Corporate executives and scholars exchange opinions at the Language - Key to Global Success forum in Beijing on May 29 DONG NING

In an era of globalization, the language service industry has become an indispensable support factor for cross-border trade and corporate overseas expansion.

In fact, the language service industry has far exceeded the scope of translation and interpretation and become a major part of the global industrial chain. "Countries that want to grow powerful have to energetically develop language services, which can speed up economic transformation, strengthen their capacity for cultural transmission and facilitate the expansion of trade and investment," said Lu Jijian, Deputy Director General of the Department of Trade in Services and Commercial Services at the Ministry of Commerce, at a recent industry forum.

The forum, entitled Language - Key to Global Success, was held in late May at the Third China Beijing International Fair for Trade in Services. It was sponsored by the Translators Association of China, along with the Globalization and Localization Association, the Localization World, a leading conference dedicated to the language and localization industries, and Rockant Training and Consulting Co., an American company specialized in localization consulting and training for managers of international programs, products and services.

"The forum serves as a platform for both language service providers and consumers to exchange views, promote the latest technologies and the results of scientific research, and learn from the frontrunners," said Wang Gangyi, Vice President of the China International Publishing Group.

Language service, as an emerging industry, was first put forward at the 2010 China International Language Industry Conference. At the event, Guo Xiaoyong, First Executive Vice President of the Translators Association of China, said, "The drive for globalization and the rapid development of information technology have given birth to a new trade­ - language service, which has integrated translation, localization, language technology, multilingual consulting and language training."

The development of language services was first initiated by the implementation of China's reform and opening-up policy starting in the late 1970s, and has entered a period of high-speed growth since China's entry into the World Trade Organization in 2001. Statistics from the Translators Association of China show that the number of companies which include language services in their business scope surged from 16 in 1980 to 37,197 in 2011, representing the accumulation of an annual increase of 30.3 percent.

It has been predicted that by the end of 2015, the annual output value of language service providers will amount to 260 billion yuan ($41.78 billion). More than 2 million people will engage in the trade, and the number of companies which include language services in their business scope will surpass 60,000, according to the 2012 Report on China's Language Services Industry.

Sustainable development

However, the majority of such enterprises are small and they are incapable of innovating their technologies and business models, said Wang. A majority of language service companies are engaged in similar translation and interpretation businesses and compete with each other in the low-end market, leading to the downgrading of the general strength of China's language service companies, the 2012 Report on China's Language Services Industry suggested.

Former Chancellor of the Federal Republic of Germany Willy Brandt once said, "If I am selling to you, I speak your language. If I am buying, dann müssen sie Deutsch sprechen [you have to speak German]." In international trade, speaking the buyer's mother language can make them feel respected and valued, which also reflects the significance of localization.

"Localization is the most effective driver for business," said Andrew Lawless, President of Rockant Training and Consulting Co.

"People do not buy what you do, they buy why you do it," Lawless noted. He gave Apple Inc. as an example. He claimed the popular electronics maker has the same knowledge, technical workforce and consultants as other computer makers have, and uses the same media to promote its products in the market. According to him, the secret to why Apple is much more successful than its rivals lies in the company's concept of doing business.

Instead of associating consumers with what they do like other computer makers, Lawless pointed out, Apple introduces itself by saying that "everything we do challenges the industry we are in, and we do that by making products beautifully and user-friendly."

As a matter of fact, when people communicate with each other at the level of "how" and "why," they always find it much easier to reach mutual understanding, because all human beings have the same emotions regardless of different cultural contexts.

Beyond that, Lawless insisted that language service providers should remain socially sympathetic with their potential customers. In other words, people always buy from other people who believe in what they themselves believe.

"Language service companies should let customers know they believe in the value of localization and the power of technology, which can make their work as effective, fast and good as they possibly can," Lawless argued, stating that this course of action was more advisable than attempting to lure customers with low prices.

Price vs. quality

Just like what has happened to many Chinese manufacturers who have tried to acquire greater market share by lowering prices, price competition is the fastest and surest way to kill profits and business in the language service industry.

"One of the biggest problems language service providers face is they are always trying to provide the cheapest offer. However, the fact is the more you charge, the more people respect you," Lawless noted, suggesting that companies in the trade should stop business with customers who don't pay what the services they receive are worth.

He opined that customers attracted by low price always have next to no brand loyalty and that it's difficult to satisfy those who take price as the major factor in making choices, and they are always prepared to turn to other service providers with lower prices.

Nonetheless, in the eyes of customers, a higher price does not necessarily mean higher quality. According to a recent survey by Common Sense Advisory, a Massachusetts-based market research company, 60 percent of consumers and 50 percent of language service providers didn't agree with the argument that quality is in direct proportion with price.

Companies should assure their customers that if they pay higher prices, more attention will be paid to the localization of terminology, better translation tools will be used, and more sophisticated translators and more advanced technologies will be recruited in the work, said Donald A. DePalma, founder of Common Sense Advisory.

Aside from an underdeveloped business model and price competition, the development of China's language service industry has been undermined by other problems, such as regional imbalance and the shortage of well-trained professionals. To advance, it is certain to face an uphill battle.

The Translators Association of China

Founded in 1982, it is the only national association in the field of translation in China, functioning both as an academic society and a trade association.

As an organization for translators and interpreters, in addition to people devoted to the promotion of the profession, the association engages in research, training and academic exchanges, and focuses on improving the self-discipline and regulation of the translation industry, protecting the legitimate rights and interests of translators and interpreters, and facilitating exchanges and cooperation.

Made up of institutions, enterprises, associations and individuals engaged in translation, interpretation, localization and terminology, the association has group, institutional, corporate and individual members across the country and beyond.

(Source: www.tac-online.org.cn)