Indonesia’s strongest advertisers have responded successfully to slowing GDP growth and rising inflation, according to WPP and Millward Brown’s second annual BrandZ ranking of the country’s 50 most valuable brands.
The list’s top 50 brands have grown 2% in total value over the last 12 months, successfully adapting their strategies to changing economic conditions. The brands are shown to have become more innovative, leading consumers to ‘love’ them more, priming them for further growth and international expansion.
Banks BCI and BRI still top the list of most valuable brands in the country, with banks the most valuable category and finance, property, tobacco and FMCG companies also featuring high in the ranking, reflecting customers’ priorities.
The list has also proven that brands in the country are ready to compete globally, with BCA becoming the first Indonesian brand to enter the BrandZ Global Top 100.
“This is an exciting time to build brands in Indonesia,” said The Store WPP chief executive officer for EMEA and Asia David Roth. “As the fourth most populous nation in the world, it remains a critical market for local, regional and global companies in search of growth.
“Indonesian businesses are looking ahead with renewed, if cautious, optimism, and President Joko Widodo has pledged to continue to open up and modernise the market. Strong, valuable brands will drive long-term financial success and superior shareholder return for local companies, as well as global businesses that aspire to introduce their brands to Indonesian consumers. Marketing and brand building are not a cost center or a luxury; they’re one of the most important investments a company can make.”
WPP Indonesia & Vietnam chairperson Ranjana Singh added that investing in branding in Indonesia is more important than ever before.
“Indonesian consumers are becoming highly engaged with brands; they’re aware of them, they talk about them, and they review and recommend them,” she added. “Wary consumers seek safety in strong brands in uncertain times, so they should highlight their scale, history and popularity to build trust. Projecting a strong sense of purpose, in particular, can help brands to stand out.”
In June 2016, Google reclaimed the BrandZ Top 100 Most Valuable Global Brands top spot, increasing its value by 32%.