Along with the expansion is the issue of localization to penetrate those countries’ markets. When a company opens an e-commerce website in another country, the ultimate goal is to increase sales and profits, meaning seeking to achieve high purchase amount from customers.
According to Nits et al (2006), a low purchase Intent is the result of the lack of cultural adaptation, also, the case study indicates that customers from different countries are very differentiated in terms of needs and Ants, and even the basic similarities that they have can be quite different as well Ian example from the case study is “family’, it’s a common similarity of all the customers in the world, but deep down, the definition of “family’ can be quite distinct room one region to another).
Hence, a deep analysis of the cultures of the countries Inhere the e-commerce is operated is essential to the success of that company in those countries. In other words, the localization of the e-commerce can help the organization penetrate the markets and understand customers’ cultures in order to be able to offer the products and services matching their needs and wants. Besides the benefit of increasing purchase, localization also helps build relationship with customers. Loyalty is one of the essential things to make a company sustainable and achieve long-term development.
With all the information translated to the local language and providing local staff to contact and serve the customers, the business Nil become easier to do and more appreciated by the customers. The higher the level of localization, the higher the level of customer satisfaction and hence the more successful the company will be. HASH is a significant example of successfully localized organization with their famous slogan “The World’s Local Bank”, they provide about 80 customized/translated websites for the 80 countries that they operate in SHIPS 2013). Localization brings success to companies, however, carries many Challenges.
Firstly, as the companies need to tailor commerce services for Individual countries or regions, different kinds of cost such as research and development cost, set-up cost, human resources costs are created, hence, the total cost is increased. For example, a country-specific website (win. Dell. Com, for example) not only requires language translation, but also related time, date, postcode or currency format, etc. The company, therefore, has to spend money on setting up a renovations team, researching team or administration team who will take care of a specific country.
Another example is that when setting up a culturally customized Inhibited, as the content to website needs to tit with specific cultures, money spent on research and development significant increases, especially when an enterprise has to hire a specialist company, for example Web certain, to manage all the content localization issues (Chaffed, D 2009). Local preferences are significant, leading to a big amount of cost involved. The more customized website, the more cost the company has to carry. Deciding which degree of localization to follow, therefore, places a burden on managers.
In our opinion, the advantages and benefits that the localization brings to the company can exceed the downsides that it has. A company has to take the risks in order to be successful. Reference Chaffed, D 2009, E-Business and E-commerce management, then, Pearson Education. HASH 2013, ‘Country Contacts’, ; http://www. Hash. Com/about-Hash/ Nits, S et al 2006, ‘A cross-cultural analysis of German, Chinese and Adding consumers’ perception of web site adaptation’, Urinal of Consumer Behavior.