Findings and analysis frame opportunities and challenges
India Top 50 reaches US$ 70 billion in value
The combined value of the BrandZ™ Top 50 Most Valuable Indian Brands reached almost US$ 70 billion.
Brand equity is strong
In creating a consumer predisposition to purchase, Indian brands performed better than comparable brands in Brazil or China, and equal to the top brands globally. In the BrandZ™ Power Index, a brand equity measurement, the India Top 50 scored 222, compared with a 221 score for the Global Top 50. The average score for all brands worldwide is 100.
Mega brands dominate
The Top 5 brands account for 45 percent of the total value of the BrandZ™ India Top 50, or US$ 31 billion. This concentration of value at the top of the ranking is similar to other BRIC markets. In contrast, the Top 5 brands in the Global Top 50 account for only about a quarter of the ranking’s total value.
Financial services sector leads in brands represented
Financial service brands – banks and insurance companies – represent almost a quarter of the brands ranked in the BrandZ™ India Top 50. That level of representation exceeds the proportion of financial services brands in the BrandZ™ Brazil and China rankings, and is equivalent to the Global Top 100. Financial service brands are typically well represented in BrandZ™ rankings because the sector is fundamental to economic health.
Banks are the most prominent category
Banks are the most prominent category in the BrandZ™ India Top 50, both in number of brands and total brand value. Ten banks account for 35.8 percent of the brand value of the Top 50.
HDFC Bank ranked most valuable brand
With a brand value of US$ 9.4 billion, HDFC Bank is India’s most valuable brand. When established in 1994, following India’s financial reform, HDFC Bank became one of India’s first private banks.
Telecoms exhibit high brand value
With only three brands in the BrandZ™ India Top 50, telecoms are number two in total brand value, making up 16.9 percent of the ranking’s total brand value.
Airtel ranked second most valuable brand
Ranked the second most valuable brand in the BrandZ™ India Top 50, with a brand value of US$ 8.2 billion, Airtel is part of Bharti Enterprises, an Indian family conglomerate, and operates in 20 countries.
FMCG brands lead in brand contribution
Nine of the Top 10 brands in brand contribution are from FMCG categories. A BrandZ™ metric, brand contribution measures the impact of brand alone on earnings. The result reflects that India has long been is a hospitable market for brands. Many FMCG brands started before India’s independence in 1947. They’ve flourished in a democratic and relatively open market economy.
Food and dairy, and personal care brands are well represented
Food and dairy, and personal care brands each comprise 14 percent of the brands in the BrandZ™ India Top 50. That’s a high level of representation relative to other BRICs. Personal care comprises only 2 percent of the brands ranked in the Brazil Top 50 and China Top 100. The contrast suggests strong Indian interest in personal care. The food and dairy representation in part indicates MNC (Multinational Corporation) success in introducing and developing FMCG brands.
Most of the BrandZ™ India Top 50 brands are private
Unlike China, where SOEs (State Owned Enterprises) dominate the BrandZ™ ranking of most valuable brands, private brands comprise 86 percent of the BrandZ™ India Top 50. Indian entrepreneurs and Indian family conglomerates together own over half of the private brands. Others are owned by MNCs. Both the conglomerates and the MNCs have effectively leveraged significant resources and world-class marketing expertise to build scale and develop meaningful brands.
Master brands exert influence
The Indian family conglomerates have developed powerful master brands that confer trust and authority across categories while simultaneously accruing economies. Unlike many conglomerates, they’ve built brand equity across disparate categories. And unlike many family businesses, they’ve established continuity of mission and competence in successive generations.
Brand age tells a lot in India
You can tell a lot about a brand by its age in India. The younger brands tend to be banks or telecoms that rapidly achieved scale since market liberalization in the 1990s. They enjoy high market value and salience but consumers are less likely to see them as meaningfully different. Older brands, formed before liberalization, and even before Indian independence, in 1947, often are well known and appreciated FMCG brands. Some started originally in India, while others were established elsewhere and introduced in India by MNCs.
Top 50 brands seen as entrepreneurial
In a BrandZ™ brand personality analysis, the characteristic “adventurous” distinguished the India Top 50 from the Brazil, China and Global Top 50, suggesting that leading Indian brands are viewed as more entrepreneurial.