The Power of Transparency in Global Markets
Brand as a tool of transparency
Transparency can be incredibly useful when dealing with unfamiliar markets. However, it can often feel like a tightrope, with many brands grappling with the question: How transparent should we be? Being open is key in business, but revealing too much too soon can backfire. But, when used strategically, transparency can provide a sense of control and confidence in leading and controlling the narrative.
Silence or ambiguous communication often becomes the default setting for many teams navigating complex international relationships. Why? Sometimes, it's a response to the uncertainty and pressure that trickles down from management. After all, ambiguity becomes a refuge when uncertainty outweighs clarity. Keeping things vague can seem like a safer bet when there's a lack of understanding, whether about the market, the partner, or even the brand's position. Do you think this is a sustainable or even productive approach? I argue that it is not. Instead, clear vision, steadfast values, and strategic transparency offer a far stronger negotiating position, especially in markets where mutual understanding and trust can determine long-term success.
The case for transparency
When used correctly, transparency doesn’t weaken a brand; in fact, it makes it more resilient. When you clearly define your brand’s vision and mission and align all actions to those principles, you create an unshakeable foundation that enhances credibility. As a consequence, this clarity gives your brand authority, which is a powerful asset.
When I think about this, the signaling concept comes to mind. Behavioral economics calls ‘signaling’ how brands show what they stand for. When brands consistently signal their values and intentions, they attract partners and customers who align with those principles. Relationships and trust-building take time; that’s why signaling the brand's integrity, long-term goals, and respect for local attributes is key. A strong signal doesn't just communicate current intentions; it communicates a brand's consistency.
“A brand is a promise. A good brand is a promise kept.”
However, it’s important not to confuse this with virtue signaling, a relatively recent term that has gained traction in social media as part of the cancel culture ecosystem. While signaling in economics refers to the authentic and strategic communication of core values, virtue signaling is often used to describe superficial actions or statements made primarily to gain social approval without genuine commitment. In the business context, accurate signaling can enhance a brand's reputation, while virtue signaling can risk trust if perceived as insincere or opportunistic.
Then, transparency builds trust and creates an advantage. A brand with clear and transparent values becomes a more appealing partner, as potential collaborators know exactly what to expect and where the brand stands.
Side note: Sometimes, when I think of the term ‘transparency,’ the work of Justine Menard comes to mind. Don't you think it's beautiful and soft, like a poem?
Transparency vs. Control
Of course, balancing transparency and control can be tricky. Many brands feel that being overly transparent will mean losing control of the narrative, which might be true in some cases. Misalignment in communication can lead to misinterpretations, especially in cross-cultural contexts. However, the truth is that strategic transparency allows a brand to maintain control over the right things: its values, vision, and critical goals.
In negotiation theory, BATNA (Best Alternative to a Negotiated Agreement) is a concept that highlights the importance of having a solid fallback option when entering any negotiation. What I mean is that when a brand is clear about what it can and can’t compromise on, it strengthens its BATNA. Transparency sets clear expectations with business partners, enhancing collaboration. This is particularly important, for example, in the Chinese market, where guanxi (we can somehow translate it as relationships) is pivotal. A brand that is perceived as trustworthy and reliable will inevitably find more success in building these critical relationships.
Aligning strategic transparency with cultural sensitivity and coupling commitments with reciprocal performance expectations can help brands position themselves for success.
Side note: Elise Peroi, another of those artists who caress 'transparency' as it was possible to touch it...
Integrating local markets without losing your way
One of the most significant challenges when entering a new market is balancing the integration of local customs and consumer behaviors with your brand’s core identity. Many brands fear adapting too much will cause them to lose their unique value proposition. But adaptation is not about dilution; it’s about alignment. It's not easy, but it's not impossible either. The most successful brands in China (again, a Chinese example) have taken the time to understand local needs while staying true to their overarching brand values. Luxury often faces this dilemma: on the one hand, they must maintain the exclusivity and prestige that define their brand globally; on the other hand, they must appeal to a market where consumer expectations may differ drastically from the West. In this context, brands can enhance their perceived authenticity and long-term credibility by respecting cultural nuances while remaining aligned with core values. This alignment allows the brand to stay true to its identity while deepening its relationship with the local audience (yes, globalization is a fact, but we don't all think and feel the same, right?).
