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Topic : Indian brands vs. Global Brands
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Industry : Advertising/PR/MR/Events Functional Area : Branding
Activity:  16 comments  767 views  last activity : 04 19 2011 05:33:53 +0000
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In today’s environment, strong brands are the foundation in building a strong nation. Let’s take a look at some of the nations of the world. The USA has the largest economy in the world and is also known as the land of brands.

In the 2008 top 100 Best Global Brands study conducted by inter-brand, the US leads with 52 brands in the top 100 list, followed by Germany with 11, France 8, Japan 6, Switzerland 4, the Netherlands, Britain and Italy 3 each, Korea and Sweden 2 each, Finland and Spain one each.

To qualify for the ranking, the brands must derive 30% of their revenue from the export market. Japan, Germany and France are the second, fourth and fifth largest economies in the world and their brands are well known for their quality products.

It is interesting to note that only two Asian countries-Japan and Korea made it to the top100 Best Global brand list.

China is the third largest economy in the world and we identify it as the factory to the world but not home to any distinctive brand. Similar is the case with India.

While we have many Indian conglomerates that are of international standard, many of their brands do not have high brand value.

Branding or the process of managing a brand is a discipline that many brand owners or custodians in India do not view as important. While a brand is intangible, it is the key driver of growth for any business and an important asset.

Hence, the country of origin label is important as brands that are of poor quality reflect badly not only on the organization but on the brand image of the country and vice-versa.

 

 Top Comment : Jayant Vishnu   | 08 28 2009 11:36:17 +0000
One of the reason for that is Globalization..... Globalization in India started in the early 1990's not in a full flow though. Indian Brands have started competing internationally & are facing hurdles to compete with them in terms of image, technology & quality. Indian counterparts also have a wrong notion that brand building always have to cost lots of money. Contrary to common perceptions in companies, branding is more than advertising and marketing communications alone. Nice company logos or modern design identities are not key ingredients for branding. Instead, successful branding is strategic, involves all aspects of a company and must be deeply embedded throughout the entire organization. This ensures a successful balance between brand promise and brand delivery. In the future, this requires companies to become more cross-functional, to manage and measure results through multiple marketing metrics, and work in teams to play an important part of brand building. Corporations also must realize the importance of moving up the value chain..... Thanks for sharing shiuli :)
 
16 comments on "Strong Brands make a strong nation: So Why are Indian brands still lagging behind?"
  Commented by  s p chakravarty, chief general manager, sky automobiles ltd    | 04 19 2011 05:33:53 +0000
we should not hope for any improvement till corruption is removed from our country.you cant name any indian brand with quality because every body is interested in making money.even company wants to provide good qualty service our agents ,dealers do not allow to do so .in our present education system we are only producing quantity engineers and not quality a student with 40 to 50 percentile marks in cat gets admission in best b school same every where what you can expect from them,we can never compete in market
  Commented by  ujjval jain, All roles for me, Abhishek Ent    | 11 12 2009 19:36:31 +0000
Even developing countries like ours do make strong brands, Lakme, Thums up, Limca etc are all Indian brands. Whatsoever Coke tried to kill Thums-Up, it could not do that. Unfortunately now these brands are owned by foreign MNC's due to one or other reason but at present, if now we have the audacity to buy brands like Jaguar & Landrover, we do have the potential of not only  creating brands & but required intensity for making them global too.
Brands are built over years of continuous efforts to connect with the consumers by firing all the cylinders you have got. After surviving and moving ahead the onslaught of multi nationals post liberalization, Indian companies has realized the need to connect on longer terms with the consumers and alongwith doing product branding, they are also doing social marketing. Apart from that Indian companies never really looked byond India boundries in pre liberalization era. But they have now taken it up in a big way with Tata acquiring Corus and JLR, outside world has started noticing the might of Indian compnies. So, I think that very soon we will also see very strong Indian brands.  
  Commented by  Raju Ramalingam, Business Analyst, Rhytha Web Solutions    | 09 12 2009 03:29:29 +0000
Rating : +1 
Really we got good brands but the problem is other countries have inoculated their business into our economy and finally made us to forget our country brands. In IT sector we've had good brands and also in bio-tech industry (biocon) and I need to dig more on this...India is a developed country and we are ignorant...
  Commented by  santosh kumar, Marketing Manager, TATA MOTORS LTD    | 09 03 2009 10:44:32 +0000
Rating : +1 
Though India opened its borders thru liberalisation it allowed companies to enter its market this was not reciprocated. The indian brands did not venture out to the outside world. Very recently is this being observed with indian companies buying out foreign brands & incresing its operations & presence.It will take some time till the results start to show
  Commented by  K Satish Kumar, Client Servicing Executive, TBWA\TEQUILA    | 09 03 2009 09:02:00 +0000
Rating : +1 
For me both go together. Most strong brands are form developed countries. On the other hand we are still developing country. We have got together as a country only 60 years back. We opened our economic polices only by 1990-91. In this way we have started very late. Now we do have world class brands (TATA, Reliance, Wipro, Bharti, UB group to name a few) 
Since the economy is doing well we are able to put better infrastature in place, which is very essential for industries. This also reduces the cost of production. Which money can be utilized in other mode of Brand building.   
  Commented by  Sanjeeva Reddy Bora, Tech Architect, Invensys    | 08 30 2009 19:48:21 +0000
Rating : +1 
Very simple, developing countries only think of today and whats the earning factor for today. So we choose the services factor. We dont budget good amount for the RnD, Why ..because ministry need to address lot more things than RnD , which could be a true representation of countries tomorrow. So the poverty line makes lot of difference. Our own counties top notch guys are the imp part of the so called developed countries brands. I dont say we can never make it, but there should be a mindset change happenning.. im sure we are in this line, we just need to be patient for some more time.WE HAVE BRIGHT FUTURE AHEAD.
  Commented by  Kujnish Vashisht, Partner/Principal/VP, Expedient Consultants    | 08 30 2009 10:05:06 +0000
Rating : +1 
Developing Nations extended their Brands to other Nations when Sales from their parent Nations were stagnant. However,they had to adapt their Brands as per local conditions. India is a young nation as far as globalization is concerned, but last 18 years were enough to lay a strong foundation.There was huge influx of global Brands in India because of its huge Market size. The fact that many India brands like Air Tel emerged during these 18 years, and the fact that Indian Brands are equally competing with global brands is a tribute to our Desi Companies. Now is a take off stage. With Indians acquiring more and more companies overseas, Indian Brands will be more visible in the International Market in the years to come. Moreover, with strong competition in the IndiaN market, leading Indian companies will feel the need to extend their Brands Internationally to survive. By the above logic, you will see more global presence of Indian Brands Internationally in the next 10 years. To sum up, Indians are not lagging behind, but catching up
  Commented by  kasturirangan.r, Consultant, Videocon Industries Limited chennai india-600035    | 08 30 2009 07:42:08 +0000
Rating : +1 
India itself is a strong brand and as per Dr.AbdulKalam india will be a global power to reckon with
in another 10 to 15 yrs time.
  Commented by  Makrand Bhave, XYZ    | 08 29 2009 02:36:15 +0000
Rating : +3 
I believe the opposite. Strong nations make strong brands!! By strong I mean nations which are on the economic growth map. Nations which have the basic infrastructure to shape large conglomerates with an export potential. Sri Lanka, Pakistan, Bangladesh, Malaysia, Indonesia, South Africa, New Zealand, Spain etc are known nations but not strong enough in their infrastructure to PRODUCE indigenously. Most of these countries thrive on industries like Dairy Development, Tourism which are not industries that allow you to build an economy!!

