Drivers of brand value in Indonesia

by Nigel Hollis | August 10, 2016

The BrandZ™ Top 50 Most Valuable Indonesian Brands 2016 was announced  today. The ranking provides some interesting insights into what it takes to grow a strong brand in a developing economy like the Republic of Indonesia.

In this country of 258 million people, just five brands represent 55 percent of the value of the Top 50 brands. As pointed out in the BrandZ report this sort of concentration is not unusual for a developing economy and, in part, reflects the economic importance of banking, telcos and tobacco to the country’s economy. However, there are signs that the dominance of brands like BCA, BRI, A Mild, Telkomsel and Mandiri is waning somewhat as brands in other categories continue to grow their value.

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In addition to business value, the strength of a brand’s relationship with potential consumers also helps determine its place in the BrandZ™  Most Valuable Indonesian Brands Ranking. The strength of the brand is captured in the Brand Contribution score and this year four Indonesian brands attained the maximum Brand Contribution score: the tea brand SariWangi, Indomie noodles, Rinso laundry products and Pepsodent toothpaste.

The strength of these brands points to the importance of time in helping to solidify the standing of a brand in the local culture. All of these brands have had a decades-long presence in the Indonesian market and a strong emotional bond has developed with local consumers. SariWangi tops the Brand Contribution ranking, and the BrandZ report explains why as follows,

“The brand has a deep understanding of the range of tastes people have in different parts of the country, and its product range caters to those regional differences with lines people feel are just for them. Marketing focuses on the role of tea drinking in family togetherness and sharing, but manifests that message in creative ways that go beyond the tired dinner table motif so often called upon by brands in Indonesia. Its letter-writing competition, encouraging family members to share their feelings through letters, has been a national phenomenon.”

SariWangi represents many successful local brands in Indonesia which must balance respect for local values and tradition with innovation and novelty. Number two by Brand Contribution, Indomie noodles is constantly releasing new flavors and variants that are uniquely Indonesian and highlighting them in an emotionally-resonant way through its marketing communications. For international brands the challenge is to match the emotional appeal of local brands by presenting themselves in a way that is both relevant to local needs and resonates with local values and desires. For advice on how brands can best develop a strong relationship with Indonesian consumers check out the 20 takeaways in the BrandZ™ Top 50 Most Valuable Indonesian Brands 2016 report.

So what do you find notable about the BrandZ™ Top 50 Most Valuable Indonesian Brands 2016? Please share your thoughts.

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  1. Jamie Lord, August 11, 2016
    Great insights 

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