Multinationals must earn the trust of communities and consumers. Here's how.

Over the past three decades, hyper-globalization has powered unprecedented growth, technological progress and consumer connectivity. However, it has also fueled distrust among some of the communities in which multinational corporations have established their operations.

In order to achieve successful global business presence, multinationals must ensure they earn the trust of communities and consumers. Trust is fostered by companies’ concrete actions and their commitment to ethical behaviour; it’s not what they say that counts, but what they do.

At TCL, our journey towards trust has comprised three distinct phases: product adaptation, strategic expansion and value alignment. We believe this framework can serve as a useful model to help other companies earn the trust that underpins responsible and successful globalization.

The first step for companies looking to expand overseas is to gain a deep understanding of local needs and cultures, and adapt their products accordingly.

Companies that recognize the importance of this step are more likely to succeed in new markets. McDonald’s has been famously adept at adapting its menu, offering poutine in Canada, paneer wraps in India and McBaguettes in France. IKEA is also skilled in adapting to local markets: For example, it has designed smaller furniture for apartment-dwellers in Asia.

TCL has adapted its products for local markets since it began its expansion efforts in 1999 with sales of a lightning-resistant TV in Vietnam, specially designed to withstand the country’s frequent storms.

Knowing the consumer market is only part of the equation for companies seeking to earn trust as they go global. They must also adapt to the local culture as they establish production centres, ensuring they can effectively work with local teams, build a good reputation and avoid costly mistakes.

As companies pursue expansion, it’s important that they start bringing real value to their host countries, ensuring their presence is a force for good that reaches far beyond product sales.

By establishing upstream infrastructure in territories where they operate, multinationals benefit individuals and economies through job creation. Partnerships with local companies can also create significant value as the corporation transitions from being a visitor to a collaborator.

Starbucks provides an inspiring case study in how to conduct a successful phase two. When entering new and unfamiliar markets such as those in Asia, joint ventures enabled it to learn from local partners, leverage their networks and navigate bureaucracy more easily.

In China, for example, Starbucks partnered with three local companies in different parts of the country. These collaborations helped them to tailor menus, refine the decor to reflect local tastes and localize its customer support operations. Since 1999, the company has opened more than 6,500 stores in more than 250 Chinese cities and successfully introduced coffee culture into a tea-drinking society.

During our phase 2, TCL established an intelligent manufacturing base and R&D centre in Poland that employs over 1,000 people. Similarly, in Vietnam, we opened an integrated manufacturing base in Binh Duong that is the one of the largest digitized Chinese-brand manufacturing facilities in South-East Asia. This has created jobs at a range of skill levels, underpinning our long-term commitment to the market.

Through these kinds of partnerships and collaborations, and by taking steps to actively support the host country’s development, multinationals ingratiate themselves with their hosts and are more likely to secure a competitive advantage as they grow.

To earn trust, multinationals need to build authentic relationships that transcend business transactions and connect with the broader culture. This requires acting with integrity, making sure actions are aligned with values, listening to and acting on feedback, and prioritizing fairness to business partners, employees and customers.

A notable example of this is TOMS, the footwear brand. The company originally ran a “buy-one-give-one” model that donated free shoes to developing countries; but in 2020, the company changed tack in response to feedback that its well-intentioned efforts were creating dependency and harming local companies. Now, the company operates a different philanthropic strategy and donates one-third of its profits to grassroots organizations.

Toyota has built customer loyalty through its support for disaster relief, including vehicle donation, financial contributions to relief organizations, and providing customer payment relief options.

Brands can also build trust through sponsorships of causes and events that reflect their core values, demonstrating genuine community impact developing real and emotional connections. Among other initiatives, TCL has made long-term commitments to sports sponsorships. Becoming a Worldwide Olympic Partner in February this year is the latest extension of our desire to undertake responsible globalization and to nurture our cultural presence by investing in communities and supporting sporting excellence.

Globalization is not on a straightforward upward trajectory. In the last few years, trade as a percentage of GDP has fluctuated after 40 years of growth, while global FDI inflows have declined. At the same time, trade-restrictive measures increased sharply in 2024, reflecting a growing distrust of globalization by policy-makers and the public.

Amid increasing scepticism, it’s more important than ever for multinationals to define their values and adhere to them when developing expansion strategies. Actions that earn trust can lead to measurable impact and competitive advantages by enhancing credibility, generating fruitful partnerships, and providing companies with local platforms to reach consumers.

In today’s fragmented world, brands that prioritize cultural exchange and authentic human connection are best positioned to thrive globally. And when they invest in the world’s communities, they add real value where they operate.