BCA Leads First Ever BrandZ™ Ranking of Indonesia's Most Valuable Brands, Valued at $9.9 Billion

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Millward Brown

19 Aug, 2015, 14:33 GMT

JAKARTA, Indonesia, August 19, 2015 /PRNewswire/ --

Study shows dynamic and confident Indonesia is a 'land of opportunity' for brands that can build real connections with consumers  

BCA (Bank Central Asia) tops the inaugural BrandZ™ Top 50 Most Valuable Indonesian Brands ranking, released today by WPP and Millward Brown. A consumer bank with a 50-year history, BCA pioneered mobile banking in the country, and has launched popular innovations including pre-paid payment card Flazz. BCA's value (US$9.9 billion) places it just outside the BrandZ Top 100 Most Valuable Global Brands ranking, putting it on track to become the first Indonesian brand to enter the ranking in 2016.

The combined brand value of the Top 50 stands at $64.6bn, putting the value of Indonesia's strongest brands close to that of the Top 50 Indian brands ($69.6bn) but only one-seventh of the value held by China's Top 50. The Top 5 brands alone account for 57% ($37bn) of the value - a concentration of power that is mirrored in the India, China and Brazil rankings.

Banks make up 24% of the Top 50 - with four brands in the Top 10 - accounting for $27.5bn of the total value. This is the same percentage as that of India's Top 50, but higher than the Top 50 Brazilian (12%), Chinese (15%) and global brands (16%). Indonesian banks excel at making themselves accessible, and using digital technology to innovate in ways consumers find highly relevant to their lives.

Outside the Top 10, there are strong performances from the real estate, food and dairy, soft drinks, personal care, retail and entertainment sectors. FMCG brands make up 28% of the ranking; a very high proportion compared with other markets. The technology sector does not figure prominently, as home-grown tech brands have yet to achieve significant scale.

The BrandZ™ Top 50 Most Valuable Indonesian Brands 2015 

   
                                                   Brand value
                                                       2015
    Rank 2015            Brand            Category   (US$mil)
        1     BCA (Bank Central Asia)     Banks           9,918
        2     Bank Rakyat Indonesia (BRI) Banks           8,285
        3     Telkomsel                   Telecoms        6,373
        4     Mandiri                     Banks           6,153
        5     A Mild                      Tobacco         5,882
        6     Matahari                    Retail          2,145
        7     BNI (Bank Negara Indonesia) Banks           2,042
        8     Surya                       Tobacco         1,939
        9     Dji Sam Soe                 Tobacco         1,767
       10     Marlboro                    Tobacco         1,669

The World Bank expects 5.2% growth in Indonesia this year; this compares to a 2.2% average for developed markets, and 4.8% for developing countries. The country's economy is expected to surpass that of Germany and the UK by 2030 (McKinsey and Co.).

Ranjana Singh, WPP Indonesia explains: "Indonesia's fast growth, stability and consumer confidence create perfect conditions for brand-building. Indonesians can afford to consider a greater range of brands, and they recommend those they love. They're also demanding: they want to be offered more, and to feel special. Brands will win in Indonesia if they can meet consumers' functional needs, while communicating stories that build meaningful connections. This will be well worth the investment: BrandZ data shows that businesses in Indonesia which nurture the power of their brands are four times more valuable than those that don't."

Key findings highlighted in the BrandZ™ Top 50 Most Valuable Indonesian Brands 2015 include:

  • Consumers want to move with the times - without abandoning their heritage. They seek out brands that help them embrace modernity, progress and technology, without sacrificing their past or losing their local connection. Local brands dominate the Top 50, but multinationals are succeeding by tailoring attributes to the market. Pond's (no.13) skincare range focuses on whitening, an important beauty benefit for Indonesian women, while Sunsilk (no.31) communicates the shine it gives naturally black hair.
  • Digital innovation drives up brand value. Indonesians have embraced mobile and social media, and the Top 5 brands invest significantly more in digital services and media than the lowest-ranked brands. The four retail brands in the Top 50 are all bricks-and-mortar stores, but the rate of e-commerce is growing in parallel with smartphone ownership and the use of credit and debit cards.
  • Making a connection matters most. Communications must tell memorable stories. Instant noodle brand Indomie (no.14) continuously refreshes its range with new flavors, and appeals to consumers with emotional advertising. Telkomsel (no.3) expresses a compelling and unifying purpose across all touchpoints with its 'Go Discover' mantra.
  • Tobacco brands perform strongly. In Indonesia, tobacco brands are still allowed to advertise on television. There are seven tobacco brands in the Top 50, accounting for $14.8bn of its value.

David Roth, CEO of The Store, WPP said: "This is a country whose time has come. While China and India have been grabbing headlines, Indonesia has transformed into the economic powerhouse of Southeast Asia. The country is in the midst of social and economic change on a massive scale, making it an extremely attractive market for global and local brands alike as this study proves. It was essential that we extended our analysis of the world's most valuable brands to Indonesia. This is the first edition of an annual study that will track and anticipate the rapidly-evolving environment for Indonesian Brands. Expect the unexpected."

The valuation methodology behind the BrandZ™ Top 50 Most Valuable Indonesian Brands ranking is the only one that combines financial data with the perceptions of Indonesian consumers, making it the definitive study of the most valuable brands in this fast-growing market. The ranking is accompanied by a detailed report that analyzes the success of the Top 50, identifies the key forces driving brand growth in Indonesia, and makes action-oriented recommendations to help brands successfully navigate this environment and grow their brand value.

The Indonesia Top 50 is the fifth ranking to join the BrandZ family of valuations, which includes the Global Top 100 (released 27 May 2015), India Top 50 (to be released 9 September), Latin America Top 50 (to be released 23 September) and China Top 100 (to be released Febuary 2016).

Global communications services leader WPP has been engaged in Indonesia since 1999. Today 1,500 people work across WPP companies in Indonesia providing advertising, marketing, insight, media, digital, shopper marketing and PR expertise.

Download the full report and infographic for the study at Brandz.com, Interactive apps for BrandZ are available from Brandz.com/mobile.

NOTES TO EDITORS: 

Background and methodology
The valuation behind the BrandZ Indonesian Top 50 was conducted by Millward Brown, which specializes in brand equity research and brand valuation. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its tenth year.

Commissioned by WPP, the ranking combines rigorously analysed financial data from Bloomberg and Kantar Worldpanel with consumer opinions gathered for over 350 brands in 28 categories. The BrandZ Top 50 Most Valuable Indonesian Brands is the most definitive and robust ranking of the country's brands available, and the brands ranked meet one of these two eligibility criteria:

  • The brand was originally created by an Indonesian enterprise and is owned by an enterprise listed on a credible stock exchange; or
  • The brand is owned by an enterprise listed on Jakarta Stock Exchange.

About Millward Brown 

Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Specialist global practices include a leading Digital practice (focused on digital effectiveness and intelligence), Firefly Millward Brown (a global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP's data investment management division. Learn more at http://www.millwardbrown.com.

About WPP 

WPP is the world's largest communications services group with billings of US$76 billion and revenues of US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs over 188,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit http://www.wpp.com.

WPP was named Holding Company of the Year at the 2015 Cannes Lions International Festival of Creativity for the fifth year running. WPP was also named, for the fourth consecutive year, the World's Most Effective Holding Company in the 2015 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications.        

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Eureka Communications
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