HDFC Bank is most valuable brand in India: Report

Mumbai: HDFC Bank Ltd, India’s second largest private bank by assets, emerged the No. 1 brand with a value of $9.4 billion in a list of India’s 50 most valuable brands released on Tuesday.

The first-ever BrandZ ranking was commissioned by WPP Plc, the world’s largest communications services group, and the valuation was conducted by research agency Millward Brown, which specializes in brand equity research and brand valuation.

HDFC Bank has a network in 2,100 cities and towns across India and 28 million customers. The No. 2 brand, Bharti Airtel Ltd, is the fourth largest mobile phone operator in the world with nearly 300 million customers, while India’s largest commercial bank, State Bank of India, is at No. 3 in the rankings.

Services businesses such as banking, telecom and insurance, which are the mainstays of the Indian economy, are prominent in the rankings.

Seven of the top 10 brands, and 30% of the top 50 brands, come from the services sector. Financial services stand out, with the 12 banks and insurers in the rankings, holding the largest proportion (37%) of total brand value.

The valuation is the only one in India that takes into account consumers’ opinion to calculate the contribution that product brands make to business success, WPP said in a statement on Tuesday.

The top 50 come from 13 different categories. Seventeen are multinational corporations (MNCs), 26 are private Indian brands and seven are state-owned brands.

This indicates that India is an open, fertile market for building valuable brands, irrespective of age, origin, structure, category, ownership or even price range, the study said.

KEY FINDINGS

Being meaningful and different builds value

One such example is the personal care brand Colgate (No. 28). Even after 70 years in India, the brand has remained relevant and continues to differentiate itself from the competition.

India has evolved into a brand powerhouse

The top 50 most valuable brands have as much brand power (consumers’ predisposition to choose that brand over another) as the global top 50 and are ahead of the other emerging economies.

Private sector firms and multinational corporations dominate

Together, these contribute around 85% of total brand value. They have succeeded by nurturing a strong relationship with Indian consumers.

Megabrands lead the game

Like other fast-growing economies, India is dominated by a handful of big brands or companies that own stables of brands: the top 5 account for 45% of the rankings’ total value. Their scale and ability to cater to a wide spectrum of the population has translated into financial gains.

‘Balanced brands’ is the mantra

Brands that are able to build both strong connections with consumers and business scale that leads to the creation of financial value are contenders for entering or rising up the BrandZ ranking. Three out of the top 5 Indian brands demonstrate this balance.

Consumer technology is ‘the category waiting to happen’

There are currently no homegrown consumer technology brands in the top 50, but this category is on the verge of emergence. The presence of Indians working in the sector globally is high, and consumer-facing technology brands founded by young entrepreneurs have already started to gain ground.

Indianizing products and services is important

The many successful international brands in the ranking have taken the time to understand Indian needs and tastes and adapt to them. Noodles, food seasoning, soup and sauce brand Maggi (No. 18), Colgate and beverage brand Horlicks (No. 20) are masters at this—and are thought of as Indian brands by most consumers as a result.

Old and new sit side by side

Living with one foot in the ancient world and one in the modern makes consumers equally receptive to heritage brands (Bajaj Auto Ltd, No. 5, established in 1945) and new brands (Airtel, No. 2, established 1995). More than one-quarter of the top 50 brands were created after the economic liberalization in 1991, while Dabur India Ltd, No. 22, was established 130 years ago.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.