Framework for Localization of B2C E-Commerce Websites in Saudi Arabia

Framework for Localization of B2C E-Commerce Websites in Saudi Arabia Abdelrahman Ibrahim Faculty of Computing Universiti Technologi Malaysia Johor, Malaysia. info@jetpe.com Ab Razak Che Hussin Faculty of Computing Universiti Technologi Malaysia Johor, Malaysia. abrazakutm@gmail.com Abdelsalam Busalim Faculty of Computing Universiti Technologi Malaysia Johor, Malaysia. busalim.86@gmail.com Abstract The use of e-commerce is rapidly increasing day after day. On the other hand, e-businesses started to globalize their supply chain to serve customers worldwide. Although it was a successful strategy in certain regions, it failed in some other regions as well. Companies cannot serve customers as they are homogenies. Each region or country has its own culture, preferences and social relationships. This reason is strong enough for organizations to move towards localization strategy in order to cover the market demand and provide customer satisfaction. This research focuses on the lack of the studies on the localization for e-commerce websites in Arabic countries, for instance, Saudi Arabia. This study provides a framework for B2C e-commerce websites localization in Saudi Arabia. The aim for this paper is to help organizations towards gaining more understanding for the localization features and customers preferences in Saudi Arabia in order for organization to expand their market boundaries successfully. Keywords-component; localization; e-commerce ; B2C; Saudi Arabia I. INTRODUCTION Since 2000 until 2011, the number of using the internet among Arabs increased 25 times as illustrated by the Internet World Stats [1]. Therefore, businesses and e- commerce companies should highly consider targeting the Arabic audience. In addition, because of the usage of the ICT, Kingdom Saudi Arabia (KSA) becomes one of the highest Gross domestic product (GDP) countries in the Middle East [2]. As the economy is expanding and the usage of ICT is increasing, there is a demand to cover the marketplace in KSA; however, many aspects regarding the localization process should be considered, starting from cultures, trust and social relationship. On the other hand, there are some studies which emphasize the localization features in Arab countries, but most of this studies scope was only covering the interface aspect. There is no study that came up with a framework to localize B2C e-commerce websites in Saudi Arabia. Through the globalization process, major firms have become more aware of the cultural differences between several regions and countries worldwide. Although globalization is reducing some of these differences, they still exist and that affects the business process globally. In order to serve globally, firms are globalizing their e-business activities. For e-commerce firms, in order for it to succeed, they should consider the cultural differences. [3] Therefore, in order for firms to globalize their business, it is critical to understand that cultural expectations, language, and religion play an important role in improving online web abilities [4]. Previous studies showed that, the use of language, signs and symbols, and web content that is culturally different from the host country creates confusion, frustration, offensiveness and in the long run a loss of business [5]. Previous studies illustrated that localization and cultural customization can provide the user with better website navigation, web usage and attitude toward the website, it also enabler to online sales increase [6]. However, localization has not been implemented in most of global e-commerce websites that can serve in KSA, although it is estimated that there are 15.8 Million internet user by the end of 2012 in KSA, representing 54.1% of the population and it is expected that the demand for Internet services will increase significantly in the next few years [7]. Also, in a report published by the Arab Advisors Group, it ranked KSA as the first one among Arab countries in terms of e-commerce growth, as the value of e-commerce transactions in Saudi has peaked at SR12 billion. It further showed that 3.5 million Internet users or 14.26 percent of the Saudi population were engaged in e-commerce transactions. The results affirmed the country s emergence as an ideal market for regional e- Commerce activities [7]. Therefore, this paper is focusing into covering the gap between global B2C e-commerce website and the e- commerce customers in KSA by developing a framework to localize global e-commerce websites in order to cover the market demand in Saudi Arabia. II. REVIEW OF LITERATURE Globalization, stanndardlization and loclaization Globalization means operating with resolute constancy across the world, selling the same thing in the same way everywhere [8]. In order for organizations to globalize their e-business, they can either standardize or localize their products and services. The standardization process is strategy in which marketers assume global markets to be homogeneous and, accordingly, offer standardized products and services using a standardized marketing mix [9]. On the other hand, the localization process refers to the processes of preparing and adapting products linguistically and culturally 582

