 "Seven of the top 10 brands come from services sector: study")
HDFC Bank, Airtel and State Bank of India have aced BrandZ’s 50 most valuable Indian brand rankings.
HDFC Bank leads the list with a value of $9.4 billion, while Airtel has been valued at $8.2 billion and SBI at $6.8 billion (see chart). The complete value of the top 50 valuable Indian brands reached almost $70 billion, according to the study.
BrandZ, a WPP property, takes into account only business-to-consumer brands of the listed companies and has interviewed 25,000 consumers in India about 500 brands and 37 categories. The survey also included only those companies which have reported positive earnings. In the case of banks, at least 25% of revenue has to come from retail business.
“India is an under-branded, under-advertised market. But I expect Indian brands and advertisement to do well next year with the economy picking up pace,” said Martin Sorrell, CEO of WPP group. The survey has been carried out by marketing and brand consultancy, Millward Brown in association with WPP. “Most of the other brand studies lack vigour and credibility as compared to BrandZ survey,” Sorrell said, taking a swipe at rival rankings.
The survey revealed that services businesses like banking, telecom and insurance, which are the nerve centre of today’s Indian economy, are prominent in the ranking. Seven of the top 10 brands, and 30 per cent of the top 50 brands came from the services sector. Similarly, financial services, most of which were launched after the Indian economy opened up, stands out with 12 banks and insurers in the ranking, holding the largest proportion of 37% of the total brand value.
One of India's well-known brand "Tata" was, however, missing in the list as the holding company Tata Sons is not listed, though Tata Motors made it to the list.
The analysis shows these brands have built value by successfully achieving scale – both in geographical reach and the diversity of their offerings. Telecom, personal care, and the food and dairy sectors also feature in the Top 50. The data show that these brands – along with the other consumer products brands in the ranking – excel at connecting with Indian consumers.
Unlike China, where the state owned companies dominate the rankings, in India, it’s the private brands which comprise 86 per cent of the top 50 brands. Indian entrepreneurs and family conglomerates own over half of the private brands while others are owned by the MNCs.
Interestingly, younger brands (post liberalisation) tend to be banks and telecoms that rapidly achieved scale and enjoy high market value. Older brands are often well known, FMCG brands.
In a note, Brandz said digital advertising investment was expected to grow by 35% in 2014, following a 30% increase a year earlier. This growth would give digital just under 8% of total media spending. Digital is already is the third highest media sector investment, less than TV and print but higher than out of home, radio and cinema advertising.
The study said print was expected to claim a strong 38% of the total media spend in 2014, down from 53% in 2005. Total media spending is expected to touch Rs 43,060 crore in 2014, up from Rs 38,600 crore in 2013 and from only Rs 15,633 crore in 2005.
Interestingly, there are no home-grown consumer technology brands like Apple or Dell 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. “We are already seeing the impact of the purchasing power of the internet and mobile users in India, with the exponential growth of e-commerce companies in the space of travel, e-tailing, ticketing and many main line brands increasing their brand building budgets to digital media in multiples,” said CVL Srinivas, CEO GroupM – South Asia.
The survey also says that many successful international brands in the ranking have taken the time to understand Indian needs and tastes and adapt to them. For example, Maggi, Colgate and Horlicks are masters at this – and are thought of as Indian brands by most consumers.
HDFC Bank leads the list with a value of $9.4 billion, while Airtel has been valued at $8.2 billion and SBI at $6.8 billion (see chart). The complete value of the top 50 valuable Indian brands reached almost $70 billion, according to the study.
BrandZ, a WPP property, takes into account only business-to-consumer brands of the listed companies and has interviewed 25,000 consumers in India about 500 brands and 37 categories. The survey also included only those companies which have reported positive earnings. In the case of banks, at least 25% of revenue has to come from retail business.
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The average 'brand contribution’ (a measure of the impact brand alone has on value) of the top five 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 survey revealed that the top five brands account for 45% of the total value of the top 50 or about $31 billion.
“India is an under-branded, under-advertised market. But I expect Indian brands and advertisement to do well next year with the economy picking up pace,” said Martin Sorrell, CEO of WPP group. The survey has been carried out by marketing and brand consultancy, Millward Brown in association with WPP. “Most of the other brand studies lack vigour and credibility as compared to BrandZ survey,” Sorrell said, taking a swipe at rival rankings.
The survey revealed that services businesses like banking, telecom and insurance, which are the nerve centre of today’s Indian economy, are prominent in the ranking. Seven of the top 10 brands, and 30 per cent of the top 50 brands came from the services sector. Similarly, financial services, most of which were launched after the Indian economy opened up, stands out with 12 banks and insurers in the ranking, holding the largest proportion of 37% of the total brand value.
| Rank 2014 | Brand | Brand Value 2014 (US$m) |
| 1 | HDFC Bank | 9,425 |
| 2 | Airtel | 8,217 |
| 3 | State Bank of India | 6,828 |
| 4 | ICICI Bank | 3,536 |
| 5 | Bajaj Auto | 3,034 |
| 6 | Asian Paints | 2,812 |
| 7 | Hero MotoCorp | 2,164 |
| 8 | Idea | 1,882 |
| 9 | Kotak Mahindra Bank | 1,721 |
| 10 | Reliance Communications | 1,636 |
One of India's well-known brand "Tata" was, however, missing in the list as the holding company Tata Sons is not listed, though Tata Motors made it to the list.
The analysis shows these brands have built value by successfully achieving scale – both in geographical reach and the diversity of their offerings. Telecom, personal care, and the food and dairy sectors also feature in the Top 50. The data show that these brands – along with the other consumer products brands in the ranking – excel at connecting with Indian consumers.
Unlike China, where the state owned companies dominate the rankings, in India, it’s the private brands which comprise 86 per cent of the top 50 brands. Indian entrepreneurs and family conglomerates own over half of the private brands while others are owned by the MNCs.
Interestingly, younger brands (post liberalisation) tend to be banks and telecoms that rapidly achieved scale and enjoy high market value. Older brands are often well known, FMCG brands.
In a note, Brandz said digital advertising investment was expected to grow by 35% in 2014, following a 30% increase a year earlier. This growth would give digital just under 8% of total media spending. Digital is already is the third highest media sector investment, less than TV and print but higher than out of home, radio and cinema advertising.
The study said print was expected to claim a strong 38% of the total media spend in 2014, down from 53% in 2005. Total media spending is expected to touch Rs 43,060 crore in 2014, up from Rs 38,600 crore in 2013 and from only Rs 15,633 crore in 2005.
Interestingly, there are no home-grown consumer technology brands like Apple or Dell 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. “We are already seeing the impact of the purchasing power of the internet and mobile users in India, with the exponential growth of e-commerce companies in the space of travel, e-tailing, ticketing and many main line brands increasing their brand building budgets to digital media in multiples,” said CVL Srinivas, CEO GroupM – South Asia.
The survey also says that many successful international brands in the ranking have taken the time to understand Indian needs and tastes and adapt to them. For example, Maggi, Colgate and Horlicks are masters at this – and are thought of as Indian brands by most consumers.