But here¡¯²õ the catch: getting it right isn¡¯t always easy. A poorly translated or incomplete sustainability report can lead to non-compliance, confusion and eroded trust ¨C not what you want when building global credibility. Enter Sandberg, your trusted language partner. We understand that clear, concise and consistent communication across multiple languages is key to keeping your brand¡¯²õ reputation intact.

In this article, we¡¯ll explore why ESG reporting matters, the challenges of translating it, and how partnering with an expert like Sandberg can make all the difference. Ready to take your sustainability reporting to the next level? Let¡¯²õ dive in!

The evolution of sustainability reporting

Sustainability reporting has come a long way since the , laying the foundations for a global standard in corporate transparency. Fast forward to 2014, and the was introduced, focusing on sustainability and social responsibility. Now, with the , more businesses than ever will be required to produce sustainability reports, shining a brighter spotlight on data quality and amping up scrutiny on sustainable practices.

What makes sustainability reporting so important? It isn¡¯t just about adhering to regulations ¨C it¡¯²õ your opportunity to highlight your company¡¯²õ eco-friendly initiatives, earn trust, and attract like-minded customers and investors who care about the planet.

However, ESG reporting isn¡¯t without its challenges. , which can have significant consequences, including consumer distrust, regulatory scrutiny, and a delay in genuine sustainability progress, is a major potential consequence for those who lack transparency in their sustainability reporting.

For example, in 2015, German car manufacturer Volkswagen was involved in a massive greenwashing scandal known as . The company falsely marketed its diesel vehicles as low-emission and environmentally friendly, even though they were equipped with software designed to cheat emissions tests. This deception not only damaged Volkswagen¡¯²õ reputation but also led to costly lawsuits, fines and a loss of consumer trust.

Greenwashing can mislead consumers into making eco-friendly choices based on false information, ultimately undermining efforts to combat climate change. Additionally, meeting only the bare minimum standards, and the lack of consistent measurement metrics can also make sustainability reporting a tough task to get right.

Translation plays a crucial role here, ensuring your sustainability message reaches international audiences with precision and clarity by reducing the risk of miscommunications, or worse still, legal complications that could put your entire organisation at risk.

Balancing consistency, culture and compliance in sustainability reporting

For successful ESG translation, consistency is the name of the game. The world of sustainability is rich with terms like ¡°net zero¡±, ¡°greenwashing¡± and ¡°carbon footprint¡± that can vary in meaning and nuance across languages and cultures. Maintaining terminology consistency ensures your message stays comprehensible and credible, no matter where it¡¯²õ read.

But it¡¯²õ not just about the words themselves; cultural accuracy plays a major role too. A term that works in one market could be confusing or even misleading in another. For example, the often interchangeably used terms ¡°carbon neutral¡±, ¡°carbon zero¡±, ¡°carbon negative¡± and ¡°net zero¡± all carry different definitions yet can be used in similar or identical contexts to demonstrate commitment to the climate.

Then there¡¯²õ the issue of compliance ¨C a critical piece of the ESG puzzle. Different regions have different rules and regulations, and failing to navigate them properly could expose your company to legal risks ¨C see ¡°¶Ù¾±±ð²õ±ð±ô²µ²¹³Ù±ð¡±. Whether you¡¯re dealing with the EU¡¯²õ CSRD or other local mandates, thoroughly understanding these regional differences is paramount to remaining compliant.

There are numerous potential cases where differences in terminology and local regulations may obscure meaning in certain markets:

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• English-speaking markets: In many English-speaking countries, sustainable may refer to practices that are ecologically sound, but it can often be used in vague or broad terms without strict criteria.
• French-speaking markets: The French term ¡°durable¡± is similarly used, but there¡¯²õ often more focus on long-term environmental and social impacts, including labour practices, which could cause misunderstandings if not clearly explained.

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• English-speaking markets: In many English-speaking countries, eco-friendly is commonly used to describe products that have a reduced environmental impact, though it can sometimes be vague or unverified.
• German-speaking markets: The term ¡°umweltfreundlich¡± is understood in Germany, but without clear certifications or metrics it could be seen as a marketing buzzword. Consumers in Germany may expect detailed evidence or certifications, such as Blauer Engel or EU Ecolabel, to back up such claims.

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• English-speaking markets: In countries like the US or the UK, organic typically refers to products grown without synthetic pesticides or fertilisers, often backed by certification labels like USDA Organic or EU Organic.
• Chinese-speaking markets: In China, the term ¡°Óлú (y¨¯uj¨©)¡± also refers to organic products, but due to limited regulation and certification enforcement, products might be marketed as organic without meeting stringent standards, potentially misleading consumers.

Sandberg¡¯²õ approach to sustainability reporting translation

With ESG and the nuances of sustainability always evolving, new terms and concepts are constantly emerging. That¡¯²õ why it¡¯²õ vital to partner with linguistic experts who ensure your reports are accurate, culturally aligned and legally compliant, helping you communicate your sustainability efforts effectively to a wider audience.

Here at Sandberg, we¡¯re no strangers to translating complex content across industries. With a proven track record working with clients in consulting, logistics, energy, technology and healthcare, we¡¯ve got the expertise to handle it all. But sustainability? It¡¯²õ woven into our Nordic DNA.

From energy usage data and renewable data sourcing reports, policies for human rights and labour practices, to codes of ethics and business conduct and risk management and internal audit reports, our qualified experts are at your disposal.

We know that sustainability isn¡¯t just about compliance, though ¨C it¡¯²õ about building trust and showing the world your commitment to positive change. That¡¯²õ why our team of subject-matter experts and specialised translators ensures your sustainability reporting resonates with global audiences, while staying true to both the technical details and cultural nuances that really matter, and with data safeguarding always at the forefront. Our seamless tech integration methods ¨C TMs, termbases and so on ¨C ensure consistency, accuracy, and ultimately save you time and money whilst maximising efficiency and productivity.

Best practices for successful sustainability reporting

Building your stakeholders¡¯ trust starts with coherent, multilingual content that aligns with your brand¡¯²õ commitment to transparency and responsibility. Here¡¯²õ how to get it right:

• Involve professional translators with ESG reporting expertise early in the process to avoid missteps or oversights.
• Partner with a reputable language services provider that combines human expertise with tools like TMs and termbases for efficiency and compliance.
• Collaborate with in-country experts for cultural validation, ensuring your message lands just right.
• Keep your content up to date ¨C a frequent, ongoing partnership with Sandberg ensures you stay at the forefront of change and we build a deep understanding of your content.

From seed to success: Let¡¯²õ cultivate your sustainability message

The CSRD is here, and it¡¯²õ shaking up the world of sustainability reporting. As companies face more intricate and standardised requirements, one thing is clear: sustainability reporting is no longer just a trend ¨C it¡¯²õ the new business norm. Businesses that rise to the occasion will bolster their stakeholder relationships and stand out in the marketplace, leaving competitors green with envy.

Of course, the hurdles we mentioned ¨C like greenwashing, inconsistent metrics and ever-evolving terminology ¨C aren¡¯t going anywhere. But with the right strategy, your reports can rise above the noise and truly make an impact. That’s where we come in. We¡¯ve got the Nordic precision and expertise to ensure your sustainability message isn¡¯t just compliant, but compelling.

Ready for your sustainability reporting to flourish and stand out? Get in touch with us today or browse our services to see how we can help you nurture your success and stay ahead of the curve and competition.

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An evolving space in innovative business ideas, the parenting products market is continuously adapting to deliver on parental needs: smart socks communicate a child¡¯²õ vital signs to their parent¡¯²õ phone; intelligent cribs aid a restful sleep by simulating a parent¡¯²õ rocking motion or the gentle hum of a car; and thanks to hands-free breast pumps, women have the freedom to pump wherever and whenever they like. More and more, businesses are tapping into market niches that appear to be hiding in plain sight. But that¡¯²õ what makes them great.

New businesses like these continue to thrive in this space, despite a fertility and birth rate that has been . In fact, in 2024, the global market for child and baby care products is estimated at over , a figure forecasted to increase by over USD 150 billion by 2032.

In this article, we will discuss the diversity in parental expectations and needs across the globe, exploring the cultural nuances of the Nordic market and highlighting the fundamental role of adaptability and localisation when expanding a parenting products business into this region. Later, we¡¯ll dive into the story of our partnership with FemTech start-up Elvie ¨C a poster child for success in the Nordic region and beyond.

The Nordic model and luxury parenting products

Nuances in the parenting products landscape can reveal how family cultures differ around the world. For example, preferences in are notably different across regions, influencing the toys that parents choose to buy for their children. Where a Korean mother may prioritise a child¡¯²õ cognitive development, an Italian or Spanish mother may prefer to cultivate socio-emotional intelligence. Cultural models are influenced by governance too, as states dictate how much time a parent spends with their child after birth. For example, in , fathers are spending increasingly more time with their children thanks to equality in parental leave, whereas in Japan, have recorded the marginal presence of a father in rearing a child.

Understanding where cultural norms and government policies coalesce in parenting purchase trends can be challenging, but some clear examples do exist. For example, a Dutch mother may be more inclined to invest in a family cargo bike for travelling with her child, whereas a Chinese mother may prefer to invest in a baby sling wrap.

In the Nordic countries, the key values associated with children and parenting are shared from the state level to the individual level. Leading in areas such as , and equality, the Nordic countries¡¯ shared values have promoted a greater sense of trust and community within the region. Of the 38 member countries in the Organization for Economic Co-operation and Development (), the 5 Nordic countries ¨C Denmark, Iceland, Sweden, Norway and Finland ¨C rank within the top 6 countries that invest the most by GDP in early childhood care and education.

This focus on welfare infrastructure, sustainability and equality is reflective of Nordic parents¡¯ ideals, as parents encourage children to experience nature daily; to become responsible members of their community from a young age; and, increasingly, show them that parenting duties can be shared equally between parents. The harmony that exists between state and individual values is also visible through the region¡¯²õ consistent ability to rank highly in the World Happiness Report ().

These values have now permeated the parenting products market through the growth in popularity of parenting products. Whether due to decreasing average family sizes or increased and affluence amongst parents, or perhaps both, luxury products are in. And in this industry and region, luxury and sustainability go hand in hand.?

There is already an established focus from on sustainability, but with increasing global awareness about this issue comes an incentive to invest even more, for both retailers and consumers. Eco-conscious brands are regularly opting for more expensive, sustainable manufacturing, incorporating more recycled and organic materials. Brands adhering to the scheme are a signal to consumers in this region that a business supports sustainability and waste reduction. Despite eco-conscious brands carrying a premium price tag, a of the Nordic population is willing to pay the extra for a product that aligns with both their parenting and personal values.

Child¡¯²õ play: succeeding in the Nordics

Nordic parents care about sustainability, they care about organic products, they care about equality. This is a valuable business insight for players in the global market aiming for success in this region. Will your parenting product connect with Nordic consumers? Are you speaking their language? Will your brand¡¯²õ voice reach this audience the way you intend it to? Your product, its literature and its delivery to your local audience may be perfect, but achieving this level of cultural and linguistic accuracy in a foreign environment makes employing a native professional a necessity.

