Boom time for banks, digital specialists
The diversity and dynamism of Indonesian daily life is reflected in the BrandZ Top 50 Most Valuable Indonesian Brands ranking, which this year includes a wider variety of product and service categories than ever before.
The 2018 ranking includes brands from 14 categories, up from 12 last year, thanks to two of the seven new entries in the ranking: travel agency Traveloka (20th in the ranking), and insurance provider Asuransi Astra, which joins the Top 50 in 41st place.
The ranking now spans consumers’ daily essentials – tea and bottled water, laundry detergent, personal care products, retailers and mobile phone networks – along with the infrastructure brands that underpin the country’s rapid growth: real estate businesses, transport and banking.
Banks occupy two of the top five spots in the 2018 ranking, and are once again the biggest contributor of brand value to this year’s Top 50. There are seven banks in the ranking altogether, and together they account for 38.9 percent of its value.
The banking sector has been the fastest-growing category in the BrandZ ranking this year, with banks’ combined brand value 19 percent higher than it was a year ago. The banks’ performance has largely fueled the growth in value of the entire Top 50, which is up 13 percent on 2017. Banking brands have been focusing on innovation, and many have released or updated their digital financial services options. Several have launched new apps that improve the customer experience, or have expanded access to personal loans and mortgages. These brands are also strong communicators; BNI, BRI and Mandiri are all “prestige partners” of the Asian Games 2018, while CIMB Niaga presents itself as a fun brand, backing youth-oriented Virgin Radio, and sponsoring events such as the Color Run and the Namaste yoga festival.
The retail category of the ranking is the one to have changed most over the past year. New entries in the Top 50 include home-grown online shopping portals Tokopedia and Bukalapak, which together have transformed the way Indonesian consumers – or at least those with an internet connection – browse and buy. Their rise goes some way to explaining why one of the more traditional retailers, the department store chain Matahari – which has a stake in the online store MatahariMall.com but is still largely a physical network – has declined in brand value over the past year.
In contrast, two retail brands with a long heritage in physical stores are among the ranking’s fastest risers of the past 12 months. The Alfa network of grocery stores and mini-markets has been growing not just in Indonesia but also the Philippines, and has forged several strategic partnerships enabling it to offer a wider range of services. Likewise, the hardware specialist Ace has been extending its range, with more accessories for motorists, and has been promoting seasonal specials that keep shoppers coming back.
The large decline in value in the Entertainment category is the result of there being one fewer brand from this category in the Top 50 ranking than there was a year ago. Similarly, the Real Estate sector is relying on six brands this year, down from seven last year. Tobacco – a category that sets apart the Indonesian ranking from all others in the fast-growing BrandZ portfolio – is this year represented by one fewer cigarette brand; between them, the remaining six tobacco brands have grown the category’s value by 3 percent, and Surya is among the fastest-risers in the entire Top 50.
The transport category’s apparently meteoric rise in brand value comes from there being an increase from one brand last year to two this year in the ranking, and the strong performance of the new arrival, Go-Jek, which has shot straight into the Top 10.