Four brands enter the India Top 50 for the first time
They reflect increasing consumer income
Four brands entered the BrandZ™ Top 50 Most Valuable Indian Brands ranking this year – two airlines, one automobile brand, and a retail brand. All four brands scored high on being Meaningful and Different, BrandZ™ metrics that contribute to brand equity.
Last year, four Newcomers also entered the ranking and, unsurprisingly, two of them were banks, the category that has contributed the largest share of value to the India BrandZ™ Top 50. In contrast, this year’s Newcomer mix of categories reflects the increasing wealth and discretionary spending of Indian consumers and the broadening of the economy to include more valuable brands outside of financial services.
Domestic air travel, for example, is expected to reach 100 million travelers in 2017, compared with 81 million in 2015, according to the Centre for Asian Pacific Aviation.
IndiGo, which joins the BrandZ™ India Top 50 at number 26, is the country’s largest domestic carrier, operating over 800 daily flights to 35 domestic destinations and five international destinations. The low-cost carrier launched its business 10 years ago and has expanded as Indian air travel increased.
India’s second-largest airline, Jet Airways, is number 36 in this year’s BrandZ™ India ranking. Jet Airways flies to 68 domestic and international destinations. It recently named Amsterdam as its gateway city to Europe and North America. Several factors have combined to generate strong profits, including: low fuel costs, high equipment productivity levels, cost cutting, and a full-fare policy. The airline brands face great potential, as air travel penetration is still low in India.
Similarly, the automobile category is relatively underpenetrated, with prospective growth driven by the rising aspirations and spending of the middle class. TVS, which entered the BrandZ™ India Top 50 at rank 48, is India’s third-largest producer of two- and three-wheel vehicles.
Ranked at number 50 in the BrandZ™ India ranking, the Reliance Retail brand operates modern retail formats across a variety of channels, including convenience stores, superstores, cash-and-carry stores, and specialty stores. Established 10 years ago by Reliance Industries Ltd, the giant Indian conglomerate Reliance Retail is India’s largest retailer in revenue and operates over 3,000 stores across the country.
These four Newcomer brands foreshadow how the BrandZ™ India Top 50 may continue to broaden the diversity of categories represented. In fact, the most revealing aspect of the 2016 Newcomers list may be the categories that are absent or underrepresented, specifically technology and e-commerce. These sectors of the economy are rapidly growing with the influence of young Indian entrepreneurs. As these emerging Indian brands continue to grow in value over the next few years, those that become listed on a stock exchange in India, a BrandZ™ ranking eligibility requirement, will debut in the BrandZ™ India Top 50.