Of course, it’s not all smooth sailing. Brands need to back up their promises with solid results. As brands strive to integrate elements of another market, the same effort must be reciprocated in delivering results that align with the brand’s standards and business goals.
Sensitivity in setting objectives and limits
Negotiations, particularly in culturally diverse contexts, require a delicate balance between firmness and flexibility. For example, in China, relationships are crucial, and the success of any negotiation hinges on sensitivity to this fact (again, guanxi.) While a brand may want to establish clear-cut objectives and rigid boundaries, it must acknowledge that not everything is simply transactional or quantifiable.
One of the core principles of negotiation theory is mutual gain. In Western business culture, this might sometimes be expressed purely financially. Still, in Chinese business culture, mutual gain often extends into less tangible realms, like respect, honor, and long-term connections.
This means the brand must establish firm objectives but negotiate in a way that acknowledges the value of the relationship itself. Let's put an example that is quite common: agreeing to adapt product packaging to local preferences may signal respect and understanding of specific needs. However, this must be matched with an expectation that the local partner will meet agreed-upon performance targets. It’s a give-and-take dynamic that requires emotional intelligence and an appreciation of the market’s cultural intricacies. It’s not about surrendering control but creating a collaboration framework where both parties feel their values and objectives are considered.
Positioning the brand as a strong negotiating force
For me, the real strength in negotiations is clarity. When a brand enters talks with a firm grip on its identity and a willingness to be strategically transparent, it doesn’t just show up as a business but as a brand with integrity.
But let’s be honest: Clarity and transparency alone won’t win you the crown. They need to be backed by a charismatic and culturally attuned communication style, one that doesn’t just state your brand’s values but makes them so compelling that they shift the negotiation dynamics in your favor. It’s one thing to declare your brand’s principles; it’s another to make people care about them.
“A tale in everything”
After all, the bottom line is that a brand’s value isn’t just measured by how much consumers love it (although that’s always nice) but by how well it positions itself as a sought-after partner in business negotiations. When a brand aligns well with its values and communicates clearly, it becomes a stronger business partner. And let’s face it, building trust doesn’t just win you consumers; it builds rock-solid partnerships that can weather the inevitable storms of entering new markets.
Said so, we can still agree that this is not a silver bullet. Getting to this point is demanding, challenging, and not always possible because sometimes brands and businesses are not that predictable and easy to read. Even though we achieve a sweet spot, it's not a guaranteed ticket to success. But if you can lay these solid foundations, you'll be way better equipped to navigate the inevitable challenges of a new and culturally diverse market.
This is how the true strength of a brand and its strategic branding come to light. A well-executed brand strengthens the company’s foundation and long-term relevance (it may sound pretty obvious, but it bears repeating). Often overlooked or underfunded, working at a brand level and in coherent messaging is crucial to a business’s lasting success. In the end, branding helps companies thrive, not just survive.
“People don’t buy what you do; they buy why you do it.”
Another artist who fascinates me and also evokes the idea of ‘transparency’ is the Korean artist Hong Seonghwa. Her mastery of subtly transitioning between colors reflects a deep sensitivity to transparency as a visual tool to navigate between visual states harmoniously. You might wonder why I’m mixing such unrelated concepts. Well, for me, it’s like a game: Certain artistic manifestations become a language that helps me grasp business concepts and incorporate them more effectively into my practice. In this specific case, when debating transparency in environments often empty of beauty, like business territories dominated by productivity pressures, competition between peers, and a marked masculine attitude, I mentally dress these concepts in ideas that bring me pleasure and beauty, making them more digestible.
In reality, things aren’t as disconnected as they might seem. Building trust could easily be considered a behavior part of the spectrum of beauty. There’s a unique satisfaction in working with clear objectives, knowing that everyone is aligned and moving in the right direction. Negotiating under pressure but from an ethical and resilient position is like weaving a delicate balance between integrity and success. Convincing others through genuine virtues (not empty virtue signaling) feels gratifying. Making value-based marketing a genuine banner is, in fact, a beautiful thing.
For me, beauty and well-grounded business are deeply connected. I believe in working with ethical marketing, thoughtful branding, and a human approach to persuasion (whether selling products, offering services, or closing deals) as part of that meaningful way of behavior in our increasingly globalized and individualized world. I find a sense of calm and true fulfillment in this space where business, integrity, and purpose intersect. It’s a way of doing business that aligns with my values and brings deeper meaning to every project.
