OPPORTUNITY KNOCKS FOR LOCAL AND GLOBAL BRANDS
Confidence returns to drive steady growth
CEO, The Store WPP, EMEA and Asia
WPP: [email protected]
The transformation of Indonesia’s economy over the past decade has brought tremendous change to people’s lives. Growth has not always been steady nor the benefits of development felt evenly, and in the past year especially, inflation and economic slowdown have put pressure on individuals, families, and the businesses building brands to serve them.
But there are few countries better qualified than Indonesia to demonstrate recovery from testing economic times; Indonesian people have proved their adaptability and resilience before, and now, there are signs of recovery. The World Bank forecasts GDP growth to pick up the pace again this year and reach 5.1 percent; that’s expected to reach 5.3 percent in 2018, and to rise again in 2019 and 2020.
2017 seems to be a period of vast improvement for Indonesia’s economy and in this year’s study, we see an overall increase over the total value of the Top 50 from just 12 months ago. The jump in 2017 reflects the return to health of the Indonesian economy and the growth in consumer confidence. Slowing inflation also means that consumers lower down the income scale have a little more money to spend. This is in no doubt to the rising middle-class demographic. Hundreds of thousands of people who are, for the first time, able to consider and buy in new categories.
Financial services brands take four of the top 10 places in the 2017 Indonesia ranking, and tobacco brands occupy five of the remaining six top spots. In each of the three years we have compiled the BrandZ Top 50 Most Valuable Indonesian Brands, the leading brand in this market has been tantalizingly close to having sufficient brand value to break into the Top 100 Most Valuable Global Brands. This year’s top Indonesian brand has grown in value and has narrowed the gap between itself and the Global Top 100. With continued investment in brand development and business expansion, we anticipate one if not several Indonesian brands will soon make it into the annual global ranking.
For brands in Indonesia, now is also a time for investment, strategic thinking, decisive action, and agility. This market of a quarter of a billion people is hugely attractive, but understanding what unifies them, what motivates and distinguishes them, is a fast-changing challenge.
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