In 2023, Indian brands experienced a challenging year, reflecting broader global economic uncertainties. According to Kantar BrandZ, the combined value of the top 75 Indian brands fell by 4%, totaling $379 billion. Despite this decline, Indian brands have performed better than their global counterparts, whose combined brand value plummeted by 20%. This article delves into the details of this year’s report, highlighting the performance of various sectors and key players in the Indian market.
Tech Brands Bear the Brunt
A Year of Decline for Indian Tech Giants
The technology sector, a significant contributor to the Indian brand landscape, saw its value decrease by 14% in 2023. This decline reflects the broader struggles of tech companies grappling with global economic pressures, recession threats, and geopolitical instability. Despite these challenges, some Indian tech brands have managed to weather the storm better than others.
Tata Consultancy Services (TCS) retained its position as India’s most valuable brand, although it saw a 6% reduction in value. “TCS’s strong corporate reputation helps it retain clients and maintain business relationships, contributing to its resilience,” says Deepender Rana, Executive Managing Director of South Asia Insights Division at Kantar. Conversely, Infosys experienced a significant drop of 17%, while HCL Tech’s brand value increased by 3%. Wipro, however, faced a sharp decline of 42% in its brand value.
The Resilience of Non-Tech Brands
Stability Amidst Uncertainty
While technology brands faced considerable challenges, other sectors have demonstrated greater stability. “If you exclude tech, the combined brand value remains relatively stable,” notes Soumya Mohanty, Managing Director and Chief Client Officer, South Asia, Insights Division of Kantar. The non-tech sector’s relative stability has been driven by the consistent performance of banks and telecom companies.
In the top 10 most valuable Indian brands, banks dominate, with only one consumer goods company, Asian Paints, making it to the list. The presence of strong financial institutions highlights the sector’s importance in the overall brand value landscape.
Top 10 Most Valuable Indian Brands of 2023
The Rankings Revealed
- Tata Consultancy Services: $42.9 billion
- HDFC Bank: $33.6 billion
- Infosys: $24.1 billion
- Airtel: $22.5 billion
- State Bank of India: $14.4 billion
- ICICI Bank: $12.9 billion
- Asian Paints: $12.8 billion
- Jio: $11.7 billion
- Kotak Mahindra Bank: $10.3 billion
- HCL Tech: $9.3 billion
These rankings underscore the strong performance of India’s financial and telecom sectors, which have maintained their brand value amidst broader economic pressures.
Auto Industry’s Notable Rise
Growth and Innovation in the Auto Sector
The automotive sector has emerged as a significant performer in 2023, with several brands showing impressive growth. TVS, valued at $1.9 billion, saw its value increase by 59%, climbing 24 places in the rankings. This growth is attributed to successful product launches and a strategic partnership with BMW, which has enhanced its presence in global markets such as Europe, the US, and Canada.
Mahindra, valued at $2.01 billion, also experienced a notable increase of 48% in brand value. The company’s efforts to enhance consumer engagement and boost brand salience have paid off. Despite these gains, Maruti Suzuki, India’s largest auto company, saw a 5% decline in brand value. Bajaj Auto, on the other hand, recorded a 9% increase.
Financial Services Sector’s Growth
The Surge in Financial Brand Value
The financial services sector has seen a 6% increase in brand value, with 16 brands contributing significantly to the total brand value. Axis Bank emerged as a standout performer, with its brand value swelling by 28%, now ranking at 17. ICICI Bank also saw an 18% increase, maintaining its position in the top 10.
New entrants in the fintech sector, such as PhonePe and Cred, have further bolstered the financial services sector. PhonePe debuted at No. 21 with a brand value of $4.4 billion, reflecting its position as India’s leading digital payment app. Cred entered the list at No. 48 with a brand value of $2 billion, showcasing the growth of digital finance and the increasing demand for these services.
Challenges for Other Sectors
FMCG and Other Sectors’ Performance
The FMCG sector has managed to keep its brand value stable throughout the year, despite fluctuations in other sectors. However, brands like PayTM, Zomato, Swiggy, Flipkart, Naukri, Oyo, and Nykaa have experienced a decrease in brand value. Notably, Byju’s was excluded from the list this year, reflecting broader challenges faced by the ed-tech sector.
Navigating a Complex Landscape
The 2023 Kantar BrandZ report highlights the complexities of the Indian brand landscape amidst global economic uncertainties. While tech brands have faced significant declines, other sectors like financial services and automotive have shown resilience and growth. As brands continue to navigate these challenging times, their ability to adapt and innovate will be crucial in maintaining and enhancing their value. The diverse performance across sectors underscores the dynamic nature of the Indian market and its capacity to withstand global economic pressures.