This is not simply localised to the Nordic region. Countries like the USA are of the success of the Nordic values ¨C that are now resonating with Americans too. In fact, some studies show as many as of US consumers value sustainability as a key factor when purchasing. This makes it increasingly likely that a product born in North America will connect with consumers in regions such as the Nordics or the EU, and vice versa.??

The cross-pollination of ideas continues to enrich the parenting products market and innovate how we care for our children, yet borders often become barriers between brands and their target markets. With illustrating that 65% of non-native English speakers value content published in their native language, integrating localisation shouldn¡¯t be a luxury, but a necessity to show your brand cares. To invest in creating a local voice is to invest in ensuring that your message connects with local consumers. Your product may be the answer to the needs of parents in another country, but if they can¡¯t understand your product details or how it can help them ¨C whether it¡¯²õ marketing content or instructions for use ¨C they won¡¯t buy it.

Understanding regulations: have you done your homework?

Wherever your target audience is in the international market, adhering to local regulatory frameworks should be a crucial consideration. Parents are seeking brands that understand their needs and share their expectations on product safety. In a market that caters to the most precious thing in a parent¡¯²õ life, the importance of adapting your product and its message cannot be overstated. This means understanding the unique regulations in the country of your new audience.?
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Due to the growing value of sustainability in the parenting products market, tactics such as are utilised by brands unwilling to commit to green efforts, but still hoping to gain business from using this ambiguous label. Thankfully, existing regulations are reviewed regularly and annexes are created to enforce more stringent standards. Departments of agriculture in the , , and beyond have defined their region¡¯²õ standards, and businesses that wish to declare their certification must conform with these.?
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However, although regulating bodies across the world have created such standards, international trade policies differ. For example, although are exported from the US to the EU, their standards »å´Ç²Ô¡¯³Ù always align. Are your promotional materials correctly signalling the standards that your target audience parents expect? Do your product descriptions, ingredients or instructions deliver information as transparently as they should? ?
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Miscommunication should be a primary concern for brands selling health-related products, such as baby food or toiletries. Despite being a gateway to international success, it also increases the risk of miscommunication, even if accidental. Between 2010 and 2020, the OECD¡¯²õ 38 member states experienced an increase in online sales by almost a third. Yet, during this time, a of online products also took place, revealing that a significant number of recalled and banned products remained available to purchase online.?
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Trading internationally in a multilingual environment may facilitate uncertainty in a market that demands minimum risk. By incorporating native professional translators and localisation experts, your company can avoid careless and dangerous errors. In doing so, you can be sure that your product credentials are effectively communicated to regulating bodies and parents alike.?

Elvie: a case study

Since 2020, Sandberg has been adapting and localising content for the impressive London start-up, . Elvie is an advocate for equality, sustainability and natural healthcare for women, catering to their unmet needs by destigmatising taboo topics like breastfeeding and creating empowering FemTech products. Producing technology such as hands-free breast pumps and care for pelvic floor health, Elvie has become a refreshing resource for important information and discourse on women¡¯²õ physical and emotional well-being.?
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Valuing gender equality and maternal care, Elvie knew their product would resonate with Nordic parents, which is why they reached out to Sandberg. Replicating the unique tone of any brand in another language and culture can prove challenging. However, since August 2020, Sandberg has localised over 500,000 words across 5 languages for almost every area of ·¡±ô±¹¾±±ð¡¯²õ business literature. During this time, we have helped develop and cultivate ·¡±ô±¹¾±±ð¡¯²õ tone of voice by capturing a local and sensitive style that cannot be compromised when discussing the important, and often delicate, subject of women¡¯²õ post-partum health.?

Opportunity and growth in the parenting products market

Representative of the cultural diversity across the globe, the parenting products market is a kaleidoscope of laws, ideals and expectations, yet it remains an environment accommodating to businesses with international endeavours who are willing to adapt. ?

Value-based brands like Elvie are a growing presence in the market, as with a tactful multilingual communication strategy, they can connect emotionally with parents all over the world. Looking ahead, we can expect technology to continue to establish itself in this space, facilitating the innovation of more comprehensive care for families. Monitoring systems will continue to be developed, so too will AI-based parenting and nutritional guides. The call for more personalised and on-demand guidance for parents is increasingly common, and going forward, an expected area of dominance in this market.

Expanding internationally can prove challenging in such a competitive market; however, by building an articulate expansion strategy that accounts for the differences in parental needs across countries and cultures, the nuances of existing market niches, in addition to international regulations and standards, your business can successfully grow beyond your local market.?

At Sandberg, we have 30 years of experience in offering premium, tailored communication solutions. So, whether your company requires multilingual SEO services, market-specific copywriting or internationally certified translation and revision services, we will ensure your content is handled with the care of our experts and native professionals that your customers expect.?

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However, not all markets or companies grow and expand at the same pace. Numerous factors affect the ability to scale globally, and some sectors are better at seizing opportunities than others. This blog article analyses the nutraceuticals market and its impressive rate of growth from a low rumble in the early 1990s to a fruitful boom by the turn of the century. We also discuss the critical role of product adaptation and content localisation and their key function for businesses aiming for global expansion.

The state of the nutraceuticals market

Between 1999 and 2000, the global nutraceuticals market grew at an annual average growth rate (AAGR) of . Over the following decade, this figure doubled to 14.7%. In 2024, the value of the global nutraceuticals market is estimated at over and, in its energetic state of growth, is in value before 2031.

Cast aside at the introduction of modern medicine, natural organic remedies have now been rediscovered, taking root in local communities once more. Emerging as a welcome alternative to expensive modern healthcare, figures on increased life expectancy and the global pandemic have only stimulated sales further. And in the last few decades, advancing technologies have accelerated the development and efficacy of these natural resources.

Yet, introducing a product to the healthcare market presents a quagmire of challenges, especially when taking your product from a local audience to an international one. Localising essential product information can prove a crucial mechanism in achieving your brand¡¯²õ international potential by communicating your product materials, packaging, website content and marketing materials accurately and effectively.

So, what is the nutraceuticals market?

The market encompasses a variety of foods that offer medicinal or health benefits, including the prevention and treatment of disease. Largely viewed as , functional foods and beverages may take the form of vitamin and dietary supplements or fortified drink and meal components, boasting therapeutic properties owing to their high mineral content and antioxidant activity.

The reach of these functional foods is vast, as they not only have medicinal qualities, but also enhance nutrition in probiotic foods and drinks, promoting growth, offering meal substitutes and aiding sport performance. They may support and boost nutrient content in cereals, wholegrains, milk, milk alternatives and in ¡®energy¡¯ bars and drinks; think omega-3 and folic acids, green tea, cod liver oil and ginseng.

When manufactured correctly, nutraceuticals offer a combatant in the battle against ultra-processed foods (UPFs) and a comrade in the growing trend of holistic approaches used to treat common but deadly diseases such as cancer, diabetes, Alzheimer¡¯²õ and cardiovascular disease.

Medicine, meditation and market growth

In the last decade, increased consumer awareness about healthy living has contributed to a wave of wellness. The nutraceuticals market is a fundamental component of the global wellness market in 2024. Somewhere between mindfulness and fitness trends, enlightened consumers have made a hearty push towards natural and organic nutrition, and the figures support this. Since 2016, the compound annual growth rate (CAGR) of nutraceuticals is estimated at per year and, by 2023, the market was valued at approximately .

Despite Europe containing some of the biggest names in the nutraceuticals industry and the USA being the most advanced market in terms of product offerings, the Asia Pacific region currently has the . Driving factors across continents are a combination of consumer preference and external factors. These include proactive consumer attitudes, increased awareness about health, greater disposable income, increasing healthcare costs, ageing populations and post-pandemic health concerns.

Techy treatment

Technology has proven a vital catalyst for the marketing and consumption of nutraceuticals. The accessibility and omnipresence of the internet presents the buyer with information to tailor their functional food choice. In addition to widely available professional advice online, the application of has improved the biological efficacy and physicochemical stability of nutraceuticals.

Through methods of nanoencapsulation, 3D printing and congealed spray-dry technology (to name just a few), food grade can be enhanced, and consumers can expect better consistency and sustainability in their bespoke healthcare products. An increasingly personalised supplement selection shows greater progression in treatment and healthcare plans, making general-purpose care an increasingly foreign concept.

Subscription, not prescription

Several years ago, harnessed this concept of personalised healthcare by launching a subscription service for their nutritional science-backed products. Subscribers benefit from a customised product selection based on their lifestyle, allowing them to be offered food and dietary supplements unique to their needs and accessible without a prescription.

However, in the past, misleading market activities led to . Functional foods have often flown below the radar of regulations associated with normal medical and pharmaceutical products. , Japan became the first country to regulate its food supplements by establishing ¡®Food for Specified Health Use¡¯ (FOSHU), a system created to approve ¡®statements concerning the effects of food on the human body¡¯. More than a formality, producing accurate and clear information increases consumer knowledge and reduces risks related to toxicity and drug interactions.

In the , dietary supplements are regulated as food items by the FDA. Similarly, in , supplements are also recognised as foodstuffs, where responsibility for product safety rests with the business operator. Some countries take a more individual approach to these products. For example, and sub-categorise their nutraceuticals by distinguishing their special composition which governs how they are regulated.

The reality is that regulatory landscapes are predictably uneven when crossing borders. The nutraceuticals market is no exception. Although sidestepping prescription and testing requirements in many countries, businesses should be wary of the differences that exist in regulations and how these food supplements are defined. Nutraceuticals merchants should hold their prospective clients at the heart of their sales and understand the responsibility that comes with selling healthcare-related products and sharing product information, which should reach consumers accurately and transparently.

Localise your nutraceuticals product content

The nutraceuticals market is made complex by the origins of its produce. Foods harvested for their super components are found in all corners of the globe, then traded internationally. For example, in , ginseng was used to treat insomnia, palpitations and anorexia, while bashed and brewed the shrub to treat indigestion, headaches and infertility. In modern medicine, the bioactive elements of this root continue to be utilised to treat symptoms associated with a host of illnesses across Asia, North America and beyond.

Given the market¡¯²õ global reach, correctly delivering culturally appropriate information and nutritional guidance is essential. Consumer product knowledge has been a determinant in decision-making behaviour for decades and have proven that an individual¡¯²õ nutritional knowledge of a product influences both their intent to buy and consume.

Furthermore, providing accurate and localised product information is made an even easier choice when the risks associated with the sale of healthcare products are considered. For example, the overconsumption of vitamins by those who do not suffer from a vitamin deficiency can lead to side effects such as impaired eye function, diarrhoea, bleeding, photosensitivity and neurotoxicity. For these products to be used responsibly, companies that sell them must also take on the responsibility of providing comprehensible product information through localisation.

