization strategy, competitors are gaining ground. Now is the time to audit your current processes, invest in the right blend of technology and local expertise, and transform your approach to market expansion. 

Don't let outdated strategies hold your brand back. Contact our localization experts today to craft a tailored solution that drives global success.