HDFC Bank tops BrandZ Top 75 ranking for 7th straight year

The report released by WPP & Kantar said that the total value of the BrandZ India Top 75 fell by 6 per cent in 2020, shedding $13 billion in value for a total brand value of $215.608 billion

e4m by Dipali Banka
Updated: Sep 18, 2020 6:14 PM
brandz

For the seventh straight year, HDFC Bank remained the top-ranked brand in India with a total brand value of more than $20.2 billion, according to the 2020 BrandZ Top 75 Most Valuable Indian Brands ranking released by WPP and Kantar. According to the report, the total value of the BrandZ India Top 75 fell by 6 per cent in 2020, shedding $13 billion in value for a total brand value of $215.608 billion. 

Explaining context behind the de-growth of India Index, David Roth, CEO of The Store WPP, EMEA and Asia and Chairman of BrandZ, said: “Brands globally are being tested by the pandemic, especially in countries such as India where the economy was slowing down prior to COVID-19. Also, the global index is dominated by technology companies which have served well during these times and hence taking up the global index.”Taking up social cause and being agile to pivot in these trying times were cited as other learnings of global brands that Indian companies can pick up, added Roth. 

As per the report, 57% brands have declined in brand value in 2020, 35% of brands have grown in value in and only 11 brands have grown consistently in the last 5 years. Despite the overall decline in brand value of the Top 75, 26 brands increased in value and five were new entrants. 

Retail and telecom brands outperformed most other categories. Reliance Retail (+102%, no. 25, $2.3 billion) was the fastest riser this year, up 30 places, with telecom brand Jio (no. 7, $6.9 billion) contributing to the overall success of the parent company. Online retail brands, Flipkart (no. 8, +40%, $6.5 billion) and D-Mart (no. 16, +38%, $3.3 billion) also saw their brand value increase significantly, while instant food brand Maggi (no. 23, $2.5 billion) had one of the highest brand value growth figures (46%) this year. 

Talking about the performance of retail, telecom and DMCF brands, Preeti Reddy, CEO - South Asia, Insights Division, Kantar said: “The performance of retail, telecom and FMCG brands has shown that being agile in times of crisis is critical for growth. Brands need to constantly innovate in order to survive and re-purpose themselves for the future, or risk being left behind. Those brands who continue to drive transformation, not just digitally, but in the total experience they deliver to meet consumer needs, will create opportunities to increase their value in the future.” 

Airtel (no.4, +36%, $13.9 billion) was the top telecom brand, while Jio saw its value increase 26%. One of five new entrants, BSNL (no. 75, $583 million) also benefitted from the overall uplift in the telecom category, which contributed $25.5 billion to the ranking this year.

Other key trends in the BrandZ™ Top 75 Most Valuable Indian Brands Ranking, include:

  • The ‘lipstick effect’: Newcomers included personal care brands, Dove (no. 61, $847 million) and Close Up (no. 69, $663 million), which benefitted as consumers, unable to spend on luxury items, such as holidays during an economic downturn, treated themselves to small luxury personal care items
  • Trusted brands have weathered the crisis better than brands with a low trust index. In a category where it is difficult to gain consumer trust, Airtel bet on its brand strategy of being open and transparent. It is now one of India’s most trusted brands and grew 36% in its brand value over the past year
  • Innovation keeps it fresh: Despite the paints industry struggling in India, top 5 brand Asian Paints (no. 5, $8.0 billion), grew its brand value by 14%, by focusing on meaningful difference, communications and innovation. The market leader, it has successfully brought out new products, while building a strong distribution network and raising its profile among key influencers like architects and professional painters
  • Brands with a strong purpose drive growth, particularly during challenging times. BrandZ analysis shows that consumer expectations of brands to act more responsibly have tripled in the last 10 years and this year’s ranking demonstrates that Indian companies are striving to deliver better products and services, which contribute positively to people’s lives, the environment and wider communities.

 Talking about the theme of the report, CVL Srinivas - Country Manager WPP, India said, “This year’s theme is ‘Repurposing Brands for the Future’. Some key pillars we’ve defined and have explored in the 2020 report are – Transformation, not just digital but in how we do business; Agility and flexibility as a business model -- the ability to tackle unforeseen challenges (like COVID); Role of Sustainability and shift of brand from the individual to the societal; Growing with less: creating demand, value re-engineering; Building Trust in a socially distant world and Importance and role of Empathy in brand communication/ proposition”               

Commissioned by WPP, the valuation behind the BrandZ™ Top 75 Most Valuable Indian Brands was conducted by brand equity research experts Kantar. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its 15th year.

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