BCA (Bank Central Asia) topped the BrandZ Top 50 Most Valuable Indonesian Brands ranking, released by WPP and Millward Brown.
The 50-year old consumer bank had pioneered mobile banking in the country and launched popular innovations including pre-paid payment card Flazz.
The other two banks in top 5 include Bank Rakyat Indonesia at number two and Mandiri at number four.
Banks make up 24 per cent of the Top 50 – with four brands in the Top 10 – accounting for USD 27.5 billion of the total value. Compared to other countries’ Top 50 – this is the same percentage as that of India, but higher than Brazil (12 per cent), China (15 per cent) and global brands (16 per cent).
The report highlights that this could be attributed to Indonesian banks excelling at making themselves accessible, and using digital technology to innovate in ways consumers find highly relevant to their lives.
In total, the combined brand value of the Top 50 Indonesia brands stands at USD 64.6 billion. This puts the value of Indonesia’s strongest brands close to that of the Top 50 Indian brands (USD 69.6 billion) but only one-seventh of the value held by China’s Top 50.
Following the trends of concentration of power at the top, the Top 5 Indonesian brands alone account for 57 per cent (USD 37 billion) of the value.
Tobacco is the other popular category in Top 10 as four brands found their way in the ranking – A Mild (number 5), Surya (number 8), Dji Sam Soe (number 9) and Marlboro (number 10). This could be because in Indonesia, tobacco brands are still allowed to advertise on television. There are seven tobacco brands in the Top 50, accounting for USD 14.8 billion of its value.
The other brands in top 10 included telecoms brand Telkomsel (number 3), Matahari (number 6) and Bank Negara Indonesia (number 7).
Outside the Top 10, there are strong performances from the real estate, food and dairy, soft drinks, personal care, retail and entertainment sectors. FMCG brands make up 28 per cent of the ranking; a very high proportion compared with other markets. However, the technology sector in Indonesia does not figure prominently in the ranking, as home-grown tech brands are yet to achieve significant scale.
While local brands dominate the Top 50, multinationals are also succeeding by tailoring attributes to the market. For example, Pond’s (number 13) skincare range focuses on whitening, an important beauty benefit for Indonesian women, while Sunsilk (number 31) communicates the shine it gives to naturally black hair.
A trend that emerged from the findings was that digital innovation helps to drive up brand value. As the Indonesians are very active on mobile and social media, the Top 5 brands invest significantly more in digital services and media than the lowest-ranked brands. It is also important to note that while the four retail brands in the Top 50 are all bricks-and-mortar stores, the rate of e-commerce is growing in parallel with smartphone ownership and the use of credit and debit cards.
The report suggests that it is important to make connections with the consumers. The communication plan ‘must tell memorable stories’, like the instant noodle brand Indomie (number 14) continuously refreshes its range with new flavours, and appeals to consumers with emotional advertising. Telkomsel (number 3) also expresses a compelling and unifying purpose across all touchpoints with its ‘Go Discover’ mantra, the report highlights.
Ranjana Singh, WPP Indonesia explains, “Indonesia’s fast growth, stability and consumer confidence create perfect conditions for brand-building. Indonesians can afford to consider a greater range of brands, and they recommend those they love. They’re also demanding: they want to be offered more, and to feel special. Brands will win in Indonesia if they can meet consumers’ functional needs, while communicating stories that build meaningful connections. This will be well worth the investment: BrandZ data shows that businesses in Indonesia which nurture the power of their brands are four times more valuable than those that don’t.”
David Roth, CEO of The Store, WPP said, “This is a country whose time has come. While China and India have been grabbing headlines, Indonesia has transformed into the economic powerhouse of Southeast Asia. The country is in the midst of social and economic change on a massive scale, making it an extremely attractive market for global and local brands alike as this study proves.”