Amazon reigns again as the most valuable global retail brand, with a brand value approaching $100 billion, according to BrandZ’s latest Most Valuable Global Retail Brands study [pdf]. In fact, not only is Amazon the world’s most valuable retail brand, but it’s also growing at a faster clip than the other top brands.
Indeed, Amazon’s 59% year-over-year jump in brand value was easily the largest of the top 25 brands identified in the report. The next-fastest growing brand was JD.com, which moved into the #11 position by virtue of its 37% year-over-year increase. Of course, with a brand value of about $10.5 billion, its value is only about one-tenth that of Amazon…
The three digital-first brands in the top 10 (Amazon, Alibaba and eBay) combine to account for 40% of the total brands value of the top 25, proving the growing strength of e-commerce.
Even so, among the top 10 brands, Home Depot also had a strong year, with its 32% year-over-year increase powering it to the #3 spot. Not faring as well were Alibaba Group (#2, down 26%) and Walmart, which fell to 4th with a 23% decrease in brand value.
Rounding out the top 5 was IKEA, with a 6% increase in brand value. Overall, 7 of the top 10 brands enjoyed an increase in brand value, including:
- Costco (#6: +29%);
- Lowe’s (#7: +21%);
- Aldi (#8: +4%); and
- CVS (#9: +17%).
Among those lying outside the top 10, Kroger was the only new entrant to the top 25, coming in at #16.
With its 37% decrease, Woolworths had the most precipitous decline of the top 25. Whole Foods – which saw a big decrease in customer satisfaction and was named one of customers’ 10 most disappointing brands – saw a 23% decrease in brand value following its price gouging scandal of 2015.
Finally, among the key trends identified in the report were: growth for food retailers; more immersive experiences at department stores’ flagship locations; online brands moving offline (for example, Amazon’s bookstore); shrinking stores offering more services; an increase in the number of urban stores; and more boundary-crossing, such as Kroger opening a store with a wine bar and Aldi broadening its non-food items.
About the Data: BrandZ arrives at its brand value by multiplying the brand’s financial value (the amount of corporate earnings attributed to a particular brand) by brand contribution (a percentage of financial value). Brand value is defined as “the dollar amount a brand contributes to the overall value of a corporation.”