Multilingual communication for the nutraceuticals market

Whether you¡¯re connecting with new audiences who may use your product differently or communicating nutritional guides, warnings and marketing materials, we recognise the responsibility involved in accurately localising essential product information.

Ensuring product information remains as accurate to each audience means employing experts to localise content into their native language. At Sandberg, our subject-matter experts safely handle over five million words in the life sciences field every year. Amongst our pool of professionals, we also have experts on hand to offer market-specific copy-writing, transcreation and international SEO services to adapt your content appropriately and capture the culture familiar to your target audience.

Sandberg is an ISO 17100 and ISO 18587 compliant language service provider, and our multi-stage quality-assurance process means your product not only carries the rigour of an internationally recognised standard but also signals to consumers that your company is committed to ensuring your product has been considered as conscientiously as the care it offers.

As you scale up internationally in this industry, efficient workflows are not just a necessity but a key differentiator that drives success and profitability. We provide cost-effective localisation solutions through the implementation of technologies such as translation memories and machine translation. Our ability to communicate efficiently and navigate quick turnaround times while still prioritising quality and accuracy means you can have full confidence in your content.

You¡¯ve taken the time to develop a product which you believe can help people, so why miss out on communicating this to them as safely and accurately as possible? Localisation is the answer to building strong connections with new audiences across the globe, especially in a rapidly growing, global and sensitive market like nutraceuticals.

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How is energy produced and sold within the EU?

In the EU, renewable energy accounts for most of the energy generation, followed by fossil fuels and nuclear energy.??

The mix of electricity sources varies significantly among EU member states, with the proportion of electricity from renewable sources ranging from more than 90% to less than 15%. This variation is due to geographical conditions, the availability of natural resources (such as coal or gas deposits), the economic structure of the countries and political decisions (such as whether to develop nuclear energy capacity).

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Electricity is traded as a commodity, often in energy markets. Each power plant offers its electricity at an individual price that covers its costs.?

Renewable energy development in the Nordic countries?

One region that has become especially known for its renewable energy development is the Nordic countries. The Nordics have become a benchmark for sustainable practices worldwide with diversified green resources including wind, hydro and geothermal energy. Norway has pledged to become carbon-neutral by 2030, and Sweden has set the goal of reaching 100% renewable electricity by 2040. As a result, renewable energy is a sector that will continue to grow and develop in this region. ?

Moreover, the Nordic countries’ commitment to innovation and sustainability is supported by robust government policies and substantial investments in research and development. Denmark, for instance, is a global leader in wind energy technology, with wind power contributing significantly to its electricity production. Iceland harnesses its abundant geothermal resources to meet a large portion of its energy needs, providing a model for other countries with similar geothermal potential. The region’s integrated energy market also allows for efficient energy exchange and cooperation among the Nordic countries, further enhancing their collective ability to adopt and implement renewable energy solutions. This collaborative approach not only strengthens the region¡¯²õ energy security but also positions the Nordics as pioneers in the global transition towards sustainable energy.?

Translation and renewable energy

How do language services play an essential role in renewable energy projects? Well, they can help secure investment, gain regulatory approval and generate trust between stakeholders. When information is more effectively communicated between the many people involved in such projects, issues are efficiently addressed and the entire process can run smoothly. It can even help garner more support for a project as its goals are accurately communicated to the local and international community.?

Additionally, in the globalised energy industry, pioneers like the Nordic countries aim to export their innovative technologies and expertise to encourage other countries to implement them to achieve national and international sustainability goals. During this process, effective communication becomes essential. By accurately translating technical documents, regulatory requirements and marketing materials into multiple languages, translation services facilitate smoother international collaboration, compliance with local regulations, and effective communication with global stakeholders. This linguistic support ensures that Nordic renewable energy advancements can be embraced in diverse markets.?

Multilingual technical communication in the energy sector

In the energy sector, technical manuals, technical drawings, bills of materials, safety guidelines and other technical documents ensure that engineers and technicians have immediate access to and control over the systems they will be using.??

When it comes to international projects, the translation of this documentation must be flawless to mitigate technical risks as any error can have serious consequences, from misinterpretation of instructions to project implementation failures. This also enables effective communication among all team members, who typically come from different countries and speak various languages.??

Depending on the type of project, these are usually some of the documents that need to be translated into other languages.?

• Material safety data sheets?
• Energy safety reports?
• Feasibility studies?
• Health and safety reports?
• Marine ecology studies?
• Wildlife impact assessments?
• Resource evaluations?
• Employee manuals?
• Product manuals?
• Sales and marketing materials?
• Survey reports?
• Toxicology reports?
• Projects schedule and milestones?
• Permits and licenses?
• Financial analysis?
• Net production, including electrical losses?

Compliance with international regulations

Regulatory compliance in energy projects is crucial for ensuring adherence to laws and regulations that govern their development, construction, and operation, from environmental requirements to building permits. Each country has specific standards in the energy sector, so accurately translating these requirements is essential to avoid penalties and ensure compliance.?

Proper document control helps energy companies meet all relevant regulatory requirements and avoid fines. This can include:?

• Environmental impact assessments
• Health permit applications?
• Safety documents?
• Technical specifications?

A robust document control system allows companies to easily access and provide necessary documents to regulators, demonstrating compliance with the law.?

Engage with local communities through energy translation services

A key part of many energy projects is speaking to key stakeholders in the local community where the project will have an impact. This can include residents, landowners, local authorities and businesses. For your project to get off the ground, meet regulations and gain support, you must understand the concerns and interests of these stakeholders.?

However, there can sometimes be a language barrier that prevents transparent communication. By translating informative materials, safety procedures, and legal documents, you can clearly convey the benefits of a project, address community concerns and comply with local regulations. Public meetings and consultations that are supported by translated materials or even interpreters are more inclusive and transparent. Educational programs and workshops that are accessible to everyone can help community members understand the project’s goals and impacts.?

Moreover, translation services aid in establishing effective feedback mechanisms, allowing community members to express their views and for companies to respond appropriately. Regularly translated updates and newsletters maintain ongoing communication, building long-term trust and support. By leveraging translation services, energy companies can foster better relationships with local communities, ensuring the success and sustainability of their projects.?

Selling your energy services to foreign providers

When a company in the energy or civil engineering sector seeks to expand into foreign markets, the precise translation of marketing materials and technical proposals is vital. These documents must be translated and culturally adapted to resonate with the local audience. Poor translation can damage the company’s image and reduce business opportunities. Having translators who are experts in the sector and cultural context can make the difference between winning or losing a contract.?

Achieving energy goals through professional translation

The evolution of energy policy from a primarily national concern to an international imperative reflects a dramatic shift in global dynamics. For the world to reach our communal sustainability goals in the future, the development of revolutionary renewable energy technologies must be shared between countries. In this interconnected landscape, professional translation emerges as a key service for the success of major energy and civil engineering ventures, highlighting the necessity of effective communication in navigating complex international relations.?

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The current state of the heavy machinery sector

The global machinery market saw a healthy growth from , an annual growth rate of 7.6%, as the sector recovered from the pandemic lockdowns. Some analysts expect a further growth rate of 6.6% by 2027, driven in part by an increased demand for construction and infrastructure equipment.

The highest growth rates are expected in the Asia Pacific region, as ongoing large-scale infrastructure projects in China and India continue to be rolled out rapidly, including new highways and airports.?

European machinery and equipment manufacturers have also witnessed a significant recovery, with revenue growth spiking to 18% in 2022 compared to 7% in the North American sector. However, Europe lags in profitability, with EBIT margins falling to 8.6%, whereas North America achieved 10.4% over the same period, as reported in a . A large part of the reason is the inflationary pressures in Europe, particularly on energy costs, which have been mitigated in America through shale gas exploration.

The heavyweights of heavy machinery

In the construction industry, the US-based Caterpillar Inc. dominates the market. In 2023, Caterpillar Inc. reported establishing itself as the world¡¯²õ leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Key competitors in the global market include Japanese Komatsu and Hitachi, US company John Deere and Swiss manufacturer Liebherr.?

Other notable players within the heavy machinery market are Daimler Trucks, one of the leading heavy machinery manufacturers in the world. With origins dating back to the 1890s, the company has a global presence, employing more than 100,000 people in 42 production sites worldwide. They produce lorries of various sizes and models, including commercial vehicles, buses and specialised vehicles like fire engines.??

Founded in 1927, the Volvo?Group is another prominent player in the heavy machinery market, producing commercial vehicles, construction equipment and diesel engines. Volvo operates in several markets, including Europe, North America and Asia. In April 2021, Volvo Group sold its UD Trucks division, generating a USD 2.3 billion payout.?

To preserve its competitive stance globally, the Volvo Group has been steadily investing nearly (December 2022) in research and development (R&D), primarily focused on battery-powered commercial vehicles.

Paccar is a well-known American manufacturer of light, medium and heavy-duty commercial vehicles, marketed worldwide under the Kenworth, Peterbilt and DAF brands. Paccar also produces industrial winches under the Braden, Carco and Gearmatic nameplates.?

Scania, a Swedish manufacturer of heavy commercial vehicles and engines established in 1891, reported an impressive growth in in 2023. The company¡¯²õ workforce grew to 58,163 people, an increase of 2,500 from the previous year. Scania has been focusing strongly on alternative fuel and electric vehicles, selling 6,454 units in 2023, a slight decrease from the previous year but still a substantial part of their total delivery of 91,652 vehicles.?

The main challenges facing the heavy machinery sector?

Skilled labour shortage

A critical issue in the heavy machinery sector is the lack of skilled manpower. By 2050, 30% of the global workforce will be 50 years of age or older; however, in the EU, only remain active in the labour market. This scenario underscores the urgent need for young recruits who are either highly skilled or given training opportunities within companies, in addition to finding ways to retain older workers.

In Europe, the number of unfilled jobs in the sector rose by around 70% from 2020 to 2022 and has remained just above 500,000 vacancies since the beginning of 2022. Germany alone reported approximately 250,000 vacancies in the machine sector in 2022, a doubling from the previous year as highlighted by a In a figures show that the increased integration of smart connected devices, equipment and systems require highly skilled roles, which are expected to grow the fastest between 2022 and 2032. ?

Understanding the evolving expectations of new generations and the changing needs of older workers is crucial. Companies are also implementing internal systems to enable workers to upskill and work flexibly when the need arises, such as the ?positions, which have proven highly successful.?

Big Data and heavy machinery

The industrial equipment industry is not immune to technological innovation, Big Data and artificial intelligence. The integration of advanced technologies like the Internet of Things (IoT) is and making it smarter.?

systems, where vast amounts of data can be generated and analysed at once, enable fast decision-making, predictive maintenance and operations optimisation. Maintaining such systems requires an ongoing and dedicated investment in equipment, resources and skills training for engineers and technicians.

AI, automation and Big Data integration can also help mitigate the shortage of skilled staff in the sector by simplifying and optimising processes. For example, machine parts can be exchanged before they break, and changes and upgrades can be planned proactively.?

