Value is concentrated at the top, similar to other BRIC markets
The value of the BrandZ™ Top 50 Most Valuable Indian Brands 2014 is concentrated at the top of the ranking, among a limited number of categories.
Two categories – banks and telecoms – comprise more than half of the brand value of the India Top 50. Banks are the most represented category, with 10 brands. Only three telecom brands appear in the Top 50, but they’re highly valued and each ranks in the Top 10.
The Top 5 brands alone – three banks, a telecom, and an automobile brand – produce 45 percent of the Top 50’s total value. The brands are HDFC Bank, State Bank of India, and ICICI Bank, along with Airtel and Bajaj Auto.
In counterpoint to the concentration of value and the limited number of categories at the top of the Indian ranking, the rest of the Top 50 is more category diverse, with food and dairy, personal care, and home care also well represented.
The value of bank, telecom, and automobile brands results from a couple of factors. Market liberalization, particularly changes enacted in 1991, encouraged more private ownership and resulted in new brands. Heritage and consumer appeal drove growth of existing brands.
For example, Punjab National Bank opened in 1895. After several changes in ownership and brand name, the current State Bank of India was established in 1955. Bajaj Auto was formed in 1959. Tata Motors began in 1945.
Brand value is concentrated at the top of the India Top 50...
The Top 5 brands account for 45 percent of the total value of the India BrandZ™ Top 50.
...Banks dominate in value, number of brands
Banks are the most prominent category in the BrandZ™ India Top 50, both in brand value and number of brands.
Value concentration consistent with other BRICs
The concentration of brand value at the top of the BrandZ™ India Top 50 is consistent with the results in other BRIC markets. In fact, the Indian market, with the Top 5 brands representing 45 percent of total Top 50 value, is somewhat less concentrated than Brazil (48 percent) and China (50 percent). In contrast, only 27 percent of total brand power is concentrated in the Top 5 brands in the BrandZ™ Global Top 50.
The dominance of banks in the India Top 50 is also consistent with BrandZ™ rankings across other BRIC markets, where the number of financial services brands exceeds other categories.
The concentration of brand power is consistent across the BRICs...
The Top 5 brands of the BrandZ™ Indian Top 50 account for 45 percent of total value, which makes brand power in India a bit less concentrated than in other BRICs.
Financial services dominates in number of brands ranked
Financial services brands comprise 24 percent of the brands ranked in the BrandZ™ Indian Top 50 compared with Latam (26 percent), and Brazil (12 percent) in other BrandZ™ Top 50 studies. Financial services brands comprise 15 percent of the China Top 100 and 23 percent of the Global Top 100.
Similar to other BRIC markets, India also has a strong telecoms category. Unlike other BRIC markets, the Indian automobile category accounts for a significant portion of total brand value. And unlike China, the technology sector does not account for a high proportion of brand value in India.
Several factors account for this technology finding, which seems counter intuitive given the large presence of Indian entrepreneurs active in technology worldwide. Most significant, the major global technology players like Google, Facebook, Twitter, and LinkedIn operate without restriction in India, so there is no gap in the market.
Also, during difficult economic times Indian entrepreneurs fulfilled their ambitions outside of India. With economic improvement, Indians are finding greater opportunity at home. Consumer technology brands are rapidly developing, particularly in ecommerce. (These brands are not publicly traded and therefore do not meet the criteria for inclusion in the BrandZ™ India Top 50, although many have achieved high value.)
...Financial services are pivotal in all economies...
In the BrandZ™ Top 50 Most Valuable Indian Brands, as in other BrandZ™
BRIC rankings, the financial services category dominates in the number
of brands represented. Food and dairy and personal care brands also are
well represented in the Indian ranking.
...The value of automobile brands distinguishes India
Unlike other BRIC markets, local automobile brands rank in the India Top 50.
India has no technology brands in its Top 50 ranking, in contrast to China.