13 min read
When launching new products under a familiar name, how do we make sure they resonate across borders? For those of us building brands, we know that success in a global market often comes down to how naturally these extensions “fit” with what consumers expect—and cultural differences play a big part in that. Let’s explore how cultural nuances shape brand extension strategies and what steps we can take to make sure our products feel right for diverse audiences.
The concept of brand extension fit
At the core, brand extension fit is all about how smoothly a new product lines up with what consumers already associate with your brand. When a brand introduces a product that feels connected to its established image, people are usually more open to it.
But here’s where things get interesting: different cultures look at this “fit” in their own ways. So, if we’re working globally, it’s crucial to understand what consumers in each market find relevant. Let’s break down some key factors:
- Product category similarity: Consumers often respond well when a brand expands within similar product categories. A luxury clothing brand launching a high-end accessory line? That typically feels natural. A sportswear brand launching fitness apps or smart equipment feels natural because it builds on its existing domain expertise and consumer trust. Nike’s apps, for example, extend its reputation for performance and innovation.
- Attribute transference: The qualities people associate with the brand—like quality, prestige, or innovation—matter too. If consumers believe these qualities translate well to a new category (think a tech brand moving into smart appliances), they’re more likely to welcome it. Consider luxury brands like Chanel extending into skincare. Their reputation for premium quality in fashion translates seamlessly to beauty, reinforcing consumer expectations of excellence.
- Brand prestige and image: A brand’s reputation goes a long way. Even if a new product isn’t directly related, a strong brand image can make the extension feel credible. Apple’s ability to enter new categories, from computers to phones to wearables, is a testament to its strong brand image rooted in design and innovation.
Of course, while these factors shape consumer perceptions, cultural differences add layers to what feels like a “fit” and what doesn’t.
How cultural differences influence on brand extensions
Builds credibility and relevance
When brand extensions align with local cultural norms, they resonate more deeply with consumers. Cultural understanding helps brands avoid the “outsider” perception by demonstrating respect and familiarity with local values. For example, McDonald’s introduces region-specific menu items like the McAloo Tikki in India to align with local dietary habits and cultural preferences. In addition to localized products like the McAloo Tikki in India, brands can reflect cultural values in their marketing. For instance, IKEA highlights family-centric living in Italy while focusing on minimalist, space-saving solutions in Japan.
Source: Dailymail.co.uk
Adapts to varied expectations
Consumer expectations for brand extensions are often shaped by cultural perceptions of consistency. For example, cultures with high uncertainty avoidance (e.g., Greece, Portugal) may prefer brand extensions that stay close to the core brand’s expertise. Meanwhile, cultures with low uncertainty avoidance (e.g., the U.S., Singapore) may embrace diverse and unexpected extensions, like Amazon’s move from e-commerce to streaming services. Google’s development of low-data versions of its apps, like Google Go for emerging markets, shows how catering to local technological constraints can enhance brand relevance.
- Insight: Research from Hofstede Insights shows that aligning with a culture’s tolerance for ambiguity can significantly improve the success of brand diversification.
It should avoid cultural missteps
Misaligned brand extensions risk alienating consumers or sparking backlash. Understanding cultural taboos, values, and sensitivities is essential to avoid such pitfalls. For example, Procter & Gamble had to rebrand Pampers in Japan after the stork imagery on its packaging failed to resonate; the stork as a symbol of childbirth was culturally irrelevant in Japan (there, the tale says that giant floating peaches deliver babies to their parents).
- Lesson: Investing in cultural research can help brands preemptively identify potential missteps and design offerings that are both culturally appropriate and appealing.
Strengthens global-local balance
Brands often face the challenge of maintaining a cohesive global identity while catering to local preferences. Successful cross-cultural brand extensions achieve this balance, ensuring that local adaptations do not dilute the brand’s core values. Starbucks excels at balancing its global identity with local touches, like serving mochi desserts in Korea or spiced lattes in India. These tweaks enhance local appeal without losing the core Starbucks experience.
Key factors in building successful cross-cultural brand extensions
Expanding on cultural factors in brand extensions requires a deep dive into the specific cultural, social, and psychological drivers that influence consumer perceptions across regions. These factors shape how consumers interpret a brand’s credibility, relevance, and emotional connection to new products, making it essential for brands to understand these variables to ensure their extensions succeed globally. Below are some critical cultural factors in brand extensions:
Culture values and norms
Cultural values, such as collectivism versus individualism, influence how consumers perceive and engage with brand extensions. These dimensions are foundational in shaping messaging and product relevance.
- Example: In collectivist cultures (e.g., Japan, South Korea), brand extensions that emphasize community or societal benefits resonate strongly. For instance, Toyota’s “for everyone” messaging aligns with these values, creating a sense of shared ownership and trust. In Scandinavia, where sustainability is a core value, Patagonia’s focus on environmental responsibility resonates strongly, reinforcing its credibility in the market.
