May 16th, 2011Brand India is here. But are Indian Brands?
Brand India is here. But are Indian Brands?
In these very columns I had written about the transition of Brand India. I had delved into the world’s acknowledgment of India’s tour de force and its need to combine hard and soft power to make a mark on the world stage. As one of the world’s fastest growing economies, India has certainly made the world sit up and take notice. The world has taken note of India Inc’s global expansion. But does the world know who the makers of Brand India are? More importantly, do India Inc’s power players enjoy brand power on the global stage?
This was the very reason we at Penn Schoen Berland, www.psbresearch.in conducted the global survey of Bizfluentials™ to find out the recall and recognition of the growing tribe on ‘Indian Multinationals’. We shortlisted 61 companies with a turnover of at least INR 1000 crores and had international listing or international operations. Titled PSB 50, the findings revealed some surprising revelations.
Who are these global Bizfluentials™?
These are financially literate business elite who are CXOs, Analysts, Journalists or investment managers who read the financial press, have an interest in India and would be generally considered to be aware of business in India. All together 600 bizfluentials™ were surveyed with 400 across US, Europe and APAC and 200 in India.
Indian MNCs: Present but no PRESENCE
The survey found a striking lack of awareness about Indian companies among global Bizfluentials™. Only one company successfully managed to break the 20 % unaided awareness in all the regions. Ratan Tata led the way, with his own leadership and that of the Tata Group emerging as a company with not just strong national status but global brand presence as well. If you want to access the report just log on to www.psbresearch.in
I am sharing with you a few highlights of the survey:
1. 91% of Global Bizfluentials™ say that Indian companies have strong futures, and 89% see Indian companies as a good investment.
2. For companies, brand image is amongst top three factors besides Financial and Market performance to earn the admiration of Global Bizfluentials™
3. For Corporate Leaders, their Business Vision was seen as the most important factor driving the admiration for business leaders
4. 47% of the Americans and 51% of the Europeans polled felt the recent success of Indian companies’ is due in large part to lower costs for business and some form of government protection. On the other Indian Bizfluentials™, see their entrepreneurial spirit as a bigger driver of their successes
In short, the world acknowledges India’s potential and its bright future but not the companies and leaders that are drafting this success story. In simple words, the Indian success story is seriously short of story tellers. I believe The PSB 50 provides the following lessons for Indian MNCs:
1. Build your Brand Story
I was recently asked how we could say Indian MNCs were not brands when the Indian IT industry is in itself a brand and known the world over. The point here is not that the world recognises the industry or takes note of a couple of companies. The thing to note is that global business leaders still believe India is gaining power because of its low cost offer and not its innovative products or unique offering from a company. We don’t have a Microsoft or a Dell story that creates brand resonance, following and finally loyalty.
The need then, is for companies to make brand building their singular vision. It is important not to mistake brand building with advertising here. We are not talking about selling our products. We are talking about selling our story. The entrepreneurial and innovation story that Indian MNCs believe makes them unique and one that the world is yet to hear of.
Indian companies have products and services that currently occupy space in the world market. What they need, however, is to build brands that occupy space in people’s collective memories - that become part of not just Indian aspirations, but global aspirations.
2. Convey your Business Vision
The survey clearly shows that there is a positive view of India Inc. and its future. It is not seen, however, as the hub of innovation and knowledge. The need then is for Indian leaders to be seen and heard much more beyond Davos. To be seen as builders and as the influencers rather than the influenced. Whilst Davos has played a key role in shaping the presence of some of the leaders, captains of Indian industry have to expand their field of play.
Business Vision is linked to the Brand Story as the vision gives the “Purpose” to the brand. Therefore developing your “brand purpose” means establishing a higher purpose for the brand/business to achieve than just merely standing for a product or a service. I recently worked with Anand Mahindra, Vice Chairman and Managing Director, Mahindra & Mahindra and his vision for the business was encapsulated in one word “Rise”. A vision for making a positive difference in the lives of the people the group touches. I quite look forward to the how Anand will take this forward as I believe this a message that could re-define the group and its image around the world.
3. Make the spirit of enterprise and innovation a core message
India Inc. believes its entrepreneurial spirit and innovation gives it the competitive edge. Unfortunately, global bizfluentials™ don’t. This can only be addressed when businesses and business leaders “show and tell” and take their story to the global stage. Being an Indian, I believe in the spirit of the enterprise of our corporate leaders, however, I also know that they have not invested in telling their story well. Unless India Inc. does this aggressively, there is a good chance Indian companies will continue to be seen as low cost masters and not masters who are frugal.
Take the Nano example. The world acknowledges it as a marvel of frugal engineering. Show more Nanos and tell your story.
I believe the time is now and India Inc. is standing at the cusp of that opportunity with the world watching and waiting for India Inc. to show them the way. I don’t think we will get a second chance.
This one don’t think it over..Just do it.
Tags: Bizfluentials, brand india, Branding, Corporate Reputation, india inc, penn schoen berland, PSB, PSB 50
