BENGALURU: India has slipped one position and secured ninth rank out of top 50 valuable national brands, according to a report titled ‘Nation Brands 2018’ released by Brand Finance, a leading brand valuation and strategy consultancy.
Though there has been a slip in the rank, India’s brand value has witnessed an increase of 5 per cent — to $2,159 billion from $2,046 billion in 2016. India’s brand-rating remained stagnant at AA. Italy replaced India to secure the eighth spot.
“The rating is not entirely based on what a specific country is doing. It also depends on how the other countries are doing as well. It is basically in a comparative context. The brand-rating has not dropped from AA is actually a good indicator for the nation. The calculation also incorporates forecast for the country in the next five years and includes a variety of parameters like people, infrastructure and so on,” explained Samir Dixit, managing director, Brand Finance Asia Pacific.
USA topped the list with a 23 per cent increase in brand value (TO $25,899 billion from $21,055 billion). China came in second with a 25 per cent increase in brand value (to $12,779 billion from $10,209 billion). India did not feature in the “Top 10 Best Performing Nation Brands” with cyprus leading the list and and Democratic Republic of the Congo coming in second.
“The effect of a country’s national image on the brands based there and the economy as a whole is now widely acknowledged. In a global marketplace, it is one of the most important assets of any State, encouraging inward investment, adding value to exports and attracting tourists and skilled migrants,” David Haigh, CEO, Brand Finance, said in the report.
The methodology used by the London-headquartered consultancy is based on the royalty relief mechanism employed to value the world’s largest companies, covering indicators like national brand strength, national brand rate ratings, royalty rate revenues, weighted average cost of capital and brand valuation.