Adtech regulation a priority for Modi govt in third term: MoS Rajeev Chandrasekhar

Credibility of news and platforms are as important as monetisation challenges: Anurag Thakur

HUL: Meet the leaders who have emerged from "The CEO Factory"

Punit Goenka addresses Zee employees; ensures no layoffs due to failed merger

Disney's strategic sale to Viacom18 set to boost market share to 40 percent

The Leader's Edge: Storyboard18 in conversation with leaders, decision makers and disruptors

Nobody’s Perfect Retro Porsche Ad

In Conversation With Raja Rajamannar, Mastercard

Shahid Kapoor And Varun Ganjoo Speaks On PokerBaazi's Campaign

In conversation with IHCL’s Puneet Chhatwal & GroupM’s Kate Scott-Dawkins

Why are brands including e-sports in their sports marketing itinerary?

Storyboard18 x The English Nut: How to pronounce these 10 brand names

Experts' Take On Reinvention Of Ad Campaigns Through Technology

Experts Speak On Key Emerging Trends In Cannes Lions Entries

Leaders of the future have to be outstanding human beings: Nestle MD

In conversation with VMLY&R’s Hari Ramanathan

Consumer sentiment and behaviour have evolved post Covid, and brands are adopting new methods to grow with the change and effectively engage consumers.

In a chat with Storyboard18, Deepender Rana, Executive Managing Director, South Asia, Insights Division, of analytics firm Kantar  talks about why the revenues of Indian brands only saw a small dip even when global brands suffered significant lows, changing consumer preferences, the importance of brand equity, cautious optimism, and more.

 

Excerpts follow:

 
<strong>
The latest report from Kantar shows that Indian brands have been resilient compared to global ones. What are the reasons for this?</strong>

Other than a minor dip in value of around 4 percent in 2022, Indian brands have been resilient. This decline, though small, stands in stark contrast to the global trend, which has seen a 20 percent drop in value.

This resilience can be attributed to two key factors. Firstly, it reflects India's stability. Secondly, India is less susceptible to global economic headwinds as only 28 percent of the value revenues of Indian brands come from their overseas operations.

Additionally, Indian brands have adeptly managed challenges such as inflation, which was a significant concern last year but is now subsiding. Their success in this regard highlights the importance of building strong brand equity. Brands with robust equity can, for instance, increase prices without losing market share.

 

<strong>What factors contribute to the emergence of new players in the brand valuation  rankings?</strong>

The emergence of new players in brand rankings can be attributed to their ability to disrupt categories and generate substantial revenues. This disruption can be a unique business model or challenging established category norms. In many cases, it's a blend of both factors. PhonePe and Cred are the perfect two examples. 

Moreover, these brands have capitalised on evolving trends, leveraging these shifts to their advantage.

However, it's crucial to acknowledge the associated risks. Startups, while rapidly creating financial value and enjoying strong investor support, can experience swift value erosion if they fail to offer a compelling value proposition. This underscores the enduring importance of brand equity.

Before the pandemic, brand equity was already significant, and this importance remains undiminished in the post-Covid landscape as well. However, the metrics for assessing brand value have evolved. Pre-Covid, factors like purpose held less prominence, but now, sustainability has emerged as a robust building block of brand equity. Brands must adapt to these new dimensions, harness them to boost their equity and effectively engage with consumers.

 

<strong>Growth of digital isn’t new but it’s still hard to ignore its scope. What are the emerging trends there?</strong>

Digital spending is set to reach 56 percent of total media expenditure, with a significant 70 percent of media spending growth attributed to digital channels. The digital landscape has evolved, encompassing diverse platforms like addressable TV, OTT, social media (e.g., Facebook and YouTube), and influencer marketing.

Measuring the impact of influencers remains challenging, though they hold substantial influence on brand ROI, as revealed by our media reaction study. However, the effectiveness of digital spending is short on robust measurement, leading to potential wastage. Unlike television, digital content can be transient.

As digital continues to expand, advertisers face increased choices and scrutiny. Furthermore, the gradual decline of cookie tracking, vital for ROI tracking, poses a significant challenge.

Thus, measuring the effectiveness of digital spending, particularly outside major platforms, becomes more complex and necessitates close attention.

 
<strong>
There has also been significant growth outside of metros. What are your observations around brands looking to market and sell in the Bharat market?</strong>

India is incredibly diverse, with multiple facets to consider when devising a winning strategy. It's crucial to move beyond the major metropolitan areas and focus on multiple categories. There's ample room for growth, especially in burgeoning sectors like e-commerce, which is entering its second and third years of expansion.

Given India's vast untapped potential, growth will increasingly originate from smaller towns and regions. However, creating sustained value in these areas is more challenging than in tier-one cities, demanding persistent effort. Leading brands are investing in category creation, distribution, and channel development to tap into this potential.

Moreover, local brands play a significant role in rural areas, often catering to local preferences. To compete effectively, both established and local brands must adapt their products and communication strategies to resonate across diverse Indian markets.

