JAKARTA, Indonesia, August 10, 2016 /PRNewswire/ --
BrandZ™ Indonesia Top 50 Grows 2% in Total Brand Value as Brands Successfully Adapt Their Strategies to Changing Economic Conditions
Indonesia's most valuable brands have successfully responded to the changing economic conditions of the past year to stand out from the competition and grow their brand value. BCA (Bank Central Asia) and BRI (Bank Rakyat Indonesia) have held on to the top two positions in the second annual BrandZ™ Top 50 Most Valuable Indonesian Brands ranking, announced today by WPP and Millward Brown. Both banks are led by a purpose that is centred on local consumers' needs, which helped them to protect their value in a difficult year for banks across the globe.
The Top 50 increased its total brand value by 2% year on year to US$66.17 billion, in line with the BrandZ Top 100 most Valuable Global Brands 2016. Still one of the best-performing fast growing markets, Indonesia's GDP growth slowed in the last year while inflation increased, but the country's strongest brands were able to grow their value by increasing their relevance to consumers. Financial services, property and tobacco brands continue to dominate the ranking, along with those from the FMCG sector, reflecting consumers' priorities and the way the market is developing.
Banks are the most valuable category, with eight brands together contributing 37% ($24.3 billion) of the total brand value. BCA and BRI both minimised the impact of sector challenges by making banking as easy to access as possible. BCA launched innovations such as branch-less banking and Sakuku, a smartphone app that functions as an electronic wallet. BRI aims to reach everyone - including the 140 million Indonesians without a bank account - with a vast network of branches and online services, and even a floating service for remote islanders.
The 16 FMCG brands in the Top 50 grew 3% in brand value to $8.2 billion. These much-loved names - including Sunsilk (+27%, no.31), noodle brands Sarimi (+16%, no.44) and Indomie (+6%, no.14), and detergent Rinso (+12%, no.15) - made themselves an indispensable part of daily life by fulfilling customers' needs while connecting with them on an emotional level. This has become more important as consumers face increasing choice, and the slowing down of growth reduces household budgets. Sunsilk for example succeeded by localising its proposition and empowering young women to progressively pursue a brighter future.
The BrandZ™ Top 10 Most Valuable Indonesian Brands 2016:
Brand value 2016 (US$ % change Rank 2016 Brand Category million) YOY 1 (-) BCA (Bank Central Asia) Banks 9,345 -6% 2 (-) BRI (Bank Rakyat Indonesia) Banks 7,846 -5% 3 (+2) A Mild Tobacco 7,366 +25% Telecom 4 (-1) Telkomsel providers 6,772 +6% 5 (-1) Mandiri Banks 4,940 -20% 6 (+3) Dji Sam Soe Tobacco 2,256 +28% 7 (+1) Surya Tobacco 2,099 +8% 8 (-2) Matahari Department Store Retail 2,092 -2% 9 (+3) Gudang Garam Tobacco 1,983 +22% 10 (-) Marlboro Tobacco 1,867 +12%
- The most valuable brands in Indonesia perform better for shareholders. Strong, valuable brands not only drive sales volume and market share growth, but also generate superior shareholder returns. A stock portfolio comprising the BrandZ Indonesia Top 50 increased 23% in brand value between August 2015 and the end of June 2016, while the Jakarta Stock Exchange Composite Index (JCI) grew by 17.1% in the same period.
- Indonesian brands are ready to compete on the global stage. BCA is close to becoming the first Indonesian brand to enter the BrandZ Global Top 100, with a brand value of just $1.1 billion less than Adobe (no.100). Indonesian brands are becoming more innovative, which generates greater 'love' from consumers and primes them for future growth and international expansion. Indomie, for example, is constantly releasing new flavours and variants, and promoting these in an emotionally powerful way. The love this builds helps it to dominate the local market and win the hearts of consumers across the world.
- Trying to 'out shout' the competition no longer works. Advertising in Indonesia used to be all about raising awareness through a strong presence. Engaging today's more discerning consumers, who are faced with a proliferation of choice, also demands a strong sense of brand purpose and a message that resonates emotionally.
