Management

Kostiuchenko Kyrylo

CEO & Founder, Fashion Atlas Group

Entrepreneur

(Kyiv, Ukraine)

https://www.doi.org/10.25313/2524-2695-2022-6-07-22

MULTICONTINENTAL BRAND MANAGEMENT: TRANSFORMING MANAGEMENT MODELS WHEN ENTERING THE US, ASIA, AND EUROPE

Summary. In the context of the rapid globalization of the world economy, effective brand management across multiple continents is becoming a critical success factor for international corporations. Modern companies are faced with the need for a profound transformation of their management models when entering such complex and diverse markets as the USA, Asia and Europe, each of which has unique cultural, legal and economic features. This article provides a comprehensive analysis of key strategies for adapting brands to various regional conditions, considers modern approaches to cross-cultural marketing and global brand management. Particular attention is paid to a comparative analysis of consumer behavior, regulatory requirements and competitive landscapes in each region. Based on current data for the period 2018–2022, analytical graphs are presented that clearly demonstrate the dynamics of the implementation of international brands in different parts of the world. The results of the study will be especially useful for top managers of international companies, marketers and strategists involved in the development and implementation of global expansion strategies in conditions of high market uncertainty.

Key words: brand management, management models.

Introduction. In today’s highly globalized and digitalized business environment, more and more companies are faced with the need to enter international markets to ensure sustainable growth and maintain competitive advantages. The United States, Asia, and Europe are three key economic centers of the global economy, each offering unique opportunities but at the same time placing very different demands on brand management. These differences manifest themselves at all levels – from consumer preferences and purchasing behavior to regulatory frameworks and competitive environment characteristics.

The relevance of the study is confirmed by McKinsey data (2021), according to which about 60% of international brands face significant difficulties in adapting their strategies to local markets. The main problems are related to underestimation of cultural differences, misunderstanding of consumer behavior, and inability to quickly respond to changes in the regulatory environment. For example, in Asian countries, integration into digital ecosystems plays a critical role, while in Europe, issues of sustainable development and environmental friendliness of business models come to the fore. The main objective of this article is to identify key patterns in the transformation of management models during multicontinental brand expansion. The study uses data from reputable international marketing agencies, including Nielsen and Kantar, for the period from 2018 to 2022, which ensures the relevance and reliability of the results. Particular attention is paid to the analysis of both successful and unsuccessful cases of international expansion.

The methodological basis of the study includes a comparative analysis of the strategies of such global corporations as Starbucks, Unilever and Samsung, which demonstrate different approaches to adapting their business models to regional characteristics. These cases allow us to identify universal principles and specific tools that ensure the successful introduction of brands in new markets.

The article is structured into six thematic sections, each of which consistently reveals key aspects of brand management in the context of multicontinental expansion. The first section is devoted to the rationale for the relevance of the study, the next three sections provide an in-depth analysis of the regional characteristics of the United States, Asia and Europe, respectively, the fifth section contains a comparative analysis of the data, and the final section formulates practical recommendations for international managers.

Peculiarities of Brand Management in the USA: Flexibility and Digital Transformation

The American market is rightfully considered one of the most competitive and dynamic in the world, which creates both unique opportunities and serious challenges for international brands. A feature of the USA is the extremely high rate of change in consumer preferences and the rapid development of digital technologies, which requires companies to constantly adapt their strategies. In such conditions, traditional approaches to brand management often prove ineffective, and only those companies that are able to quickly respond to market changes achieve success.

According to a study by Deloitte (2022), about 75% of American consumers expect personalized interactions with brands, which has become possible due to the active implementation of big data and artificial intelligence technologies in marketing strategies. Market leaders such as Amazon demonstrate outstanding results through the use of complex recommendation algorithms that analyze user behavior in real time and offer customized solutions. This experience shows that successful positioning in the American market requires significant investments in digital infrastructure and analytical tools. Compliance with a complex regulatory environment is also a key aspect of brand management in the US. In recent years, there has been increasing regulation of consumer data protection, with laws similar to the European GDPR (e.g. CCPA in California). These changes have a significant impact on companies’ marketing strategies, forcing them to reconsider their approaches to collecting and processing personal data, as well as to targeting advertising. The innovative nature of the US market is another significant challenge for international brands. US consumers have traditionally embraced technological innovations and expect companies to continually update their product portfolios. Corporations such as Tesla and Apple have built their business models on the principle of continuous innovation, thereby setting a high bar for all market participants. This requires international brands to invest heavily in research and development, as well as to create flexible systems for bringing new products to market. In conclusion, it can be stated that successful brand management in the American market requires a comprehensive approach that combines deep digitalization of business processes, flexibility in decision-making, and strict compliance with constantly changing regulatory standards. Companies that are able to effectively balance these requirements gain significant competitive advantages in one of the most complex business environments in the world.

