HDFC, Airtel, SBI most valued brands

Local brand valuations grew faster than global brands; overall top 50 brand value dipped 2% in 2016: BrandZ Top 50 report

Banks and auto brands dominate the list of top 10 of the 50 most valuable brands in India. HDFC Bank held on to the top spot, three years in a row and improved its value by 15 per cent to become the most valued brand at around Rs 84,000 crore. It is also among the top 10 risers for 2016. Airtel and State Bank of India too kept their second and third spots although valuations dropped by 10 and 32 per cent respectively. The third annual BrandZ Top 50 Most Valuable Indian Brands report released today by WPP and Kantar Millward Brown puts the overall value of the top 50 brands at $90.5 billion or Rs 1,30,650 crore. It has gained 30 per cent over three years, but growth eased by 2 per cent in 2016 due to the poor performance by public sector banks.

Local brand valuations grew 32 per cent compared to a mere 19 per cent growth shown by global brands according to the report. Eric Salama, chairman and CEO of Kantar says that this is in keeping with trends worldwide and speed and agility are helping local brands gain the upper hand everywhere. However, customer loyalty is also getting more fragile as brands find it harder to hold on to their ranks. Dinesh Kapoor, Kantar Millward Brown's managing director, South Asia said, "Over the past year, 20 brands have witnessed a drop in their ranking within the top 50."

Four new brands, IndiGo (26), Jet Airways (36), TVS Auto (48) and Reliance Retail (50) joined the league this year, and they all wear the made-in-India label. Interestingly IndiGo, a more recent member of the fraternity outranks experienced Jet Airways by 10 places. Reliance Retail is the first ever retail brand to make it to the list, a signal perhaps, of the resilience of offline retail against e-commerce.

The rise of the local brands is the result of confident Indian consumers making brands more confident. The connect with such brands is very real, often emotional and not always easy to explain in rational terms says Preeti Reddy, CEO South Asia-Insights at Kantar. She points out that in India, brand relationships are being forged on the basis of the experiences offered as is evident in the four new entrants, all being service sector brands.

Customers are more discerning about their wants, not just in urban India. As evidence, the report notes "despite slower FMCG growth, two food and dairy brands grew substantially, in part because they successfully connected with the consumer premiumisation trend. Britannia focused on premium biscuits in smaller packs. Saffola strengthened its leadership in premium cooking oil and increased its oats cereal business."

The category value contribution to the top 50 has shifted away from financial services and telecom providers (declined 10 and 9 per cent in value, respectively) to autos and consumer goods (increases of 8 and 6 per cent, respectively). But financial brands are still the top contributor to the overall valuation matrix.

Brands must have a heart: Eric Salama

Eric Salama, CEO and Preeti Reddy, CEO South Asia-Insights, Kantar say causes and experiences are critical components of the brand-customer relationship today

Is the digital medium driving the message as brands take on social issues with greater frequency?

Eric Salama: No it is more than that. For all brands, purpose is important. Social causes are not just a CSR label. We (as a brand) too realise that we must have a heart.

What explains the growing influence of local brands?

Preeti Reddy: These brands are doing all the right things, in terms of being meaningful, different and salient. The difference is being provided in the entire experience, not just a single product.