Turnaround for India's Top Brands as They Grow Their Value 21% in One Year
MUMBAI, September 13, 2017 /PRNewswire/ --
- HDFC Bank retains its No.1 position in the BrandZ™ India Top 50, doubling its brand value since 2014 with a sustained focus on improving access to services
- Auto sector grows 23% by successfully meeting consumers' diverse, changing aspirations and budgets
India's most valuable brands have increased their brand value by 21% to US$109.3 billion in the last year, according to the BrandZ™ Top 50 Most Valuable Indian Brands 2017 announced today by WPP and Kantar Millward Brown. This compares with a 2% decline in 2016, and is well ahead of the 8% value increase of the BrandZ Top 100 Most Valuable Global Brands 2017.
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The BrandZ ranking and report highlights the success that many Indian companies have had in 2017 with managing their most important intangible asset: their brand. For many that has been driven by a rapid response to rising consumer optimism, and evolving to meet people's needs as their financial circumstances, preferences and expectations change.
HDFC Bank (24%) is India's most valuable brand for the fourth year running, almost doubling its brand value since the ranking started in 2014 from $9.4bn to $18.0bn. It has a strong purpose - to improve lives by bringing world class financial services to all sections of India - and demonstrates it through increased access to banking in rural areas, an expanded digital presence and leveraging the latest technology to simplify its offering for customers. BrandZ data shows that consumers perceive the bank as increasingly innovative.
David Roth, CEO EMEA and Asia, The Store WPP, says: "Indian consumers seek authenticity and value for money, and the meaning of those things is being constantly redefined. As consumers become wealthier, they look beyond price to factors like extra features, innovation and a personalised experience. As reflected in this year's ranking the most agile Indian brands have recognised the complexity in the market, and achieved just the right balance between aspirational and affordable."
The automobile category, which also includes tyres, lubricants and motor fuels, grew 23% in value. Brands responded to the changing market with new models that combined smart pricing and functionality with style and power. Royal Enfield, Maruti Suzuki and TVS were among the Top 10 overall fastest risers. Royal Enfield (no.40, 59%) engaged with biker groups on social media, and marketed a range of accessories. Maruti Suzuki (no.7, 56%) extended the brand beyond its traditional appeal to the value segment of the market, while introducing new showrooms called NEXA to reach premium customers.
The India Top 50 have faced successive disruptions in the last year, some global, some created by fast-growing competitors and others strategically imposed by the government - including demonetization.
The FMCG category, which includes alcohol, food and dairy, personal care and soft drinks, was significantly affected by these challenges but still managed to grow 6% in total value. Some brands achieved impressive value increases by accurately understanding and responding to Indian sensibilities. Noodle brand Maggi (no.32; 66%), the overall second-fastest riser, aligned itself with the trend for nostalgia. This helped it bounce back after a difficult couple of years; its rapid regrowth demonstrating how a strong brand can help a company weather a crisis and recover faster, although it is still some way below its peak brand value of $1.1bn in 2014. Health food brand Saffola (no.36; 24%), meanwhile, introduced oats in new localised flavours and expanded its range of oils into a new super premium sub-segment.
The financial services category increased its value by 26%. The fastest rising banks were Punjab National Bank (no.39; 43%), which is highly customer-focused and more agile than some of its competitors, and Kotak Mahindra Bank (no.6; 36%), which has innovated in areas including digital banking. Both of these brands still have significant catching up to do, however, if they are to reach the top of the leader board.
The BrandZ™ Top 10 Most Valuable Indian Brands 2017
Brand value
Rank 2017 Brand Category 2017 (US$M) Change
1 (-) HDFC Bank Banks 17,965 +24%
2 (-) Airtel Telecom providers 10,233 +3%
3 (-) State Bank of India Banks 8,334 +31%
4 (-) Asian Paints Paints 4,717 +15%
5 (-) ICICI Bank Banks 4,697 +19%
6 (+1) Kotak Mahindra Bank Banks 4,522 +36%
7 (+1) Maruti Suzuki Automobiles 4,449 +56%
8 (-2) Bajaj Auto Automobiles 3,564 +5%
9 (-) Hero Automobiles 3,295 +17%
10 (-) Axis Bank Banks 2,428 +2%
Other trends highlighted in this year's BrandZ Top 50 Most Valuable Indian Brands include:
- There are seven newcomers to the ranking. Telecom provider Jio ranks at no.11 only months after its launch, having disrupted its category with free-data promotions. The others are newly listed retailer D-Mart (no.24), appliance brand Whirlpool (no.45), insurance brand Bajaj Allianz (no.49), Canara Bank (no.50) and entertainment brands Sun Direct (no.27) and Dish TV (no.47).
