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WELCOME

by David Roth

Opportunity knocks for local and global brands

 

Confidence returns to drive steady growth

Welcome to the third edition of our annual BrandZ Top 50 Indonesian Brands ranking.

The transformation of Indonesia’s economy over the past decade has brought tremendous change to people’s lives.

 

Growth has not always been steady nor the benefits of development felt evenly, and in the past year especially, inflation and economic slowdown have put pressure on individuals, families, and the businesses building brands to serve them.

 

But there are few countries better qualified than Indonesia to demonstrate recovery from testing economic times; Indonesian people have proved their adaptability and resilience before, and now, there are signs of recovery.

 

The World Bank forecasts GDP growth to pick up the pace again this year and reach 5.1 percent; that’s expected to reach 5.3 percent in 2018, and to rise again in 2019 and 2020.

These rates of growth are a full percentage point or more behind the kind of growth being achieved by Indonesia’s headline-grabbing northern neighbors, China and India. But they signal strong, steady and sustainable growth, at a level that is outperforming closer neighbors such as Malaysia and Thailand.

 

This is a young, dynamic country whose people are determined to make life better for themselves and those around them. And they are optimistic. In fact, consumer confidence was higher in May 2017 than it has been at any time in the past 17 years.

There is a rising middle class; hundreds of thousands of people who are, for the first time, able to consider and buy in new categories. They’re looking at fashion items, cars and apartments.

Slowing inflation also means that consumers lower down the income scale have a little more money to spend. People for whom personal care shopping until recently meant just soap – and possibly shampoo and toothpaste – are increasingly able to buy specialist baby products, and skincare items for themselves. Consumers who are just now opening their first bank accounts will, before long, be in the market for credit cards and, later, insurance, savings products and mortgages.

 

Mobile phones are revolutionizing people’s lives and bringing diversity to the Indonesian economy. They’re providing access to information, which in itself is transformational, and at the same time equipping small businesses with the tools for innovative, disruptive ways of working.

The route ahead will not be an easy drive. President Joko Widodo has acknowledged the need to tackle unemployment and income inequality: “I am aware that the challenge keeps changing, and it needs quick action from us,” he said  recently.

 

For brands in Indonesia, now is also a time for investment, strategic thinking, decisive action, and agility. This market of a quarter of a billion people is hugely attractive, but understanding what unifies them, what motivates and distinguishes them, is a fast-changing challenge.

 

Whether you’re an Indonesian business or an international company, in this report you’ll find knowledge and insight to help you create and grow brands in Indonesia more effectively.

 

Take Aways provide succinct, action-oriented recommendations for brands based on our expert analysis of the market. We’ve also included summaries of Indonesia’s Top 50 most valuable brands. Brand experts from WPP companies across Indonesia share their market wisdom and sharp insights through extensive Thought Leadership and Best Practices essays. And we present all this with stunning photography and a vibrant design that reflects the diversity and spirit of Indonesia.

 

At WPP, the global communications services leader, our companies have been engaged in Indonesia for 17 years. Today, more than 1700 people work across WPP companies providing advertising, marketing, insight, media, digital, shopper marketing and PR expertise. It’s part of our global presence in 112 countries. By linking all this talent, creativity, wisdom, and horizontality, we amplify global trends and insights that help our clients in useful and unique ways.

 

We invite you to access our unrivalled BrandZ™ resource library. Along with the new BrandZ™ Top 50 Most Valuable Indonesian Brands report, the library includes these annual studies: BrandZ™ Top 100 Most Valuable Global Brands, BrandZ™ Top 100 Most Valuable Chinese Brands, and BrandZ™ Top 50 Most Valuable Latin American Brands. To download these and other reports, please visit www.BrandZ.com. For the interactive BrandZ™ mobile apps go to www.BrandZ.com/mobile.

 

The backbone of all this intelligence remains the WPP proprietary BrandZ™, the world’s largest, consumer-focused source of brand equity knowledge and insight, and WPP’s proprietary BrandZ™ brand valuation methodology. First we analyse relevant corporate financial data and strip away everything that doesn’t pertain to the branded business. Then we take a critical step that makes BrandZ™ unique and definitive among brand valuation methodologies. We conduct ongoing, in-depth quantitative consumer research with more than 170,000 consumers annually, across more than 50 countries, to assess consumer attitudes about, and relationships with, over 100,000 brands.

 

Our database includes information from over two million consumers. It reveals the power of the brand in the mind of the consumer that creates predisposition to buy and, most importantly, validates a positive correlation with better sales performance.

 

At WPP, we’re passionate about using our creativity to create and build strong, differentiated brands that deliver lasting shareholder value. To learn more about how to apply our experience and expertise to benefit your brand, please contact any of the WPP companies that contributed expertise to this report. Or feel free to contact me directly.