Every time I look at the top 100 global brand list (http://bit.ly/rqrH) it makes me wonder why not a single Indian brand features in the list. What are the reasons that Indian brands fail to make the cut? Are Indian products below global standards? Is it because Indian companies lack technical expertise to make such products?? Or does the Indian consumer mindset act as a roadblock?
I think it is difficult to single out one key reason why Indian brands do not fare well on the global map. Superior product quality is one main ingredient missing in our Indian brands (http://bit.ly/a2A0n). Besides this, I see three 'CO' reasons which explains why Indian brands fail to become world class brands.
1) ‘CO’UNTRY’S IMAGE - Remember the simple math equation we studied in school - A = B and B = C hence A = C. Well, this equation also holds true when we talk about country's image impacting the local company’s image and in turn affecting the product image of the company. (Country’s image = Company’s image = Product’s image)
The values, beliefs and image of the country play an important role in shaping the success for the brands of the local companies of that country. Switzerland is the best example to explain this.
Switzerland as a country stands for high quality, precision, class, innovation and aspiration. These same qualities are reflected in their brands. Brands like Rolex, Swatch, Swiss Army Knife are world class brands not only because these are great products, but the country's image lends its credibility and values to these brand to make it a truly world class brand.
Other countries like US, Japan and Germany are fine examples where the countries values are ingrained in the brands.
When we talk about India, corruption, poverty, world’s back-office and Incredible India are some of the attributes get associated with our country. One marketing campaign (Incredible India) is not going to be enough to correct the image of our county. These strong negative connotations have severely tarnished the image of the country. Due to this, no matter how well our Indian companies try hard to make a global brand, the fact that it is ‘Made in India’ will always act as a dampener. Would you wear a Levis or a Rolex or Gucci if it was made in India?
2) ‘CO’MPANY’S FOCUS
At first we Indians drove Fiat than came the era of Maruti Suzuki and now we have Nano, the world’s cheapest car. This sums up the underlying philosophy of the Indian companies and the Indian market. Indian companies make products which are affordable, durable and most importantly, which satisfies the basic utility of the product. Making aspirational products which has top class design and style is still not the focus of the Indian companies. Is the Indian consumer market driving our Indian companies to make such products or are the Indian companies forcing the Indian consumers to accept such products? It is a typical chicken and the egg problem of which comes first.
Today, where MNCs have entered the Indian shores, Indian companies like Reliance, TATA, Godrej, Videocon, Bajaj are feeling the heat and fighting a losing battle when it comes to brands. These Indian companies have large market capitalization but small market share and even smaller brand equity compared to foreign brands across consumer categories.
3) ‘CO’NSUMER PSYCHE
Indian consumers purchase habits can be aptly summed in three words. ‘More (quantity) for Less’. Indian consumers crave for more quantity at the same price, preferably at the lesser price. Indian consumers are value conscious customers. Value for money is the most important proposition for the Indian consumers. Brands are still looked upon as products and quantity is still the king for an average Indian consumer. This psyche will be seen across the country be it metros or small towns. Maruti, Lifebouy, Rin are not the best brands in their categories but they are leading brands in the country working on the price proposition.
Bottom-line is will India ever have a brand which will be called a World Class brand? A brand which will be used by consumers across the globe? A brand which will be in the same league as Disney, Apple, Google, Toyota etc?
Do you think India can have such a brand? or Does India already have such a brand which can be called a global brand? Do share your thoughts.
I think it is difficult to single out one key reason why Indian brands do not fare well on the global map. Superior product quality is one main ingredient missing in our Indian brands (http://bit.ly/a2A0n). Besides this, I see three 'CO' reasons which explains why Indian brands fail to become world class brands.
1) ‘CO’UNTRY’S IMAGE - Remember the simple math equation we studied in school - A = B and B = C hence A = C. Well, this equation also holds true when we talk about country's image impacting the local company’s image and in turn affecting the product image of the company. (Country’s image = Company’s image = Product’s image)The values, beliefs and image of the country play an important role in shaping the success for the brands of the local companies of that country. Switzerland is the best example to explain this.
Switzerland as a country stands for high quality, precision, class, innovation and aspiration. These same qualities are reflected in their brands. Brands like Rolex, Swatch, Swiss Army Knife are world class brands not only because these are great products, but the country's image lends its credibility and values to these brand to make it a truly world class brand.
Other countries like US, Japan and Germany are fine examples where the countries values are ingrained in the brands.
When we talk about India, corruption, poverty, world’s back-office and Incredible India are some of the attributes get associated with our country. One marketing campaign (Incredible India) is not going to be enough to correct the image of our county. These strong negative connotations have severely tarnished the image of the country. Due to this, no matter how well our Indian companies try hard to make a global brand, the fact that it is ‘Made in India’ will always act as a dampener. Would you wear a Levis or a Rolex or Gucci if it was made in India?
2) ‘CO’MPANY’S FOCUS
At first we Indians drove Fiat than came the era of Maruti Suzuki and now we have Nano, the world’s cheapest car. This sums up the underlying philosophy of the Indian companies and the Indian market. Indian companies make products which are affordable, durable and most importantly, which satisfies the basic utility of the product. Making aspirational products which has top class design and style is still not the focus of the Indian companies. Is the Indian consumer market driving our Indian companies to make such products or are the Indian companies forcing the Indian consumers to accept such products? It is a typical chicken and the egg problem of which comes first.
Today, where MNCs have entered the Indian shores, Indian companies like Reliance, TATA, Godrej, Videocon, Bajaj are feeling the heat and fighting a losing battle when it comes to brands. These Indian companies have large market capitalization but small market share and even smaller brand equity compared to foreign brands across consumer categories.
3) ‘CO’NSUMER PSYCHE
Indian consumers purchase habits can be aptly summed in three words. ‘More (quantity) for Less’. Indian consumers crave for more quantity at the same price, preferably at the lesser price. Indian consumers are value conscious customers. Value for money is the most important proposition for the Indian consumers. Brands are still looked upon as products and quantity is still the king for an average Indian consumer. This psyche will be seen across the country be it metros or small towns. Maruti, Lifebouy, Rin are not the best brands in their categories but they are leading brands in the country working on the price proposition.
Bottom-line is will India ever have a brand which will be called a World Class brand? A brand which will be used by consumers across the globe? A brand which will be in the same league as Disney, Apple, Google, Toyota etc?
Do you think India can have such a brand? or Does India already have such a brand which can be called a global brand? Do share your thoughts.
Bus: Neeta Volvo
