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Amazon named ‘most valuable’ global retail brand

By Danielle Wightman-Stone


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E-commerce giant Amazon has been named the ‘most valuable’ retail brand across pure retail, luxury brands, apparel, and the fast food sector, in the inaugural BrandZ Top 75 ‘most valuable’ Global Retail Brands ranking from WPP.

Despite shifts in consumer habits, priorities and expectations of the shopping experience, the inaugural BrandZ ranking featuring data prepared by Kantar, has revealed that the top retailers are growing their brand value at a pace that “outstrips” brands in other business sectors. This is due the report states to their continuing innovation to transform the customer experience and notes that retail brands have been growing value 35 percent faster over 10 years than non-retailers.

Amazon’s brand value was listed as more than 165 million dollars, while second place McDonald’s was 110 million dollars, and third place Alibaba received a brand value of 88 million dollars. Together the BrandZ Top 75 Retail Brands, from markets as diverse as the US and Spain, China and Chile, are worth over 1 trillion dollars in brand value.

The report reveals that brand value is heavily concentrated at the top of the Retail ranking, with the leading brand, Amazon, accounting for 16 percent of the value of the entire Top 75, while the leading two brands make up 27 percent, and the first five brands – Amazon, McDonald’s, Alibaba, Starbucks and The Home Depot, together contribute 44 percent of the value of the Top 75 Retail brands.

David Roth, chief executive of WPP The Store, EMEA and Asia, said: "Shopping is no just longer just about buying things. Often, a decision to shop is a search for entertainment – whether in a physical space or the virtual world. It can be a way of spending time with like-minded people, or being in an environment that reflects an individual’s values.

“Shopping is also a way of simply feeling good – what we used to call ‘retail therapy’. This explains why the BrandZ Top 75 Most Valuable Global Retail Brands includes brands specialising in everything from business suits and bras to bath oil and burritos. Today everyone is a retailer.”

Louis Vuitton named ‘most valuable’ luxury brand in BrandZ Top 75

The highest ranked fashion name was Louis Vuitton in sixth place with a brand value of 35 million dollars, followed by Nike in seventh spot, Hermes in ninth and Zara in tenth.

Other brands that retail fashion in the Top 75 were Gucci, JD.com, Chanel, eBay, Adidas, H&M, Tesco, Lidl, Uniqlo, Target, Cartier, Coles, TK Maxx, Burberry, Prada, Under Amour, Victoria’s Secret, Marks and Spencer, Nordstrom, Massimo Dutti, Dior, Sainsbury’s, Asda, Macy’s, Tiffany and Co, Armani, Next, Asos, Ralph Lauren, Tommy Hilfiger, Hugo Boss and Stradivarius.

Brands from the United States account for nearly two-thirds of the brand value in the Retail Top 75, while Europe contribute a further 25 percent, and China 10 percent. This dominance of the rankings by US brands is not unique to Retail, as many of the ‘most valuable’ brands from any sector come from the States, including nine of the Top 10 ‘most valuable’ global brands.

However, the report notes that its European countries’ brandscapes that are most strongly dominated by retail brands. Markets such as the UK, France, and Germany account for a quarter of the world’s leading retail brand value, but only 11 percent value of the most valuable non-retail brands, and Europe is home to many of the world’s leading luxury brands.

Ian McGarrigle, chairman of the World Retail Congress, added: "A global brand today can no longer just be about longevity, because a new concept, platform or product can gain an almost immediate global following.

“Retail brands are being forced to adapt and innovate at incredible speeds. What this report shows is that they are doing exactly that.”

The BrandZ rankings take into account what people think about the brands they buy, alongside financial data, market valuations, analyst reports and risk profiles, as it states that consumer perception of a brand is a key input in determining brand value, because brands are a combination of business performance, product delivery, clarity of positioning and leadership.

It was also the first time that a BrandZ retail ranking brought together brands across the four categories - pure retail (supermarkets, e-commerce platforms, department stores, convenience stores and DIY chains), luxury brands, apparel, and fast food in one Top 75 ranking.

Image: Amazon

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