Carbon footprint and the price of transition

Another challenge the sector faces is the transition to a sustainable low-carbon future. The term ¡°zero carbon¡± is still widely used to describe Electrical Vehicles (EVs), despite a from the Advertising Standards Authority stating that it is misleading to call an EV ¡°zero carbon¡± unless referring exclusively to driving it. This is because CO2 is released during the vehicles¡¯ manufacturing process?and potentially in the production of the electricity that powers them.??

The increased demand for batteries is also not without its environmental impact. , it takes 2.2 million litres of water to produce 1 tonne of lithium. When Chile, for example, produces 8 million tonnes of lithium, this will have used around 17.6 trillion litres of water, in addition to the impact the mining has on the surrounding communities and the environment. ?

Furthermore, that the cobalt used in batteries, including vehicle batteries, is in some cases sourced from mines where child labour and other dangerous work practices are rife. ?

The EU , which means that European companies must document that the products they import adhere to environmental and human rights standards. For the machine industry, it will be necessary to carefully build supply chains, as any environmental or human rights impact will undoubtedly come under scrutiny as the transition to the desired low-carbon reality gathers pace.

Inflation and profitability

As mentioned before, revenue and productivity have both increased in Europe, but profitability is weaker than in North America. , including the increased price of energy, fuelled largely by sanctions on Russia, and interruptions of supply chains.?

The development of shale gas has helped the US keep gas prices down. This has had knock-on effects across the market, not least on energy-intensive steel production, which is extensively used in the production of heavy machinery.

The conflict in the Middle East is also driving up volatility, as well as insurance costs and transportation times for goods that are re-routed away from the Suez Canal.?

Businesses that are robust enough to withstand these difficulties and perhaps even increase their efficiency to thrive in troubled times will stand even stronger in a global industry where there will always be an element of volatility.?

Innovation and R&D

Patents remain vital for protecting and maintaining a company¡¯²õ competitive edge. Innovation is crucial in a mature market like heavy machinery, where distinguishing a product by solving problems more efficiently can drive sustainable growth.?

Patent applications to the? from 181,532 in 2019 to 199,275 in 2023. However, the number of patents for specialised machines in 2022. The top five countries for patent applications were the USA, Germany, Japan, China and the Republic of Korea, with a total of 57% of applications coming from outside Europe and the UK. ?

Notably, the Nordic countries of Sweden, Denmark and Finland rank in the top five for the number of patent applications as a share of the population. Denmark and China are the only two countries that have had stable growth in the number of issued patents across all major sectors. ?

As skilled labour becomes scarcer, innovative industrial equipment that enhances efficiency and productivity per working hour will be essential for future success. ?

Heavy machinery translation and localisation

In the global market, making use of heavy machinery translation services provides significant added value and is often a crucial necessity.

The most successful companies in the global marketplace are those that maintain the integrity of their product while adapting it to meet local preferences. Swedish furniture giant IKEA, for example, not only tailors its product range to fit local needs but also makes linguistic and cultural changes so that its product and marketing materials resonate with the target audience.?

Although industrial machines are not typically marketed directly to consumers like an IKEA coffee table, the underlying principle remains the same: reaching international audiences is crucial for growth and overall business sustainability. To succeed, business must tailor their offerings to appeal directly to decision-makers in the industry or industries they aim to penetrate.?

Localisation covers a range of activities and areas crucial for commercial success. This can include product adjustments to meet specific local conditions, such as modifying machinery to handle dry, sandy environments or cold, snowy conditions.?

In addition, localising product descriptions enhances?the connection with local buyers, while localised customer service and helplines foster long-term relationships.??

With the global shortage of skilled labour, attracting qualified and highly motivated people from all over the world is another obvious benefit of a global approach, guided by the principle that has made Spotify a success: Think Global, Act Local.

Specialist knowledge

Heavy machinery translation often requires linguists with specialised knowledge of commercial and regulatory needs as well as technical terminology. ?

Professional localisation services use several tools to ensure that translations are linguistically accurate and industry-specific (e.g. a ¡°pipe¡± may mean something very different in the oil-drilling industry than in the construction industry). This includes maintaining term bases with preferred translations and technical terminology.?

Automated solutions can also be beneficial for ensuring accuracy and consistency across technical translations. However, it is essential that a competent human translator reviews all content for accuracy and adherence to agreed terminology.

Common content types for heavy machinery translation?

There are several key areas where the heavy machinery sector needs translation services:?

Product information

Key product information translation may be mandated by regulations such as the on machinery. This regulation stipulates that all key information regarding machines, including statements of conformity, instructions and a broad range of other documentation, shall be presented ¡°…in a language which can be easily understood by users.¡±?If necessary, it shall ¡°… be translated into the language or languages required by the Member State in which the machinery or related product is placed on the market, is made available on the market or put into service.¡±

Product descriptions

In a market dominated by established players, standout product descriptions can significantly impact how a company¡¯²õ unique selling points are communicated to a technically savvy audience.? A specialised translator can help ensure that the terminology and meaning are spot-on for every?audience.?

Safety information

Heavy industrial machines and construction machinery are high-risk entities to use, with the construction sector topping the stats for .?Given these risks, it¡¯²õ crucial that product manuals and operating instructions are clearly presented in a language that each user fully understands, both for safety and regulatory compliance.??

Patents??

When it comes to patents, translators should have experience with both technical and legal translation to ensure precise and effective communication.

Reach global audiences in a global industry

Producers of heavy machinery ¨C whether it is industrial equipment or machinery, construction machinery or heavy goods vehicles ¨C face numerous challenges including the need for skilled labour, increased globalisation, the integration of technologies like Big Data, IoT and AI, and evolving sustainability and low-carbon requirements.?

Despite these challenges, the sector is strong and continues to grow and improve. For instance, the UK government’s Advanced Manufacturing Plan, launched in November 2023, highlights ?across Europe, the UK and Asia.?

But to ensure compliance with regulations and maintain a competitive edge in such a globalised and competitive industry, high-quality heavy machinery translation services are a necessary component of a successful global sales and marketing strategy.

The post Heavy machinery translation ¨C building our future in a global industry? appeared first on sa¹ú¼Ê´«Ã½.

What is product adaptation?

When IKEA expanded to the Japanese market, they found that it was not enough merely to localise product names and instructions. They had to adapt the products themselves to make them compatible with the small indoor living spaces of the Japanese as well as the Japanese way of using furniture to maximise the efficiency of indoor areas. Trying to enter the American market, they found the opposite challenge; Americans favoured the ¡°go large¡± option on the menu of life, and so beds, cupboards and even drinking glasses had to be made larger to fit with an expansive lifestyle. 

Product adaptation is quite simply everything that you do to the product as part of a global marketing strategy to adjust it and make it more appealing and suitable for a specific market, including tailoring it to local needs and tastes. This ranges from making statutory adjustments and meeting specific market regulations for labelling and information to adjusting the design and the actual composition of the product itself. For instance, beauty products like shampoo are reformulated for tropical climates to cope with the greater humidity of the target market. 

An export strategy that hits home 

Sometimes a product coming from a foreign market is best when it is not tampered with but rather presented in its original form. Many products with deep roots in culture and tradition are best left as they are, while some products instead benefit from standardisation. For example, the distinctiveness of a pungent French cheese lies in its unaltered French identity, appealing to those who favour such authenticity. 

However, the approach that works for one product may not work for another. McDonald¡¯²õ is known as the master of standardisation: you can walk into a McDonald¡¯²õ and order a Big Mac and it will taste consistently the same worldwide.

But McDonald¡¯²õ also localises some menu items to cater to regional tastes. In addition to the McKroket in the Netherlands, in India, you can get the , in Malaysia the Mango McFlurry, in Italy the cheese and tomato-filled Panzerotti, in Hong Kong a seafood range of Ebi Burgers ¨C the list goes on and on. McDonald¡¯²õ skilfully balances global consistency with local adaptation, tailoring its offering to meet local tastes and traditions. 

When the product changes 

A more radical form of product adaptation, similar to IKEA¡¯²õ approach in the Japanese and American markets, involves changing the product itself.  

An example of this , dividing into the US or the UK camp, is the difference between Fanta as sold in the USA and Fanta as sold in the United Kingdom. 

As the Daily Mail article goes on to explain, both the colour and the ingredients differ. The US version contains more sugar, no orange juice and artificial colourings, while the UK version uses concentrated orange juice. The UK version is adapted not only to the British taste but to the British tax regime: the British government introduced a sugar tax in 2017, making a product with higher sugar content more expensive. In order to stay competitive and minimise the impact of such taxes, the Coca-Cola Company uses less sugar in its UK products. 

Awareness of how local regulations and tax systems could impact certain products or ingredients is a key part of adapting a product for a local market. Thorough market research must therefore be first on the agenda to understand what needs to be changed for a target market as well as what should remain the same. Let¡¯²õ take a closer look at other key elements of product adaptation. 

Key elements of product adaptation 

There are at least 7 key drivers you need to consider when deciding if product adaptation is necessary and desirable. 

Regulation 

Market-specific requirements often dictate labelling, declarations of conformity and product instructions ¡ª you can read more about it in this article on the linguistic requirements for export. But labelling only scratches the surface. These regulations can extend beyond product packaging to affect the actual content of the product. For example, in the USA, certain food additives are allowed that may not be allowed in Europe and vice versa, necessitating adjustments to the product formulations to meet local regulatory standards while maintaining product integrity.  

Physical environment 

Some products are naturally more suited for certain markets, while others might need a tweak or an adjustment of some kind based on the physical environment of the target market. Cars and other vehicles, for example, might need modification to suit the climatic conditions of a particular geography. In the Middle East, vehicle filters and clutch systems are adapted for hot, dusty conditions. In contrast, in the Nordic market, electric cars benefit from features like seat warmers and battery warmers that provide safety and comfort during the long, cold, dark winters.  

Infrastructure 

Considerations for physical products also include storage needs and logistics. How good is storage capacity in the target market? If it is frozen food, for example, are freezers generally available and can your product be shipped in lorries with freezer boxes?  

Here, we can also return to the size issue that IKEA faced: some consumer markets like to buy in bulk and do their shopping less frequently, such as American consumers. As a result, it makes sense to have large packaging that can fit more of the product inside or multi-packs so that several items can be purchased in one go. In other markets, not least developing markets, purchasing power is relatively weaker, and so consumers tend to prefer small units. Here, it makes sense to pack even low-cost products such as chewing gum or razors into single-item packaging to lower the buying threshold for the consumer. 

Internet 

For online products or services, the quality of the internet infrastructure is paramount. Why did Facebook launch their Facebook Lite version? Because it ensures accessibility for users in countries with lower internet connectivity. 

Likewise, having a website equipped with amazing functionalities and offerings loses value if users are forced to endure long loading times. Google¡¯²õ research has found that 53% of mobile users will abandon a webpage if it does not load within 3 seconds, despite the average load time on 4G networks being 14 seconds! Therefore, optimising your website to ensure rapid loading times is crucial, particularly if you want to align with the internet capabilities of your target market. 

