Service industry brands value the most in India. Marketing and brand consultancy firm Millward Brown in conjunction with WPP recently announced first ever BrandZ™ Top 50 Most Valuable Indian Brands ranking. And top spots are all occupied by brands belonging to the service industry. The report takes into account consumers’ opinion of brands to calculate the contribution that product brands make to business success.
The average Brand Contribution (a measure of the impact brand alone has on value) of the Top 5 brands is far higher than the overall average of the Top 50, illustrating the positive impact that building a strong brand has on the financial valuation of the brand. These brands create powerful connections by being meaningful to consumers, and differentiating themselves from others.
The brand valuation behind the BrandZ Indian Top 50 was conducted by Millward Brown – a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Commissioned by WPP, the ranking combines rigorously analysed financial data from Bloomberg and Kantar World panel with consumer opinions gathered for over 500 brands in 37 categories.
Prasun Basu, Millward Brown’s Managing Director – South Asia, said: “The stronger the relationship a brand can build with consumers in its category, and the more it can leverage that to build scale, the more sustainable and profitable it becomes. All of the Top 50 brands are reputable, successful engines of growth for the future ofIndia. Any global manufacturer that makes the effort to understand the diversity of the Indian consumer’s needs, tastes and aspirations, and which can build a proposition that is both meaningful and appropriately differentiated, will succeed in building a strong brand.”
David Roth, CEO of The Store, WPP added: “With the second highest number of social networking users in the world, and the third highest number of users of mobile devices, developing an e-commerce strategy that focuses on social and mobile platforms is essential for brands in this region.”
The BrandZ™ Top 50 Most Valuable Indian Brands 2014
- Being meaningful and different builds value – India’s most valuable brands are highly relevant to consumers and differentiate themselves through service, new offerings and brand experiences. One such example is personal care brand Colgate (No.28) – even after 70 years in India the brand has successfully remained relevant and continues to differentiate itself from the competition.
- India has evolved into a brand powerhouse – its Top 50 most valuable brands have as much Brand Power (consumers’ predisposition to choose that brand over another) as the global Top 50, and are ahead of the other emerging economies.
- Private sector players and multinational corporations dominate – together these contribute around 85% of total brand value. They have succeeded by nurturing a strong relationship with Indian consumers.
- Megabrands lead the game – like other fast growing economies, India is dominated by a handful of big brands or companies that own stables of brands: the Top 5 account for 45% of the ranking’s total value. Their tremendous scale and ability to cater to a wide spectrum of the population has translated into financial gains.
- ‘Balanced brands’ is the mantra – brands that are able to build both strong connections with consumers and business scale that leads to the creation of financial value are contenders for entering or rising up the BrandZ ranking. Three out of the Top 5 Indian brands demonstrate this balance.
- Consumer technology is ‘the category waiting to happen’ – there are currently no home-grown consumer technology brands in the Top 50, but this category is on the verge of emergence. The presence of Indians working in the sector globally is high, and consumer-facing technology brands founded by young entrepreneurs have already started to gain ground.
- ‘Indianizing’ products and services is important – the many successful international brands in the ranking have taken the time to understand Indian needs and tastes and adapt to them. Noodles, food seasoning, soup and sauce brand Maggi (No.18), personal care brand Colgate (No.28) and beverage brand Horlicks (No.20) are masters at this – and are thought of as Indian brands by most consumers as a result.
- Old and new sit side by side – living with one foot in the ancient world and one in the modern makes consumers equally receptive to heritage brands (Bajaj Auto, No.5, established 1945) and new brands (Airtel, No. 2, established 1995). More than a quarter of the Top 50 brands were created after the economic liberalization in 1991 while Dabur, No.22, was established 130 years ago.