Nevertheless, it’s worth noting that generalizing all collectivist cultures can be misleading. Urban millennials in collectivist nations often exhibit hybrid behaviors, valuing both individuality and group identity.
Emotional resonance and brand loyalty
Emotional resonance refers to the capacity of a brand to connect with consumers on a personal level, beyond the rational attributes of the product itself. Cultural context heavily influences the types of emotional appeals that resonate in a given market.
- Example: In markets like Brazil, tapping into national pride through campaigns or product lines often enhances emotional resonance. For example, brands using local football heroes in their marketing see higher engagement.
Consumer expectations and category perceptions
Cultural backgrounds shape what consumers deem acceptable in terms of category diversification. While some cultures favor consistency, others embrace bold leaps into unrelated categories.
- Example: In global markets, strong brand reputations can enable successful diversification. For instance, Dyson’s move from vacuums to haircare was met with enthusiasm due to its reputation for innovation.
Also, take into account that overgeneralization, such as assuming analytical cultures resist diversification, fails to consider exceptions driven by local trends or endorsements.
Local sensibilities and adaptation
Local sensibilities encompass everything from tastes and preferences to broader cultural dynamics, including seasonal, religious, or community-based considerations. Adapting a brand extension to align with local sensibilities demonstrates cultural awareness and enhances the likelihood of success.
- Example: In Middle Eastern markets, modesty and tradition are prioritized, so global brands entering this market must align their products and brand image accordingly. Starbucks, for instance, has introduced alcohol-free variants of popular drinks in this region, adapting to local expectations without compromising brand identity.
Note that brands must strike a balance, ensuring adaptations resonate locally while maintaining a consistent global image. Over-localization can lead to fragmentation and risks diluting the brand’s global identity.
Pricing and value perceptions
Perceptions of value and acceptable pricing vary widely across cultures, influencing how brands should position their extensions. In price-sensitive markets, extensions must offer clear, perceived value for money, while in premium-focused cultures, pricing should reflect exclusivity and quality.
Generational and technological shifts
Cultural dynamics are not static; they evolve with generational changes, economic conditions, and technological advancements. Brands must adapt to these shifts to stay relevant with new demographics and evolving values.
- Example: In China, young consumers, particularly in urban areas, are highly digital-savvy and seek innovation, making the market favorable for tech-drive. In India, Gen Z consumers are driving demand for environmentally friendly brands, pushing companies like Unilever to prioritize sustainable extensions in personal care products.
Case studies: Cultural differences in action
To see this in action, here are some real-life examples of how brands have handled cross-cultural extensions:
Brand extensions that went right
Dyson’s expansion from vacuums to haircare
Dyson’s brand extension into haircare products, such as the Dyson Supersonic hairdryer, was successful largely because of its innovation-driven reputation. Dyson was able to leverage its established trust in high-quality, technologically advanced home appliances to transition smoothly into the beauty industry.
Apple’s move from computers to smartphones (or from “Macbooks” to “Iphone’s”)
Apple’s transition from computers to smartphones was a natural extension of its innovation-centric brand. Both categories emphasized sleek design, cutting-edge technology, and user-friendly interfaces. Apple was able to expand its product offerings while maintaining a consistent brand promise of high-quality, innovative products.
L’Oréal’s market research and region-specific product lines
L’Oréal’s success with regional product lines, such as skin-lightening creams in Asia or natural products in Western markets, highlights the brand’s ability to cater to local tastes and cultural perceptions of beauty. Extensive market research is conducted to ensure products meet local demands while staying true to L’Oréal’s global image.
In Asia, where fair skin has historically been a beauty ideal in many countries, L’Oréal capitalized on consumer insights that indicated high demand for skin-lightening products. The brand’s introduction of specific skin-brightening creams helped solidify its position in these markets.
In Western markets, there’s been a growing demand for natural beauty products that emphasize organic ingredients and sustainability. L’Oréal’s focus on incorporating these elements into its product lines, like the introduction of “L’Oréal Paris Botanicals“, aligns with the shift toward cleaner beauty, driven by consumer demand for products that are both effective and environmentally friendly.
Example of L’Oréal ads in Asian countries
Brand extensions that went wrong
Colgate’s frozen food line
Colgate, a brand strongly associated with oral hygiene, tried to extend into the frozen food market. The move was a failure because consumers could not connect Colgate’s core identity with food products, leading to confusion and lack of trust.
Cosmo Yogurts by Cosmopolitan magazine
Cosmo Yogurts, launched in 1999 as a joint venture between Cosmopolitan and MD Foods, has been discontinued. The line, which included low-fat yogurts, fromage frais, and soft cheeses, was designed to expand the Cosmopolitan brand into the health food market, targeting women aged 15 to 44. Despite initial plans for success, the product range failed to capture enough consumer interest to remain viable in the market.
Crystal Pepsi
Pepsi attempted to innovate in the 1990s by using market research that identified a growing demand for healthier beverages. This led to the launch of a new citrus-flavored, uncolored version of Pepsi. However, the product failed because consumers were strongly associated with the brand’s traditional dark brown color, leading to confusion.