Culture and consumer preferences 

Just as McDonald¡¯²õ tailors its menu to fit in with local preferences, Starbucks has also adapted its products to suit local cultural and consumer preferences. In Japan, understanding the significant role tea plays in Japanese culture, Starbucks decided to enrich its menu with an array of tea options, including a matcha-flavoured one as well as various green teas.  

In addition, Starbucks embraced the significance of the Japanese Cherry Blossom Festival by introducing pink-coloured drinks, cups and merchandise, aligning their brand with the festival¡¯²õ cherry-pink colour theme. Not only did this tap into a unique element of Japanese culture, but it also appealed to the Japanese consumers¡¯ preference for special and limited-edition products, which can help drive sales. 

Competitors and corporate culture 

Before deciding to enter a new market or not, the first question naturally is: what is currently being offered there? If an existing product already satisfies consumer demands in a way that poses a challenge to your competitive advantage, then you need to think very carefully about your approach.  

Product adaptation should be executed with precision by accounting for the existing market landscape and determining how your product could fill a gap in the market.  

Such a strategic alignment depends on your corporate culture: is there a proactive willingness to conduct thorough market research? Does your team possess the necessary skills and abilities to make the necessary changes and tweaks? Do you need to bring in outside expertise or further training? Addressing these questions is fundamental to formulating a successful export strategy. 

Language 

Another factor that plays a pivotal role in the global expansion of a business is the question of language. A study by Aston University¡¯²õ Business School into 415 UK SMEs from different sectors illustrates how important the language element is to a successful export strategy. The report made it clear that ¡°… SMEs making use of language capabilities are 30% more successful in exporting than those who do not.¡±&²Ô²ú²õ±è; 

Navigating the language requirements for exporting involves everything from translating regulatory documents and compliance statements to the wording on the product packaging and marketing materials. For digital products, such as an app, it may be necessary to consider user or UX localisation. This entails the adaptation of the user experience to local expectations in terms of language, culture, norms and formats, as well as offering products suited to the local audience. 

Every step of the product way is infused with linguistic considerations, and mistakes can cost a company dearly. IKEA exemplifies the strategic use of language to resonate with local consumers, notably through their marketing campaign in Malaysia that cleverly integrated wordplay in the local Hokkien dialect into their product marketing content. 

The four areas of product adaptation

In substance, the various considerations for entering a new market can be roughly divided into four areas of adaptation: Statutory, preference, aesthetic and function.  

Statutory adaptation is the changes that you need to make to comply with regulatory and legal requirements for the target market, such as safety features and additives. 

Preference adaptation includes those modifications made to better align with the local market¡¯²õ tastes and preferences, such as colour, taste, texture and range of product choices. 

Aesthetic adaptations, while also falling under preference adaptation, hold distinct importance. Prioritising the way a product looks is not merely a nice thing to do; it is a crucial consideration if you want to outperform your competitors. As seen with Starbucks, Japanese consumers prefer products that are neat and visually appealing, so aesthetic changes are an effective way to build a connection to Japanese consumers. 

Functional adaptation refers to adjustments in how a product works to ensure it meets the specific needs of the target market more effectively. Examples include Facebook Lite optimising performance for regions with limited internet, changes in packaging size for convenience or additional features like battery heaters for cold climates. 

The ultimate global market strategy always starts with considering the target consumer and working your way backwards to determine what needs to be done at every step of the way to make new consumers choose your product.  

Start with market research and the considerations outlined in this article, and it can mean the difference between selling a product that collects dust and one that flies off the shelves.

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Fate or choice??

In the Old Norse myths, the Norns decided your fate, right up until your dying day. There was nothing you could do to change this; you could only decide how you met your end, either as a coward or as a fighter. When we see large companies and corporations around us today, it is easy to think that they are ¡°too big to fail¡±, but as several retailers in the UK have recently found out, no company is ever fully secure. Just as attacking is the best defence, driving change is the best way to remain relevant, and Nokia was a key driver of this change in the 90s and early 2000s. Then, change happened to it. ?

From paper mill to phones

The company that would later become Nokia started out as a paper mill in 1865, founded by the mining engineer Fredrik Idestam. The company chose the name ¡°Nokia¡± in 1871 when the banks of the river Nokianvirta were chosen as the site for Idestam¡¯²õ second mill. ??

Around the turn of the 20th century, Nokia moved into electricity generation, which caught the eye of Finnish Rubber Works. It bought up Nokia in 1918 to secure access to the company¡¯²õ hydropower resources. This new entity went on to acquire Finnish Cable Works in 1922, but the three companies continued as separate operations until they were formally merged in 1967, forming the Nokia Corporation.?

In the following decades, the company focussed mainly on the paper, electronics, rubber and cable markets, producing goods like toilet paper, bike and car tires, rubber wellies, TV sets, communication cables, robotics, computers and military equipment until 1979.?

The new age?

In 1979, Nokia entered into a joint venture with a company named Salora, a leading Scandinavian colour TV manufacturer, to create a radio telephone company called Mobira Oy. After a few years, Nokia launched the world’s first international cellular telephone system linking Sweden, Denmark, Norway and Finland, which it called the Nordic Mobile Telephone network. Shortly after, it launched the world¡¯²õ first car-phone, the Mobira Senator, which weighed in at around 10 kg (hard to believe when compared to the pocket-sized smartphones we carry around today).?

With this, Nokia had seized the initiative in the mobile world, at least as far as Europe was concerned. In 1987, the company launched one of the first handheld mobile phones, which, including its battery, weighed in at ¡°only¡± 800 g (28 oz). The Mobira Cityman 900 was nicknamed ¡°The Gorba¡± after Soviet leader Mikhail Gorbachev was seen using one to make a phone call during a press conference in Helsinki. The phone became the ultimate status symbol for the 1980s yuppies (young, upwardly-mobile professionals) mainly due to its high cost (), though it only had a talk time of 50 minutes. Still, this was more than enough time to tell your secretary to book you a table at a fashionable restaurant.?

The Nordic road to success?

In the early 1990s, Nokia shed the divisions of its business that were not directly related to telecommunications, such as data, energy, television, tyre and cable production, focussing its corporate attention on innovation in the growing mobile phone market.??

was made on one of its mobile phones in 1991 by the Finnish Prime Minister Harri Holkeri to the Deputy Mayor of Tampere, Kaarina Suonio. The call lasted just over three minutes but reverberated through the following decades. The year after, the , the 1011 (named as such because it was launched on the 10th day of November), was released to the world. This was also the first mobile phone to allow for text messaging via the Short Messaging Service (SMS) as well as roaming. But it was the launch of another innovative handset that would make Nokia the mobile phone legend it was to become.?

The annoying ringtone?

In 1993, the eponymous 2100 series was released. It introduced the now (in)famous Nokia ringtone, based on a short phrase from the a piece composed for classical guitar by the Spanish composer Francisco T¨¢rrega in 1902. While the company had only projected sales of around 400,000 units, it went on to sell more than 20 million!?

Further innovation followed in 1996 with the , which could send e-mails and faxes (remember those?), browse the internet, as well as offer word-processing and spreadsheet functionalities. That same year, Nokia launched the , which had a cover over the keys that you could slide down for dialling. The slightly curved shape gave rise to the nickname ¡°the banana phone¡±, and it achieved something of a cult following after being featured in the action sci-fi film The Matrix.

Yet another giant leap towards dominance in the mobile market came with the Nokia 6100 series. Almost 41 million units were sold in 1998, and Nokia overtook Motorola as the number one mobile phone maker that year. The Nokia 6110 was the first that came with the classic and addictive game ¡°Snake¡± pre-installed. Nokia continued to develop, produce and sell phones at an impressive scale, and its market share climbed to more than .?

Why did Nokia succeed??

At this point, many articles on Nokia plunge right into the story of why the business started to falter, but it¡¯²õ useful to reflect on what the company had done right up to this point. Firstly, they responded well to new and challenging circumstances. Finland had been through a recession in the 1990s and the Nokia Corporation was struggling financially. At the same time, the government had liberalised the telecoms market and Finland had joined the European Union, moving the country closer to Western markets. Nokia realised that the best growth decision was to specialise in the mobile telecoms market, so it started to divest from the non-telecoms divisions of the business. ?

Nokia also realised that its strength as a company lay in research and development for innovation. As Caroline Lesser writes in a paper for the OECD (Organisation for Economic Cooperation and Development), called :

¡°Nokia¡¯²õ efficient product and process development which lie at the heart of its competitiveness — were possible in large part thanks to the company¡¯²õ R&D approach. First, Nokia increased its R&D expenditure dramatically. While in 1991, R&D spending as percentage of total sales represented approx. 5.5%, this share almost doubled by 2000, to reach approx. 9%.? [¡­]??¡°In 2005, Nokia¡¯²õ R&D expenses totalled €3.8 billion, representing 11.2% of Nokia¡¯²õ net sales that year.¡±?

Focussing its operations and investing in R&D were clearly important factors in Nokia¡¯²õ spectacular rise.?

Nokia¡¯²õ localisation strategy?

Furthermore, during this time, localisation became a key part of Nokia¡¯²õ success in expanding internationally. Compared to competitors like Motorola and Ericsson, Nokia found potential in adapting its products to young and fashionable consumers; part of this included localising and translating content into their languages, cultures and tastes.??

Most importantly, they had to localise the product, including the software itself and support documentation, such as user guides. For example, in 1999, Nokia realised that in order to penetrate the Chinese market, one of the biggest mobile phone markets in the world, it had to develop a User Interface (UI) in Chinese. This focus on localising products helped them build connections and secure success in new global markets.?

Other layers of localisation were just as important, such as Nokia¡¯²õ sales and marketing materials. The localisation of these elements meant that more customers could understand what Nokia mobile phones were uniquely positioned to offer, and ultimately, decide to purchase the product. At this time, though, marketing was mostly done through traditional methods, like TV advertisements, billboards, newspapers, magazines, brochures, posters, and more. We can look back on advertisements in , , and many other languages to see the effort that was made to connect with these audiences. Nokia¡¯²õ localisation even went as far as working with local carriers, like Verizon and AT&T in the US and Movistar in Latin America, to sell its products.?

Some mistakes were made too, of course, like when it went unnoticed that ¡°Lumia,¡± the name of one of Nokia¡¯²õ later phone models, could also mean ¡°sex worker¡± in Spanish slang. Nonetheless, devoting focus and time to these localisation elements played a part in ensuring Nokia¡¯²õ rise to the top, even though it turned out to be shorter-lived than the company had hoped.?

Why did they fail??

In their book on the fall of Nokia, , the journalists Merina Salminen and Pekka Nyk?nen argue that the company was ill-prepared to respond to the disruptive impact of the Apple iPhone when it was introduced by Steve Jobs in 2007. Nokia had a large army of engineers who were great at developing new hardware with innovative designs and quirky functions, such as the fashion-oriented ¡°lipstick¡± phone, the Nokia 7280, which features in a Pussycat Dolls music video. But as Salminen and Nyk?nen write, ?

