“Amazon is the world’s most valuable brand”: WPP, Kantar report

The world’s most valuable brands have seen their total value increase by 5.9 per cent, despite the economic, social and personal impacts of COVID-19, according to the 2020 BrandZ Top 100 Most Valuable Global Brands ranking released by WPP and Kantar.

The total value of the Top 100 global brands reached $5 trillion, equivalent to the annual GDP of Japan. It has increased by 245 per cent since 2006, when the total brand value first reached $1 trillion.

The Top 100 most valuable brands have shown they are more resilient and less volatile in the current crisis than they were during the global economic crisis of 2008-09, adding an additional $277 billion of growth over the past year.

The BrandZ strong brands portfolios continued to outperform the market, including the S&P 500 and MSCI World Index, and even in the current crisis, dipped less than the global average.

The ranking uses valuations data incorporating stock price performance from April 2020 to reflect the impact of COVID-19. Against a backdrop of uncertainty, those companies that have consistently invested in long-term marketing, and in building strong brands, have managed to stave off the worst of the crisis. Prior to the global pandemic, the total value of the Top 100 brands was set to increase by nine per cent.

Amazon maintained its position as the world’s most valuable brand, growing 32 per cent to $415.9 billion. Having first entered the BrandZ Global Top 100 Most Valuable Brands ranking in 2006, Amazon’s value grew by almost $100 billion this year, and accounts for a third of the Top 100’s total growth.

Technology brands continued to dominate the ranking, representing over a third (37 per cent) of (brand) value in the Top 100, and growing overall by 10 per cent. Apple maintained its position as the second-most valuable global brand (+14 per cent, $352.2 billion), while Microsoft regained the no. 3 position (+30 per cent, $326.5 billion) ahead of Google (+5 per cent, $323.6 billion) at no. 4.

Asian brands represented a quarter of the Top 100 brands, including 17 Chinese brands. Alibaba (+16 per cent, no. 6, $152.5 billion) was the most valuable Chinese brand, with Internet services giant Tencent (+15 per cent, no. 7, $151 billion) one place behind.

This year’s BrandZ Top 100 showed that innovation and creativity are key growth drivers as people spend more time online. One of the most exciting new brands, short video-sharing social network TikTok (no. 79, $16.9 billion) was the highest new entry this year. It offers light-hearted, entertaining user-generated content.

The retail sector showed strong performance, growing the fastest (21 per cent) in brand value, driven by major e-commerce players. Over half of brands in the media and entertainment category appeared in the top 20 'risers', including Netflix (+34 per cent, $45.9 billion), up eight places to no. 26, Instagram (+47 per cent, $41.5 billion) up 15 places to no. 29, LinkedIn (+31 per cent, $29.9 billion, no. 43), and Xbox (+18 per cent, $19.6 billion), up 22 places to no. 65.

Retail e-commerce brands Amazon, Alibaba and JD (+24 per cent, no. 52, $25.5 billion) demonstrated innovation and agility during difficult times, along with more traditional retailers like Walmart (+24 per cent, no. 27, $45.8 billion), which has invested in its e-commerce capabilities.

Brands have also found new and creative ways to engage with the consumers, build trust and create a level of intimacy, particularly in health and wellness. Athleisure brand Lululemon (+40 per cent, $9.7 billion) was one of the fastest 'risers', having shifted its focus from yoga-inspired wear to work-appropriate clothing, as well as offering online classes for people at home.

Key trends highlighted in this year’s BrandZ Global Top 100 study include:

· MasterCard entered the Top 10 for the first time this year, due to strong financial performance, supported by growing brand equity, especially in engaging consumers, successfully fitting into the ‘ecosystem’ of their everyday lives and gaining a close emotional connection through its purposeful positioning.

· Five new entrants appear in the Top 100, led by Chinese entertainment brand TikTok, followed by UnitedHealthcare (no. 86, $15.8 billion), Bank of China (no. 97, $13.7 billion), Lancôme (no. 98, $13.6 billion), and Pepsi (no. 99, $13.3 billion).

· Building ecology has become a trend in the global business community. Haier (no. 68, $18.7 billion) is the leading IoT ecosystem brand for the second year running.

· US brands represented more than half of the Top 100 brands. Asian brands represented a quarter of the Top 100 brands, with 17 from China (including Alibaba and Tencent in the Top 10), and two from Japan (Toyota and NTT).

· Sustainability is the new luxury – younger consumers expect the qualities associated with luxury, but with sustainable materials and less packaging. Four luxury brands made the Top 100 this year, led by Louis Vuitton (+10 per cent, no. 19, $51.8 billion).