So I believe that it is nations that have strong, growing economies that have the capacity to build stron brands!! Thanks for the referral Jayant!!
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 08 28 2009 18:55:12 +0000
Rating : +2 
Two more important things they do is 5) faster resolution of consumer complaints like a Small Claims Court the counterpart of our Consumer Forums resolves a consumer complaint in 15 minutes.6)Strong emphasis on 'innovaton of new products and enhancement of existing ones. for this a strong supervised skill transfer mechanism through University education and research is designed all over the Nation. 
Then ofcourse last but not the least a well disciplined work force which follow democratic culture and belief in welfare for everyone as a culture.
  Commented by  Nagpal Singh, Sales and Business Development, Babel Group of companies    | 08 28 2009 16:18:18 +0000
Rating : +1 
nexttally we'll be in
  Commented by  Sudesh Sanu, Freelancer, Freelancer    | 08 28 2009 15:07:27 +0000
Rating : -4 
I think it has to do with the cost factor. To get good brands it will mean doing research, etc to ensure that is differs from what is already in the market. 
Rating : +2 
India is a developing country wheras US/UK are already developed . Of course one day we will be the best among all in international level.
Retail sector is booming now . So is the infrastructure,IT industry, AD agencies, Hospitality ,Fashion industry.etc. We have a lot of young enterpreneurs rising in our country. These younger ones are hunting for the best skills to build the best brand.
Definetely it takes time.
  Commented by  Mathew Cherian, Research Associate/Analyst, Western Michigan University    | 08 28 2009 14:06:20 +0000
Rating : +3 
There are many reasons why America has more global brands than others. Some of them are 1)efficient commercial laws, like one cannot vend a product that is not fit enough for the standard purpose 2)"fair exchange" in transactons base on the economic adage of "getting something for nothing", let me explain, in a 'fair exchange' in a transacton one pary don't get better off than the other or the other party here the vendor don't get 'unjustly enriched'. So the vendor sells to make the consumer feel that he got "something for nothing". This is achieved through "marginal pricing" and proper design in the transfer of "idiosyncratic risks" and "mutuality principles".3)To accomodate the above two every vedning space has both replacement and return windows or options where by a customer can return the brought even after 6 months if he is not satisfied with the product and he will get his money back with interest for the time in between which he returned the product3)efficient economic environment based on welfare where the "redistribution" well designed and "competiton" allocates resources to the most effcient and the inefficient gets preempted and cannot survive.4)Presence of stron Institutions which ensures wellfare oriented regulations and commercial practices.
  Commented by  Jayant Vishnu, Art Director/Sr Art Director, Creative    | 08 28 2009 11:36:17 +0000
Rating : +5 
One of the reason for that is Globalization.....

Globalization in India started in the early 1990's not in a full flow though. Indian Brands have started competing internationally & are facing hurdles to compete with them in terms of image, technology & quality.

Indian counterparts also have a wrong notion that brand building always have to cost lots of money. Contrary to common perceptions in companies, branding is more than advertising and marketing communications alone. Nice company logos or modern design identities are not key ingredients for branding. Instead, successful branding is strategic, involves all aspects of a company and must be deeply embedded throughout the entire organization. This ensures a successful balance between brand promise and brand delivery. In the future, this requires companies to become more cross-functional, to manage and measure results through multiple marketing metrics, and work in teams to play an important part of brand building.
 
Corporations also must realize the importance of moving up the value chain..... 

Thanks for sharing shiuli :)
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