for their sale and use in a specific locale in a language community in a country or region of the world [10]. Standardlization or Localization [9] Argue that the forces of technology and globalization are creating homogenized consumer markets, and marketers should use standardized marketing to tap these global consumers, on the other hand, leveraging the global reach of the web through standardized web sites may not be the most effective way to attract international visitors. The web is no longer dominated by English speaking online users, but also Chinese (509.9 million), Spanish (164.9 million), Japanese (99.1 million), Portuguese (82.5 million), German (75.4 million), and Arabic (65.3 million) speaking online users respectively [1]. Thus, companies have to decide whether to create localized web content, to cater to a large multilingual worldwide market, or to create standardized content that may or may not cater to online multilingual diversity. Localization features There are some characteristics for localized websites like representation of language and script will vary across cultures, including stylistic elements, different preferences for website layout and spatial features will exist in different cultures, Symbols will vary by type and degree of use across cultures, content and structural characteristics of websites will vary depending on culture, preferences for navigation and search capabilities will differ across cultures, the number of external links, and the functionality of links will differ across cultures, preferences for multimedia elements and the extent of multimedia use differ across cultures, The use of certain colors will vary depending on the culture[11]. Localization of Arabic E-commerce websites Arabic Internet e-commerce is a significant, expanding market segment with great potential for localization. The majority of websites aimed at Arabic markets are still in English, which means that organizations have less competition and an opportunity to dominate their sector if they localize their web content into Arabic with localized Arabic e-commerce websites. If organizations follow the right strategy when localizing their website, they will achieve the highest ranking with Arabic e-commerce website[12]. The Arabic Internet market is much larger than many people outside of this region realize; it is experiencing rapid growth. Recent research indicates that there are currently 56 million Arabic-speaking Internet users and this number will increase to 82 million by 2013. That will be a 46.4 percent increase in just over two years [13]. Although English is widely spoken in the business world throughout the Middle East, many companies outside of the region still have the misconception that they can continue to keep their web content in English-only because it is "the international language of business". Most global companies have launched products and businesses in the Arabic region via English-only websites with the assumption that Arabic-speaking customers can simply search and find services using English keywords. In previous study about the localization features of localization in Arab countries, it has proven that the cultural aspects affect the design of e-commerce websites in Arab countries. A thorough analysis of 50 e-commerce websites was preformed based on a set of criteria [12]. After the analysis, they discovered some recurring patterns that might help in localizing e-commerce websites to target Arab customers, among these patterns that study we recommended, text should be translated to Arabic language including alphabets, numbers and selling s brand names. Arabic sites are more familiar with "cm" unit of measurements than "inch". Interface s orientation should be from right-to-left. In summary, the market demand for e-commerce business websites is increasing day after day, while most of people think one global website is enough to cover the market demand worldwide, which called standardization. On the other hand, some people think localization process is only about translation, while localization is way more than that, it is more towered culture customization and content localization not only translation. Based on previous studies, localization processes that had been translation-based mostly are failure cases; some examples are illustrated into this chapter. Arabic language is one of the top ten languages in the Internet [1], previous economic reports emphasized that Saudi Arabia is ranked as the first one among Arab countries in terms of e-commerce growth [7], although most of e- commerce websites like Amazon.com, Apple.com, and etsy.com are not localized to Arab countries or Saudi Arabia. There is a gap in e-commerce business websites localization toward Arab countries especially KSA. In order to cover this gab, based on past studies, this research is uncovering the main features and specifications for the target market. These specifications and features are implemented in the localization framework that was proposed by [14], more about that is illustrated in chapter four. III. CURRENT LOCALIZATION FRAMEWORK [14] proposed a framework, which is about testing the localization in the context of the U.S. online Hispanic market. His study illustrated that, there are four main constructs for categorizing businesses website localization, which is content localization, cultural customization, local getaway and translation quality. Under these four, there are subcategories (Figure 1). 583

