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Tag: Kantar BrandZ report

  • Kantar Brandz Report: Tata Consultancy Services retains its crown as India’s most valuable brand

    Kantar Brandz Report: Tata Consultancy Services retains its crown as India’s most valuable brand

    Mumbai: Tata Consultancy Services (TCS) has retained its number one position in the 10th anniversary edition of Kantar BrandZ Top 75 Most Valuable Indian Brands Report for the second consecutive year, with a brand value of US$43 billion. TCS continues to successfully capitalise on global demand for digital transformation, despite a tough year for the business technology category in general. HDFC Bank, Infosys and Airtel also hold on to their top four positions, while State Bank of India rises one place to enter the Top 5.

    India’s Top 75 brands have a combined brand value of $379 billion, a decline of four per cent from 2022 – a modest decrease given the ongoing economic volatility across most of the world. This is testament to Indian brands’ resilience, stability and consistency. The decline has been driven by brands in the Business Technology and Services Platforms category, which have a major presence in international markets, and therefore have been impacted by global pressures, recession threats and geopolitical instability.

    The Automotive category produced the Top 75’s two fastest risers: TVS (No.51; $1.90bn) and Mahindra (No.47; $2.01bn) and achieved the second highest category growth at 19 per cent. India’s automotive brands have quickly responded to changing consumer needs, notably the shift in preference from hatchbacks to SUVs, and the demand for electric vehicles.

    TVS gained 59 per cent in value and leapt 24 places thanks to a number of successful product launches and a 10-year partnership with BMW that gives it leverage in markets such as Europe, the US and Canada. Mahindra, which grew its value by 48%, has made itself incredibly meaningful in Indian consumers’ eyes, and has also significantly boosted its salience.

    The ranking’s 16 Financial Services brands contribute the biggest chunk of its total value. They grew six per cent, thanks to the boom in digital banking, led by Axis Bank (No.17; +28 per cent) and ICICI Bank (No.6; +18 per cent).

    Telecom providers also performed strongly, resulting in a 17 per cent rise in total brand value. Airtel (No.4; +29 per cent) took full advantage of the end of the price wars to focus on what makes it special and relevant to Indian consumers’ lives. This included offering differentiated digital services, such as the Xstream entertainment app and Wynk music app. Airtel has also successfully leveraged the rapidly increasing demand among businesses for data and connectivity related solutions, and digital products that enable the delivery of an enhanced omni-channel customer experience.

    There are four newcomers to the 2023 Indian brand ranking, plus two re-entrants. PhonePe – the highest entry at No.21 – has quickly become India’s leading digital payment app by investing heavily in the strength of its infrastructure, building connections with partner banks, and developing a huge network of merchant acceptance points. Also making their debut are fintech brand Cred (No.48; $2.0bn), photo and video sharing app ShareChat (No.67; $1.33bn) and entertainment platform Star (No.71; $1.30bn).

    2023 is the 10th ranking of India’s most valuable brands, during which time the Top 50 have increased almost fivefold in value, from $69.6bn in 2014 to $339.9bn in 2023. The last decade is a story of strength and resilience: 33 of the brands in the current Top 75 were also in the 2014 ranking. The companies behind India’s most valuable brands have consistently outperformed the key market indices – the SENSEX and the NIFTY50 – with share price growth over 10 years of 99.6 per cent compared with 83.2 per cent and 81.7 per cent respectively.

    Kantar BrandZ Top 10 Most Valuable Indian Brands 2023

    Kantar executive managing director- South Asia, insights division Deepender Rana says, “It has been India’s decade. Our GDP has almost doubled with an 82 per cent growth, while the world GDP has grown at 30 per cent. This delta is even more when it comes to the most valuable Indian brands, which have almost quintupled in value (4.9 times), compared to the most valuable global brands, which have grown by 2.4 times. So Indian brands are significant value creators for our economy. We expect this trend to accelerate in the next decade as Indian brands don’t just thrive in India, but also explore growth overseas in their quest to become true multinational giants. Our IT services brands have already done that, with TCS and Infosys already featuring in the Top 100 Most Valuable Global Brand list. The strongest Indian brands have forged powerful connections by consistently adding value to people’s lives, and consumers see them as different to their rivals in ways that really matter. Brands must keep investing in building equity to create future demand, even as they capture existing demand which requires a better balance between short- and long-term strategy.”

    Kantar managing director & chief client officer- South Asia, insights division Soumya Mohanty added, “There is great diversity within the India Top 75: they are a combination of established names and dynamic young brands, both global and local in footprint. What they have in common is their ability to be essentially Indian. Through a deep and detailed understanding of consumers in the market, and adopting the local culture and ethos, even huge international brands are seen and cherished as ‘homegrown’. The trust and loyalty this engenders has helped Indian brands to suffer less and recover more quickly from the storms that have buffeted them over the past 10 years.”

    Other key highlights from the Kantar BrandZ Most Valuable Indian Brands report include:

    ·         Sustainability credentials have a major influence on consumer decision-making – almost nine per cent of Indian brands’ Demand Power – a Kantar BrandZ measure of the ability to drive predisposition to buy – comes from perceptions around sustainability. However, only 8% of brands in India are seen as leaders in this area, compared to 11 per cent globally, indicating an opportunity for those that can do more.

    ·         Differentiation is key to commanding Pricing Power – the ability to justify price charged. Brands that have grown in both Demand Power and Pricing Power over the last year did so by being Meaningfully Different. There are different routes to being perceived as differentiated: a brand could be seen as distinct, to be a specialist, or to have purpose.

    ·         The strength of the domestic economy has acted like a shield – Overseas contribution for the Top 30 Indian brands accounts for 31 per cent of brand value, compared with 47 per cent for Japan, 59 per cent for the UK, and 85 per cent for France. This has protected the ranking from the worst effects of international volatility. 

