Just 7 Indian brands make the Global top 500 in 2010

The Brand Finance Global 500 report features just seven Indian brands. Despite India Inc's growth domestic brands are failing to make an impact on the global stage.

The top 500 most valuable brands in the world have grown in value by 26% to US$ 2,873 billion. The US continues to dominate the table, with 7 of the top ten, by comparison India provides just 7 of the 500, three of whom are new entrants.

India's strongest brands

Tata and Reliance are India's most valuable brands. Tata is valued at US$ 11.2 billion, up on US$ 9.9 billion in 2009. Reliance is worth US$ 7.2 billion (US$ 6.6 billion in 2009). While value has increased, each brand slips in the rankings, Tata fell to 64 from 51, Reliance fell to 107 from 93.

Airtel's value was up slightly to US$ 3.1 billion, yet similarly, its ranking plunged to 288, from 215 last year.

Indian winner

State Bank of India is India's big winner jumping to 186 (from 344), it's brand value reaching US$ 4.5 billion. In addition, Bharat Petroleum, Infosys and ICICI Bank make the list for the first time.

Emerging market comparison

India trails its BRIC contemporaries. China has 18 brands represented, including 7 new entrants, Brazil 9 (4 new entrants) and Russia 8 (3 new entrants).

Brand building versus acquisition

India Inc's recent acquisitions - Tetley Tea, Jaguar, Land Rover, Corus, Whyte & Mackay - prove that the value of brand (at least at the right price) is understood. But considering India's buoyant corporate environment and headline making economy, the countries brands are struggling to make their presence felt outside of India.

Domestic market focus, for now

India's brands are inward looking. Considering the potential of the domestic market it is understandable as Indian companies attempt to exploit domestic market opportunities. The danger is that India's brands become captive within their own cost-conscious market and uncompetitive on the global stage.

Once the domestic market matures and becomes more competitive, India's brand owners will be lured on to the international stage in greater numbers. At this point understanding the value of intangible assets will become paramount.

February 20, 2010 Add a comment

Domestic mobile competition makes the Indian consumer all powerful

Entrant service brands beware, recent research looking at the mobile phone market indicates that if dissatisfied, Indian consumers will switch service provider quickly.

A shift in emphasis is taking place, from customer conversion to customer retention.

Mobile warfare

Accenture research shows in the rush for critical mass, existing mobile phone customers are forgotten. And, given fierce market place competition there are plenty of alternatives. Consequently 86% of respondents switched service provider in the last 12 months, compared to 67% global average.

Influential and aware

Increasingly influential Indian consumer clearly understands their value, and telecoms companies are forced to place emphasis on end-to-end consumer brand experience as they look for ways to recoup acquisition cost and retain profitable customers.

Although mobile specific, new entrant brands, banks, internet service providers and utilities companies should heed the warning.

Service delivery

Vodafone - 64 million subscribers - now concentrates on providing multiple communications channels - online, in-store and telephone - to resolve customer problems. Consumer can also expect stellar service; call centre staff and retail staff are put through training and refresher courses.

Looking to claim customer service high ground and lead on market knowledge, Tata Teleservices - 33 million subscribers - has launched "Customer Relationship Council", to evaluate customer service while cleverly reporting back on competitor activity - pricing, tariffs and special offers.

Bharti Airtel - 91 million customers - aim is to make it easier for call centre staff to solve immediate customer queries.

Shift in strategy - building a relationship

As strategies shift from conversion to retention, the customer experience is set to become all-important. Service packages, pricing tariffs, handsets and software will be customized to suit customer segments, e.g. mass market pre-pay (big on volume, low profit) versus Indian-international jet set (low volume, high profit).

Future best performing operators will be the telecom companies that shift their mindset quickest.

Customer segmentation will become a vital tool to help map out appropriate communications activity throughout the brand and consumer relationship. This approach provides opportunity to create deeper bonds between brand and consumer.

March 7, 2009 Add a comment