India's brand value declines in the world; loses its spot to Canada: Report
India slipped to No 8 spot in 2017 from No 7 spot and lost its place to Canada which saw a 14% growth in its brand value.
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- India slipped a spot to No.8 spot in the most valuable nation brand list
- It lost its place to Canada which saw a 14% growth in its brand value
- India’s nation brand still lags behind that of China in the league table
Brand India seems to be losing its sheen as the country's ranking declined in 2017. India slipped a spot to No 8 in the most valuable nation brand list, according to Brand Finance's Nation Brands 2017.
India slipped to No 8 spot in 2017 from No 7 spot and lost its place to Canada which saw a 14% growth in its brand value.
India saw a 1% decline in its brand value from $2,066 billion in 2016 to $2,056 billion in 2017.
Photo: Brand Finance's Nation Brands 2017
India currently has a AA brand rating, while Canada with a brand value of $2,056 billion has a brand rating of AAA-.
However, India's neighbor China has seen the highest growth during the year, reducing the gap between it and the most valuable nation brand, the US.
“Chinese companies make up 50 of the Global 500 most valuable brands, increasing from only 8 in 2008. Chinese brands lead in 4 sectors – banks (ICBC), spirits (Moutai), insurance (PingAn), real estate (Dalian Wanda) – as opposed to zero in 2008. The country also celebrates an annual Chinese Brands Day on May 10th and has a nationwide China Council for Brand Development, dedicated to research on brand building and brand evaluation,” said the report.
The report further says that with so much focus on China, the emergence of India as a top-tier investment destination has not received the notice that it warrants.
“India surpassed both China and the US to become the number one recipient of greenfield FDI by volume already in 2015. In addition, in 2016 Indian companies were responsible for 272 overseas projects, placing India third as an Asian source country for FDI, behind Japan and China. India’s nation brand still lags behind that of China in the league table, but it now sits comfortably in the top ten and if its economic performance continues to stay strong, it might well crack the top five soon,” the Brand Finance report said.
While US remains on top of the list, its brand value has been impacted due to Donald Trump's precidency. This was seen as the country saw a meagre growth of 2% year on year.
The US brand value in 2017 had increased to $21,055 billion from $20,574 billion in 2016.
“With a value of US$21.1 trillion, the United States remains the most valuable nation brand in the world but the meagre growth of 2% year on year is putting its dominance at risk in the long run,” said the report.
It further added the US' nation brand value's stagnation can be attributed to macro-economic challenges, like the declining participation rate caused by the mass-retirement of baby boomers, ultimately contributing to a slow pace of GDP growth compared to previous expansions.
“However, perceptions of Donald Trump’s presidency are not exactly helping Brand America either. Trump’s administration is seen as increasingly unpredictable and although tax relief promises can boost FDI in the short run, a failure to fulfil them, considering that many propositions of new legislation fell through in Congress, will make investors’ confidence disappear,” said the report. It also said that America's image in the world is also waning.
Other countries in the top 20 list include Germany ranked at third spot and saw a 4% growth in its brand value. It was followed by Japan with a 15% growth in brand value during the year.
It was followed by UK ranked at fifth spot and has seen a 6% growth during the year. The country took a hit due the Brexit process and depends on the UK government's negotiation of the divorce deal with the European Union.
France was in No.7 spot and saw a massive 27% growth in its brand value. Its brand value increased to $2,969 billion in 2017 from $2,339 billion a year earlier.
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