New Delhi: Billionaire Mukesh Ambani's telecom venture Jio will be among the 100 most valuable brands globally within three years, says a report.
The 'Top 100 Most Valuable Global Brands 2019 report' by communication services provider WPP and market research firm Kantar Millward Brown ranked Amazon the world's most valuable brand ahead of Apple and Google. While, Life Insurance Corp (LIC) and Tata Consultancy Service (TCS) have entered the list as new entrants.
Jio has been featured in global 100 disruptive power brands.
"Jio disrupted the Indian telecom provider category with its deep discount prices for data consumption. It forced competitors to lower their prices and drove category consolidation," the report said.
All telecom consumers not only Jio customers have been benefited from Jio's action, it added.
"Although launched in 2016, Indian consumers see Jio as meaningfully different as Airtel, which entered the market in 1995. Having attracted almost 300 million customers in just three years, Jio could potentially leverage this audience with the sales of advertising and content," the report added.
Stating that meaningful disruption is the key to scalable relevance, the report said Jio "will enter the Top 100 within three years at current growth rate." It said among the nine brands entering the ranking for the first time this year are four brands from China and two from India. "The Indian brands are the state-owned insurer LIC, and Tata Consultancy Services, the global technology consultancy." LIC was ranked 68th with a brand value of USD 20.314 billion while TCS was ranked 97th with a brand value of USD 14.282 billion.
Amazon had a brand value of USD 315.505 billion. Jio's current brand value is $4.1 billion, according to the report.
A disruptive brand has a radical impact on the value of a category, usually in one of three ways redistributing value within an existing category.
"When the Indian telecom provider Jio launched with its free data offer it did not increase the value of the category but made a play to consolidate the value," it said.
Disruption comes in many guises. It can be about an original product or service, like the iPhone or the disruption can be a new business model.
"For example, Jio entered the Indian telecom provider category with discounted prices on data, forcing competitors to lower prices. Having driven category consolidation and organised a large audience of around 300 million subscribers, Jio potentially could add revenue-generating content and advertising," it said.
The report said Jio was a good example of true disruption where a new brand or proposition enters a market and impacts or redefines a particular category in a way that benefits all the consumers, whether they are a customer of that particular brand, or not.
"At launch, Jio provided free data for the first six months and only then introduced comparatively modest pricing. Jio immediately built a lot of volumes. Customers of market leaders Airtel and Vodafone also felt the benefit of the 'Jio effect' as they were forced to drop their data prices to compete and retain customers," it said.