Davos 2020: Tata group leads the Indian league of brands in Global 500

11 Indian brands make it to the 2020 Brand Finance list, up from 9 last year; all except Airtel rise up the ranks

The Brand Finance Global 500 released at the World Economic Forum in Davos on Wednesday appears to follow a rather predictable path when it comes to brands and  rankings. Not surprisingly, the Tata group leads the band of Indian brands on the chart, followed by public sector insurer LIC (Rank 2) and Reliance (Rank 3). While the number of Indian brands in the global 500 is up to 11 from 9 last year, the list largely mirrors its past.
 
Globally too the numbers tell a familiar story, Amazon held on to the top spot the third consecutive year in a row and finally beat the $200 billion mark. Google, Apple, Microsoft all made it to the top 10 brands this year, as they had done last year.
 
However, beyond the ranking tables and the billion dollar valuations, a tangle of fault lines reveals itself, as do a few surprises. The combined value of the Brand Finance Global 500 has increased by less than 2 per cent year on year, and while 244 brands have increased their brand value, another 212 are down, including 95 by 10 per cent or more. Telecom brands have seen their valuations drop dramatically, a far cry from the years when the sector was driving up the charts, a trend visible in India too with Airtel dropping more than 40 places on the list. Uber that had once taken the list by storm saw brand values slashed, while eBay almost dropped off the map.
 
In a surprise comeback, Walmart is back in the top 10. Similarly, traditional hoteliers are back in business. Hilton Hotels & Resorts is one of the fastest-growing brands overall and Marriott has also seen substantial growth over the past year. Their pace of brand value growth is comparable to Airbnb’s, while another digital player, Booking.com has lost ground.

The global brand story however belongs to Amazon. Following 18 per cent growth from $187.9 billion last year, Amazon’s brand value is now $220.8 billion, over $60 billion more than Google’s and $80 billion more than Apple’s. David Haigh, CEO of Brand Finance, says, “Amazon continues to impress across imperishable consumer truths: value, convenience, and choice. Today, Amazon’s situation seems more than comfortable, but what will the roaring twenties hold in store?”
 
Brand experts say that Amazon and India will be inextricably linked in the future as the American giant commits a billion dollars in investment in Asia’s third-largest economy. On a visit to India last week, Amazon’s founder Jeff Bezos said that the e-tailer would create one million jobs in India by 2025. It would also double down on its investments in platforms such as Amazon Prime Video and would help digitise small and medium businesses.
 
At a broader level, the brand story in India has followed a predictable path, although it is not isolated from global trends. And in the course of the year, the global challenges faced by Uber and Booking.com among others will play out in the domestic market too. However, among the handful of brands that made it to the list, the pecking order remained unchanged. The Tata group improved its ranking by four places, going up to 85 in 2020 from 89, in 2019. The bulk of its brand value is from TCS (up 5 per cent to $13.5 billion). Among other Indian brands on the list are Infosys, SBI, HDFC Bank, Mahindra Group, Indian Oil (debutante), HCL, Airtel and Wipro (debutante).
 

Off the charts 
 

• 11 Indian brands in Global 500, Tata Group leads with brand value $20 billion 
• Amazon retains title of world’s most valuable brand for third consecutive year 
• The retail story sends out mixed signals as eBay struggles and Walmart re-enters top 10 
• Squeezed by OTT competition and challenger brands, 4 out of 5 telecoms lose brand value. In India, Airtel dropped 46 places to rank at 471 
• Following the largest IPO in history, Saudi Aramco is most valuable new entrant at Rank 24
• Uber’s brand value slashed by one-third, but Tesla races ahead as world’s fastest-growing brand