While all other members of BRICS—emerging economies – are showing a sharp decline in their brand value, Bharat is the only country which witnessed the surge of 32 per cent in its Nation Brand value which is the highest among all the top-20 countries on the list.
By the advent of neo-capitalism, the term ‘branding’ turned out into a popular household expression that is often attributed to corporate-business sector. Like corporate brand marketing, Nation Branding is symbolically presenting the nation as a whole to the audience—both domestic and foreign. Historically, every nation has own identity, ethos—its own image. And all nationals are perturbed so deeply about the image of themselves and of their nations too. Every nation is a brand; defined by its own people, their standard of living, endeavours etc. So there is nothing new in the concept of Nation Branding though it appears to be relatively a ‘brand new’ terminology for us.
What is Nation Branding?
Simply, Nation Branding is the way a country or nation is perceived by the audience. However, it is more than just image building. In his book Globalisation and Identity, author Raymond Miller says, the branding and image of a nation-state and the successful transference of this image to its export- is just as important as what they actually produce and sell.
Though Nation Branding, as a branch of social science, is in its dawn period, many countries, like US, UK, Canada, and France etc, have been conceptualising it aiming at changing overall image of the country and international perception. They officially refer it as public diplomacy. Of late, it has become a popular phrase in Bharat after the London based Brand Finance, world’s leading independent brand valuation and strategy consultancy, published its annual report on the world’s most valuable Nation Brands.
According to David Haigh, CEO Brand Finance, “In a global marketplace, a nation brand is one of the most important assets of any state, encouraging inward investment, adding value to exports and attracting tourists.” The nation brand valuation is based on five year forecasts of sales of all brands in each nation and follows a complex process. The Gross domestic product (GDP) is used as a proxy for total revenues. The five-step approach includes preparing a brand strength index on the basis of goods and services, investment and society. The first is sub-divided into governance, market and tourism (for investment, tourism is replaced by people and skills). It emphasises a six-step approach by governments to improve the nation brand through appraisal, macro and micro image, consistent and focussed vision, brand strategy, market strategy and execution. Brand Finance measures the strength and value of 100 countries using a method based on the royalty-relief mechanism employed to value large companies.
Brand Finance Nation Brands October 2015
According to the Brand Finance Nation Brands October 2015 report, our nation’s brand value has increased by 32 per cent. By contrast, it showed an incredible rise— an increase from $1.62 trillion to $2.14 trillion. Bharat along with China and South Korea has become one among the three Asian countries which found place in world’s 20 most valuable Nation Brands.
Obviously, the US remains the world’s most valuable Nation Brand with $19.70 trillion. The US is followed by China and Germany in the second and third position respectively with a brand value of $6.31 trillion and $4.16 trillion. According to the report, the USA is undoubtedly a powerful brand with an inviting business climate. However, its value comes in large part from the country’s sheer economic scale. The notorious Volkswagen scandal not only dented the brand value of Germany but also resulted in the fall of its rank as the world's strongest nation brand.
Notably, while all the other members of BRICS—emerging economies –showing a sharp decline in their brand value, Bharat is the only country which witnessed the surge of 32 per cent in its nation brand value which is the highest among all the top-20 countries on the list. Interestingly, Iran is selected as the fastest growing nation brand in this year. Its brand value is up 59 per cent to US$159 billion as Hassan Rouhani’s moderate approach slowly shifts international perceptions of the country’s potential. Iran is followed by Cameroon, Tanzania, Kenya and Zambia in high rates of increase. Russia is one of the worst-performing nations brand category with a brand value of just $810 billion, and is more than 60 per cent lower than Bharat's. Meanwhile, the UK is ranked 4th, Japan is at fifth position and France is sixth on the list.
As per the report, Singapore is the world’s strongest nation brand in 2015. Thanks to Lee Kuan Yew, the benevolent dictator who governed the country for three decades. The report further says, “There are many lessons that can be drawn from Singapore. Intolerance of corruption combined with generous wages for public officials to discourage graft make Singapore the ‘cleanest’ country in Asia according to the Corruption Perceptions Index and 7th globally.”
This year, the report has been published in association with fDiIntelligence, the largest centre of foreign direct investment excellence globally, specialising in all areas relating to foreign direct investment and investment promotion. According to Courtney Fingar, Editor-in-chief of fDi Magazine, firmly established as the world’s premier publication for the business of globalisation, “Powerful brands are those that create a strong, permanent and positive association in people’s minds. The best country brands are those that convey dynamism, energy, industriousness and respectability while also showing personality and a human touch.” Praising Bharat’s ambitious tourism endeavour, she said, “India’s “Incredible India” slogan works well across all of these groups, in my opinion. Who doesn’t want to discover something incredible?”
On a serious note, David Haigh says in the report that Governments, trade bodies and businesses must take steps to ensure that their nation brand is strategically appropriate, well-managed and regularly monitored and understand how to respond in a crisis, in order to maximise the benefits and minimise damage.
Endowed with a demographic dividend and a new vigorous political leadership with a pro-active approach, Bharat –remarkably a young country with largest youth population is now thriving towards the status of global power. Touting the best of the virtues of largest Bharateeya Diaspora across the globe, our Prime Minister is so far on the right track. Analysing the prevailing situation in the light of the Brand Nation report, taking conscious efforts to push our nation as an effective brand is the need of the hour.
Ganesh Krishnan R
