Brand Power in Indonesia
WPP, the global advertising, marketing, and PR agency, commissioned a study and ranking of Indonesia’s “most valuable brands.” The findings report on Indonesia’s consumer demographics and which sectors are resonating with consumers and why.
Indonesian consumers now look for brands that make a positive impact on their lives and can also justify how they are different to the rest of their category. The ability to create this ‘Meaningful Difference’ has become a key driver for growing brand value. Since 2015, brands in the BrandZ Top 50 that are perceived by consumers as being highly Meaningful and Different have grown 46% more than those that aren’t. The FMCG sector, in particular, has struggled with changing conditions, growing just 2% year on year, discovering as Indonesia’s economy changes and develops, increases in market penetration are no longer enough to achieve growth. In contrast, Bango (No. 23, $588 million) is the fastest-growing Food and Dairy brand, up 9% year on year thanks to initiatives such as its long-running campaign to celebrate the high quality of its black malika bean and the farmers that grow it, which encompasses regular large-scale events to build brand equity and deliver authentic experiences to consumers.
Other trends highlighted in this year’s BrandZ Indonesian Top 50 study include:
- Banks and retailers are nation’s fastest rising categories: Brands in two of the most traditional business sectors – retail and banking – lead the growth, up 8% and 19% respectively. Retailer Ace (No. 32, $421 million) and grocer Alfa (No. 24, $566 million) have grown by 47% and 33% respectively. In the banking sector, where seven brands posted double-digit rises, BTN (No. 43, 242 million) led the way with 31% growth due to building its digital banking options and expanding the provision of loans to people with informal work arrangements.
- New national shopping day: Indonesia’s online shopping day Harbolnas is becoming increasingly critical for brands. Launched in 2012 and held on 12.12 (12 December) each year, Harbolnas is fuelled by deep discounts and other offers, such as free delivery. In 2017, it generated IDR4.7 trillion ($315 million), four times the equivalent level of spend in 2016.
- Travel beyond Jakarta: Indonesia’s capital is home to less than 4% of the country’s population. Brands need to tailor messaging to regional and local preferences, which – especially when it comes to food – can vary considerably.
- Unique and affordable. According to the annual Best Countries report developed by BAV Group, Indonesia ranks 41st out of 80 countries. Consumers globally perceive its greatest strengths are affordability and low manufacturing costs, although they tend to have low opinions of the quality of the country’s infrastructure, its position on human rights and health.
Ranjana Singh, WPP Country Manager for Indonesia and Vietnam, comments: “Brands can no longer rely on increasing distribution to power growing profits, the economy is now too developed for that. Instead, they must focus on building strong brands that stand for something and have meaning for local consumers. Even in sectors that have grown slowly, the brands who are meaningful and different to their consumers have grown their brand value in relation to their peers.”
Referenced In This Post
Indonesia's Most Valuable Brands Outpace GDP with Stellar 13% Growth in BrandZ™ Top 50 Most Valuable Indonesian Brands 2018/PRNewswire/ -- BCA remains the most valuable brand, up 20% to $12.7 billion, becoming the first Indonesian brand to be listed in the BrandZ™ Top 100 Most...