- The long-term growth curve of the Top 50 is positive, with the total brand value of the ranking up 57% since the study was first carried out in 2014, when it amounted to $69.6bn.
- India experienced a resurgence in national pride, while also embracing globalization. This manifested in a desire for products and brands that best reflect Indian heritage, sensibilities and tastes, which benefited local brands and put pressure on multinationals to follow suit. Colgate (no 28; 2%) launched a toothpaste with Ayurvedic properties to meet this demand.
- The top riser is insurance brand ICICI Prudential (no.35; 89%). It benefited from the 'halo effect' of other brands' successful responses to rising consumer affluence, which led to an increase in sales of assets such as cars that need insurance protection.
Vishikh Talwar, Managing Director, Kantar Millward Brown, South Asia, says: "There are now 'multiple Indias'. Consumers continue to love the brands they've loved for generations, while equally embracing the brands of the future. Brands must be completely in rhythm with the pulse of the market. Those that can accurately interpret Indian sensibilities, while ensuring smart pricing, are likely to be most successful. This is easier for local brands, but people will relate just as positively to a global brand if it uses insight to understand and meet their needs, and communicate in a way that builds trust."
For the first time, this year's BrandZ Top 50 Most Valuable Indian Brands 2017 study incorporates new research from Y&R's BAV Group into what it takes to build powerful nation brands. According to the 2017 Best Countries report, India stands out for its history, cultural influence, distinction and reputation for entrepreneurship; especially among the world's business decision-makers. Because there is a strong relationship between how people perceive a country and how they view the brands associated with it, India's reputation has a significant impact on the global power of its brands.
The BrandZ Top 50 Most Valuable Indian Brands report and rankings, as well as other brand insights for key regions of the world and 12 market sectors, are available online here. The Indian report, rankings, charts, articles and more can also be found via the BrandZ app. The app, which contains the same features and functionality for all BrandZ regional reports, is free to download for Apple IOS and all Android devices from www.brandz.com/mobile or by searching for BrandZ in the respective iTunes or Google Play app stores.
Background and methodology
The valuation behind the BrandZ™ Top 50 Most Valuable Indian Brands was conducted by Kantar Millward Brown, which specialises 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 12th year.
Commissioned by WPP, the ranking combines rigorously analysed financial data from Bloomberg and Kantar Worldpanel with the opinions of over 100,000 Indian consumers since 2007, gathered for over 3,247 brands in more than 88 categories. The BrandZ Top 50 Most Valuable Indian Brands is the most definitive and robust ranking of the country's brands available, and all brands ranked meet THREE eligibility criteria:
- They are consumer facing.
- Brands are owned by an enterprise listed on a stock exchange in India.
- Bank brands derived at least 25 percent of revenue from retail business.
The suite of BrandZ country rankings and reports also includes China, Indonesia, Latin America, Brazil and Saudi Arabia, and is growing to cover Spain, the UK, France, Germany, the U.S. and Italy.
About Kantar Millward Brown
Kantar Millward Brown is a leading global research agency specialising in advertising effectiveness, strategic communication, media and digital, and brand equity research. The company helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Kantar Millward Brown operates in more than 55 countries and is part of WPP's Kantar group, one of the world's leading data, insight and consultancy companies. Learn more at www.millwardbrown.com.
About WPP
WPP is the world's largest communications services group with billings of US$74 billion and revenues of over 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; digital, eCommerce and shopper marketing and specialist communications. The company employs over 200,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit www.wpp.com.
WPP was named Holding Company of the Year at the 2017 Cannes Lions International Festival of Creativity for the seventh year running. WPP was also named, for the sixth consecutive year, the World's Most Effective Holding Company in the 2017 Effie Effectiveness Index, which recognises the effectiveness of marketing communications. In 2017 WPP was recognised by Warc 100 as the World's Top Holding Company (third year running).
For more information please contact:
Amanjit Singh
Kantar Millward Brown
Tel: +91-70454-55004
Email: Amanjit.Singh@kantarmillwardbrown.com
Richie Mehta
Genesis Burson-Marsteller
Tel: +91-99205-92729
Email: richie.mehta@bm.com
Hannah Robertson
Eureka Communications
Tel: +44-(0)-1420-564346
Email: hannah@eurekacomms.co.uk
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