India’s five-year brand value growth stronger than BrandZ Chinese and Global rankings
In their strongest year yet, the collective value of India’s Top 50 brands grew 34%. WPP and Kantar Millward Brown's BrandZ Most Valuable Indian Brands analysis reveals brand value was boosted by rising consumer confidence, the country’s return to rapid economic growth and consumers becoming increasingly brand aware. Since its launch five years ago, the total value of the BrandZ Top 50 Indian brands grew 110% to $146.1 billion. This compares to a rise of 76% for the BrandZ Top 50 Chinese brands and 60% for the BrandZ Global Top 50over the same period. HDFC Bank has retained its No. 1 spot for the fifth consecutive year with a rise of 21% to a brand value of $21.7 billion.The bankhas built a reputation for its sustainable livelihoodinitiative by introducing smaller loans worth as little as $175 that canbe accessed via its bank branches. Trust is an important key driver of brand value, with its impact on corporate performance a key theme in this year’s BrandZ ranking. This is exemplified by HDFC Bank, which continued to build trust by clearly communicating the benefits of its products to consumers and delivering differentiated financial services offerings consistently and repeatedly. Rapidly evolving marketplace and new brands The new 2018 ranking has grown from 50 to 75 brands to reflect the strength of India’s growing economy and a marketplace in which more local brands are emerging to present consumers with increased choice. For the first time, the ranking also incorporates brands from key and growing sectors such astechnology (IT services), technology (online); durables and home appliances, tobacco, and entertainment (TV stations).Privately owned brands, where financial information is publicly available, and unicorn brands based on their most recent valuations are also now included. The BrandZ™ Top 10 Most Valuable Indian Brands 2018Rank 2018 | Brand | Category | Brand value 2018 (US$M) | Change |
1 | HDFC Bank | Banks | 21,679 | +21% |
2 | LIC | Insurance | 19,823 | New entrant |
3 | Tata Consultancy Services | Technology | 14,995 | New entrant |
4 | Airtel | Telecom Providers | 11,461 | +12% |
5 | State Bank of India | Banks | 7,860 | -6% |
6 | Maruti Suzuki | Automobiles | 6,938 | +56% |
7 | Kotak Mahindra Bank | Banks | 6,669 | +47% |
8 | Asian Paints | Paints | 6,116 | +30% |
9 | ICICI Bank | Banks | 4,867 | +4% |
10 | Jio | Telecom Providers | 4,090 | +68% |
- There are 30 newcomers in the expanded ranking: These include Jio, Flipkart and Paytm, which have all seen growth in brand value, as well as Ola (No.21, $2.7 billion) and travel agency MakeMyTrip (No. 68, $0.8 billion).
- Family dispersion is creating new brand opportunities:With young professionals moving to cities for work, there are openings for brands to offernewservices. For example video calls are hugely popular, and have been made feasible for many people through Jio reducing the cost of data. Paytm and the advent of digital banking allow instant money transfers from family members working in the city to their relatives in rural areas. E-commerce brands are riding the boom in gifting, particularly during national festivals.
- India’s most valuable brands are outperforming the market: BrandZ’s Top 50 Portfolio has beaten India’s SENSEX stockmarket index.The stock portfolio of the India Top 50 increased 39.2% over five years, while the India’s SENSEX rose only 21.4%.
- Automobile and insurance brands lead the growth chart: Four of the Top 10 Risers (brands with the greatest year-on-year value increase in relative terms) are in the automobiles and insurance categories. Auto brands TVS and Maruti Suzuki rose 71% and 56% respectively, with this sector representative of the overall economic growth in India following several consecutive good harvestsdriving strong rural demand.Insurance brands ICICI Prudential (50%) and Bajaj Allianz (49%)led the way as the sector responds to increasing competition including a government-backed life insurance scheme.
- Financial services (banking and insurance) is the most valuable category: There are eight bank brands in the ranking worth a total of $50.4 billion, followed by insurance, where the five brands included are worth a total of $25.9 billion. Together they make up 35% of the total ranking value.