The 2nd annual ranking and report of the BrandZ Top 50 Most Valuable Indian Brands by WPP and Millward Brown shows a rise of 33 per cent in value, a rate that exceeds the growth of the Global Top 100 for every year since the rankings were launched a decade ago.
This growth rate illustrates the overall strength of the Indian market, with a GDP growth of 7.5 per cent, faster than any other major market worldwide. It also points to the particular strength of the financial sector, banks and insurance brands, which increased 49 per cent in brand value year-on-year.
Speaking on the occasion of the launch of the BrandZ Top 50 Most Valuable Indian Brands report, CVL Srinivas, CEO, GroupM South Asia pointed out this rise in value of brands in India saying, “In the one year period between August 2014 and July 2015, the BSE Sensex went up by 1.5 per cent. But if you make a portfolio of the Top 50 brands in India, that portfolio went up by 18.6 per cent, which is more than a 10x growth over the BSE Sensex in that one year period. To take a slightly wider timeframe from May 2009 and May 2014, the BSE Sensex went up by 74 per cent, but as per the Millward Brown study, the BrandZ Top 50 total went up by 201 per cent. So even if you take a wider timeframe there’s a massive increase in value for companies that have invested in brands.”
Srinivas went on to explain the need for a study like BrandZ. “It is attempt from the WPP Group to bring out the importance of investing in brands. No other study combines financial and market data and also considers the future growth prospects of brands. It looks at it from all three dimensions and comes out with a ranking of the Top 50 brands. In that sense, it’s a very unique study.”
With the digital explosion marketers have been dealt with a number of challenges over the past few years. Srinivas recommends seeing them as opportunities to improve the marketing main frame.
“There’s a huge disruption being caused in our world which is redefining the role of older brands. Today we are seeing a lot of established brands from the FMCG category coming out with newer dimensions and coming out with e-commerce platforms. This disruption by digital is also creating a lot of new brands, from Flipkart and Snapdeal which are the e-commerce 1.0 to the Paytm and PayU which are e-commerce 2.0, to all the new services being launched now. The consumers today are evolved to such an extent that they have data that is available to them in real time 24/7. So it’s a challenge for brands to always stay a step ahead of their consumers who are so full of information and know exactly what’s happening to brands and categories around the globe through a click on their phones,” he mentioned.
So how does one keep pace and provide the right service to the consumer?
“The big challenge and opportunity is the fact that there is an explosion of data which you have on tap and can use not only to plan your campaign but to design your products and services.
“Our ecosystem is getting very fragmented. On one hand there is confusion and fear and on the other hand there are marketers who invest in studies like BrandZ and can reap the benefits from analysing data and trends and trying to be on top of them,” said Srinivas.
He is of the view that while brands in India have seen a sizeable growth, they still have a long way to go in reaching global heights. “I still feel that as a growing economy, India is under-branded. Also when you study the ad spends in India in relation to GDP, the ratio is 05-0.75 which is very low. Globally that number is between 1 and 1.5,” Srinivas pointed out.