¡°The product portfolio of the company was exceptionally large. This strategy had worked well while business was still blooming, even if only a small part of the company¡¯²õ vast product range was successful, those best-sellers brought in enough money for the business to be successful. By 2010 the vast product range had become a burden. There had not been a best-selling product in several years ?[¡­]¡± (Chapter 4, The lame legacy of Mr. Kallasvuo).?

The beauty of Apple¡¯²õ iPhone is that each new version is essentially a new and improved iteration of one product. Over the years, the content has seen the most improvement, while the physical design has changed very little. Nokia¡¯²õ R&D systems were, however, more geared towards hardware than software and content.?

By the late 2000s, Nokia was churning out a vast array of products. Even without a best-seller, it still shifted around 400 million units, but most of the volume was generated by basic phones priced at around 30 Euros, which did not do much to improve the bottom line. The organisation had also developed internal issues, with extremely long lead times to get phones to market and complicated management structures overflowing with internal politics.?

Time to get smart(phone)?

Many retellings of the Nokia story may not highlight this, but after the success of Apple¡¯²õ iPhone, Nokia¡¯²õ leadership quickly realised that the touch-screen smartphone was the only way forward in the industry. But even though the launch of the 5800 Xpress Music, running on the Symbian operating system, was moderately successful, with 8 million units sold, it was felt by many to have a lower quality user experience than the iPhone.??

Nokia¡¯²õ profits fell by 30%, sales by 3.1%, whilst Apple¡¯²õ iPhone profits boomed by 330% during the same period. Then, in October 2008, the first smartphone with the Android operating system was launched, . Nokia meanwhile continued to try and make its operating system, Symbian, able to compete with iOS and Android, but the platform was difficult to adapt. Internally, hardware designers and Symbian software designers were pulling in different directions. The sheer number of different product lines also made it very difficult to keep up to date with development in a unified manner.??

Nokia¡¯²õ share of the market slipped strongly from 2007 to 2010, but after 2010 it dropped dramatically. So what happened? Some point the finger at the new CEO, former Microsoft executive Stephen Elop, appointed in 2010 by Nokia¡¯²õ board to turn the company¡¯²õ fortunes around. As a Canadian, he was the first non-Finnish CEO of Nokia, and although some had misgivings, he was well-liked early on in his tenure.?

Strategy and communication errors?

Due to the problems with Symbian ¨C it was not touchscreen-friendly and often lagged and froze ¨C Nokia joined forces with Intel to create a new operating system, MeeGo. Development had started before Elop came aboard, but he is reported to have helped focus the development teams¡¯ efforts on attempting to produce a Nokia product to rival even the best phones on the market.??

However, for various reasons, Elop decided that the cooperation with Intel would not be continued, as he said in his now infamous ¡°burning platform¡± email. In this internal memo, he used the analogy of a man standing on a burning oilrig, where he must make a choice whether to be consumed by the fire or take a chance and jump into the cold sea. This illustrated where he believed the company stood in relation to its competitors.??

The email accurately set out some of the challenges that Nokia was facing, such as the high-end appeal of Apple¡¯²õ phones, but when he stated that MeeGo would not be continued, along with the knowledge that Symbian was not fit for purpose, he created the twin effect of undermining consumers¡¯ confidence in new products and increasing the pressure on the board of directors to approve cooperation with a new operating system provider. The effects were soon visible, as .?

As a result, a cooperation deal with Microsoft was duly signed on the 21st of April 2011. On the surface, it ought to have been a match made in heaven, with the hardware masters of Nokia and the software wizards of Microsoft able to combine their efforts. However, the lack of confidence remaining in the existing Symbian OS was diminishing, as phones with this OS were being abandoned across Asia. Sales had initially held up in India and China, but device makers such as Huawei, ZTE, and Lenovo were on the rise, and Nokia’s devices were literally being replaced by Android units on the shelves. Nokia was forced to issue a market warning that revenue would be lower than expected, spooking the market and causing the share price to tumble by 18%.?

Finally, in 2011, the new Microsoft-Nokia phone was born and named the Lumia, apparently for the word¡¯²õ association with snow in Finnish and light in English. The Lumia went on sale in Europe in November of 2011, and from January to March the sales exceeded two million. This was not too far off the initial sales figures for the iPhone, so the hopes were that sales would climb from there. But the loss in the first quarter was 260 million Euros.?

Sales in China had collapsed. In the US, the Lumia 900 had a software issue that could affect data transfer and refunds had to be offered to those affected. Moreover, Nokia¡¯²õ presence as a brand in the USA was practically non-existent by 2011. The network selling the phone in the US, AT&T, soon started offering the Lumia 900 at a heavily discounted price, further damaging the Nokia brand¡¯²õ image.?

Critics of Stephen Elop have pointed out that in terms of market value, Nokia dropped from 29.5 billion euros to 11.1 billion euros on his watch. This ended with the unhappy sale of Finland¡¯²õ flagship company, a source of great national pride, to Microsoft in April 2015.?

In summary?

It is too easy to say that Nokia was simply slow to respond and that its leaders were resting on their laurels. When you read the account in Merina Salminen and Pekka Nyk?nen¡¯²õ above-mentioned book, (Operation Elop), you will see that within Nokia there was frantic work going on, including numerous realised and aborted development projects and a willingness to change and respond to changing market demands that refute this simplistic narrative of a hubristic company unwilling to accept that the world is changing around them. The fact that it appointed a non-Finnish CEO to run this national flagship company is in itself evidence of a willingness to change.?

In hindsight, it is also easy to underestimate how interruptive the iOS-based Apple iPhone was back in 2007. It significantly changed the everyday world of most people in both mundane ways, like how we check the weather or hail a taxi, as well as in ways that are truly profound, like how we communicate with friends and how we interact with politics. This change was driven by the vision of Steve Jobs and the many brilliant creators at Apple, and it was a very different vision than that which had driven Nokia¡¯²õ success.?

Nokia was simply not prepared in its fundamental structures to adapt to a software and content-driven environment, and perhaps its greatest mistake was not to realise this soon enough. In nature, natural selection happens by the survival of the fittest. In the free market (if it is allowed to operate) the same principle goes; it is the business best prepared to meet customer demands that will survive.?

But finally, let us not forget another intangible hurdle Nokia was up against: iPhones were cool. They became a fashion statement for those who wished to align themselves with what they saw as the Apple brand¡¯²õ values ¨C progressive, fresh, innovative, well-designed and quality conscious. To win against Apple you would have had to be all that, plus more fun. And you know what they say about Finns and fun…?

Regardless of its later years, the Nordic company remains a great example of how taking the initiative to specialise in creating a product of relevance to people around the world, like the mobile phone, can pay off and lead to international success.?

The post Nokia: How a Finnish paper mill grew into a world-renowned company appeared first on sa¹ú¼Ê´«Ã½.

Origins and history?

The LEGO Group was in Billund, Denmark in 1932. At the time, Billund was a small, humble town with fewer than 300 residents. However, after the LEGO factory was established in the 1930s and as a result of the continued growth that followed, the town¡¯²õ . Billund, now with just over 7,000 residents, is home to Denmark¡¯²õ second-largest airport and has transformed into a hub for tourists who want to learn about the LEGO company¡¯²õ history and visit the original LEGOLAND amusement park.?

While the brand was officially created in 1932 and named LEGO in 1934, its story started some years earlier. Ole Kirk Kristiansen , planning to build houses in the summer and sell furniture in the winter. He did this successfully for a few years, despite an accidental fire in 1924 that burned down his workshop and family home.?

After rebuilding both structures, Kristiansen hoped for more profits from his business. However, by the early 1930s, the global economic crisis had reached the Danish farmers, who could no longer afford to pay for Kristiansen¡¯²õ services. As a result, he turned to producing goods that were cheaper to manufacture ¨C ?

Although this was not a particularly profitable venture while Billund was in the throes of the 1930s Great Depression and the Nazi occupation of the 1940s, Kristiansen had found a passion for building toys. He liked encouraging children¡¯²õ early development by producing toys like trucks and pull-along animals that promoted thought and creativity. This inspired him to in 1934, which is a portmanteau of the Danish words ¡°leg godt¡± or ¡°play well.¡±?

Now, over 90 years later, the LEGO Group has more than worldwide, including stores and franchises, as well as . How did the business achieve such significant growth after a difficult start??

Building initial success?

Several factors played a key role, including Kristiansen¡¯²õ focus on producing only the highest quality toys possible, the transition to using plastic instead of wood and the creation of a clear company vision and purpose.?

The is ¡°det bedste er ikke for godt,¡± literally meaning ¡°the best is not too good,¡± but officially translated into English as ¡°only the best is good enough.¡± This set a very high standard for quality, and it all started with Ole Kristiansen. , Kristiansen used beechwood that had been air-dried for two years and kiln-dried for three weeks. Then, it was cut, sanded, polished and painted with three coats of varnish or paint.?

that his son, Godtfred, once tried to cut corners in the production process by only giving the company¡¯²õ wooden ducks two coats of varnish instead of three. Upon learning this, his father chastised him, telling him to give them the last coat immediately and teaching him a lesson about the importance of quality. The elder Kristiansen proceeded to carve out wooden signs of the company motto and hang them around the factory so that employees would never be tempted to compromise on the quality of LEGO toys.?

This was evidently a lesson learned for Godtfred, as when , he always ensured that every single brick was built to the proper specifications ¨C so much so that any of the bricks created back then should still fit together with today¡¯²õ LEGO bricks. When new automation and machinery started to increase the efficiency of production, Godtfred to ensure that the company would continue to live up to its own motto.?

The transition to plastic bricks?

The LEGO company began working with plastics in the late 1940s when Kristiansen purchased an injection moulding machine . This coincided with supply issues that the company was facing, as high-quality beechwood was becoming harder to find.

Around the same time, Kristiansen and his son, Godtfred, were sent plastic blocks from a British company. They redesigned them, developing what would eventually become LEGO self-locking bricks. They called these , giving them an English name as an homage to the Allied forces who had liberated Europe in 1945. They would be renamed (LEGO bricks) a few years later to more resolutely establish the brand.

But not everyone was immediately convinced by the idea of transitioning from tried-and-true beechwood to plastic. Godtfred believed that wood was a stronger material and that plastic would not be able to replace it. However, because of Kristiansen¡¯²õ belief in the potential of these new plastic bricks, they continued developing and selling these over the following decades.

Throughout the 1950s and 1960s, the popularity of LEGO plastic bricks grew across Western Europe. Meanwhile, the company¡¯²õ wooden toys were never sold outside of Denmark. Eventually, after a third major fire (the first having occurred in 1924 and the second in the early 1940s) in , Godtfred accepted that the company¡¯²õ future would need to rely entirely on plastic and that they could not return to producing wooden toys.?

The 10 characteristics of the LEGO brand?

