Innovators lead growth in Top 50 ranking
Top 50 brands worth over $80 billion
The combined value of the Top 50 Most Valuable Indonesian Brands 2018 is US$80,837 million. This represents a 13 percent increase over the value of the Top 50 a year ago. This rate of growth is some distance behind the jumps we’ve seen in the BrandZ Global Top 100’s value this year (21 percent) and that of the China Top 100 (up 23 percent), but is still well ahead of the ten percent GDP growth witnessed in Indonesia in 2017.
BCA enters Global Top 100
BCA (Bank Central Asia) is the most valuable Indonesian brand for the fourth year running. The brand’s value grew by 20 percent this year, propelling it into the BrandZ Global Top 100, where in 99th position – just behind Honda and Pepsi, and slightly ahead of adidas – it becomes the first Indonesian brand to make this prestigious ranking. In the past year, BCA has used new technology to deliver on its long-standing promise to be “Always at your side”; its virtual assistant, Vira, delivers customer service through a range of popular chat applications. The brand’s work in the community includes an internship program for undergraduates, and sponsorship of the annual badminton Indonesia Open.
Young brands lead influx of the innovators
There are seven newcomers to the Top 50 ranking this year, almost all of them brands that have been “born digital” – launched in the past 10 years and providing services that rely on Indonesians’ growing use of mobile phone-based internet. The highest-ranking new brand this year is Go-Jek (in at position number seven), the ride-sharing service launched eight years ago that now extends to a huge range of app-based, on-demand services. The travel booking service Traveloka, which is fast becoming not just an Indonesian success but a regional phenomenon, is the second-highest entry, in 20th place. Two online retailers, Tokopedia and Bukalapak, are also among the new entrants in 2018.
Banks, retailers are nation’s fastest risers
Brands in two of the most traditional of business sectors – retail and banking – lead growth in brand value in 2018. Ace and Alfa have grown by 47 percent and 33 percent respectively. Both have been expanding their store footprint; Alfa alone has added more than 1,000 new stores to its network in the past year and continued its drive for innovative services and partnerships. Banks have been the other big risers in this year, with seven brands in the sector posting double-digit growth. They are led by BTN, which posted 31 percent growth in brand value this year. BTN is known mainly as a mortgage provider, though in the past year has been emphasizing its digital banking options, and on expanding the provision of loans to people with informal work arrangements.
Everyday essentials make strong connections
It’s not just big-ticket items and those that feel exciting for consumers to buy that propel a brand to a special place in consumers’ hearts. The everyday brands that they reach for by default are among the strongest in the Top 50 for Brand Contribution, which is a BrandZ measure of the influence of brand alone, excluding financials or other factors, on a brand in the mind of the consumer. SariWangi tea has the highest Brand Contribution of any brand in the Top 50, followed by category leaders producing noodles, laundry detergent and toothpaste. Six of the Top 10 on Brand Contribution are fast-moving consumer goods.
Ranking reflects breadth of daily life
The Top 50 Indonesian Brands ranking this year spans 14 product and service categories, making it one of the most diverse BrandZ rankings in the world. Banking, insurance, real estate and telecommunications tend to feature in the rankings of fast-growing economies, as these are the businesses that provide the infrastructure that’s key to development. Retail, food and dairy, home care and personal care brands commonly feature in rankings around the world. What sets Indonesia’s ranking apart from those in other markets is the prevalence of tobacco brands – six feature in the 2018 ranking – reflecting the high rates of smoking in this market. The appearance this year of several web-based brands, in retailing, travel and transport – signals the importance of mobile technology in so many Indonesians’ lives.
Top brands pass global fitness test
The BrandZ measure of brand health, which takes into account five distinct factors of vitality, shows that the Top 50 Indonesian brands are in good shape compared to the leading brands in other markets. Their average vitality or vQ score is 110; this is slightly behind the Global Top 50 (113) and the US Top 50 (114) but is on level pegging with the leading 50 brands in Germany, China, India and Latin America, and just ahead of France and the UK. Healthy brands are those that have a strong purpose, great communications, are innovative, provide a satisfying experience, and are loved.
Local brands support ‘Brand Indonesia’
The popularity and trust established by local brands fuels local pride in home-grown brands, as well as contributing to a strong view among international consumers of both the country and the brands it produces. Every experience a visitor has with a product or service contributes to their overall impression of the country and what it stands for. In the annual Best Countries study, done in parallel to BrandZ, Indonesia ranks 41st out of 80 countries. Indonesia’s greatest strengths are seen by consumers globally as its affordability and uniqueness, though opinions are low of the country’s infrastructure, and its position on human rights and health.
Top learnings for marketers
A healthy brand means a valuable brand
In Indonesia, healthy brands are worth, on average more than double the value of brands that only rate as “OK” on the vitality scale, and they are worth nearly four times the value of frail brands. The BrandZ measure of health takes into account how well a brand performs across five different metrics: purpose, innovation, communication, experience and love. Strength in any one of these areas is an advantage for a brand, but the strongest brands perform well on all of them and create a multiplier effect. It is worth noting that new entries in the ranking this year are significantly healthier than average, while those that dropped out had weaker vital signs.
Meaning makes a big difference
Brands that are meaningful, which means they make a positive impact on people’s lives, and those that are also viewed as different to other brands in their category, are those that are healthier and tend to be worth more. In Indonesia, the link between brand value and meaningful difference is particularly strong; those brands with high meaningful difference have grown 10 percent faster over the past three years than average. Brands with low meaningful difference have declined in value in that time.
Innovation is the key to continued growth
Innovation is one of the five elements of brand vitality, and is closely linked to experience and love. Brands that are innovative – and are recognized as such by consumers because they clearly communicate their innovations – tend to be loved more. This love sustains a brand in the gaps between innovations. But there’s more to innovation than creativity. The most innovative brands are not just creative, they’re seen as leading their category, and shaking things up.
In a digital market, what happens offline still matters
There is much excitement about the extent to which Indonesian consumers are using smartphones and the mobile internet, and rightly so. Some of the country’s most widely used and most valuable brands are those that rely on these digital connections. But our research shows that the brands that are seen as providing a great experience online aren’t necessarily those that are worth more. Being unique, and meeting people’s needs, are essential parts of a great experience.
Consistency across channels has a multiplier effect
When brands nurture brand assets such as their logo, packaging, colors and celebrity associations, they can build shortcuts to the brand and what it stands for in the mind of the consumer. Strong assets, used in a consistent, coordinated way across product, packaging and communications, over time contribute to a rise in brand value. Global BrandZ data shows that brands with what we call a strong Brand Imprint, which means they do this well, grow at double the pace over time that weaker brands with weak Brand Imprints do.