Consumer technology brands cross $1tr value mark this year.
Amazon has become the world’s most valuable brand this year by overtaking Google and Apple, according to a report. Last year, Google was ranked the top, followed by Apple and Amazon.
The 2019 BrandZ Top 100 Most Valuable Global Brands ranking, released by WPP and Kantar put amazon on top. Smart acquisitions by the brand have led to new revenue streams and combined with the ability to stay ahead of its competitors by offering a diverse eco-system of products and services, has allowed the e-commerce giant to accelerate its brand value growth.
“Amazon’s phenomenal brand value growth demonstrates how brands are now less anchored to individual categories and regions. The boundaries are blurring as technology fluency allow brands, such as Amazon, Google and Alibaba, to offer a range of services across multiple consumer touchpoints,” said Doreen Wang, Kantar’s Global Head of BrandZ.
Disruptive ecosystem models are flourishing
Using their consumer experience and expertise, she said that these brands are crossing over into the business services sector, creating new opportunities for brand growth.
“Disruptive ecosystem models are flourishing in regions such as Asia, where consumers are more technology-enabled and where brands are integrating themselves into every aspect of people’s daily lives,” she added.
Asian brands increase their presence with 15 Chinese, three Indian and one Indonesian brand making the ranking among a total of 23 from the region.
“The growth in value of this year’s top 100 brands to an all-time high proves the power of investing in brands to deliver superior shareholder value. Behind this headline growth figure lies the success coming from a new phenomenon of ecosystem brand building,” David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ, said.
“We’re seeing a move from individual product and service brands to a new era of highly-disruptive ecosystems. Brands need to understand the value this type of model can create and should embrace its approach to be successful in the future,” he said.
Instagram emerged as this year’s fastest riser
For the first time, Alibaba overtook Tencent and became the most valuable Chinese brand, moving up two places to No 7. Tencent dropped three places to No 8.
Instagram emerged as this year’s fastest riser, climbing 47 places to No 44.
Despite the economic uncertainty surrounding the US and China trade tariffs, almost a third of a trillion dollars ($328 billion) of value was added to the BrandZ Top 100 Global ranking over the last year, giving it a combined brand value of $4.7 trillion – roughly the combined GDP of Spain, Korea and Russia.
Much of this value is derived from consumer technology brands appearing in the ranking which combined are now worth in excess of $1 trillion.
The report said that luxury is the fastest growing category (+29%) followed by retail (+25%), fuelled by the shifting preferences to digital channels from Gen Y and Gen Z consumers.