TRANSFORMATION CONTINUES DESPITE SLOWING GROWTH
Opportunity for domestic brands to take to regional stage
David Roth
CEO, The Store WPP, EMEA and Asia
[email protected]
Twitter: davidrothlondon
Blog: www.davidroth.com
| It was the depth of this change,coupled with the youth, vitality andoptimism of Indonesian people,that led WPP to launch our inauguralBrandZ™ Top 50 Most ValuableIndonesian Brands ranking last year.
The pace of the country’s growth hasslowed in the past 12 months due todeclining demand from Indonesia’sbiggest neighbors and trading partners.But we are no less excited about theopportunities for brands in Indonesianow.
GDP growth may be slower today byIndonesian standards, but GDP per headis now four times what it was in 2000.The economy is still expanding at ratesthat are the envy not just of more maturemarkets far away but also many of itsregional neighbors.
This is a market that has bounced backbefore; its people are resilient and quickto adapt to changing circumstances.Now, the International Monetary Fundis forecasting growth rates of 5 percentin 2016 and has an even more positiveoutlook for the longer term.
The desire for progress amongIndonesian people – which sweptreformist President Joko Widodo topower in 2014 – is still evident, as is the rising wave of technology across thecountry. This is not just connectingpeople to the internet, though thatis a significant shift in itself; it is alsoproviding the means for furthertransformation, through web-basedbusinesses that are innovating anddisrupting established ways of working,and offering new ways of communicatingand building brands.
In this study of the most valuable brands,and our analysis of what has made thestrongest so successful, we see thatsome Indonesian businesses have usedthis period of economic adjustmentwisely, investing in nurturing brandequity to accelerate their growth whendemand rebounds.
In comparing this year’s ranking with thatof a year ago, we see clear evidence thatstrong brands are protected from theharshest of external conditions and, over10 years of Global BrandZ™ valuations,we have seen that the strongest brandsare those that recover the fastest.
Indonesia’s strongest and most valuablebrands have not only beaten the stockmarket indexes in terms of shareholderreturns (see page 42 for details), theyhave also positioned themselves to takeadvantage of a new regional growthopportunity.
Go to brandz.com to learn more. |