- Investment in marketing and brand-building critical for
business recovery post-COVID-19
- Innovation and creativity key drivers of growth as BrandZ
Top 100's total worth hits $5
trillion and delivers US$277bn in additional brand value growth
- Amazon maintains no. 1 spot and accounts for a third of the Top
100 total growth
- TikTok enters the ranking for the first time at
no. 79
LONDON, June 30, 2020 /PRNewswire/ -- The world's most
valuable brands have seen their total brand value increase by
5.9% despite the economic, social and personal impacts of COVID-19,
according to the 2020 BrandZ™ Top 100 Most Valuable
Global Brands ranking released today by WPP and Kantar. The
total brand value of the Top 100 global brands reached US$5 trillion, equivalent to the annual GDP of
Japan. It has increased by 245%
since 2006, when the total brand value first reached US$1 trillion.
The Top 100 most valuable brands have shown they are more
resilient and less volatile in the current crisis than they were
during the global economic crisis of 2008-9, adding an additional
US$277bn of brand value growth over
the past year. The BrandZ strong brands portfolios 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 COVID-19. 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%.
Amazon maintained its position as the world's most
valuable brand, growing 32% to US$415.9bn. Having first entered the BrandZ
Global Top 100 Most Valuable Brands ranking in 2006, Amazon's value
grew by almost $100bn this year and
accounts for a third of the Top 100's total growth.
Technology brands continued to dominate the top of the ranking,
representing over a third (37%) of brand value in the Top 100 and
growing overall by 10%. Apple maintained its position as the
second most valuable global brand (+14%, $352.2bn) while Microsoft regained the no.
3 position (+30%, $326.5bn) ahead of
Google (+5%, $323.6bn) at no.
4, due to the growth of its cloud-enabled workplace ecosystem that
incorporates Office365 and Microsoft Teams, allowing people to
maintain 'business as usual' during the lockdown.
Asian brands represented a quarter of the Top 100 brands,
including 17 Chinese brands. Alibaba (+16%, no. 6,
$152.5bn) was the most valuable
Chinese brand with Internet services giant, Tencent (+15%, no. 7, $151bn) one place behind.
This year's BrandZ Top 100 showed that innovation and creativity
are key drivers of growth as people spend more time online. One of
the most exciting new brands, short video-sharing social network
TikTok (no. 79, $16.9bn) was
the highest new entry this year, offering light-hearted,
entertaining user-generated content.
David Roth, CEO of The Store
WPP EMEA and Asia and Chairman of
BrandZ, says: "The continued growth in value of the BrandZ Top
100 shows that strong brands are in a much better place than they
were in the global economic crisis of 2008-9. We see a significant
improvement in brand equity now compared to 10 years ago because
businesses understand the importance of investing in brand-building
and are stronger and more resilient as a result. While the impact
of COVID-19 has impacted every business regardless of size or
geography, consistent investment in marketing can and will help
carry you through a crisis."
The BrandZ Top 10 Most Valuable Global Brands 2020
Rank
2020
|
Brand
|
Category
|
Brand value 2020
($MN)
|
Brand value
change
|
Rank
2019
|
1
|
Amazon
|
Retail
|
415,855
|
32%
|
1
|
2
|
Apple
|
Technology
|
352,206
|
14%
|
2
|
3
|
Microsoft
|
Technology
|
326,544
|
30%
|
4
|
4
|
Google
|
Technology
|
323,601
|
5%
|
3
|
5
|
Visa
|
Payments
|
186,809
|
5%
|
5
|
6
|
Alibaba
|
Retail
|
152,525
|
16%
|
7
|
7
|
Tencent
|
Technology
|
150,978
|
15%
|
8
|
8
|
Facebook
|
Technology
|
147,190
|
-7%
|
6
|
9
|
McDonald's
|
Fast Food
|
129,321
|
-1%
|
9
|
10
|
MasterCard
|
Payments
|
108,129
|
18%
|
12
|
The retail sector showed strong performance, growing the fastest
(21%) in brand value driven by the major e-commerce players. Over
half of brands in the media and entertainment category appeared in
the top 20 risers, including Netflix (+34%, $45.9bn), up eight places to no. 26,
Instagram (+47%, $41.5bn) up
15 places to no. 29, LinkedIn (+31%, $29.9bn, no.43), and Xbox (+18%,
$19.6bn), up 22 places to no. 65.
