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TRANSFORMATION CONTINUES DESPITE SLOWING GROWTH
Opportunity for domestic brands to take to regional stage
David Roth
CEO, The Store WPP, EMEA and Asia
David.Roth@wpp.com
Twitter: davidrothlondon
Blog: www.davidroth.com
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It was the depth of this change,
coupled with the youth, vitality and
optimism of Indonesian people,
that led WPP to launch our inaugural
BrandZ™ Top 50 Most Valuable
Indonesian Brands ranking last year.
The pace of the country’s growth has
slowed in the past 12 months due to
declining demand from Indonesia’s
biggest neighbors and trading partners.
But we are no less excited about the
opportunities for brands in Indonesia
now.
GDP growth may be slower today by
Indonesian standards, but GDP per head
is now four times what it was in 2000.
The economy is still expanding at rates
that are the envy not just of more mature
markets far away but also many of its
regional neighbors.
This is a market that has bounced back
before; its people are resilient and quick
to adapt to changing circumstances.
Now, the International Monetary Fund
is forecasting growth rates of 5 percent
in 2016 and has an even more positive
outlook for the longer term.
The desire for progress among
Indonesian people – which swept
reformist President Joko Widodo to
power in 2014 – is still evident, as is the rising wave of technology across the
country. This is not just connecting
people to the internet, though that
is a significant shift in itself; it is also
providing the means for further
transformation, through web-based
businesses that are innovating and
disrupting established ways of working,
and offering new ways of communicating
and building brands.
In this study of the most valuable brands,
and our analysis of what has made the
strongest so successful, we see that
some Indonesian businesses have used
this period of economic adjustment
wisely, investing in nurturing brand
equity to accelerate their growth when
demand rebounds.
In comparing this year’s ranking with that
of a year ago, we see clear evidence that
strong brands are protected from the
harshest of external conditions and, over
10 years of Global BrandZ™ valuations,
we have seen that the strongest brands
are those that recover the fastest.
Indonesia’s strongest and most valuable
brands have not only beaten the stock
market indexes in terms of shareholder
returns (see page 42 for details), they
have also positioned themselves to take
advantage of a new regional growth
opportunity.
Go to brandz.com to learn more.
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