Once Godtfred had decided that all efforts would be put towards producing plastic LEGO bricks, he focused his full attention on developing a clear goal and vision for the company. Despite Godtfred agreeing with his father that plastic was the right choice, his brothers, who were also working in key positions within the company, disagreed so strongly with his decision that they left the company entirely. As a result, in 1960, Godtfred became the sole owner.?

As part of his plan for the company¡¯²õ future, he developed in 1963, which highlighted the goals of the brand moving forward:??

1. Unlimited play possibilities?
2. For girls, for boys?
3. Enthusiasm for all ages?
4. Play all year round?
5. Stimulating and harmonious play?
6. Endless hours of play?
7. Imagination, creativity, development?
8. More LEGO, multiplied play value?
9. Always topical?
10. Safety and quality?

The next few decades of expansion that followed the 1960s came with plenty of struggles for the LEGO company. It was ultimately its adherence and return to these principles that helped the company to adjust, adapt and overcome the challenges it faced. These characteristics are still very much relevant today and have become a core part of the LEGO company¡¯²õ production strategy and vision.?

Early expansion in the Nordic region, Western Europe and the USA?

As a Danish company, the LEGO Group followed the same path as many other companies from the Nordic region and . Sales began in Norway in 1953 and Sweden and Iceland followed in 1955.?

The elder Kristiansen viewed Germany as the gateway to the rest of Europe, as it was the global centre of toy production. As a result, this was the natural next step for the company. Although there was initial pushback from the purchasing managers at German department stores, Kristiansen managed to convince the toyshops closest to Denmark, in northern Germany, to sell LEGO products. The LEGO Group¡¯²õ first foreign sales office was set up in Germany in 1956.??

Kristiansen was right about Germany: the LEGO company saw rapid expansion across the rest of Europe, opening sales offices in Switzerland, the Netherlands, Austria, Belgium, Italy and Portugal from 1956 to 1958. What¡¯²õ more, the first LEGOLAND, an amusement park dedicated to LEGO products, opened in Billund in 1968.?

In 1961, the LEGO Group licensed the American luggage company Shwayder (later Samsonite) to sell LEGO products in the USA. This helped the company get its foot in the door, and by 1973, it was able to buy back the rights to sell LEGO products from Samsonite, and build a factory in Enfield, Connecticut.?

The 1970s and 80s were a time of rapid expansion. The toy industry saw brought on by automation and the modernisation of machinery. This made the manufacturing process more efficient than ever. The 1970s also saw more discussion about product safety, including the impact of toy materials on the environment, and the LEGO Group joined various organisations working towards a European standard for toy safety.?

Over these very productive years, the company also released a , including building sets for older audiences to expand their customer base and engage those who might have played with LEGO toys as children. The focus during this period was on themed sets, such as LEGO Space, LEGO Castle, LEGO City and LEGO Pirates. The classic LEGO human figures, known as Minifigures, were also released during this time.?

The difficult decades: 1990s and 2000s?

By the 1990s, the third generation of the Kristiansen family (or Christiansen, as it was later spelt) was in charge. Under Godtfred¡¯²õ son, Kjeld, the LEGO company experienced incredible growth, so much so that he even wondered if it would be possible to . Instead, they churned out new products at an incredible rate, including a line of LEGO-themed children¡¯²õ clothing.?

However, a combination of factors soon began contributing to a growing crisis at the company. As a result, the LEGO Group suffered its first financial loss in 1998. To resolve this, was hired, but his attempts at cutting costs through layoffs and streamlining processes did not accomplish much. The company continued to spiral downward, with unprofitability taking it close to bankruptcy by 2004.?

What were the issues faced by the LEGO company? There was a lower demand for toys at this time in general, and LEGO products were beginning to be seen as expensive compared to other companies. Additionally, , meaning other companies had started producing essentially the same product and selling it for a lower price. It had also strayed very far from its original products, now producing video games and action figures. Even lifelong customers were moving to other brands.??

Finally, the company itself couldn¡¯t keep up with the speed at which it had created and sold its new products, often without taking time to determine whether the new product would be profitable in its intended market. It also couldn¡¯t keep its inventory stocked appropriately. This added complexity to company processes was the source of the financial problems, and it meant that the company had to return to their core values of quality, creativity and connection with their customers.??

, prioritising slow progression and reconnection with old LEGO customers. He noticed that the unchecked innovation was a problem, so he implemented measures to ensure that no new products were created that hadn¡¯t first been researched extensively to understand how they would impact the company¡¯²õ profits. He also did away with several of the new products introduced under Plougmann, which helped the company return to its simple core values and get back on its feet.?

The role of localisation in the LEGO Group¡¯²õ international expansion?

As the toy company scaled up, a key part of its journey was finding a balance between standardisation of the product and brand, so that it was recognisable all over the world, and adaptation, so that each LEGO customer felt important and appreciated.?

The LEGO Group is an example of a company whose product is universally understood. Almost any child in the world, no matter the language they speak or their cultural background, can build with LEGO bricks. As former , ¡°You put LEGO bricks in the hands of children in China, Afghanistan, South Africa, America or Germany, the play is the same, the idea is the same.¡±?

While this might suggest that localisation is not necessary for the product itself, packaging, instructions, safety manuals and similar documentation must be adapted to new audiences. Moreover, even the products change depending on regions and cultural traditions or celebrations, such as The company¡¯²õ key move in this aspect was expanding its staff and , rather than relying entirely on Danish product designers.?

Moreover, localisation has been essential to the LEGO marketing strategy and, in turn, its ability to give more children access to LEGO toys. Examples include the different structures that are built as advertisements in each country and store, often having a connection to that location or culture. For example, a new store opened in 2019 in Beijing featured LEGO replicas of the Great Wall of China and the Forbidden City. ¡°LEGO stores are a great tool for building brand awareness and emotional connection with our fans.¡±?

The idea of localising for marketing purposes started with Godtfred, who in the late 1950s, as the company was on the brink of several decades of successful international expansion, ¡°Germans should preferably perceive them as German, French shoppers as French, etc.¡±. By building cultural landmarks such as those in the Beijing store, the LEGO Group ensures that it is making a personal and familiar connection with customers that encourages them to engage with the brand.?

Importantly, even if those customers »å´Ç²Ô¡¯³Ù buy a product, they still form a connection with the brand, which builds recognition of the LEGO brand around the world. This is an example of how the company has succeeded in making its product and brand more of an experience, rather than just something you buy and take home. Think about the memories you associate with LEGO products. They tend to revolve around much more than just the bricks, as perhaps you played with siblings, friends or your parents, and you built imaginary and creative worlds that you may still remember to this day.??

Because of the nature of the product as something that anyone can universally experience, the emotional and nostalgic connection to childhood and the smart localisation of its stores and marketing materials, the LEGO brand has built very close connections with customers, so much so that many people are not just customers but fans and advocates of the brand.?

Looking ahead?

The company hit with a downturn in profits. It had expanded rapidly to keep up with high demand in the US and Europe, and when this demand declined, the company found itself too large, with too many products and employees to sustain. Layoffs and product scale-backs in Western markets helped, while expansion into new global markets meant that the LEGO Group was back on its feet by 2018.?

in Denmark, Hungary, the Czech Republic, Mexico and China. for the China factory, along with new factories in the USA and Vietnam. Currently, the company is looking to and invest in e-commerce to ensure that it remains able to compete with companies like Amazon. Finally, the leaders of the LEGO company have pledged to use in all products and packaging by 2030. They also ended the company¡¯²õ partnership with Shell, the oil company, following . Hopefully, this marks a new era of sustainable and consistent growth in the company¡¯²õ history.??

There is no doubt that what has saved the LEGO brand over these past 90 years is its constant adaptation to new developments,?guaranteeing the longevity of the brand. From the shift to using plastic over 70 years ago to confronting the growth challenges of the 1990s and 2000s, the LEGO brand has consistently found a way to remain relevant in everyone¡¯²õ lives. However, it will be interesting to see how the toy company grapples with the inevitable issues it will face in the future, like the decline of the toy industry due to technology. Additionally, whether it will be able to successfully enter new markets where copycat toys are perhaps more affordable for local people remains to be seen.?

As has been the case for the past 90 years, the company¡¯²õ success will depend on its ability to adapt to new circumstances, quickly pivoting in a different direction when things go wrong. Not only has it learned from previous mistakes, but it has ensured that ¡°LEGO¡± is more than just a brand or a product ¨C it is a memorable experience. If this continues, it will remain a classic brand for many years to come.?

The post LEGO: How the legendary toy brand has overcome globalisation challenges over its 90-year history appeared first on sa¹ú¼Ê´«Ã½.

Spotify¡¯²õ history?

Spotify was founded in 2006 in Stockholm, Sweden by Daniel Ek and Martin Lorentzon. At the time there was a lack of legal music streaming services, and platforms like Napster and LimeWire had been shut down due to piracy lawsuits. This inspired Ek and Lorentzon to find a way to convince music labels and artists to open their catalogues and sell music legally through Spotify. The process of persuading record labels to collaborate with them took over two years, and Spotify eventually launched in Scandinavia, the UK, France and Spain in 2008.??

After launching in 2008, Spotify soon became the number-one audio streaming subscription service. As of , the platform has over 515 million active users every month, over 210 million premium subscribers and is available in . But what exactly did Spotify have to offer that helped the platform grow and expand so successfully into new markets??

An industry solution?

By the late 2000s and 2010s, people had stopped buying physical media and were looking for ways to stream and share music over the internet. Producers and artists were becoming concerned as their music was being pirated online and they were seeing lower profits than ever before.?

Spotify provided a solution for both sides ¨C consumers and producers ¨C which also benefitted a struggling music industry in financial decline. The platform enabled users to listen to music without worrying about the legality of the website they were using and whether it would be shut down in the future because of lawsuits. Music producers were able to make revenues equalling, if not exceeding, those they used to make from selling CDs.??

This two-sided approach revolutionised the way in which music was consumed. Music streaming grew from representing less than 10% of the music industry¡¯²õ revenue in the US in 2010 to 83% in 2021 ().?

The freemium model?

Spotify also offered a unique ¡°freemium¡± model, meaning limited services could be used free of charge, while more convenient, ad-free and higher quality services were available in a premium package that had to be paid for. This meant that users could try out the free service before committing to paying for Spotify¡¯²õ premium package, attracting a wide and diverse group of users around the world. By using this model, Spotify generated some revenue from its free service via advertising but made most of its money from paid subscribers.?

However, this model did not come without controversy, as many artists and music companies were unhappy with it. In 2014, Taylor Swift pulled her music from Spotify, arguing in a that artists did not receive enough money per stream and that valuable art, including music, should not be free. However, , explaining that without the free version, the paid version would not attract as many users and artists would make even less. Without Spotify, users would return to piracy sites or free streaming services, like YouTube and Pandora, and the industry would deteriorate again.?

Nordic values?

Over the years, Spotify has built a company culture of creativity and collaboration influenced by its Nordic roots. The founders may not have chosen blue and yellow as their brand colours or used their Swedish origins as fuel for marketing campaigns, but the innovative and rich Nordic countries provided the ideal environment for Spotify to thrive, particularly in the early stages of growth.?