- Consumers are rapidly overcoming their concerns about security and online payment. The e-commerce market is expected to grow from US$1.3 billion in 2015 to US$1.8 billion in 2016, with the number of people shopping online rising from 37 million to 49 million. The digitisation of daily life has nurtured a fresh crop of disruptive brands that are changing markets and consumer expectations across all categories. Established brands must be willing to adopt a 'challenger' mindset, and make themselves more meaningful by innovating in ways that improve consumers' lives.
- Indonesians multiscreen more than almost anyone else in Asia - spending 70% of their screen-time using two or more screens simultaneously. One in five minutes of the time they spend watching TV while also using a mobile device or tablet involves looking at related content. This is a clear opportunity for brands to continue a conversation with consumers as they look from one screen to another.
"This is an exciting time to build brands in Indonesia," says David Roth, CEO EMEA and Asia, The Store WPP. "As the fourth most populous nation in the world, it remains a critical market for local, regional and global companies in search of growth. Indonesian businesses are looking ahead with renewed, if cautious, optimism, and President Joko Widodo has pledged to continue to open up and modernise the market. Strong, valuable brands will drive long-term financial success and superior shareholder return for local companies, as well as global businesses that aspire to introduce their brands to Indonesian consumers. Marketing and brand building are not a cost center or a luxury; they're one of the most important investments a company can make."
Ranjana Singh, Chairperson, WPP Indonesia & Vietnam said: "Investing in branding in Indonesia is more important than ever before. Indonesian consumers are becoming highly engaged with brands; they're aware of them, they talk about them, and they review and recommend them. Wary consumers seek safety in strong brands in uncertain times, so they should highlight their scale, history and popularity to build trust. Projecting a strong sense of purpose, in particular, can help brands to stand out."
NOTES TO EDITORS:
Background and methodology
The valuation behind the BrandZ™ Top 50 Most Valuable Indonesian Brands was conducted by Millward Brown, which specializes in brand equity research and brand valuation. The methodology mirrors that used to calculate the annual BrandZ Top 100 Most Valuable Global Brands ranking, which is now in its eleventh year.
Commissioned by WPP, the ranking combines rigorously analysed financial data from Bloomberg and Kantar Worldpanel with the opinions of around 18,000 Indonesian consumers gathered for over 450 brands in more than 30 categories. The BrandZ Top 50 Most Valuable Indonesian Brands is the most definitive and robust ranking of the country's brands available, and the brands ranked all meet one of these two eligibility criteria:
- The brand was originally created by an Indonesian enterprise and is owned by an enterprise listed on a credible stock exchange; or
- The brand is owned by an enterprise listed on Jakarta Stock Exchange.
The suite of BrandZ rankings and reports also includes the BrandZ Top 100 Most Valuable Chinese Brands, the BrandZ Top 50 Most Valuable Latin American Brands, the BrandZ Top 50 Most Valuable Indian Brands and the BrandZ™ Spotlight on Myanmar.
About Millward Brown
Millward Brown is a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research. Millward Brown helps clients grow great brands through comprehensive research-based qualitative and quantitative solutions. Specialist global practices include Millward Brown Digital (a leader in digital effectiveness), Firefly Millward Brown (our global qualitative network), a Neuroscience Practice (using neuroscience to optimize the value of traditional research techniques), and Millward Brown Vermeer (a strategy consultancy helping companies maximize financial returns on brand and marketing investments). Millward Brown operates in more than 55 countries and is part of Kantar, WPP's data investment management division. Learn more at www.millwardbrown.com.
WPP is the world's largest communications services group with billings of US$73 billion and revenues of US$19 billion. Through its operating companies, the Group provides a comprehensive range of advertising and marketing services including advertising & media investment management; data investment management; public relations & public affairs; branding & identity; healthcare communications; direct, digital, promotion & relationship marketing and specialist communications. The company employs 194,000 people (including associates and investments) in over 3,000 offices across 112 countries. For more information, visit www.wpp.com.
WPP was named Holding Company of the Year at the 2016 Cannes Lions International Festival of Creativity for the sixth year running. WPP was also named, for the fifth consecutive year, the World's Most Effective Holding Company in the 2016 Effie Effectiveness Index, which recognizes the effectiveness of marketing communications. In 2016 WPP was recognised by Warc 100 as the World's Top Holding Company (second year running).
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SOURCE Millward Brown