Brand Value

Titans of Daily Life Lead National Ranking

The majority of the brand value of the BrandZ™ Top 50 Most Valuable Indonesian Brands comes from just a handful of megabrands that are leaders in their field. For the third year running, more than 55 percent of the entire Top 50’s value is derived from just five brands, and three of these are banks.

This concentration of value at the top of the ranking – and within just one key business sector – is not unusual for fast-developing markets. The Top 5 brands in Indonesia this year are the bank BCA, telecom provider Telkomsel, A Mild cigarettes, and the banks BRI and Mandiri.

Property developers also feature heavily in the Indonesian Top 50, along with telecommunications networks and entertainment providers. This is a theme we see recurring is high-growth markets; infrastructure brands that are crucial to how an economy develops tend to perform strongly. At the same time, much-loved and frequently bought brands that play a small but important role in daily life also do well, and we see this year that noodle and cooking sauce brands appear in the Top 20, and skin care, soap and shampoo brands feature heavily in the Top 50. Together, the brands in the ranking provide a slice of life in modern-day Indonesia: growth and development, supported by pride in a rich local heritage.

What is unique in Indonesia is the prevalence of tobacco brands in the Top 50. This is not just because this is a market with a high proportion of smokers, although this is the case, with more than half of adults smoking regularly. It is also one of the most liberal markets when it comes to cigarette advertising, even as restrictions on what can be shown and at what times of day become tighter to try to reduce rates of smoking.



Ways to Win

Businesses that nurture the value of their brand in the long term tend to outperform those that don’t. Measurement of brands both in Indonesia and in markets around the world shows that, in tough times, strong brands tend to be more resistant to a downturn and, when market conditions pick up, they recover faster than the competition.

One of the key ingredients in any strong brand is meaningful diff erence. Being different to other brands in a given category is part of this, but that diff erence must be relevant both to the brand itself and make an emotional connection with the consumer. Meaningful diff erence helps a brand generate value that goes beyond its fi nancial strength. Brands that have strong meaningful diff erence don’t just make good products or provide great value for money – they do something that resonates with consumers’ lives, with a mission that goes beyond the product they sell or even the category in which they operate.

In Indonesia, FMCG brands tend to be strong in this area, meeting a functional need but also making people feel great. Of the 10 Indonesian brands with the closest consumer connection, six are FMCG brands. The 10 most meaningfully diff erent brands in the Indonesian Top 50 are: Indomie, SariWangi, Pepsodent, Garuda, Aqua, Rinso, Bango, Telkomsel, Matahari and BCA.

Over the past three years, the brands that have rated highly for meaningful diff erence have grown their brand value by 10 percent, while those with lower than- average scores for meaningful diff erence have actually lost 3 percent of their brand value.

BrandZ Indonesia Top 50 2017

BrandZ Indonesian 2017 Report Top 50 Report

Top 50 Chart

Top 50 Infographic

Report Flipbook

Methodology and valuation by Millward Brown

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