Indian brands resilient during global slowdown: Kantar

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.

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 4% from 2022. This is a testament to the Indian brands’ resilience, stability and consistency, the report said. The decline has been mostly for 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%. 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.

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

Telecom providers also performed strongly, resulting in a 17% rise in total brand value.

There are four newcomers to the 2023 Indian brand ranking, plus two re-entrants – PhonePe, Cred, ShareChat and entertainment platform Star.

Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar says: “It has been India’s decade. Our GDP has almost doubled with an 82% growth, while the world GDP has grown at 30%. 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.”

Soumya Mohanty, Managing Director & Chief Client Officer- South Asia, Insights Division, Kantar, 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 9% 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% 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% of brand value, compared with 47% for Japan, 59% for the UK, and 85% for France. This has protected the ranking from the worst effects of international volatility.