Ek and Lorentzon already had connections in Sweden and the tech industry that would help them acquire investment from a variety of sources and recruit talented engineers to their team. Additionally, the first prototype version of Spotify was , who were able to give feedback to improve the app before it was shared with a more global audience.?

Like many other Nordic brands, Spotify initially launched officially in Scandinavia, as well as in the UK, France and Spain. The emphasis on innovation, transparency and collaboration in distinctly reflect its Nordic influences.?

Global expansion ¨C Tackling the US market?

While Spotify launched in Europe in 2008, it did not expand into the US market until 2011. This was because the platform needed to obtain the correct international licences for music, faced fierce competition from other services such as Apple, Amazon and YouTube, and was reluctant to move too quickly into such an expensive market. Some other competitors, like Deezer, actively chose not to enter the US market because of the .?

Spotify took its time, gradually entering the US when it was ready to do so. Ultimately, combining forces with Facebook is what really helped Spotify become popular in the US. Allowing users to easily sign up to Spotify through Facebook overcame the barrier of having a separate sign-up process that had to be localised to each country and user. This partnership generated .?

Think global, act local?

In the end, Spotify has been able to scale up much faster than its competitors; for example, Amazon Music is only available in , while Spotify now operates in . One significant reason for this successful expansion has been the company¡¯²õ localisation strategy, both past and present.?

By embracing the slogan the localisation and product development teams at Spotify have developed the understanding of the platform¡¯²õ user base necessary to attracting new users, engaging them in the platform and thus retaining them, potentially for many years after they first hit play on Spotify.??

But, what does this slogan mean? In short, it means building a user experience that is simultaneously global and local, both shared with others and personalised to you. To accomplish this, Spotify¡¯²õ teams prioritise understanding local markets as much as possible as well as creating a personalised experience for every user, regardless of where they are located.?

As former Chief Marketing Officer Seth Farbman explained: ¡°The localization is much more important within music and within Spotify than it would be within most global brands. That means we continue to maintain strong regional and local marketing teams, but it also gives us the opportunity to cut across all of it. No matter where you are in the world, there are shared experiences, and they are of interest to everyone.¡±??

Understanding local music?

To be able to provide music to users from their own country or region, Spotify first invests time and money in understanding local artists and music preferences. This is particularly important as Spotify¡¯²õ own research shows that national preferences for local music have . While this could, of course, be partly the result of streaming services like Spotify increasing access to local music, it also means that users now expect to be able to listen to local music when they open a streaming app. For Spotify, this means creating regional teams to carry out the necessary research to discover what local users want.??

For example, the spent time at concerts, at parties and just chatting with people around the country, which helped them understand that many listeners in India wanted to connect with music that others were listening to through the platform, and did not want to just listen to their own music. This resulted in the development of when Spotify launched in India in 2019, which track trending songs in Mumbai, Delhi, Bengaluru and Chennai. The team also realised that many listeners in India liked to stream songs from their favourite Bollywood, Tollywood, Kollywood and Punjabi actors, resulting in the 2019 India launch also including a series of playlists full of these songs.?

By researching local music, not only can Spotify satisfy local users by tailoring the platform to their wants and needs, but it also continues to maintain the two-sided approach to music streaming that gave the platform so much success in the first place. Users see Spotify as a chance to discover local music and music that they will like, while artists see it as an opportunity to grow globally as their music will be shared on playlists and discovered by people all around the world. For example, the , which anyone who uses Spotify will be familiar with, allow users to find new music regularly through a playlist based on their preferred genre and artists. Here we can see the ¡°Think Global, Act Local¡± slogan come to life once again.?

Researching music habits?

As well as knowing how users consume music, regional teams at Spotify also research how they might use the app differently, what their expectations are in terms of music streaming features and which adjustments need to be made for new markets.??

When Spotify decided to embark on a project called in 2021, during which it added support for 36 new languages, one of the key steps identified in this process was stripping the product down to determine precisely what mattered most to users in each market before building it back up with both standard and region-specific features.??

Cecilia Qvist, Spotify¡¯²õ former Global Head of Markets, : ¡°The moment a user opens the app for the first time, we need to make sure their expectations¡ªfrom the sign-up flow, to general onboarding, to using our algorithm-based discovery tools¡ªare met. These expectations are different from market to market and from user to user, and we are always looking to improve them. All these seemingly little adjustments go a long way in growing the user base sustainably.¡±?

One example of this can be found in Japan, where into the platform because it realised that users expected this as a fundamental feature of a music streaming service. Without the inclusion of this, which was discovered during local market research, Spotify might not have been able to compete with Japanese streaming platforms.?

Adjusting subscription cost and payment systems?

Where we live plays a huge role in multiple aspects of our lives, and it certainly influences our expectations in terms of price. Cost is undoubtedly one of the greatest barriers to consumers purchasing products and services, and any global business understands this. Therefore, adapting cost, as well as payment systems, to local user expectations is an essential part of Spotify¡¯²õ strategy when successfully entering a new market.??

For example, in Europe and North America than in Asia, Africa and South America. It is most expensive in Denmark and least expensive in India. This is somewhat in line with wages and cost of living in these countries, although some countries get better value than others. For example, in Nicaragua, the subscription costs nearly 4% of the average monthly income, while Qatar has the best value, as it costs only 0.1% of the average monthly income. So, while Spotify is affordable for many people, we »å´Ç²Ô¡¯³Ù all get the same good deal.??

Adaptation is also necessary when it comes to payment systems, as these vary greatly by country and region. Currently, Spotify accepts 130 different payment types. This means that users can pay for their subscription with ease and familiarity, getting rid of a barrier that might otherwise prevent them from subscribing. As , ¡°We love the fact that we can expand our addressable target market by offering new payment methods. We¡¯re also conscious that we can significantly increase inclusivity by offering the right payment methods. We »å´Ç²Ô¡¯³Ù want to disadvantage any demographics.¡±?

Other adaptations ¨C Older devices and internet access?

Spotify¡¯²õ market research also goes beyond breaking users down in terms of region and language, as even age, internet access and device choice can determine how the platform may want to adjust its services. For example, and found that engagement with the platform was lower among older audiences and those with less advanced devices. The team then immersed themselves in local communities and learned that spotty internet access also sometimes limited people¡¯²õ use of the app. Therefore, Spotify began to test how to develop smaller and faster versions of its app for installation on older devices, with the added benefit that these may also work better for those with worse internet access.?

This type of adaptation isn¡¯t always an easy task, though. While some users may want an app with fewer features that work better and faster, . In the end, these are subjective stories that are gathered from customers, which makes a one-size-fits-all solution challenging. Through extensive research, though, Spotify can at least paint a clearer picture of what its users want, and then use this to inform future decisions.?

Adapting to linguistic differences?

When entering new countries, the language barrier is certainly one that a business must break through to make a positive and effective impression on new audiences and customers. Content that is linguistically adapted, when it is done well, typically has a more powerful impact on an audience than it would in a language they aren¡¯t as familiar with. When it comes to tech products, like apps, it is especially important, as users want an easy-to-follow interface and aren¡¯t interested in working hard to understand how to use the app.?

Spotify prioritises language localisation when entering new markets, as is made clear by their project. Looking at industry research and experience from previous years, the management and localisation teams could clearly see that translations were one of the main drivers of growth for the business. Knowing this, they could confidently set out to expand into as many languages as possible, laying the foundation for the project. The understanding of how localisation is a positive investment for a business, both in terms of growth and retaining customers, is a large part of why Spotify has been so successful.?

Launching Arabic

When Spotify launched in the regions of North Africa and West Asia, it had to offer an Arabic version of the app for customers in those regions. This was a challenge, since Arabic is a language that is read from right to left, as opposed to languages like English, which are read from left to right. This resulted in several difficulties, but the research done by the Spotify team meant that they knew what Arabic-speaking users expected and could adapt to this.??

For example, in many instances, they had to flip the text and other elements to match the right-to-left nature of Arabic. This included icons and features such as navigation buttons or carousels, which Arabic speakers expect to scroll the other way to match the way they read the text. However, there are exceptions, as Arabic speakers as they would in a left-to-right language.?

Spotify¡¯²õ focus on high quality localisation can be seen in every step of its internal process before launching; from conducting initial research into the market and user expectations to ensuring quality with beta tests and consultations with external agencies.?

Smaller languages ¨C Catalan, Basque and Galician?

Being willing to engage in language localisation, even for smaller languages, also gives Spotify leverage to connect with users and customers in a personal manner. The best example comes from the . After becoming a sponsor and partner of the famous Spanish football club, with the historic stadium even renamed Spotify Camp Nou, Spotify also decided to add a new language to its repertoire; Catalan. This was a strategic move to engage with FC Barcelona fans by demonstrating a commitment to the local culture and pride in the Catalan language and identity.??

In 2023, Spotify , two other languages also spoken in Spain. In the press release announcing this, the company writes that ¡°This expansion will unlock an even more personal experience for our users, giving them the ability to access Spotify in their native or local tongue. And the more people who can use Spotify, the more connections we can foster between creators and their audiences.¡±?

Localising images?

The final piece of the puzzle in Spotify¡¯²õ localisation strategy is the adaptation of images based on differences in cultural norms and traditions. This is important, as Spotify wants users to be able to relate to the images so they can This includes choosing images that help users feel represented and images that make them feel comfortable and safe.?

For example, Spotify consistently celebrates cultural traditions and holidays in different regions by creating curated playlists that are available to users in those regions. In 2022 a series of celebratory playlists, devotional playlists and other festive features were created in India specifically for . As Nick Dahl, Senior Product Manager, explained, ¡°This is just the beginning of our commitment to building a better-localized product for listeners worldwide.¡±?

Beyond cultural celebrations, Spotify also researches what might be deemed sensitive in certain countries and regions and changes images based on these norms. For example, the ¡°Pure Seduction¡± playlist in the USA was rebranded as the ¡°Love¡± playlist in Saudi Arabia, with an image of two people kissing replaced with hands touching. This ensures that audiences in Saudi Arabia are still able to access the same content, but in a way that fits in better with their values. 

Since images can have such a different impact depending on the location and background of the audience, Spotify primarily tries to use images that are ¡°borderless.¡± This might mean using sunglasses or a beach ¨C images that are universally associated with warm weather ¨C to represent a summer playlist. Image localisation is an enormous part of how Spotify connects with its users, ensuring that they feel represented and understood when using the app. 

A successful strategy 

As an innovative, practical and collaborative Nordic company, Spotify¡¯²õ commitment to the user experience as a personal one is impressive. Not only has this helped the company grow financially year after year, but it has also allowed Spotify to build a powerful connection with its customers, who have become passionate advocates for a brand that they love.  

It is hard to imagine what the world would look like without Spotify, especially as the music streaming service will be expanding into even more markets in the coming years. Spotify¡¯²õ approach shows that slow expansion, backed up by plenty of market research and a developed understanding of user expectations, can be a very effective strategy for global expansion.  

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