studies had adapted the same framework as will, but neither of them targeted Saudi Arabia e-commerce marketplace. Figure I : Localization framework [10] Content Localizatoin This element includes the support, currency, navigation, equivalency and relevancy of the localized website [1]. Those variables guide content localization by providing general understanding for the business to localize the website content for their customers [14]. IV. RESEARCH METHOD This paper identifies the main concepts for e-commerce globalization, standardization and localization. In contrast, a comparison between standardization and localization was illustrated in order to highlight the importance of localization. On the other hand, the benefits of the localization process are proposed. The current localization framework for e-commerce websites by Singh is proposed earlier in this paper, also localization main features is explained and the current situation for the localization of Arabic e-commerce websites. Singh s framework was adapted in this paper, besides the features of Arabic e-commerce websites; Saudi Arabia for instance. This paper will develop a framework for localization of e-commerce websites in Saudi Arabia. The main features that are included in this framework are based on previous studies and assumptions based on current KSA e-commerce websites observation. This research is aiming to develop a framework for localization of B2C e-commerce website in Saudi Arabia. By reviewing the previous researches and assumptions, this research has defined the main elements of this framework and the main features that is available for the localization process. The validation of these features and assumptions will be presented in future work, as this paper is only focusing into proposing the framework and the main elements for it (Figure 2). Cultural Cusotamizatoin Cultural customization efforts to adapt the local culture through elements like the promotion of products and services unique to certain location. The culture aspect also considers using appropriate colors, graphics, and Web-page design that are unique to the localized location [14]. Local Gateway This construct addresses the simplicity of finding the localized Web pages. Recommendations by [15], recommends placing global gateways on a company s main Web page where they can be easily located so that global consumers can easily find country- or language-specific sites [14]. Translation Quality Translation quality provides an assessment of how well the English Web-site pages translated into the localized language. This element includes conceptual, vocabulary, and idiomatic translation equivalence [3]. Figure II: Research phases These four constructs has been adapted in this paper, as it covers the main aspects for the targeted region, many other 584

V. FINDINGS BASED ON LITERATURE ANALYSIS This research is adapting the localization framework, which has been produced by [14], which was illustrated earlier in this paper. [14] Framework is categorized into four main categories: content localization, cultural customization, local getaway and translation quality. This four main categories has been analyzed into subcategories Content Localization Saudi Arabia has a unique content rules, for example, the use of female images is not acceptable because of the customers religious beliefs [12]. The use of the local language (Arabic) is preferable although some of the e- commerce websites have only English version. For the parentage of the translated pages, previous studies illustrated that users prefer that 100% of the website pages should be translated into Arabic, as there are some users don t have any English language background, and this research is supporting this, also validation process regarding this, will be conducted in the upcoming chapter. In terms of the content depth, according to [16], Arabic Language is considered as one of the high context culture language, Extent of the contents should be made available to Arabic online users in terms of contact information, product information and handling and shipping, all sections should be translated and have all the information needed for Saudi Arabic customers. The currency and the website content should be synchronized with the English website, as [12] illustrated that customers from Saudi Arabia prefers to have the price in their local currency Saudi Riyal (S.R), on the other hand the information should be synchronized on time, in order to have up to date information. One of localization fails factors is having out date information and content, which decreases user acceptance and loyalty. Despite English language, Arabic alphabetic is written right-to-left (RTL) not like English and most other languages, left-to-right (LTR). The navigation in Saudi Arabic e-commerce websites should be RTL, which includes the navigation bar, menus, submenus and the whole content. On the other hand, e-commerce websites requires good support and services for the users, this support should be in the local language, understanding for the local culture is necessary, in order to succeed in the localization process and have loyal customers. Cultural customization The overall design in Saudi Arabia is either standardized to the English website, or a unique website to the region, which is called the web-site structure, this element we be evaluated in another study. On the other hand, the use of graphics is unique in KSA, as pointed by [12], that the use of human body for products promotions is not acceptable by KSA users, regarding their religious beliefs. Organizations can only use the product itself in order to promote the, without the use of the human body, neither for female neither for male. However, organizations are able to promote the products using female or male pictures, but it should follow the Islamic beliefs and the traditions of that region, for instance, female s body and hair should be covered, they can only expose the face and hands. In addition, the use of videos in e-commerce website should be in Arabic language and the local accent as well. There is a huge number of YouTube streaming hours in KSA, which makes it important for e-commerce websites to promote their products using YouTube or any similar services by making product reviews and video advertisement, using the local language and accent. On