Tata Consultancy Services tops Kantar’s 2023 most valuable brands report

HDFC and Infosys secured second and third place in the 10th edition of BrandZ Top 75 Most Valuable Indian Brands Report.

Tata Consultancy Services (TCS) has maintained its supremacy in the 10th- anniversary edition of the Kantar BrandZ Top 75 Most Valuable Indian Brands Report for the second consecutive year. With an impressive brand valuation of US $43 billion, TCS topped the chart, owing to a favourable global demand. 

With 2023 marking the 10th anniversary of Kantar’s BrandZ ranking, the report spotlights an almost quintuple surge in value within the Top 50, scaling from $69.6 billion in 2014 to a staggering $339.9 billion in 2023. As per the report, the aggregate brand value of India's Top 75 brands stands at a substantial $379 billion, a slight decline of 4% from the preceding year. It is worth noting that this decline primarily stems from brands in the Business Technology and Services Platforms category, which possess a significant global footprint, and are hence exposed to global tribulations.

HDFC Bank, Infosys, and Airtel, too, maintain their stronghold, retaining their positions within the top four. Meanwhile, the State Bank of India has made a noteworthy ascent, rising one place to secure its position in the coveted Top 5. The top five are followed by ICICI Bank, Asian Paints, Jio, Kotak Mahindra Bank, HCL Tech, respectively.

Deepender Rana, who is the executive managing director - South Asia, Insights Division, Kantar, explains how the report is generated every year. He says, “BrandZ is not just based on an expert opinion, or the opinion of investors. It is actually based on the perception of people, who really matter.”

The research for the report is carried out in 51 countries, and covers approximately 522 categories of brands across the world. “It’s a huge data system, where we interview consumers every year. The ranking marries two primary metrics, market perception and consumer perception.”

Since the report puts the growth of the top 75 brands of the country in context of their evolution over the past decade, Rana points out that the growth of Indian brands is immune to global economic trials, owing to a predominance of domestic dependence. He says, “The value of the Indian brands depends a lot on domestic consumption rather than exports. The Indian economy has been doing well, compared to global competition.”

The report dissects the success stories of the top 75 brands of the country, while revealing the intricacies behind their growth. Notably, the Automotive category has emerged as the arena for the Top 75's most rapid climbers, namely TVS, ranked 51 on the list with a brand value of $1.90 billion, and Mahindra, which is ranked 47, with a valuation of $2.01 billion, achieving an impressive 19% category growth rate. The growth has come at the hands of consumer preferences, especially the discernible shift from hatchbacks to sport utility vehicles (SUVs) and the burgeoning demand for electric vehicles.

TVS, in particular, has experienced an astounding 59% surge in its brand value and has vaulted an impressive 24 places in the rankings. This remarkable feat can be attributed to a series of successful product launches and a decade-long partnership with BMW, which affords it considerable leverage in key markets such as Europe, the United States, and Canada. Meanwhile, Mahindra, having augmented its value by an impressive 48%, has firmly established itself as a brand of profound significance in the eyes of Indian consumers, while concurrently enhancing its salience.

The ranking's Financial Services segment, comprising 16 prominent brands, represents the most substantial contributor to the aggregate brand value. This category witnessed a commendable 6% growth, largely propelled by the digital banking boom, with notable performers including Axis Bank (No. 17; +28%) and ICICI Bank (No. 6; +18%).

Telecom providers have also witnessed a significant 17% upswing in the overall brand value. Airtel (No. 4; +29%) deftly seized the advantage as the curtain fell on price wars, centring its strategy on distinctiveness and relevance in the lives of Indian consumers. This approach encompassed the provision of unique digital services, exemplified by the Xstream entertainment app and the Wynk music app. 

The report also introduces a quartet of fresh faces in the top 75, alongside the triumphant return of two prodigal entrants. Leading the pack is PhonePe, securing an impressive No. 21 spot. Joining the ranks of debutants are the fintech stalwart Cred (No. 48; $2.0 billion), the dynamic photo and video sharing platform ShareChat (No. 67; $1.33 billion), and the enthralling entertainment hub Star (No. 71; $1.30 billion).

Within the Kantar BrandZ Most Valuable Indian Brands report, two significant insights stand out prominently. Firstly, sustainability has emerged as a crucial factor influencing consumer decision-making in India. Nearly 9% of a brand's demand power, which measures its ability to shape consumer predisposition to purchase, is rooted in sustainability perceptions. However, a mere 8% of Indian brands are viewed as leaders in this domain, a figure lagging behind the global average of 11%. This suggests a compelling opportunity for brands willing to expand their sustainability efforts in this dynamic market.

As per Rana, the need for constant self-assessment for marketers and brand owners is paramount. He emphasises, "Are you investing sufficiently not only to sustain today's purchases but also to stimulate future demand?" Rana underlined the significance of this investment by referring to share price analysis, which demonstrates its long-term benefits.

Additionally, Rana questioned, "Are you pricing your products or services at the correct value? Can you justify a premium that creates value for both your business and consumers?" He points out that the ability to charge a premium directly impacts shareholder value.

Furthermore, Rana touched upon the concept of brand purpose, noting, "Is your brand delivering value beyond your business? Brand purpose and sustainability have gained increased importance among consumers and stakeholders." This holistic approach to brand value, he suggested, is becoming increasingly crucial in today's landscape.

Secondly, the report underscores the pivotal role of differentiation in establishing Pricing Power, the capacity to justify pricing decisions. Brands that have witnessed growth in both Demand Power and Pricing Power over the past year have achieved this by embracing Meaningful Differentiation. This differentiation can manifest in several ways, including being notably distinct, specialising within a niche, or by actively embodying a clear sense of purpose. These findings illuminate the path to strengthening a brand's standing and competitiveness in the Indian market.

Soumya Mohanty, managing director and chief client officer- South Asia, Insights Division, Kantar, highlighted the rich tapestry of diversity encapsulated within the India Top 75 brands. She noted, “'They are a combination of established names and dynamic young brands, both global and local in footprint.”' Despite their varied origins, these brands share a common thread – their innate ability to authentically embody the essence of being Indian. 

Mohanty explained, “Through a deep and detailed understanding of consumers in the market, and adopting the local culture and ethos, even huge international brands are seen and cherished as ‘homegrown’. This trust and loyalty have, in turn, endowed Indian brands with a unique resilience, allowing them to weather the storms of the past decade with remarkable fortitude."