The Myth of Globalization in Consumer Tech

[Commentary] One of the more clear global consumer tech market trends I’m observing is the reverse of globalization. In nearly every category I study, I see the regionalization of consumer tech, not its globalization. This view of the market is showing how regional technology players in many segments of consumer tech are becoming more entrenched by catering deeply to local market needs, making it difficult for global players to enter and succeed. This is happening in consumer tech hardware, software and services.

Thomas Friedman’s view in "The World Is Falt", that technology has lowered the barrier to entry, is valid in many cases. However, with consumer tech products, it is likely to be harder to globalize and more dominated by local solutions. For a company to succeed globally, it has to focus on local insight to drive their strategy. It has to know the customs and be highly cognizant of the needs of a local market, and can’t assume a one-size-fits-all solution, like many do today with Facebook and Twitter. It is my conviction that, in this sense, the world of consumer tech may be more local than global. In this sense, the world of consumer tech is round.

[Ben Bajarin is a principal analyst at Creative Strategies Inc]