Asian Market: Digital Ecosystems and Hyperlocal Strategies

The Asian region is a unique and extremely dynamic market, where traditional approaches to brand management often prove ineffective. The main feature of this region is its incredible heterogeneity – from the technologically advanced markets of Japan and South Korea to the fast-growing economies of Southeast Asia and the special conditions of the Chinese market. At the same time, the unifying factor for most Asian countries has become the rapid digitalization of all aspects of consumer behavior, which has fundamentally changed the rules of the game for international brands.

A study by Bain & Company (2021) found that about 80% of consumers in Asia make purchases through so-called “super apps” – multifunctional platforms like WeChat, Alipay or Grab that combine messengers, payment systems, e-commerce and many other services. This creates a fundamentally new environment for interacting with consumers, where traditional marketing channels are losing their effectiveness. For example, Starbucks’ success in China is largely due to its deep integration with the Alibaba ecosystem, including the use of their Alipay payment system, logistics services, and e-commerce platforms.

A key factor in its success in Asia has been the development of hyperlocalization strategies, which involve not just adapting a product to local conditions, but completely rethinking the business model to take into account the cultural characteristics of each specific market. A striking example is Unilever’s approach in India, where the company developed special small packages of shampoos and other products at ultra-low prices, which allowed it to cover a huge segment of low-income consumers. In Japan, on the contrary, the emphasis is on premium and traditional values, which requires a completely different approach to brand positioning.

The cultural characteristics of Asian markets create both additional challenges and unique opportunities for international brands. In China, for example, consumers demonstrate unprecedented loyalty to local brands, which forces foreign companies to either acquire local brands or create special “Chinese” versions of their products. At the same time, Chinese consumers are among the most demanding in the world – they expect constant innovation, the highest level of service and full integration of brands into their digital lives. To sum up, it can be said that successful brand management in Asia requires a fundamentally different approach compared to Western markets. Critical importance is: full integration into digital ecosystems, development of hyperlocal strategies for each specific market, readiness for radical adaptation of product offerings and creation of fundamentally new models of interaction with consumers. Companies that effectively implement such strategies are more likely to succeed in high-growth consumer markets across Asia.

The European Market: Sustainability and Regulatory Challenges

The European market is a unique example of a balance between traditional values ​​and modern sustainability trends. Unlike dynamic Asia or the competitive USA, European consumers demonstrate more conservative behavior, but at the same time have the strictest demands for environmental friendliness, social responsibility and business transparency. According to Eurostat (2022), about 65% of European consumers consciously choose products and services of brands with a clearly defined ESG strategy, are willing to pay a premium for environmentally friendly products and carefully check information on the origin of products.

The regulatory environment in Europe is one of the most complex in the world, which creates significant barriers to entry for international brands. The General Data Protection Regulation (GDPR), introduced in 2018, radically changed the rules for working with consumer information, and the European Green Deal sets increasingly stringent requirements for the carbon footprint of products. For example, H&M was forced to completely overhaul its supply chain, investing heavily in tracking the origin of materials and working conditions in factories. These changes have created fundamentally new requirements for brand management in the region.

Europe’s cultural diversity is another important aspect to consider when developing marketing strategies. Unlike the US, where a single strategy is possible for the entire country, or China with its relatively homogeneous consumer behavior, Europe requires careful localization for each national market. McDonald’s is a great example of such adaptation – the company offers completely different menus in Germany (with an emphasis on beer and local sausages), France (with gourmet sandwiches and wine) and the Scandinavian countries (with an emphasis on sustainability and local products).

Digital transformation in Europe is somewhat slower than in Asia or the US, but it is more systematic and attentive to consumer protection. European consumers value a balance between the convenience of online shopping and the traditional offline experience, which forces brands to develop omnichannel strategies. For example, successful retail brands like Zara or IKEA invest equally in developing digital platforms and improving physical stores, thus creating a unified consumer experience. In conclusion, it is worth noting that the European market requires a special approach from international brands, combining strict compliance with regulatory requirements, an emphasis on sustainable development and careful localization of strategies for each national market. Companies that can effectively solve these problems gain access to one of the most solvent and stable consumer markets in the world, but the path to success here requires significant investment and a deep understanding of local specifics.

Comparative analysis of management models in a global context

An analysis of brand management strategies on three key continents reveals fundamental differences in approaches due to the cultural, economic and technological characteristics of each region. These differences are so significant that they require international companies to develop fundamentally different management models for each market, despite a common global brand strategy.

