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Challenge shifts as market matures

I’m delighted to introduce you to our Top 50 Indonesian Brands ranking and report, in what is shaping up to be quite a year for Indonesia.

As the host nation of the Asian Games, Indonesia has been given an opportunity to show the region just how much it has achieved in recent years. Several world-class infrastructure projects have been completed, standards of living are rising, and there is considerable optimism.

GDP growth is gaining momentum, inflation is steady and – most importantly – there’s a sense that people’s lives are improving, to the extent that the ranks of the middle classes are to reach 53 percent of the population by 2020. In a country of over 65 million, that’s a lot of people, and considerable purchasing power.

This year has also seen national elections and the FIFA World Cup, events that tend to encourage people to go out, feel good and, usually, spend more.

This all points to continued growth. But for brands, the task in Indonesia has changed. Economic opportunism and geographical expansion used to be the key to growth; now, it’s the ability to anticipate changing audience needs and lifestyles, and the ability to innovate.

Brands can no longer ride a wave of organic growth. They must engineer their own expansion.

In this year’s Top 50 Indonesian Brands ranking, we celebrate some of the country’s most innovative brands, several of which are shaping up to be heavy hitters around the region. The growth brands and categories in the ranking this year are those that are rethinking what they do for consumers, and how they do it: technology companies, retailers, financial services providers. These are exciting times to be in business in Indonesia.

What’s also exciting is that there are so many more innovators in the pipeline. We’re now two years in to the government’s “1000 Startup” movement, and larger Indonesian innovators are increasingly winning international attention. Last year alone, there was $4.8 billion of foreign investment in the country’s digital economy.

On the world stage

I am delighted that BCA has this year become the first Indonesian brand to make the BrandZ Top 100 global ranking. This is brilliant news for the country’s most valuable brand, and it has wider implications, announcing as it does Indonesia’s presence at a global level in yet another arena.

BCA, along with the likes of Garuda Indonesia and Indomie, are flying the flag for Indonesian culture and quality, and now they are joined by the new digital innovators. Between them, these brands are all demonstrating what it now means to be “Made in Indonesia”.

We explore the effects of this phenomenon in the “Best Countries” section of this report, which looks at how consumers around the world view Indonesia and the products and services it offers. The research captures the views of ordinary consumers and business leaders on what “Brand Indonesia” represents, and how local brands can use this to their advantage.

Elsewhere in the report, we look at emerging consumer trends that are shaping consumption habits and shopper behaviour, and present insight from across the WPP Group into subjects as varied as the future of shopping, how to respect tradition in a modern world, and how to market to the “mindless scroller”.

 

The global WPP network now extends to 113 markets, and our BrandZ catalogue is expanding all the time. If you enjoy this report, I invite you to browse our long-running Top 100 Most Valuable Global Brands annual study, as well as our rankings and reports into leading brands in the following markets: China, India, the UK, France, Germany, Spain, USA Italy and Australia. All are available from www.BrandZ.com and through our interactive mobile apps, at www.BrandZ.com/mobile.

 

WPP has more than 1,700 talented people working in Indonesia and has been operating in this market for close to 20 years. Our companies work together to provide clients with cutting-edge insights that help position brands for market-beating growth. They provide advertising, marketing, research and PR expertise.

 

To talk to someone about how WPP’s expertise could help your brand, feel free to contact any of the WPP companies who have contributed to this report. I’d also be delighted to hear from you directly.

 

 

Sincerely,

 

 

 

 

David Roth

CEO, The Store WPP, EMEA & Asia

And Chairman, BAV Group

David.Roth@wpp.com

Twitter: davidrothlondon

Blog: www.davidroth.com