the other hand, the culture in KSA requires certain product packaging; it is not preferable among KSA customers to receive packages that contain pictures of female body, some factories that exporting their products to KSA have different packages that suites the cultural and religion aspects in that region. This study is assuming that product-packaging strategy is an important aspect should be considered in the localization process. Most of the current e-commerce websites in KSA, like Souq.com and iphady.com, are using white background and bright colors, like white, blue and so on. The users in that region do not prefer the dark colors like black color or dark blue. Therefore, this research is assuming that the use of white background and bright colors is more acceptable among KSA e-commerce users. Local Gateway This element is focusing in the visibility and the usability of the English website gateway in order to simplify the process of KSA customers to reach the localized web pages. The use of KSA flag and the use of the country name written in Arabic alphabetic is useful way to highlight the localized web pages for KSA. In addition, organizations can use the IP location detection technique; the server should detect the user IP and direct him to the localized website. Translation quality Arabic is the official language in KSA, it is the most spoken language in the country. However, translation quality is crucial in Arabic language; the misuse of terms might change the word to offensive word or change of the meaning. Therefore, the automated translation process is not applicable in Arabic language. The translation process 585

should consider the conceptual equivalence, idiomatic equivalence and vocabulary equivalence. (Table 1) is describing in brief, the features of the localization framework for e-commerce in KSA. Some of these features are based on previous studies, while some are assumptions based on current e-commerce websites observation and the local culture in KSA. Table 1 KSA E-MCOMMERCE WEBSITES LOCALIZATION FRAMEWORK DESCRIPTION Constructs /Element Features Description Source Content Localization Percentage of translated pages Most of the content should be translated into Arabic language Content depth Arabic language is considered as high context language, images and products information and specification is required [16] Content Synchronization Using the local currency and up to-date translation. [13] Navigation Right to Lift navigation. [13] Services and Support Provide localized support in Arabic language according to the local time. Cultural Customization Web Page Structure Provide localized support in Arabic language according to the local time. Graphics The presence of the pictures should be related to the Saudi Culture, traditions and religion. Videos The increment usage for YouTube, Vimeo, etc., Users prefer to watch videos that are performed in their language & accent specially product reviews. Colors White background & bright colors is acceptable in KSA. Product Packaging It is not preferable among KSA users to receive packages that contain pictures of the female body. [12] [12] Promotions The use of promotions Local Gateway Gateway feasibility and Usability Translation Quality Translation quality should be suited to the Saudi s culture, language and religion. The use of KSA flag and the country name in Arabic aliphatic. IP detection is preferable. Good translation quality is playing an important role in the localization process. VI. CONCLUSION This paper is primary focusing in identifying the main localization contracts and the localization features in KSA, then how to relate these features to come up with a framework for localization of B2C e-commerce websites in KSA. The limitations of this study, it is based on previous studies, current e-commerce websites observation, and assumptions. This framework validation will be made for future work in fortifying the needs for a localization framework of B2C E-Commerce websites in Saudi Arabia. REFERENCES [1] Internet World Stats, 2011. INTERNET WORLD USERS BY LANGUAGE, Available at: http://www.internetworldstats.com/stats7.htm [Accessed October 3, 2013]. [2] Schwab, K. & Forum, W.E., 2013. The Global Competitiveness Report 2013-2014, World Economic Forum. K. Elissa [3] Singh, N. & Pereira, A., 2005. The Culturally Customized Web Site: Customizing Web Sites for the Global Marketplace, Burlington, MA: Elsevier Butterworth- Heinemann. [4] Jarvenpaa, S.L., Tractinsky, N. & Saarinen, L., 1999. Consumer Trust in an Internet Store: A Cross-Cultural Validation. Journal of Computer-Mediated Communication, 5(2). [5] Luna, D., Peracchio, L. & Juan, M., 2002. Cross-cultural and cognitive aspects of web site navigation. Journal of the Academy of Marketing Science, 30(4), pp.397 410. [6] Singh, N., 2012. Localization Strategies for Global E-Business 1st ed, CAMBRIDGE UNIVERSITY PRESS. Available at: http://information on this title: www.cambridge.org/9781107008892. [7] CITC, K., 2013. CITC E-news Letter Version: 014 Issue: RABI II, KSA CICT. Available at: http://www.citc.gov.sa/english/mediacenter/sletter/document s/pr_enl_014.pdf. [8] Levitt, M., 1983. The globalization of markets. Harvard Business Review. [9] Jain, S., 1989. Standardization of international marketing strategy. Journal of Marketing, 53, pp.70 79. [10] Singh, N., Park, J. & Kalliny, M., 2012. A framework to localize international business to business web sites. Data Base for Advances in Information Systems, 44(1), pp.56 77. [11] Cyr, D. & Trevor-Smith, H., 2004. Localization of Web design: An empirical comparison of German, Japanese, and United States Web 586

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