In their book, Brand Global, Adapt Local: How to Build Brand Value Across Cultures, Katherine Melchior Ray and Nataly Kelly, two of the world's foremost experts in global branding and consumer insights, offer practical strategies for adapting products, services and communication to local markets while staying true to the brand identity.
Katherine Melchior Ray lectures on international marketing and leadership at UC Berkeley Haas School of Business, CA. With twenty-five-years spent building the world's best consumer branding across continents, she brings expertise from her time as a senior executive at Nike, Nordstrom, Louis Vuitton, Gucci, Hyatt, Shiseido and Babbel. She has guest lectured at Stanford, Wharton, Brown and Portland State University.
Nataly Kelly is Chief Marketing Officer at Zappi, based in Boston, MA. Previously she served at HubSpot as Vice President of Marketing, Vice President of International Operations and Strategy, and Vice President of Localization. Kelly also served as Chief Growth Officer and Vice President of Marketing for two other software start-ups in the
MarTech space.
Q: What separates a brand that successfully expands into new markets from one that fails?
Brands that succeed do three things differently. First, they research each market and determine the unique needs, behaviors, and preferences of its consumers. They "look before they leap." This ensures they make fewer mistakes and achieve a higher return on every investment. Second, they are realistic about the time horizon required to see a return from the investments they are making. This helps them allocate their resources and set realistic targets. Third, they avoid tackling too many markets at once. Throwing one giant stone into the international pond will create far more adverse ripple effects than scattering the same weight in the form of multiple selected pebbles.
Q: What's a success story of a company that nailed cultural adaptation and saw massive growth?
KitKat is a masterclass in cultural adaptation, proving that even fast-moving consumer goods can build strong cultural connections. While luxury brands often create a brand culture through storytelling and creating symbols, heroes, and rituals, KitKat has done the same by localizing flavors and packaging to resonate with different markets.
Each market has its own unique "Freedom within a Framework." Japan, for example, has launched over 300 unique KitKat flavors, from Matcha and Wasabi to Amao Strawberry, turning the brand into a cultural phenomenon. Limited-edition releases have also created a cult following, blending local tastes with global trends.
While other confectionery brands have struggled, KitKat's adaptability has made it a consistent top performer in Nestlé's portfolio, proving that cultural intelligence drives long-term brand success.
Q: How do brands build trust with consumers in markets where they are the outsider?
Building trust in a new market takes time, but smart brands use a "sidecar strategy" to accelerate the process. This means forging local partnerships, alliances, and brand ambassadors to gain credibility with consumers who may not be familiar with your brand.
Many American companies assume their reputation carries weight globally, but in reality, trust must be earned one market at a time. It's called a "halo effect." In reality, though, the halo is faint, if it exists as all. Having the right partnerships with people, brands, and organizations that consumers already trust can fast-track the process for a foreign brand.
Salesforce, for example, built strong government and business partnerships in Japan to overcome skepticism toward Western companies. Airbnb took a different approach in Germany, acquiring a local competitor to establish an instant foothold. The key? Going local early. The faster a brand integrates with trusted entities, the quicker it builds credibility.
Q: How can brands maintain authentic human connections and the right cultural intelligence?
AI is transforming marketing, but human connection remains the key to brand loyalty. While AI accelerates tasks, it struggles with context and emotional nuance, which are critical in global branding. The more AI shapes marketing, the more brands must double down on authenticity to stand out in an era of content saturation and consumer skepticism.
Cultural intelligence (CQ) has shifted from a nice-to-have to a must-have in brand marketing both globally and domestically. Immigration, globalization, and digital transformation are making the world more interconnected, and brands must embrace diversity to stay relevant.
Today's consumers belong to multiple micro-communities, engaging across different languages, platforms, and cultures. To build strong relationships, brands can't rely on assumptions as they must get closer to their audiences to ensure messages truly resonate.
Trust still comes from human connections and shared experiences. The rise of TikTok has fuelled tight-knit digital communities, pushing brands to create localized, immersive experiences. Lululemon, for example, builds community by hosting in-store events, partnering with local fitness instructors, and offering exclusive products tied to cultural moments, like limited-edition Paris Olympics gear.
Technology may evolve, but emotional connection remains timeless. As Maya Angelou said, "People will forget what you said, people will forget what you did, but people will never forget how you made them feel."
Q: What's the biggest challenge brands will face in the next five years in global expansion?
The two biggest challenges for global brands in the next five years are speed and trust. As AI floods the digital space, consumers struggle to distinguish between real and AI-generated content, making trust more fragile than ever. Brands must prove their authenticity, maintain transparency, and consistently deliver on their promises across cultures to stand out.
At the same time, the pace of change is accelerating. Large global brands will face mounting competition from nimble challenger brands (both local and global) enabled by AI-driven content creation and social commerce. With creators and small businesses gaining easier access to global markets, the brands that stay ahead will be those that leverage consumer insights, anticipate trends, and bring products to market faster than ever before.
Q: What's the first step any brand can take tomorrow to start improving its global strategy?
The first step to improving a global strategy? Embrace humility. A truly global mindset starts with curiosity, flexibility, and a willingness to challenge assumptions. Too often, brands fall into proximity bias (the natural tendency to prioritize familiar markets and ways of thinking), unconsciously applying home-market thinking to vastly different cultural landscapes.
Instead of imposing solutions, brands must actively learn from local markets and treat cultural intelligence as a competitive advantage, not an afterthought. Embrace a global-first mindset. By embedding this mindset across teams, companies can stay agile, resonate worldwide, and remain relevant in an ever-evolving global marketplace.