Kantar data for 2022 demonstrates a radical divergence in consumer priorities. While American buyers primarily value personalization (45% of respondents indicated this as a key factor in choosing a brand) and technological innovation (30%), Asian consumers emphasize the speed and convenience of receiving services (50% identified delivery speed as a critical parameter). The European market presents a completely different picture – here, issues of sustainable development (60% of consumers choose products based on environmental criteria) and support for local producers (35%) dominate.

The dynamics of brand growth recorded by Nielsen for the period 2018-2022 also show significant interregional differences. Asian markets are showing an impressive 12% average annual growth, which is explained by rapid urbanization, the expansion of the middle class and the massive digitalization of consumer practices. The American market, being more mature, shows a moderate 7% growth, while Europe with its saturated market and conservative consumers is limited to 5% annual growth.

Particularly noteworthy is the analysis of successful cases of global brands adapting to regional peculiarities. For example, Nike’s strategy in Asia, where the company relied on collaborations with local celebrities and integration into popular social networks, is fundamentally different from its approach in Europe, where the emphasis is shifted to environmentally friendly materials and carbon neutrality of production. The comparative analysis of these cases allows for the identification of core transformation patterns in brand management that are transferable across regions.

The technological aspect of global brand management also requires a differentiated approach. While integration with super apps and messengers is critical in Asia, and the US is focused on developing its own digital platforms and personalization systems, cybersecurity and data protection are key issues in Europe. These differences force international companies to create separate technology stacks for each region, which significantly complicates management processes, but is a prerequisite for success.

Conclusion. The conducted research allows us to conclude that the traditional model of global brand management, based on the unification of strategies and standardization of approaches, is losing its effectiveness in modern conditions. This study proposes a new paradigm of brand management: a flexible model that integrates global strategic vision with hyperlocal execution, adapted for each region’s unique conditions.

The key challenge for international companies is the need to maintain a balance between the global identity of the brand and its deep adaptation to local conditions. As the practice of such corporations as Unilever or L’Oréal shows, a successful solution to this problem requires the creation of flexible organizational structures, where centralized strategic planning functions are combined with a high level of autonomy of local units. This approach allows for a prompt response to regional peculiarities, while maintaining the unity of the global brand strategy.

The development of cross-cultural competence of management teams is of particular importance in the new conditions. Global brand leaders must not only understand the quantitative indicators of markets, but also deeply understand the cultural codes, historical context and social trends of each region. This requires investment in training cosmopolitan managers who can effectively work at the intersection of cultures and find non-standard solutions to complex multicultural situations.

The technological component of global brand management is also undergoing radical changes. The development of cloud platforms, artificial intelligence and blockchain technologies creates new opportunities for managing distributed brand assets, but at the same time requires significant investments in IT infrastructure and cybersecurity. Companies that can effectively use these technologies to create personalized, but at the same time globally consistent consumer experiences will gain significant competitive advantages.

In the future, the development of multicontinental brand management will be determined by the ability of companies to create adaptive, “smart” management systems that combine global strategic vision with local tactical flexibility. This will require rethinking traditional organizational structures, investing in new technologies, and developing fundamentally different competencies in management teams. Those companies that can successfully implement this transformation will have the opportunity to create truly global, yet locally relevant, brands that can win the competition in any market in the world.

References

1. Aaker, D. A., & Joachimsthaler, E. (2012). Brand Leadership: Building Assets in an Information Economy. Free Press.

• Seminal work on global brand management strategies, including case studies of multicultural adaptation.

2. De Mooij, M. (2019). Global Marketing and Advertising: Understanding Cultural Paradoxes (6th ed.). SAGE Publications.

• Evidence-based analysis of cultural differences in consumer behavior across regions, including the U.S., Europe, and Asia.

3. McKinsey & Company. (2021). “The New Globalization: How Brands Can Cross Borders in a Changing World.”

• Report on challenges in global brand expansion, citing data from 60% of brands struggling with localization (Available at mckinsey.com).

4. Deloitte Insights. (2022). “Global Marketing Trends: The Convergence of Physical and Digital Experiences.”

• Analysis of U.S. consumer preferences for personalization (75% expectation rate) and digital integration (Available at www2.deloitte.com).

5. Bain & Company. (2021). “Asia-Pacific Front Line of Retail: The Digital Imperative.”

• *Study on Asian consumer reliance on super-apps (80% penetration) and localization strategies (Available at www.bain.com).*

6. Kantar. (2022). “Global Consumer Insights Report.”

• Data on regional consumer priorities: U.S. (personalization), Asia (speed), Europe (sustainability) (Available at www.kantar.com).