Strong brand foundation drives long-term shareholder value: Kantar’s Soumya Mohanty & Deepender Rana

New Delhi: Soumya Mohanty and Deepender Rana of Kantar emphasised the critical importance of investing in brand building beyond performance marketing, noting that it is essential for sustainable growth. They highlighted how a strong brand foundation plays a pivotal role in driving long-term shareholder value. 

Mohanty, Managing Director & Chief Client Officer, Insights, South Asia at Kantar, highlighted the importance of creating meaningful connections with consumers. “Brands that combine strong advertising appeal with differentiation have seen significantly higher growth rates,” she noted, pointing to the positive correlation between differentiated advertising and long-term growth. 

Rana, Executive Managing Director, Insights, South Asia at Kantar, said, “Investing in brand building, rather than just performance marketing, is crucial for sustainable growth.” He further highlighted that for top global brands, intangible brand value accounts for 32% of their total company value, showcasing the financial advantages of strong brand equity. Brands that focus on creating a "Meaningful Difference" not only foster customer loyalty but also improve pricing power.

Speaking during the launch of the Kantar BrandZ Most Valuable Indian Brands Report, both experts agreed that a strategic focus on brand equity is key to driving sustained success in today's competitive landscape.

The combined valuation of India’s top 75 valuable brands has gone up at an "impressive growth" rate of 19% to $450.5 billion, according to the Kantar BrandZ report.

India's leading IT firm TCS remained the most valuable brand for the third straight year, followed by HDFC Bank, Airtel, Infosys and SBI, the report said.

"With a brand value of $49.7 billion, TCS has seen a 16% rise versus last year, driven by investments in innovation, particularly in AI and digital transformation," it said.

In an era of fragmented media landscapes, maintaining consistent and engaging brand messaging is more critical than ever. Mohanty pointed out that, “Regardless of media fragmentation, brands must maintain consistency and connectedness to build equity over time.” She noted that brands with strong advertising appeal and meaningful differentiation see significantly higher growth rates, highlighting the impact of effective marketing strategies.

Brands across business sectors have fuelled the growth, with 54 brands boosting their brand value over the past year, according to the Report.

"This impressive growth outpaces most other BrandZ rankings globally and closely mirrors the 20% increase seen in the Global Top 100," it said.

Rana said that over the past year, the companies behind India’s Top 75 brands have achieved an impressive 52% stock market growth, outpacing the 37.6% growth for the Sensex. Brands that thrive are those that create a meaningful difference by meeting evolving consumer needs, challenging industry norms, and forging strong emotional connections.

With strong foundations and a focus on meaningful differentiation, the outlook for Indian brands remains promising as they navigate both local and global markets. A silver lining of further growth was underlined by Rana when he said that a way for brands to actually succeed is to “innovate, connect with consumers, and continuously monitor their brand equity to sustain growth.”

Financial services brands dominate the list, as 17 brands contributed 28% of the ranking overall brand value. HFDC Bank is second with a valuation of $38.3 billion, while the state-run State Bank of India is fifth with a valuation of $18 billion. ICICI Bank has been ranked sixth with a valuation of $15.6 billion and LIC at number 10 with a valuation of $1.5 billion.

Rana pointed out that "the financial services sector is largely reserved for Indian brands," underscoring their strength and stability.

Food delivery platform Zomato has seen the fastest growth, doubling its brand value to $3.5 billion and has been ranked 31st. This is led by "relentless innovations and expansion into quick commerce.

Mohanty noted, "Zomato is a great example of a brand that has seen 100% growth in valuation, thanks to its meaningful and different approach."

The automotive sector is led by Maruti Suzuki, which is in 17th position, followed by Bajaj Auto, which has been ranked at 20. Mahindra & Mahindra has a 78% growth in brand valuation and has been ranked at 30th position.

Sectoral shifts are also evident, particularly in automotive and real estate, driven by rising disposable incomes and changing consumer preferences. Rana emphasised that aspirational sectors are thriving, stating, “The automotive value growth has happened because of the shift to SUVs, while the top end of the real estate market is also doing well.”

"The success of models like XUV700, Scorpio N, and Thar, which continue to see high demand and long waiting periods, has solidified Mahindra's leadership in mid and premium SUVs," the report said.

Mohanty said, “It’s not enough to make consumers want to buy; brands must build their saliency and relevancy across all touchpoints, from advertising to in-store experiences. Successful brands create a consistent presence that resonates with consumers, driving both awareness and loyalty.

Those that thrive have combined strategic reach with compelling, creative messaging to capture consumer attention and drive significant brand growth.”

The 2024 ranking is based on the opinions of 1.41 lakh respondents on 1,535 brands across 108 categories.