Volatile year leads to 4% growth in Top 50
Volatile year leads to 4% growth in Top 50
Top 50 brands worth $84 billion
The Top 50 Most Valuable Brands in Indonesia are worth a combined US$84 billion in 2019. This is 4 percent higher than the value of the 2018 ranking – beating the 3 percent growth of the Jakarta Stock Market over the year – but slower growth than in previous years. There were significant swings in brand value for brands in the Top 50, both up and down, as a volatile year around the world created big winners and losers among brands in Indonesia and beyond.
BCA leads ranking for 5th year running
Bank Central Asia (BCA) has been the most valuable brand in the country since the BrandZ Top 50 ranking launched in Indonesia five years ago. The bank is also now a BrandZ Top 100 Global brand, with a value this year of U$13,050 million, up 3 percent. The brand is more than half a century old but prides itself on innovation, pioneering many aspects of electronic banking, as well as partnering with fintech companies on new cashless ways to pay. Another bank, BRI, consistently finishes second in the Top 50, and is gradually making gains on BCA. BRI’s value is up 17 percent this year; it focuses on retaining the personal touch as banking goes digital.
Big swings reflect year of major market shifts
Changes in values of individual brands in the Top 50 echo what we have seen in other BrandZ markets this year: uncertainty and shifting market trends are creating a landscape in which some brands are able to thrive, while others are having to reappraise their place in consumers’ lives and, often, their entire business model. There were two new entrants to the ranking this year and two that have featured previously but make a return in 2019. Of those that made both the 2018 list and this year’s ranking, 18 grew this year (six of them by 25 percent or more), 13 retained their value from last year, and 21 declined in value by 5 percent or more. The 4 percent overall growth figure is simply the net effect of the big ups and downs across the board.
Rise of tech reflects changing world for brands
Relatively new brands that are shaking up industries with new products and services are leading growth in the Top 50 this year. Travel and transport brands (including airlines) together posted 74 percent growth in value, fueled by powerful digital players such as GOJEK (up 88 percent) and Traveloka (up 111 percent). Retail is also seeing a shake-out due to soaring e-commerce, with Tokopedia the fastest-growing brand this year (up 487 percent), and Bukalapak also up by 30 percent. Tokopedia enters the Top 10 for the first time this year.
Meaning makes the difference
The brands that have grown this year come from a range of product categories; what unites them is that – as well as delivering a good product or service – they stand out from the competition in a way that consumers feel improves their lives, even in a small way. The most meaningful Top 50 brands are worth more than four times other brands in the ranking. Creating the sense that pricing is fair is one way to add meaning, along with engaging communications, giving consumers a feeling of pride to be associated with a brand, and leading a category in such a way that makes consumers want to know what’s coming next. Brands need to “feel right” to consumers in both a rational and emotional way.
Strong brands are built on trust
The need for consumers to trust a brand might be obvious in categories such as food or banking, but BrandZ research shows that the need for trust as a foundation stone to building a strong brand in Indonesia applies to all categories. The most trusted brands in the country are some of the oldest, but new brands also feature, showing that trust can be established quickly when brands consistently set out and deliver on their promises. When consumers feel they’re faced with a difficult choice, opting for the brand they trust most is a frequent response, showing that it pays for brands to give people reason to believe.
Make it happen
Leading Indonesian brands are getting ahead by focusing on being creative, innovative and doing what they say they’re going to do. But the best also deliver an outstanding brand experience. That’s not just when a product or service is used, but at every point a consumer engages with the brand – on the phone to customer service, browsing a web site, opening a parcel or visiting a store or branch. Great experiences might be rooted in convenience, authenticity or even novelty. A positive brand experience correlates with consumers’ likelihood to recommend a brand – endorsement that’s vital in a market as connected to social media as Indonesia.
Brand Indonesia needs a boost
Local consumers have a strong preference for home-grown products in categories such as food, fashion and cosmetics, but they are more likely to opt for an international brand when it comes to buying a car or healthcare product. The Best Countries annual study, conducted by WPP sister agency BAV, shows that consumers around the world state a lower preference for “Made in Indonesia” goods than export figures show they’re actually buying. For local brands with global aspirations, the challenge is to raise the profile of Brand Indonesia, as well as perceptions of quality and credibility.
Key learnings for marketers
Being a household name is not enough
The brands that spring to mind instantly when a consumer thinks of a need or a category tend to be stronger performers than those that are little-known, but it takes more than fame alone to build a strong brand. Brands have to also provide a clear point of difference from alternatives in the category and excel at understanding consumer needs and meeting expectations. Those brands that deliver what we call Meaningful Difference don’t just spring to mind, they come with positive brand associations that lead consumers to opt for one brand over another, again and again.
Honesty is the best policy
It’s essential for brands to have a strong purpose beyond what they produce or deliver every day, and those with purpose generate higher value. That purpose must be more than a PR statement, and it must be evident in every experience a consumer has of a brand. Have a genuine mission to do something for the greater good, articulate that purpose clearly and effectively, and ensure it’s clearly seen as part of the brand’s DNA. Consumers trust brands that keep their promises.
Trust and love are closely linked
The importance of trust is not to be underestimated, and not just because trusted brands tend to be recommended to friends, family and social media followers. There’s a strong correlation between those brands that people trust, and the ones they fall in love with. Love matters not just because every brand wants to be loved, but because love can sustain a brand in the mind of the consumer in the times when it’s not announcing new products and innovations.
Experience is the true consumer test
Brands can talk about their purpose all day long, but if the customer doesn’t feel it when they interact with the brand, then all that talking counts for nothing. Experience is the moment of truth, when consumers are satisfied, delighted or disappointed by how a brand lives up to expectations. Brands in categories that are inherently exciting, like travel and online retail, aren’t the only ones that can deliver an outstanding experience. Banks, food and even toothpaste are all among the country’s leading brands for experience.
A healthy brand means a valuable brand
There’s a strong correlation between the BrandZ measure of good health, what we call vQ, and growing brand value. What makes a brand healthy? A focus on five key attributes: purpose, innovation, communication, experience and love. This year’s Indonesian ranking shows that health isn’t predetermined by the business sector in which a brand operates. The healthiest brands this year are highly diverse – including Indomie and Sariwangi, Traveloka and GOJEK – showing that when brands give themselves a workout, they can build up brand muscle in the right places to deliver value.