Amazon retains top spot as most valuable global retail brand
Amazon has once again been named the world’s most valuable retail brand in the annual BrandZ Top 100 Most Valuable Brands ranking published by WPP and Kantar Millward Brown.
The online giant took fourth spot in the ranking behind technology firms Google, Apple and Microsoft, but Amazon did achieve the highest dollar value growth of all the brands in the top 100 ranking, increasing by 40.3 billion dollars, up 41 percent to 139.3 billion dollars.
The ranking said that Amazon’s growth was linked to its continuing innovation and its focus on its technology ecosystem honed to meet multiple consumer needs such as online shopping, rapid delivery, and entertainment, as well as introducing new artificial intelligence-enabled services including grocery delivery and personal assistant Alexa.
David Roth, chief executive EMEA and Asia, The Store WPP, said: “This year’s BrandZ global top 100 continues to demonstrate that strong brands deliver superior shareholder value and returns regardless of disruptive external climates.
“Dubbed the ‘The Frightful Five’ by some, the tech giants that head the rankings are more like the ‘Fearsome Five’ to their competitors, given their huge brand power and a seemingly unassailable market position.”
Other highlights in this year’s ranking included Adidas being the fastest-rising brand by percentage growth as it increased 58 percent in value, because “its retro sneakers connected perfectly with the fashion moment and the brand made operational and marketing changes to strengthen its US business”, said the report.
The fastest-rising category was retail, increasing 14 percent, but the report also added that beyond the numbers, the category faced new turbulence, as both Amazon and Alibaba (ranked 14th) prepared to open extensive networks of physical stores, and Walmart (ranked 31st) acquired an e-commerce startup. While luxury only saw a 4 percent increase in brand value on last year.
Other retail and luxury brands to make the top 100 included Nike taking 26th place, while Yves Saint Laurent was the highest-ranking luxury brand at 29, and Zara was the top high street fashion chain at 34. Hermes made the cut at 41, while Gucci was down in 80th place.
In the apparel category of the report it noted that there the two category growth drivers, sportswear and fast fashion, struggled last year. The apparel Top 10 declined 7 percent in value, following a 14 percent rise a year ago, as shoppers purchased with more discretion, looking for durability and value, and favouring brands that were on trend, such as Adidas, said the report.