Familiar name leads retailers in brand value
An organization that has taken the retail world by storm in the past several years just earned another accolade.
According to the 2016 BrandZ Top 100 Most Valuable Global Brands ranking released by WPP and Millward Brown, Amazon.com has become the World's Most Valuable Global Retail Brand
Reasons for Amazon taking the top spot this year include the e-tail giant expanding its reach into the logistics sector by shipping its own packages, as well as extending the brand experience to include new technology devices that meet consumers' personal needs at home. The company boosted its brand value as listed in the ranking by 59% from 2015 to $98.99 billion, and was also the seventh-most-valuable brand across all industries.
Amazon replaces Chinese e-tailer Alibaba, which now takes the second spot among retailers and 18th among global brands with brand value of $49.3 billion, down 26%. Rounding out the top five retailers are The Home Depot ($36.44 billion, up 32% from #4 ranking the prior year, #26 overall), Walmart ($27.27 billion, down 23% from #3 ranking, #32 overall) and Ikea ($18.08 billion, up 6% with a flat #5 ranking, #55 overall).
The retail sector has performed strongly overall, with an 8% rise in total value to $377 billion for the top 20 brands in the ranking. Many of the retailers on the top 20 list have also grown their brand value buy successfully implementing seamless strategies that provide the same brand experience and quality of service across all channels.
"Consumers no longer perceive shopping online and shopping on the high street as discrete activities,” said David Roth, CEO EMEA and Asia, the store, WPP, said. “The challenge for retailers is to make moving between the two channels a seamless experience. The next five years will be pivotal for retailers as they look to ensure they have frictionless experience wherever consumers choose to shop."
Other findings include:
• Google is the world's most valuable brand. Continual innovation, increased revenue from advertising, and growth in its cloud business helped to boost its brand value 32% to $229.2 billion. Apple has moved into second place after its value dropped 8% to $228.5 billion.
• The categories that increased in value were all either shaken up by challenger brands founded on a unique and meaningful proposition, such as Under Armour and Victoria's Secret in the apparel category (+14%), or innovated to a high degree in response to a new trend, such as the brands in the fast food category (+11%) which successfully responded to global demand for healthier products.
• The brands that are the strongest innovators have increased their value the most over the 11 years of BrandZ Top 100 rankings. However, to have an impact on brand value, innovation must be clearly communicated and delivered through the brand experience.
• Apparel is the fastest growing category, rising 14% to $114 billion. There is an emphasis on high performance, with brands including Nike (+26%) and Under Armour (a new entry) launching specialist premium lines, incorporating technology such as heart monitors into their clothing, and integrating sportswear with free apps to provide a total consumer experience.