Mumbai: The overall value of top 50 brands in the country witnessed a marginal dip of 2 percent this year, almost entirely driven by the decline in brand value of state-owned banks, according to a recent study.
However, the brand value of India's top 50 brands has increased by 30 percent over the last three years, as per the
BrandZ study conducted by research agency Millward Brown and commissioned by WPP, which was released on Wednesday.
The total value of the country's top 50 brands stood at $90.5 billion from $92.2 billion in 2015.
"The 2 percent adjustment is primarily attributable to state-owned banks, which declined 33 percent in brand
value because of loan performance difficulties. With the same state-owned banks removed from the 2015 and 2016 rankings, the value of the India BrandZ Top 50 actually rose 2 percent year on year," it said.
Private sector lender HDFC Bank topped the rankings for the third consecutive year with a brand value of $14.4
billion, following a 15 percent growth over last year. Telecom major Airtel and the country's largest lender
State Bank of India retained the second and third spot, respectively. Asian Paints was placed at fourth, followed by ICICI Bank, Bajaj Auto, Kotak Mahindra Bank, Maruti Suzuki, Hero and Axis Bank in that order.
The list is dominated by banks and financial companies, accounting for 38 percent of the total value of the top 50
Retail and aviation brands have entered the top 50 for the first time with Indigo (26) and Jet Airways (36) representing the airline industry while Reliance Retail secured the 50th position. The study covered 60,000 consumers with over 600 brands across 50 categories in the country.
"Over the past year, brands have had to work hard to hold on to their position in the top 50. 20 brands have
witnessed a drop in their ranking within the top 50. Brands which have managed to sustain their ranking over the past two years have only been able to do so by increasing their brand value by over 35 per cent," Kantar Millward Brown South Asia Managing Director Dinesh Kapoor told reporters.
The study claimed that people who invested in these top 50 brands over a two-year period, would have earned a better return than the ones who invested in Sensex companies.
An investment of $1,000 in BrandZ India top 50 companies in 2014 would have yielded USD 1,108, the study
claimed. In comparison, the same amount invested in Sensex companies would have returned USD 965.
"The stock portfolio of the BrandZ Top 50 most valuable brands increased 10.8 percent in value between
August 2014 and August 2016, while over the same 24-month period, India's Sensex, a weighted index of 30 stocks on
Bombay Stock Exchange, declined 3.5 per cent," the study said.
The number of Indian origin brands increased to 38 in 2016 from 35 in 2014.
"There is a huge potential for Indian brands to become strong regional brands or even global brands. If you look at
the top 100 global brands, there is one Indian brand compared to 14-15 Chinese brands. Indian brands are under-represented. In another 5-10 years, we should see a number of Indian brands becoming contenders at global level," The Store WPP Chief Executive Officer for Europe, Middle East, Africa and Asia David Roth said.
The study noted that consumers are becoming less loyal to brands and the key driver for that is technology. "Access to the Internet and increased mobile penetration has seen the aspirational gap and purchasing patterns between rural and urban Indians narrowing. Mobile has become an enormous social and demographic equaliser," Kantar Insights
South Asia CEO Preeti Reddy said.
"It is changing the consumer-brand relationship. Consumers are empowered and more informed. They are actively
participating rather than passively listening and are willing to trade up and select quality over quantity," Reddy added.
First Published On : Sep 22, 2016 08:29 IST