Brands in India enjoy strength today, but face challenges in changing market
The India Top 50 brands are well positioned in the Indian market today. They generally enjoy strong brand equity, which means that Indian consumers see these brands, in varying degrees, as Meaningfully Different and Salient.
Strong brand equity typically enables brands to command a higher price (Brand Premium), grow sales and market share (Brand Power), and sustain success going forward (Brand Potential).
Brand equity isn’t static, however. As markets change, brand equity needs to be constantly reevaluated and reinforced. The Indian market is changing rapidly. And that presents challenges for building and sustaining Premium, Power and Potential.
The BrandZTM India and the Global Top 50 scored comparably in Brand Premium, with brands in India a notch higher at 112 and global brands at 111.
The India Top 50 brands that scored best in Brand Premium represent diverse categories and include Asian Paints (143), State Bank of India (140) and the food and dairy brand Horlicks (139). The global leaders score somewhat higher in Brand Premium: IKEA (164), Apple (162) and Facebook (156).
These scores suggest that Indian consumers view the India Top 50 brands as Meaningfully Different in ways that merit a higher price. The highest scorers in India have done an especially good job establishing their Difference in the consumer mind. They’re Salient. But there’s room for other brands in India to improve their Brand Premium scores.
It’s difficult to see how BrandZTM India Top 50 brands could improve their Brand Power scores, however. The India Top 50 scored 229 in Brand Power, which by itself is a high score on a scale where an average brand scores 100. And the India Top 50 score far exceeds the 186 score of the BrandZTM Global Top 50.
The India Top 50 Brand Power score reflects the fact that the India Top 50 brands have done a good job of establishing themselves in the minds of local consumers in ways that drive sales and market share. In addition, the India Top 50 scores are based on performance in India, while global brand scores depend on brand performance worldwide.
These distinctions also inform the contrast in the individual scores of the India and global Brand Power leaders. The individual India Brand Power leaders score higher than the global leaders, but both groups score exceptionally well.
These are the India Top 50 Brand Power leaders and scores: Kingfisher beer (747), the personal care brand Fair & Lovely (463) and Colgate (598). The global Brand Power leaders are Facebook (502), Colgate (402) and Pampers (365).
The presence of Colgate as a Brand Power leader in both the India and Global Top 50, but with a higher India score, illustrates Colgate’s tremendous worldwide brand equity, and also the impact of measuring performance in a single country market or multiple markets.
Colgate also represents the diverse brand composition of the BrandZ India Top 50. It mirrors the character of the Indian market where successful brands can be part of multinationals, like Colgate; State Owned Enterprises; or privately owned, either autonomous or part of a large Indian family conglomerate.
In Brand Potential, an indicator of future success, the BrandZTM India Top 50 scored only 101, just about average. Global brands scored 105 in Brand Potential. Although the scores seem close, the gap is significant. It suggests that the international marketing experience of global brands has sharpened their competitive edge and raised their Brand Potential scores.
The lower Brand Potential score for brands in India implies that they have work to do. While brands in India score well in Brand Premium and exceptionally high in Brand Power, they may not have fully leveraged these strengths.
The BrandZTM India Top 50 brands enjoy strong top-of- mind awareness in India. Indian consumers believe these Salient brands are Meaningfully Different in ways that merit a higher price (Brand Premium). But there is room for some brands in India to improve future sales and earnings (Brand Potential).
The lower Brand Potential score indicates the greatest challenge for brands in India, which is to sustain their Brand Premium and Brand Power advantages in the future as the Indian market becomes more competitive and consumers enjoy greater brand choice.
The India Top 50 can command a Premium...
The BrandZTM India and Global Top 50 score comparably in Premium, with Indian brands a notch higher at 112 and global brands at 111.
... Their Power drives sales and market share...
The India Top 50 Brand Power score far exceeds the score of the BrandZTM Global Top 50.
... But the Potential of the India Top 50 needs strengthening
In Brand Potential, an indicator of future success, the BrandZTM India Top 50 scored only 101, just about average.