Jun 9, 2016
India's burgeoning economy sees brand activity boom, says report
Jun 9, 2016
Brand activity is booming across India as the burgeoning economy maintains its momentum, according to the 2016 Top 1000 Brands report. Gucci was the best ranked fashion brand, Nike the top rated sports brand, while local supermarket giant Big Bazaar also made the top ten.
India's economic growth is outpacing other large nations at around 7.5 percent, said the report, as "reform-minded prime minister’s policies take hold." This goes against the small slowdown trending in the other three BRICs nations: Brazil, Russia, and China.
The report, described as "the region's most comprehensive research on consumer brand perceptions" by creators Campaign Asia-Pacific, is an annual compilation of the most recognised companies by country and region. Data is configured based on brand awareness questions posed to a survey group of Indian consumers.
This year’s Top 1000 Brand’s survey saw Samsung, Nestlé and Sony take the top three spots, a brand trend across the region as a whole, according to the 2016 Asia's Top 1000 Brands ranking.
Representing fashion, sports and retail sectors Gucci ranked number ten for brand perception, pipped by Nike at number 8.
Big Bazaar, the local supermarket giant and rival to Amazon (which ranked #22), was the biggest retail brand in India in 2016, sitting at number seven on the list.
According to a report by A T Kearney, current retail sales in India are worth US$925 billion and are tipped to hit $1.3 billion by 2020.
“Consumer and investor sentiment have seen an uptick, as the pro-reform government under Prime Minister Narendra Modi sets out on an ambitious goal of improving its Ease of Doing Business ranking from 142nd to 50th in the next two years,” the report said.
India has risen five positions to rank 15th in the latest edition of the index, the London-based consultancy firm said.
“India represents a good opportunity for international retailers in single-brand retail, cash-and carry, and ecommerce, as the country appears to be on the cusp of a strong growth phase over the next five years,” it said.
The report also considered the sustainability of India’s economic growth. Critics of PM Narenda Modi say that the nation's economic truth has been disguised by low oil prices, which have slashed India's heavy bill for energy imports.
“Many other emerging economies also depend on imported oil,” Modi said in April. “If oil prices were the driver of success, those countries would all be showing similar results. But they are not.
“There are some who remain confused and have said that the growth rate does not ‘feel’ right.”
He said foreign investment had increased, company credit ratings had improved overall and the government was on track to meet its deficit target.
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