BrandZ has released its latest study detailing Indonesia’s top 50 most valuable brands. This saw Bank Central Asia (BCA), BRI, Telkomsel, A Mild, and Mandiri snagging the top five spots in the ranking. BCA, which came up top, grew its value by 20% to US$12.7 billion.
According to the study, the brand had grown its online banking and customer service options as well as providing loans for the country's development. In addition, BCA has also made its debut in the global edition of the Top 100 Most Valuable Global Brands in 2018. This saw it becoming the first Indonesian brand to feature in the global ranking, taking the 99th spot, just behind Honda, and in front of adidas.
Meanwhile, BRI snagged the second spot, growing in value by 17% to US$94 billion. The study explained that the ability to develop new products and services is not enough to grow brand value as consumers look to see and feel the brand’s innovations and communications.
One brand that communicated its new and disruptive propositions to customers and taking the seventh spot is GO-JEK (US$2.4 billion). Other new Indonesian disruptor brands include digital travel booking service Traveloka (20th place, US$80.5 billion), which is currently building operations in markets such as Malaysia, the Philippines, Thailand and Vietnam. This also includes online retailers Tokopedia (33rd place, US$38 billion) and Bukalapak (37th place, US$29.8 billion).
Overall, the total value of the BrandZ Top 50 Most Valuable Indonesian Brands in 2018 was close to US$81 billion, a 13% rise compared to 2017. View the full ranking here:
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According to Richard McLeod, chief commercial officer, Insights Division, Kantar Indonesia, this year’s ranking paints “a revealing picture” about the country’s rapidly changing brand landscape.
“As the market has matured, Indonesian consumers have become more discerning in the brand choices they make. FMCG brands can no longer rely on organic growth fuelled by rising category penetration. Salience is no longer enough,” he said.
He added that successful brands are the ones that provide a compelling reason to be chosen over the competition - they must be meaningfully different. This means meeting needs more effectively, offering something different to the competition, and ultimately delivering something that consumers really love.
The brand-building task in Indonesia is complicated by the fact that Indonesian behaviours and motivations are also evolving.
The priorities of Indonesian consumers are shifting from accumulating belongings, to a new focus on seeking and sharing experiences. This is having major implications for how Indonesian consumers are spending their money.
“Spending on fast-moving consumer goods is flat as consumers reallocate spend to experiences such as travel, eating out and entertainment, then share those experiences with others, largely through mobile data,” he said.
As such, McLeod said that many FMCG businesses are struggling to sustain the levels of growth delivered in previous years. In 2018, the total value of the BrandZ Top 50 Most Valuable Indonesian Brands is just under US$81 billion, representing a 13% rise compared with 2017.
However, the average growth of FMCG brands in the Top 50 is only 2%. Brands in retail, banking and telecommunications that are more naturally defined by the experiences they provide are thriving in Indonesia’s new Experience Economy. To keep pace, FMCG brands need to disrupt traditional approaches and engineer new opportunities for growth.
(Photo courtesy: 123RF)