Zomato emerged as this year’s fastest riser with a 100 percent year-on-year growth in brand value at $3,549 due to its innovation and expansion into quick commerce, according to 'Kantar BrandZ Most Valuable Indian Brands' report.
The brand doubled its value on the back of reducing friction for customers as well as building a strong desire among consumers for the brand.
Meanwhile, travel platform MakeMyTrip made its debut in the list of top Indian brands after making marked improvement in customer experience.
"MakeMyTrip's entry in the list is driven by the fact that people are traveling more, and they are using travel websites more. But, the company has also reduced the friction in making bookings and finding destinations in the entire process of travel," said Soumya Mohanty, managing director & chief client officer, Insights, South Asia at Kantar, a marketing data and analytics company.
India’s top 75 most valuable brands now have a combined value of $450.5 billion, marking a 19 percent increase from last year. Brands across diverse business sectors fuelled this growth, with 54 brands boosting their brand value over the past year. This growth outpaces most other rankings globally and closely mirrors the 20 percent increase seen in the global top 100 brands.
TCS on top
Tata Consultancy Services (TCS) retained its top position in the brand rankings for the third straight year with a brand value of $49.7 billion, up 16 percent versus last year, driven by investments in innovation, particularly in AI and digital transformation.
"TCS remains on top due to its sheer financial size. For brands like TCS, Infosys, HCL Tech, SBI, a big part of their total value is just their sheer size. But all these brands are also doing a lot of activities in brand building. If you look at TCS, it sponsors multiple marathons, which is a way to get salience and brand name visibility," said Deepender Rana, executive managing director, Insights, South Asia at Kantar.
Among categories, automotive has seen significant growth along with financial services.
Aspirational categories
The automotive sector has also seen strong results, led by Maruti Suzuki with a 24 percent growth in brand value, Bajaj Auto with 94 percent increase, Mahindra with 78 percent rise in brand value.
Mahindra's SUVs (sport utility vehicle) make up 53 percent of India's passenger car market as of June 2024. The success of models like XUV700, Scorpio N, and Thar, which continue to see high demand and long waiting periods, has solidified Mahindra's leadership in mid and premium SUVs.
Rising disposable income and a growing middle class are driving demand for vehicles, shifting car ownership from a status symbol to a necessity. Improved infrastructure, government support for EVs and strong export growth expectations are further fueling the industry's momentum, the report said.
"I've seen a big uptick in what we call aspirational categories in the last few years. If you look at some of the top risers this year, there are sectors like automobiles where there was premiumization happening with SUVs. There's an uptick in travel and leisure along with real estate," said Rana.
Strong bounce back
He added that compared to pre-Covid, there's been a strong bounce back in brand value of top Indian firms. "In the beginning of the post-Covid period, we saw a big pickup in some sectors like packaged goods. In the last year or so, we've seen the packaged goods sector slowing down a bit."
In 2020, the value of top 75 brands had dropped by 6 percent, while that of global brands had increased by 6 percent.
Mohanty said that during Covid, while the value of top Indian brands had dropped, it has been growing faster in the post-Covid period.
Some of the top brands, whether globally or in India, are outpacing the overall market growth because they have been investing in brand building, Mohanty said.
"There are two things that we see. One is what we call meaning. Meaning means you meet people's needs, but you also emotionally delight them. The brands that were growing faster than average are meaningful. The second aspect is whether a brand stands out is seen as setting trends in a category. If a brand does well in these two aspects, a brand's value grows 27 percent versus an average growth of 19 percent. And if a brand doesn't meet expectations on these aspects, then they grow at 17 percent. So, there are the aspects that brands can invest in to build equity that help them grow faster," Rana said.
Invest in brand equity
However, he noted that despite strong investor confidence, large brands face a looming challenge of a long-term decline in demand power. While they may remain stock market favourites for now, they risk losing relevance in the minds of consumers if they don't adapt to shifting expectations, Rana said.
"Some of the brands in the top 75 in India are simply there because of the sheer size. If I look at the top 100 brands globally, 8 percent can be classified as below average on meaning and (making a) difference. In India, that rises to 21 percent. This means that these many brands in the top 75 are vulnerable to value decline. While Indian brands have grown well, they need to keep investing in brand equity," he said.
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