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Value is concentrated in financial categories

But telecoms/entertainment leads in value growth

 

The value of the BrandZ™ India Top 50 is concentrated in financial brands—banks, which are primarily state-owned, and insurance companies. But the Top 50 brands are evenly distributed among five broad categories: financial; automotive, including automobiles, lubricants, motor oil, and tires; telecom providers and entertainment; food, drinks, and alcohol; and other.

 

The telecom providers and entertainment categories led in value growth, increasing 30 percent. Advertising and data price promotions, led by the Jio brand, and the availability of inexpensive mobile handsets, drove telecom demand. Digitization, and a growing range of content, boosted the entertainment category, which is new to the BrandZ™ India Top 50 this year.

 

The financial category grew 26 percent, as banks rebounded from loan performance problems. Automobiles followed, rising 23 percent in value, because of a combination of factors, including: consumer confidence, favorable interest rates, and insightful marketing that responded to customer desire for products that offered style and performance as well as price.

 

Food, drinks, and alcohol lagged primarily because of demonetization, the government initiative to curtail the underground economy, increase tax revenue, and accelerate digitization. Implemented in November, demonetization removed key cash currency from circulation. Fast moving consumer goods (FMCG), which rely on cash currency, took several months to recover.

 

The food and drink brands and automobiles scored highest in new BrandZ™ metric, called Vitality Quotient (VQ), a measurement of brand health.  The telecoms and entertainment brands also scored well. Brands in the financial category have room to improve in the five indicators that make up the composite VQ score: Brand Purpose, Innovation, Communications, Brand Experience, and Love.

 

These VQ finding have important consequences for brands across all categories. Brands with high VQ scores usually are Meaningful (consumers feel an affinity for them and believe the brands meet their needs in relevant ways) and Different (consumer see the brands as distinctive and trend- setting). Meaningfully Different brands appreciate faster in value and are more likely to grow market share and command a premium.