Retail e-commerce brands Amazon, Alibaba and JD
(+24%, no. 52, $25.5bn) demonstrated
innovation and agility during difficult times, along with more
traditional retailers like Walmart (+24%, no. 27,
$45.8bn), which has invested in its
e-commerce capabilities.
Brands have also found new and creative ways to engage with
consumers, build trust and create a level of intimacy, particularly
in health and wellness. Athleisure brand Lululemon (+40%,
$9.7bn) was one of the fastest
risers, having shifted its focus from yoga-inspired wear to
work-appropriate clothing, as well as offering online classes for
people at home.
Doreen Wang, Global Head of
BrandZ at Kantar, comments: "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 (no. 86, $15.8bn), Bank of China (no. 97, $13.7bn), Lancôme (no. 98, $13.6bn) and Pepsi (no. 99, $13.3bn).
- Building ecology has become a trend in the global
business community. Haier (no. 68, $18.7bn) is the leading IoT ecosystem brand for
the second year running.
- US brands represented more than half of the Top 100
brands. Asian brands represented a quarter of the Top 100
brands, with 17 from China
(including Alibaba and Tencent in the Top 10) and two from
Japan (Toyota and
NTT).
- Sustainability is the new luxury – younger consumers
expect 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%, no. 19, $51.8bn).
The BrandZ Top 100 Most Valuable Global Brands report and
rankings are available to download here and via Brandz.com. The
Global report, rankings, charts, articles and more can also be
found via the BrandZ app. The app also contains the same features
and functionality for all BrandZ regional reports and is free
to download for Apple IOS and all Android devices
from www.brandz.com/mobile or search for BrandZ in the
respective iTunes or Google Play app stores.
NOTES TO EDITORS:
About the BrandZ™ Top 100 Most Valuable Global
Brands Ranking
Now in its 15th year and commissioned by WPP, the valuation
behind the BrandZ™ Top 100 Most Valuable Global Brands was
conducted by brand equity research experts Kantar.
The ranking combines rigorously analysed market data from
Bloomberg with extensive consumer insights from over 3.8 million
consumers around the world, covering over 17,500+ different brands
in 51 markets.
The ability of any brand to power business growth relies on how
it is perceived by customers. Grounded in consumer opinion,
BrandZ™ analysis enables businesses to
identify their brand's strength in the market and provides clear
strategic guidance on how to boost value for the long-term. The
eligibility criteria are:
- The brand is owned by a publicly traded enterprise, or its
financials are published in the public domain
- Unicorn brands have their most recent valuation publicly
available. (In prior years, only publicly-traded or audited
companies were eligible)
The suite of BrandZ™ brand valuation
rankings and reports includes Australia, Canada, China, France, Germany, India, Indonesia, Italy, Japan,
Latin America (Argentina, Brazil, Chile, Colombia, Mexico, Peru), The
Netherlands, South Africa,
Spain, UK, US. Access a suite of
customised reports and data packages from BrandZ via
www.kantar.com/marketplace
About Kantar
Kantar is the world's leading evidence-based insights and
consulting company. We have a complete, unique and rounded
understanding of how people think, feel and act; globally and
locally in over 90 markets. By combining the deep expertise of our
people, our data resources and benchmarks, our innovative analytics
and technology, we help our clients understand
people and inspire growth. For more
information, visit www.kantar.com
About WPP
WPP is a creative transformation company. We use the power of
creativity to build better futures for our people, clients and
communities. For more information, visit www.wpp.com
Logo:
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