Want to be multinational? Then be truly local

The next decade will see the rise of the ‘multilocal’ firm, as multinationals seek to reflect local consumer needs and values in order to meet the challenge from domestic competitors in each market. 

Context 

Already, businesses are rethinking cross-border supply chains and reassessing their global marketing approach in the light of COVID-19 and prevailing geopolitical trends, including trade wars and growing nationalism. Being seen as a local or regional brand will be increasingly advantageous.

How it will happen 

• A report from Forrester suggests success will come as businesses empower local teams: “local trust is the key to morphing into a truly multinational company,” says Thomas Husson, vice president and principal analyst.

• Brands can partner with local institutions to address both global and local issues. 
• Firms can retain the benefits of central technology management while pursuing ‘hyperlocal’ business operating models, assisted by technology such as edge computing and 3D printing.
• Media Monks calls this a multilocal workstream. For example, using software created by games developer Epic it was able to adapt 3D content in real time and to easily swap out one local snack brand package design for another and so avoid the need to reshoot creative for every market.
  

Key quote

“It may well be that COVID-19 has resulted in companies being better run, as the Centre pushes down operating authority and gives greater autonomy” – Sir Martin Sorrell, Chairman, S4C Capital. 

Sourced from Forrester, Media Monks