  • Tata Consultancy Services is India’s ‘Most Valuable Brand’: Kantar BrandZ report

    Tata Consultancy Services is India’s ‘Most Valuable Brand’: Kantar BrandZ report

    Mumbai: Tata Consultancy Services ($45.5 billion) is the new number one ‘most valuable Indian brand,’ claiming the top spot from HDFC Bank (number two, $ 32.7billlion) which had held the position since the first ranking was unveiled in 2014, as per the latest Kantar BrandZ report on ‘Top 75 Most Valuable Indian Brands.’ TCS’s brand value has been accelerated by global demand for automation and digital transformation following the pandemic.

    India’s strongest brands have bounced back from the pandemic to increase their brand value by a massive 35 per cent CAGR (compound annual growth rate) since 2020, when Covid -19 hit the country, according to the report.

    India’s top 75 brands are worth a combined $393 billion, equivalent to 11 per cent of India’s national GDP. Moreover, the growth rate of the ‘Kantar BrandZ Top 75 Most Valuable Indian Brands’ outpaces the rate of growth being posted in other major markets around the world.

    ‘The Top 10 Most Valuable Indian Brands’ together contribute just over half of the ranking’s total value. There has been significant movement at the top, in addition to the two most valuable brands switching positions. There are two new entrants – Infosys ($29.2 billion) which has rocketed up to the third spot from the 12th position, and ICICI Bank ($11 billion) which has climbed two places to number nine. State Bank of India ($13.6 billion) has also risen four places to sixth position.

    There are brands from 23 different categories in the 2022 Indian Top 75. There are a total of 14 newcomers, from 11 categories – including online gaming, education, apparel and real estate, reflecting the diversity and dynamism of the Indian economy.

    Technology and banking brands account for over half of the total value. Six B2B tech brands and 11 consumer tech brands contribute 35 per cent to the total value of the ranking, reflecting the rise of tech India. Overall, B2B brands (tech and payments) are on average almost three times as valuable as B2C brands, reflecting the fact that many of the B2B brands play on the global stage while B2C are more focused on the domestic market. Six banking brands deliver 19 per cent of the total value. Also notable for their performance are insurance brands, which have performed well as the pandemic increased consumers’ focus on the protection of life and health and telecom providers, led by Airtel (Number four; $17.4 billion) and Jio (Number ten; $10.7 billion), which took full advantage of growth opportunities as everything moved online, from education to work to parties.

    Key newcomers to the ranking include Vodafone Idea (VI) (No.15; $6.5 billion); formed from a merger between VI, Byju’s (No.19: $5.5 billion), the educational technology brand that has become India’s most valuable education brand and Adani Gas (No.21; $4.5 billion).

    Kantar – South Asia’s insights division executive managing director Deepender Rana says, “India’s leading brands have grown at an exceptional rate, despite global economic headwinds, putting the disruption from COVID-19 behind them. Indeed, they have both driven and benefited from the transformation in consumer and business behaviour as a result of Covid-19, especially where it relates to the use of technology. The challenge now is to sustain momentum as inflation bites worldwide and consumers and businesses adjust to the new normal. Brand owners will need to work harder to identify and build on what makes them worth paying for and ensure ROI on their marketing expenditure to avoid a margin squeeze.”

    The pillars of brand building in India

    Kantar BrandZ has identified four fundamentals responsible for powering brand growth: function, convenience, experience and exposure. India differs from other markets around the world, however, in that a brand’s sustainability credentials and purpose matter more.

    Overall, 65 per cent of Indians feel anxious about climate change, and 64 per cent believe businesses must play their part. The highest-ranking brands in the Top 75 are clear on purpose and have a relevant sustainability agenda. These include the services platform Zomato (No.30; $3.1 billion), which offsets the carbon footprint of its deliveries and packaging. Swiggy (No.20; $4.8 billion) elevates the quality of life of consumers with the speedy delivery of meals, groceries and healthy items, as does Flipkart (No.12; $8.9 billion), while also helping smaller local brands to connect with consumers via its platform.

    Kantar’s insights division managing director Soumya Mohanty says: “Purposeful and sustainable brands are rewarded. Indian consumers look further than the brand attributes that affect them personally – they want brands to improve people’s lives and have a positive impact on wider society. They vote with their wallets, choosing brands they see as ‘doing the right thing.’ Indian brands should have a clear view of their purpose, connect strongly with it by embedding it in their culture, talk about it in creative and powerful ways, and deliver on it – without fail.”

    Salience – the ability of brands to spring quickly to mind when a consumer has a need – is also vitally important. India’s Top 10 brands are far more salient than their counterparts in most other countries. However, for growth to be supercharged, brands must have a strong meaning. They should have functional meaning – doing a good job of fulfilling a need – but also a layer of emotional meaning. The Kantar BrandZ India Top 75 far exceeds other Indian brands on all of these vital predictors of success.

    Other key highlights from the analysis include:

    57 of the brands in 2022 Top 75 have been in the ranking since 2018, while 19 have moved up the league table.

    The share prices of companies behind strong brands are protected in a ‘bear’ market and recover more quickly. Between August 2014 and June 2022, the sensex India Index gained 63.8 per cent, while a portfolio of the most valuable Indian brands rose 81.8 per cent.

    There are 11 consumer tech brands in the Top 75, reflecting the increasingly digital way Indian consumers live, which is 11 per cent of the total brand value. The four most valuable brands in this category are Flipkart (No. 12; $8.9 billion), Byju’s (No. 19; $5.5 billion), Swiggy (No. 20; $4.8 billion) and Nykaa (No. 25; $3.7billion).

    Kantar BrandZ Top 10 Most Valuable Indian Brands 2022

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