Amazon retains top position among 100 most valuable brands in Kantar & WPP report

According to ‘BrandZ Top 100 Most Valuable Global Brands 2020’ report, Amazon’s value grew by almost $100 billion this year and accounts for a third of the top 100 brands’ total growth

A data, insights and consulting firm Kantar and WPP, which characterizes itself as a creative transformation firm, has announced ranking under ‘BrandZTop 100 Most Valuable Global Brands 2020’.

It said that the world’s most valuable brandshave increased their brand value by 5.9% despite the economic, social and personal impacts of Covid19 pandemic.

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

These brands have shown that they are more resilient and less volatile in the current crisis than they were during the global economic crisis of 2008-2009, adding an additional $277 billion of brand value growth over the past year. The BrandZ strong brands portfolio 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 this pandemic. Against a backdrop of uncertainty, those companies that have consistently invested in longer-term marketing and in building strong brands have managed to stave off the worst of the crisis. Prior to the global pandemic, total brand value of the ‘top 100 brands’ was set to increase by 9%.

“The continued growth in value of the BrandZ Top 100 shows that strong brands are in a much better place than they were in the global economic crisis of 2008-9. We see a significant improvement in brand equity now compared to 10 years ago because businesses understand the importance of investing in brand-building and are stronger and more resilient as a result. While the impact of COVID-19 has impacted every business regardless of size or geography, consistent investment in marketing can and will help carry you through a crisis,” said David Roth, CEO, The Store WPP EMEA and Asia and Chairman at BrandZ.

This year’s ‘BrandZ Top 100’ showed that innovation and creativity are key drivers of growth as people spend more time online. 

The BrandZ Top 10 Most Valuable Global Brands 2020

Doreen Wang, Global Head of BrandZ at Kantar, said, “Innovation has proven to be a key driver for growth in this year’s top 100, and a way to prevent decline. Creativity is also an important trait for the world’s most valuable brands. Companies like Amazon, Apple and Google- the tech giants that keep on innovating, successfully combine both to continue being relevant to consumers’ lives and making it easier for them to choose a brand.”

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 (at number 86, $15.8 billion), Bank of China (at number 97, $13.7 billion), Lancôme (at number 98, $13.6 billion) and Pepsi (at number 99, $13.3 billion).

• Building ecology has become a trend in the global business community. Haier (at number 68, $18.7 billion) is the leading IoT ecosystem brand for the second running year.

• US brands represented more than half of the ‘Top 100’ brands. Asian brands represented a quarter of the ‘Top 100’ brands, with17 from China (including Alibaba and Tencent in the top 10) and two from Japan (Toyota and NTT).

• Sustainability is the new luxury- younger consumersexpect 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% up at number 19, $51.8 billion).