 

<strong>Where are the purchases happening? Online or offline?</strong>

There's a significant consumer segment that prefers to visit physical stores for certain categories, like clothing, to feel and compare products before ultimately making an online purchase. On the other hand, some consumers research online before buying in-store. Additionally, e-commerce continues to grow across all categories, with consumers becoming savvier, aided by comparison apps.

Brands are adapting by establishing offline stores alongside their online presence, recognising the fluid nature of consumer behaviour. It's important to understand that the same person can switch between offline and online purchase depending on the category, sometimes even combining both in a single purchase journey.

The challenge lies in last-mile attribution. Marketers aim to build a strong brand predisposition offline and online to influence the moment of purchase. This report underscores the importance of brand building.


<strong>What are the big trends to look for in the rest of 2023-2024 fiscal?</strong>

Firstly, sustainability continues to gain importance and influence consumer decisions. It's key for both demand and pricing power, encouraging consumers to pay a premium for sustainable products.

Looking ahead at the next six months, there's a sense of cautious optimism. Consumer sentiment remains positive, though global factors may pose challenges. The upcoming festive season will be crucial for brands to engage consumers and drive spending. The emphasis remains on investing in the brand and in meaningful communication to make this festive season successful.

 

Metrics for assessing brand value have evolved post Covid: Deepender Rana

India’s largest IT company Tata Consultancy Services (TCS) has become the most valuable Indian brand in 2022, according to the Kantar BrandZ India rankings. The company rose two places up the ranking to attain the No. 1 position that was held by HDFC Bank since the Kantar BrandZ India ranking was launched in 2014. Kantar, the world’s leading marketing data and analytics company, recently released the Kantar BrandZ Top 75 Most Valuable Indian Brands 2022 report that values the TCS brand as worth $45,519 million, putting the company at the top. TCS’ brand value jumped 212 per cent in 2022 from 2020. Storyboard18’s Shibani Gharat spoke to Deepender Rana, executive managing director, insights, South Asia, Kantar, and Soumya Mohanty, managing director, insights division, Kantar on the report. Listen in.

<iframe width="560" height="315" src="https://www.youtube.com/embed/ZhYSjbRgbWM" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Deepender Rana and Soumya Mohanty on Kantar’s BrandZ India Report

Indian brands are back in business. The Kantar BrandZ report that lists India’s top 75 most valuable brands says the country’s strongest brands have bounced back from the pandemic to increase their brand value by 35 percent CAGR since 2020.

Tata Consultancy Services is the most valuable Indian brand, according to the report. The spot was previously held by HDFC Bank for the past eight years. As per Kantar BrandZ analysis TCS’s brand value has been accelerated by global demand for automation and digital transformation following the pandemic.

India’s top 75 brands are now worth a combined USD 393 billion. According to the report, the top 10 most valuable Indian brands together contribute just over half of the ranking’s total value.

There are brands from 23 different categories in the 2022 Indian Top 75 list, out of which 14 are newcomers. Key newcomers to the ranking include Vi at number 15, Byju’s at number 19 and Adani Gas at number 21.

Coming back to the list, the top ten spots were taken by Tata Consultancy Services, HDFC Bank, Infosys, Airtel, Asian Paints, State Bank of India, LIC, Kotak Mahindra Bank, ICICI Bank and Jio.

There has been significant movement at the top, in addition to the two most valuable brands switching positions. There are two new entrants – Infosys which has moved up to number three from twelfth position, and ICICI Bank which has climbed two places to number nine. State Bank of India has also risen four places to number six.

[caption id="attachment_2040" align="alignnone" width="605"]<img src="https://images.storyboard18.com/storyboard18/most-valued-brands.jpg" alt="Most Valued Brands" width="605" height="237" class="size-full wp-image-2040" />  Most Valued Brands[/caption]

According to findings of the report, technology and banking brands account for over half of the total value of all the 75 brands. Six B2B tech brands and 11 Consumer tech brands contribute 35 percent to the total value of the ranking, reflecting the rise of tech in India.

The report states that, overall, B2B brands (tech, payments) are on average almost three times as valuable as B2C brands, reflecting the fact that many of the B2B brands play on the global stage while B2C are more focused on the domestic market.

'Six banking brands deliver 19 percent of the total value. Also notable for their performance are Insurance brands, which have performed well as the pandemic increased consumers’ focus on protection of life and health and Telecom Providers, led by Airtel and Jio which took full advantage of growth opportunities as everything moved online, from education to work to parties,’ the report says.

“India’s leading brands have grown at an exceptional rate, despite global economic headwinds, putting the disruption from COVID-19 behind them. Indeed, they have both driven and benefited from the transformation in consumer and business behaviour as a result of COVID-19, especially where it relates to the use of technology," said Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar. 

He added, "The challenge now is to sustain momentum as inflation bites worldwide and consumers and businesses adjust to the new normal. Brand owners will need to work harder to identify and build on what makes worth paying for and ensure ROI on their marketing expenditure to avoid a margin squeeze.” 

TCS is India's most valuable brand: Kantar BrandZ report

Storyboard18 chats with Kantar’s Deepender Rana

KANTAR