Mobile and Web-of-Things (WoT) devices at the network edge generate vast amounts of data for machine learning applications, yet privacy concerns hinder centralized model training. Federated Learning (FL) allows clients (devices) to collaboratively train a shared model coordinated by a central server without transfer private data, but inherent statistical heterogeneity among clients presents challenges, often leading to a dilemma between clients' needs for personalized local models and the server's goal of building a generalized global model. Existing FL methods typically prioritize either global generalization or local personalization, resulting in a trade-off between these two objectives and limiting the full potential of diverse client data. To address this challenge, we propose a novel framework that simultaneously enhances global generalization and local personalization by Rethinking Information Representation in the Federated learning process (FedRIR). Specifically, we introduce Masked Client-Specific Learning (MCSL), which isolates and extracts fine-grained client-specific features tailored to each client's unique data characteristics, thereby enhancing personalization. Concurrently, the Information Distillation Module (IDM) refines the global shared features by filtering out redundant client-specific information, resulting in a purer and more robust global representation that enhances generalization. By integrating the refined global features with the isolated client-specific features, we construct enriched representations that effectively capture both global patterns and local nuances, thereby improving the performance of downstream tasks on the client. The code is available at https://github.com/Deep-Imaging-Group/FedRIR.