Global Brands & Local Culture

• Global brands like Uniqlo, Lululemon, and Nike are focusing on local communities through cultural programming, yoga, and run clubs.

Global vs Local

• Companies must consider how to run a global business that is also localized in a merging world economy.
• A globalized world generates opposition in the form of localization as people assert their identity.
• To succeed, brands need a firm grasp of what it means to be global and local.

Local Culture

• Uniqlo's refurbished London flagship store dedicated the top two floors to showcasing local culture.
• The space, called the Uniqlo WearHouse, featured products from local businesses and hosted cultural events.
• The goal was to create a space dedicated to unique and relevant culture, bringing something back to the community.
• Uniqlo aims to express global ideas in a more local way through its flagships.
• The company aims to bring events and other things from Tokyo or New York to London, and vice-versa.
• Understanding other cultures is essential, requiring curious, smart, multi-dimensional people.

Uniqlo's Approach

• Shifted away from standardization, embracing the need to make each location special and unique.
• The goal is to be relevant by joining forces with different cultures.
• Partnerships with local cultural institutions like Tate Modern and NTS Radio accompanied Uniqlo's London store opening.
• Advertising campaign cast London as a "creative utopia" featuring local "cultural ambassadors."
• The company strives to create deeper meaning around a brand that enables all people and lifestyles.

Lululemon's Ambassadors

• Lululemon Athletica utilizes over 1,500 "ambassadors" to evangelize the brand in communities worldwide.
• Connecting at a local level is crucial, with ambassadors who are local superheroes instead of big athletes.
• No contractual agreements or financial transactions with ambassadors
• Lululemon drives traffic to their studios and provides leadership and personal development tools.
• Ambassadors get a platform to share yoga discoveries and a clothing allowance, in return for teaching free classes and helping with grassroots marketing.
• Ambassadors provide feedback on products, aiding the development process.

Community-Led Approach

• With the growth of technology, the ambassador model has become even more relevant.
• Lululemon's program enables it to listen locally and act globally through decentralised leadership.
• Store managers are entrepreneurial leaders who run their stores at the local level, connecting with their community.
• The company allocates time for people to engage in their communities.
• Combines data analysis with local autonomy.
• Lululemon launches in new markets with lean showrooms that grow into stores if local demand is strong enough.

Nike's Running Clubs

• Invests in connecting with local communities through running clubs in 44 cities, aiming for more markets.
• Nike+ Run Club, launched several years ago, offers weekly runs with peers, expert guidance, and a digital training app.
• The program includes in-store services, digital tools, personal coaching, and a motivating community.
• Nike provides best-in-class services and experiences, encouraging people to run.
• Engaging with the local community, being part of the consumer's lifestyle creates a connection, resulting in loyalty.

Strategies for Success

• Local engagement strategies are used to build deeply connected and responsive businesses.
• Too much localization can undermine brand equity and efficiencies of standardization.
• Localisation adds a nice touch, but economies of scale favor the global side.
• Stores still leverage reusable formulas and managers balance standardisation and localisation.
• Store managers have autonomy in how they run the stores to provide very consistent guest experiences around the world, coming to life in very different ways.
• It is important to capture the benefits of localisation, while protecting brand equity and economies of scale.
• The goal is to be at least 20 to 25% local to be able to provide enough profit margin.