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Language opens the door to new markets: the increase in Brazilian Portuguese, Turkish and Korean

Diversifying into new markets is a smart way for businesses to survive in hard times; having the appropriate language skills is key to tapping into these markets and forming long-term partnerships.

A few years ago we spoke about the increasing importance of Arabic, Russian and Mandarin as languages that were opening the door to valuable, developing markets – markets that were less affected by the latest global recession and which had the ability to maximise the earning potential of traditional western economies. These languages have indeed proved to be key in establishing successful business relationships with Russia, China and the Arab world, investments that will reap long-term reward.

It is now time to turn our head towards new markets that may for the same reason represent a smart business move in the current economic climate.

Brazil: Brazilian Portuguese

A prime contender here is Brazil, home to Brazilian Portuguese, and host country to major worldwide sporting events including next year’s FIFA World Cup and the 2016 Olympics. This vast South American country may have experienced a slight decrease in growth over the last year, but with the world’s eyes set on Brazil for a good few years to come and its status as one of the advancing BRICS economies, it is unlikely to lose its place in the spotlight. Brazilian Portuguese is certainly a popular language at Cactus, with students taking evening courses mostly for work reasons – a positive sign of commercial investment in the country and recognition of the need to communicate in the local language rather than relying on our own. With Brazilian Portuguese being spoken by nearly all of Brazil’s 200 million inhabitants, and the language rated as Category 1 difficulty for English speakers to learn (Category 1 being the easiest, Category 3 the most difficult*), that makes a lot of extra people you can do business with, relatively easily.

Turkey: Turkish

Second on our list of markets to watch is Turkey. A rich historical land sitting on the European-Asian divide, it is Turkey’s imminent accession to the EU that promises a significant leap in business potential. As has been witnessed with other member states, the country can expect increased overseas investment and access to economic development aid, both of which should drive economic growth.

It’s fair to say, however, that Turkey has been enjoying something of a transformation even before their EU membership comes into effect. Slowly appearing amongst Istanbul’s extravagant Ottoman mosques and exotic bazaars are ultra-modern shopping malls, fashionable bars and sleek art galleries, all frequented by a young and culturally diverse crowd who have money and time to spend it; in turn, this makes Istanbul an attractive city break for foreigners, bringing in additional foreign currency.

Turkish is a language with over 63 million native speakers and is generally classified as a language of Category 2* difficulty for English speakers. For a country such as Turkey with strong cultural traditions and deeply rooted beliefs, the ability to communicate on a personal level through knowledge of Turkish gives anyone considering doing business here a distinct advantage.

South Korea: Korean

Finally, our look at emerging markets turns to Asia. While China’s growth shows signs of slowing, its trading partner South Korea last month (July 2013) boasted its fastest growth rate in over two years. This is partly thanks to the country being home to some of the world’s most successful hi-tech and manufacturing corporations – Samsung and Hyundai Motors among them – which contribute to South Korea’s buoyant export figures. As a language to invest in, Korean is rated at Category 3* difficulty for English speakers so more time and money is required to achieve a proficient working knowledge of the language. That said, the effort to speak the local language is rarely more appreciated than it is in Asia, especially in the business environment. Add to this the fact that linguistic training invariably includes an appreciation of the relevant social and cultural contexts and building bridges with a new market such as South Korea becomes far more feasible.

The British Foreign Office has recently re-opened its language centre and is dedicating more funding to linguistic training, believing that senior diplomats working abroad command much greater respect and credibility when they can speak the language of the country where they work. The same goes for businesses wishing to expand into new markets; having a workforce who can communicate with the locals in an overseas posting puts them streets ahead, not only in terms of business success but also on a more personal level of settling into a new territory should they be relocating.

* International bodies including the British Foreign Office and the US Foreign Service Institute grade languages according to their difficulty, assuming that students are native speakers of English: Category 1 (most similarity to English; mostly Western European languages); Category 2 (siginificant linguistic and/or cultural differences from English); Category 3 (exceptionally difficult, primarily due to the complex writing system).

Cactus specialises in organising language courses for individuals and groups, having done so since 1999 for clients all over the globe and for diverse needs and budgets. Our expertise in the field of face-to-face tuition is second-to-none. With an extensive network of approved teachers and a strong in-house academic team, we are able to tailor a language course to suit your specific learning needs, anywhere in the world and whenever is convenient to you.

Language opens door to new markets – the increase in Arabic, Russian and Mandarin

At a time of global economic downturn, tapping into new markets has never been so relevant to the success, indeed survival, of businesses worldwide.

As recession deals its harsh blows to flailing western economies, drawn deeper into a spiral of unemployment, inflation, negative home equity and soaring energy and fuel prices, it is becoming clear that we need to look further afield, on a global scale, to maximise our earning potential.

With a market in recession, as is now the case with the US and many countries in Western Europe, one of the best things a business can do is diversify – not necessarily product, but clientele. Forming strategic partnerships with emerging markets such as Russia, China and the Arabic world is one such critical step. These developing markets are less affected by the crises currently deflating confidence in western economies and, perhaps more importantly, are still doing well despite the economic decline that surrounds them. They have up to now received investment from developed countries, they have built financial reserves from recent growth, and they harbour newly affluent locals who, although not as brazen in their spending as their western counterparts, have money to spend and investments to sniff out. They are keen to be at the forefront of the global economy and this may be their time.

So, how best to get in on the act with the developing powerhouses of China, Russia and the like? One key factor that cannot be overlooked when it comes to gaining access to foreign markets is the importance of language. Long-term partnerships with any new market depend on relationship building; these relationships in turn are formed through linguistic and cultural awareness. English may be the accepted tongue when it comes to international communication, but there can be no underestimating the importance – if not supremacy – of other languages on a regional scale. Often the quickest way to open doors is to speak to someone in their own language and, in a world where English rules, where it’s the easy option, the effort to speak your target market’s language and understand its culture will not go unnoticed.

Let’s look at Russia. This is a country whose economy is thriving off oil exports and military manufacturing, fast emerging as the energy-producing superpower of Europe. Culturally and in business, Russian as a language is spoken by some 270 million native and non-native speakers, and it is used extensively across Eastern Europe, along with German and Polish.

Further east, China’s official language, Mandarin, is now spoken by a billion people worldwide. Although English is increasingly taught and spoken in this booming economy, anyone aspiring to do business in China will be at huge advantage with native knowledge or even proficiency in Mandarin – especially away from the big cities. Being able to communicate on a ‘personal’ level is valued no more than in Asian countries.

And finally, Arabic. Spoken by more than 250 million Arabs, this ancient language of the Qu’ran spans North Africa, from Morocco in the west as far east as Iraq. Finance, oil and intelligence depend on it, while, as with many foreign cultures, businesses with knowledge of the language have the edge when it comes to understanding nuances, customs and beliefs that often go unnoticed in English.

Any business aspiring to infiltrate these emerging markets would therefore do well to adopt a strategic approach to multi-lingual communication. Updating a website so it is accessible in multiple languages, recruiting native speakers and outsourcing translators are useful steps. Yet utilising the workforce that you already have is arguably the most effective way to embrace the new multi-lingual environment that lies ahead.

Linguistic and cross-cultural training will provide employees and businesses with language skills attuned to their particular markets and an appreciation of the cultures within which they want to work – an investment that will reap long-term rewards. Cultural awareness in particular may be easy to overlook, but it is key in building successful relationships, preventing costly misunderstandings, managing multi-cultural teams and reducing culture shock if employees are relocating.

Language in this sense really does help to open doors, and investing in an emerging market equipped with the appropriate knowledge is a step that could potentially both rescue and future-proof your business.