There has been a sweeping wave of globalisation in the past few decades. The internet introduced a borderless digital world, free flow of trade and people was encouraged through the likes of the EU and technology propelled ideas of working together. Yet this has stalled recently, with the premise of not just a reverse but full-on deglobalisation now very real.
RSM finds evidence of this in a slowing of world trade growth and the amount of money crossing borders. Both online and offline, the emergence of deglobalisation and local SEO are slowly creating new business strategies.
Deglobalisation’s Impact on Business Strategies
In many ways the world is currently transitioning from one of deep globalisation to deglobalisation. Many are changing their economic focus to a more local scale, especially as the likes of digital taxation start to strip back some of the benefits the digital world has introduced to many businesses.
Deglobalisation does not mean withdrawing from the world economy and shutting countries and businesses off from one another, in a North Korea style. Instead it is a process of restructuring political and economic systems that will hopefully strengthen local and national economies without damaging the wider one. There are three main steps in deglobalisation:
- Understand the process of deglobalisation
- Deconstruct and slow the process of globalisation
- Build alternative strategies
It is the last step which is particularly changing how many businesses create or adapt their strategies due to the recent phenomenon. Trade protectionism is on the rise, especially with the impending digital taxation that has been proposed by the EU and is already in action across many other countries. Businesses need to change their models, budgets and strategies to cope with these new measures. In some cases, this could realign their target market to one on a more local or national level, especially for start-ups and SMEs where international taxation could have a serious impact on their budgets.
The Rise of Local SEO
Part of the strategy shift for many businesses affected by deglobalisation has been to focus on local SEO and implement such processes into their digital marketing campaigns. Rather than targeting those top-level phrases and searches, the concept of local SEO is that potential customers searching for products and services in specific areas.
In many ways this reflects deglobalisation, as companies changing to use local SEO strategies are now specifically aiming for business from the area in which they are based. Again, for start-ups and SMEs, looking to dominate the local SEO will often lead to greater success and be a better strategy to use anyway. This way they will only be competing with similar sized businesses on the same level, rather than having no chance against huge international ecommerce companies, for example.
Many of the same principles apply to strong local SEO, such as working on title tags and meta description and online reviews, just with greater implementation of local information. Local structured data mark-up is another good idea, especially as many businesses fail to use this, which could give your company an edge over your direct competition.
Many businesses are changing their strategies as the process of deglobalisation takes place, with local SEO one of the main areas to receive a greater focus.