Nancy Villanueva, CEO, Iberia and Middle East, InterbrandThe Middle East has become a hot bed for businesses looking to expand into new markets and tap into a consumer set open to new brands and experiences. A young and vibrant population, riding a wave of positivity, alongside governments with money and intent to invest in building infrastructure and opportunities makes it an exciting market to move into.
But as global brands turn their attention to this region they must do so with an awareness of cultural nuances. Their approach to marketing and brand building cannot be a carbon copy of other territories – brands must adapt their messaging, trajectory and ambition.
Putting customers at the centre of activity is a golden rule for brands no matter where they operate. And so, applying that tenet to the Middle East means respecting local values and attitudes – and demonstrating that through the brand’s storytelling.
Beyond advertising
There are lessons to be learned from some of the biggest global brands that have successfully moved into the region. Take Nike for example – the global sportswear brand has not only featured athletes from the region in its advertising but also considered them in its product line.
Nike’s marketing campaigns in the region often feature local athletes and stories, building aspirational narratives that people can easily connect with. But it went one step further with the launch of the Nike Pro Hijab in 2017, catering to Muslim female athletes. This was a major milestone as it anchored the brand with an inclusion message that resonated deeply across the region. It demonstrated a genuine understanding and respect for the local culture and empowered women within it.
IKEA has similarly taken a thorough approach to adapting for the local market. The furniture brand can teach us all some things about how to craft a ‘glocal’ strategy. In particular, cultural sensitivity is a must. While its core product range is consistent across the globe, IKEA still makes subtle but significant adjustments to fulfill local needs. These include larger furniture pieces and tailored options to accommodate bigger living spaces and family gatherings. It also makes sure that the selection of materials can accommodate the region’s hot and dry climate.
And in a similar way to many luxury brands, IKEA creates specific collections and campaigns for Ramadan and Eid.
Adapting products and services to the local customer base and using local talent in advertising are important but if this is as far as it goes the risk is that cultural sensibility is a veneer rather than a strategy. The best practice adopted by some brands it to establish significant bases in the region and become local employers.
Pepsi has a long history of success in the Middle East, with high market penetration. This is due to strong local investments in facilities, employing thousands of locals and sourcing within the region. PepsiCo is perceived as a global brand that wants more than just to sell products; it wants to be an integral part of the local economy and therefore, the local community. It has also invested in local R&D centres to tailor its product portfolio to local consumer preferences.
Mistakes – some brands have made a few
Some brands have come unstuck because they have expanded into the region thinking like westerners. Campaigns must appeal to an audience which admires global brands but is also fiercely proud of its local heritage, culture and values.
Public sentiment can quickly shift and with it, loyalty. So, any brand serious about making its mark must monitor public sentiment. Social media is a useful tool here. And interestingly, one of the most successful brands in the Middle East – TikTok – is tapping its largest audience, the youth. TikTok has made huge efforts to connect with local influencers.
The platform understood the rise of local trends and the importance of fostering local communities. The introduction of TikTok Shops has been a game-changer, especially in the Gulf’s booming e-commerce market. TikTok has shown that it cares and nurtures the creative community in the Gulf. It ran the Creator Hub programme to discover and support new creators.
Course correction for brands
Entering new regions is not easy and even the most successful of brands can make missteps. When that happens, change. Course correction is not an admission of failure; it’s a sign of responsiveness and strategic depth.
Coming into the region with an open mindset will go a long way. When brands reposition to better reflect local aspirations, values or lifestyles they are more likely to be welcomed. Whether introducing modest fashion lines, halal food certification or Arabic language packaging, modifying products will help make global brands feel part of the region.
Global brands need to be on the ground, employing local people and working with local partners and influencers – and then they will find the right tone of voice and approach. In a region as nuanced as the Middle East, the most successful global brands are those that listen, learn and evolve.
By Nancy Villanueva, CEO, Iberia and Middle East, Interbrand
