Is Prime Minister Narendra Modi's Make in India campaign failing to make an impact worldwide? It would seem so, if one sees how the country's top business houses are losing out in the competitive world of brands, as calculated by a British brand finance consultancy report, with not one brand making it on the first 100 list.
In fact, the Tata Group, which was the only Indian "brand" making it to the top 100 till last year, has lost its prestigious spot. The top conglomerate, which is into all types of businesses ranging from salt manufacturing, automobiles, telecommunications and software, has fallen by 21 places in a year, from 82nd to 103rd position.
According to an independent observation, its brand value fell to $13.11 billion (around Rs 88,105.75 crore) from $13.68 billion (approximately Rs 91,936.44 crore) following "the row between Tata Sons and its former chairperson Cyrus Mistry, who was ousted from the post last year."
Says the report, which is titled "Global 500 2017", among Indian brands, Reliance improved its position from 442nd to 345th, Oil India from 494th to 369th, Hindustan Computers Ltd (HCL) from 500th to 378th, Life Insurance Corporation of India from 283rd to 222nd, Infoys from 301st to 251st, and Airtel from 242nd to 190th.
On the other hand, the brand of India's premier bank, State Bank of India, deteriorated from 244th to 294th position, and Larsen & Toubro from 479th to 498th position.
Apple, which held sway for the last five years as world’s most valuable brand, has lost its first position because, according to the report, it "over-exploited the goodwill of its customers", failing to generate "significant revenues from newer products such as the Apple Watch."
"Its brand has lost its luster and must now compete on an increasingly level playing field not just with traditional rival Samsung, but a slew of Chinese brands such as Huawei and OnePlus in the smartphone market, Apple’s key source of profitability", the report says.
The report states, “Apple’s loss has been Google’s gain. Six years after it last held the title in 2011, Google is now the world’s most valuable brand with a value of US$109 billion."
About Amazon, which comes 3rd, the report states, its 53% brand value growth meant it "nearly secured the top spot for itself this year. The firm is growing strongly as it continues to both reshape the retail market and to capture an ever larger share of it."
As for Facebook, the report states, it "continues to climb the ranks following 82% brand value growth", though regrets, it "has been outdone by China’s biggest tech brands" such as "Alibaba, WeChat and Tencent", which have grown by 94%, 103% and 124% respectively."
"Coca-Cola was the world’s most valuable brand across all industries in 2007, with a brand value of US$43.1bn", the report states, though adding, "Increasing concerns over the links between carbonated drinks and obesity have begun to undermine what the Coca-Cola brand has represented for over one hundred years... In the last year it has dropped 7% to US$31.9 billion, putting it 27th across all industries."
"Pepsi is suffering from the same trend, falling 4%", the report states, adding, "The same trend is evident in the fast food industry. The brand values of McDonald’s, KFC, Subway and Domino’s have all fallen heavy competition in an increasingly fragmented market."