Megabrands lead national league tableThe brands that lead the BrandZ™ Top 50 Most Valuable Indonesian Brands 2016 account for a huge proportion of the value of the total ranking. Just five brands represent 55 percent of the value of the Top 50, with a combined brand value of US$36.27 billion. They come from just three categories: banking, telcos and tobacco. The Top 5 brands in 2015 were BCA, BRI, A Mild, Telkomsel and Mandiri. These same brands topped the ranking last year; this year, A Mild has jumped from fifth to third position. The contribution of these five brands has decreased slightly in the past year, from 57 percent of the ranking’s value.
In other fast-growth markets, brand value is similarly concentrated at the top of the Top 50; in India, banks and automobile brands account for eight out of the BrandZ™ Top 10 Most Valuable Indian brands, and financial services brands - banks and insurers – contribute 49 percent of the value of the Top 50. In China and Brazil, there is a similar pattern, though in the Global Top 50, value is more evenly distributed.
Banks together account for US$24.3 billion of the value of the Indonesian Top 50 this year, while tobacco brands contribute US$17.3 billion to the US$66.17 billion total. These two categories also dominated the ranking last year.
The strong role of banks, telcos and real estate brands in the Top 50 reflects the way the Indonesian market is developing. These sectors are essential to growth and, along with the presence of telcos and entertainment brands, indicate the way people’s lives are improving and the intensity of their appetite for change.
The diversity of categories represented beyond the Top 5, with food and dairy, personal care and soft drinks featuring strongly, reflects everyday life in Indonesia and illustrate the things that people care about and depend on.
Ways to Win
Indonesian brands can draw lessons in how to build brand value from fast-growing local brands in other Asian markets. India and China are experiencing similar patterns of progress, and are home to powerful brands across a broad range of categories – many of which are fast becoming not just domestic names but global brands.
What these markets have in common with Indonesia is the need to embrace dualities, most often a desire to preserve treasured tradition while at the same time fulfilling the desires of a growing middle class who find change exciting. One of the fastest-growing Indian brands is the personal care brand Lakmé, which promotes its roots in Indian culture (its name is taken from the Hindu goddess Lakshmi) and with current trends through live fashion events. Consumers are keen to engage with brands that project more than one simple focus or message; if they can identify with a brand on a deeper level, they will be more loyal, trusting and willing to engage.
Theory in Action
Telkomsel is the fourth-biggest brand in the Indonesia Top 50, and its brand value has grown 6 percent in the past year to almost US$6.8 billion. Its services and communications are a formidable example of how brands can reflect the way consumers in Indonesia and other Asian markets use mobile technology not just to communicate, but to live. Its recent innovations include an app to guide motorcyclists as they drive around Jakarta, and a mobile-based financial services platform for small businesses.