This case highlights how valuable market research can be when understanding consumer preferences, but also the need for businesses to carefully consider how deeply ingrained brand associations might influence the success of new products. By tapping into customer insights, Pepsi aimed to stay ahead of the competition, even if the product did not meet expectations in the end.
Now, does Diet Pepsi sound familiar to you? It’s a perfect example of how consumer insights, combined with a strong understanding of brand identity, can lead to more successful innovations.
Example of Pepsi’s product lines throughout time
5 Practical recommendations for global brands to create brand extensions
To succeed across cultural lines, brands should:
1. Invest in cultural market research
Understanding local customs, values, and consumer preferences is extremely important for creating successful brand extensions. Brands must go beyond surface-level research and invest in deep cultural insights. This means not only conducting formal studies, such as surveys or focus groups, but also tapping into organic, real-time insights.
Engaging with the pulse of local culture allows brands to track shifting values and emerging consumer behaviors.
For example, McDonald’s has continually invested in cultural market research to adapt its menu to different markets. The brand offers local favorites like the McAloo Tikki in India or Teriyaki Burgers in Japan, directly responding to regional preferences.
2. Design custom messaging
Not all messages work in every market, as we saw in previous P&G Pamper’s example, as cultural perceptions and sensitivities vary widely.
What works in one country might not resonate in another, even with similar product offerings. For instance, a brand that promotes empowerment might find a different response in a collectivist society compared to an individualistic one.
Dove’s “Real Beauty” campaign resonated in Western markets but needed a more localized approach when it expanded to other regions.
3. Test extensions in high-affinity markets first
Rather than launching a global rollout immediately, brands should begin testing their extensions in regions where the brand already has strong affinity. Testing in regions with high cultural fit minimizes risk, ensures product-market fit, and builds brand confidence in new product categories.
When Coca-Cola launched its Diet Coke in 1982, it tested the product first in markets where it already had a strong consumer base. After seeing a positive response, it expanded globally.
4. Create localization strategies
Design products, packaging, and pricing that consider cultural differences. Brands that localize their approach—whether in product format, color schemes, or flavor preferences—are better positioned for cross-cultural success.
For example, food brands like Kit Kat have created different flavors for specific regions, such as green tea in Japan, highlighting the importance of understanding local tastes.
5. Emphasize emotional connection across markets
Brand extensions that cultivate emotional bonds—through storytelling, nostalgia, or community-building—can transcend product categories and boost acceptance.
Nike’s “Just Do It” campaign has successfully fostered an emotional connection worldwide, emphasizing themes of perseverance and self-empowerment that resonate across cultures.
Final thoughts
When it comes to brand extensions, cultural awareness isn’t just a nice-to-have—it’s a strategic imperative. As brands expand globally, understanding the nuances that differentiate markets can mean the difference between success and failure. But there’s a caveat: thinking in broad strokes like “Eastern vs. Western” cultures can oversimplify the rich diversity within regions. Effective cultural adaptation requires much more granular insights.
Take, for instance, the concept of collectivism often associated with Eastern cultures. While countries like Japan or China might value community-oriented messaging, urban millennial consumers in these same markets are increasingly adopting more individualistic preferences, especially in lifestyle and tech-related products. Similarly, in the so-called “individualistic” West, countries like Italy or Spain may exhibit stronger communal values compared to markets like the U.S. This means brands must dig deeper than regional stereotypes to uncover what truly resonates with their audience.
Consider McDonald’s again: its broad adaptation for “Eastern” markets doesn’t stop at general trends like vegetarianism. In India, it goes hyper-local with offerings like the McAloo Tikki for North India and Masala Dosa Burgers for the South—subtle distinctions that acknowledge the vast cultural diversity within a single country. Likewise, Kit Kat’s success in Japan isn’t just about offering green tea flavors for an “Eastern” market but about understanding Japan’s deep gift-giving culture, where Kit Kat became a symbolic “good luck” charm due to its phonetic similarity to “kitto katsu” (you will surely win).
This granular approach isn’t limited to product offerings—it also applies to brand storytelling. A global campaign centered on empowerment might take the form of self-improvement narratives in the U.S., community success stories in Kenya, and heritage preservation in India. While the overarching theme remains consistent, the execution adapts to reflect local priorities and values.
At its core, successful brand extensions balance global consistency with local relevance. This means maintaining a cohesive identity while demonstrating an authentic understanding of cultural nuances. Brands that invest in hyper-localized research and move beyond binary East-West thinking are better equipped to foster meaningful connections across markets.
Ultimately, cultural adaptation is about listening—listening to the stories, values, and evolving aspirations of each market. By doing so, brands don’t just extend their reach; they create products and experiences that feel natural, authentic, and truly global. After all, the world isn’t just divided into East and West—it’s a mosaic of micro-cultures, each with its own unique potential for connection. The more localized the approach, the more impactful the results will be.
