HDFC, other finance brands dominate WPP’s BrandZ

10 Sep,2015

By A Correspondent

 

Finance brands are highest risers in the BrandZ India Top 50 with HDFC Bank being the most valuable brand for second year. The total value of India’s strongest brands has risen by a third (33%) over the last year, according to the second annual BrandZ Top 50 Most Valuable Indian Brands ranking announced on Wednesday by WPP and Millward Brown. This is the highest rate of growth achieved by any BrandZ ranking in the 10 years since valuations began, exceeding that of the Global Top 100 as well as the rankings forChina, Latin America and Indonesia.   India’s Top 50 brands are now worth $92.2bn (up from just under $70bn in 2014). The record-setting value increase has been driven by brands’ successful response to the rising sense of empowermentamong Indian consumers, and the government’s efforts to create a more conducive business environment.

 

Brands in the financial sector (+49% growth) made the largest contribution to the overall increase in value, but significant lifts were also seen across most other sectors, indicating the broad strength of India’s economy and Indian brands. Home and personal care brands achieved a combined increase of 32%, followed by the auto aftermarket sector (28%), automobile brands(27%) and telecom providers (21%).

 

Private companies, state-owned enterprises (SOEs) and brands owned by multinational corporations that are publicly traded in Indiaall experienced growth, illustrating how receptive the market is to brands of all kinds. 52% of the brands in the Top 50 are privately-owned, evidence of India’s entrepreneurial energy. 30%of the brands are owned by multinationals, which have successfullyadapted to the needs of Indian consumers, becoming so embedded in their lives that they are perceived as ‘local’.

 

The BrandZ™ Top 50 Most Valuable Indian Brands 2015

Rank 2015

Brand

Category

Brand value 2015 ($m)

Brand value change

Rank 2014

1

HDFC Bank Banks

12,577

33% 1

2

Airtel Telecoms

11,039

34% 2

3

State Bank of India Banks

9,374

37% 3

4

ICICI Bank Banks

5,122

45% 4

5

Asian Paints Paints

3,867

38% 6

6

Bajaj Auto Automobiles

3,345

10% 5

7

Hero Automobiles

2,907

34% 7

8

Axis Bank Banks

2,494

 New New

9

Kotak Mahindra Bank Banks

2,394

39% 9

10

Maruti Suzuki Automobiles

2,318

54% 11

11

Idea Telecoms

1,981

5% 8

12

Castrol Lubricants

1,773

40% 15

13

IndusInd Bank Banks

1,542

46% 19

14

McDowell’s Alcohol

1,516

9% 13

15

Nestlé Food/dairy

1,498

22% 16

Key highlights of the 2015 BrandZ Top 50 Most Valuable Indian Brands study include:

  • Financial brands continue to dominate.With 13 brands in the Top 50, accounting for 41% of its value ($38.1bn), the financial sector has built brand strength by making a consistent effort to serve consumers better. Biggest risers: Union Bank of India (no.46, +72%), Punjab National Bank (no.22, +61%) and IndusInd Bank (no.13, +46%).
  • Home and personal care brands grew 32%, driven byincreased disposable income and spending on premium products, and investment by marketers across traditional and new media. These 12 brandshold 15% ($13.4bn) of the ranking’s total brand value. Fastest risers: Lakme (no.44, +69%), Lifebuoy (no.31, +49%) and Colgate (no.26, +44%).
  • Purpose is power. Indian consumers expect brands to actively participate in building a better society, and those that do have a higher brand value. Lifebuoy (no.31) has a social mission to change consumers’ hygiene behaviour, while Asian Paints (no.5) aspires to rejuvenate people’s living spaces and bring joy to their lives.
  • Indian consumers trust brands.In stark contrast with other markets, trust in brands is growing steadily. Consumers in Indiaappreciate brands, and 33% say they trust them. Among the most trusted are jeweller Tanishq (no.21), part of the respected Tata conglomerate, and Colgate, which is part of Indian folklore, and has been instrumental in organising dental check-up camps to raise dental hygiene awareness.
  • All four new entrants are of Indian origin – Axis Bank, Canara Bank, MRF (tyres) and Royal Enfield. Three are privately owned, and one is an SOE.
  • Disruption is on the horizon – from e-commerce and mobile brands that are building scale and connecting with consumers at a frenetic pace. These are not yet eligible to be ranked in theTop 50because they are not publicly traded.

David Roth, CEO of WPP’s The Store commented: “The 2015 study shows that India is a market of great opportunities where consumers are feelingempowered, and this is increasingly reflected in their brand choices. The new Modi government is committed to creating an environment in which brands can flourish. India is distinct in many ways from other fast-growing markets, however, so simply applying strategies that have proved successful elsewhere will not work in India. Any brand intending to compete in India must gain deep insights into its nuances – such as the need to modernise while respecting the past, and the desire to remain fundamentally Indian.”

 

Added Prasun Basu, Millward Brown’s Managing Director, South Asia:“India’s top brands are strong, and getting stronger – but there is no room for complacence. The top four had to grow their value by 37% on average to hold on to the same positions as last year, and close to 10% of the brands that made the Top 50 in 2014 have dropped out. To benefit from the continuing rise in consumer confidence and optimism brands need to understand the changing consumer, respond with innovative products and breakthrough communication, and experiment and invest in new media that reflect the spirit of the country today.”

 

Said Ranjan Kapur, Country Manager, WPP India: “Building a successful brand in India also means helping to build India itself. Consumers are trustful of brands, but trust can crumbleovernight. Brands must work hard to sustain trust by connecting with thecountry’s communal sense of responsibility. Brands need to find ways to support the national agenda, and help to develop a more modern, prosperous and equitable society.”

 

The BrandZ Top 50 Most Valuable Indian Brands 2015 report, charts and photography, can be downloaded from www.brandz.com.

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