Globalization Paradox and Iconic Branding

Globalization has always created a world of paradox. There are three macro paradoxes that arise because of globalization. First, globalization of democracy creates the new non-democratic superpower. China, whose manufacturing industry sector is strong (with the World Bank saying around 50% of its GDP comes from that), acts as the world’s manufacturing hub. Second, globalization doesn’t create a convergent, but a divergent economy. Today, there are still more than 1 billion people who are in the state of extreme poverty and subsist on less than $1 a day. Third, globalization doesn’t create a uniform, but a diverse culture. In The Lexus and the Olive Tree: Understanding Globalization, 

Thomas Friedman wrote about the clash of the globalization system symbolized by the Lexus and ancient forces of culture, geography, tradition, and community symbolized by the olive tree.5 The effect of these paradoxical phenomena of globalization to marketing is that companies are intensely competing to be icons of the society. As described by Douglas B. Holt, iconic brands address acute contradictions in society. For example, McDonald’s positions itself as the icons of globalization. It can be found almost anywhere in the world. In The Lexus and the Olive Tree: Understanding Globalization, Friedman introduced the Golden Arches Theory of Conflict Prevention that no countries with McDonald's had gone to war with each other. Later in The World is Flat, Friedman changed the theory into the Dell Theory of Conflict Prevention that no countries within Dell’s Supply Chain had gone to war with each other. Dell is increasingly replacing McDonald’s as the icon of globalization.6 On the other hand, 

The Body Shop is known as an emblem of social equality. Although sometimes considered as anti-capitalist or anti-globalization, The Body Shop philosophy is in fact in favor of global marketplaces. Nevertheless, people perceived that The Body Shop answers the anxieties and desires of social equality—something that is often forgotten in the globalized world.