The second annual BrandZ Top 75 Most Valuable Global Retail Brands report by WPP and Kantar reports, the total value of world's most valuable retail brands has increased by $339 billion this year from last year. Accounting for 23 per cent of the brand value of all 75 brands, Amazon topped the list with a total brand value of $315.5 billion. The brand value of Chinese e-commerce giant Alibaba also increased 48 per cent to $131.2 billion, making it the brand with the second highest brand value.
The second annual BrandZ Top 75 Most Valuable Global Retail Brands report by WPP and Kantar reports, the total value of world's most valuable retail brands has increased by $339 billion this year from last year. Accounting for 23 per cent of the brand value of all 75 brands, Amazon topped the list with a total brand value of $315.5 billion. The brand value of Chinese e-commerce giant Alibaba also increased 48 per cent to $131.2 billion, making it the brand with the second highest brand value. Amazon, however, has more innovations than Alibaba such as partnering with Starbucks in all Alibaba properties, and disrupting its logistics model to better facilitate super-fast delivery. Online providers such as German fashion platform Zalando also registered immense growth on account of its intent focus on its services.
Adding a human touch through physical stores
Though online retail helps brands increase sales, customers also value the in-store experiences that these brands provide. Brands such as Nike and Nordstrom launched experiential stores to offer personalised shopping experiences to their customers. On the other hand, shifting from its standardised store formats, discount supermarket Aldi is adopting flexible shopping models that enhance their shopping experiences.
Capitalising on the importance of adding human touch to online retail, players are offering access to unprecedented computing power, limitless data as well as artificial intelligence and visual and voice technology interfaces. This enables the retailers and brands to absorb and process vast amounts of information in such a way that it highlights the importance of shopping experience for customers.
Nike the most valuable apparel brand
Ranked third in the report, McDonald’s is considered as the most valuable fast food brand in the world. Tapping into the growing demand for healthier food, the brand also offers innovative and eco-friendly packaging for the betterment of the planet. The brand recently improved its delivery business, which has helped it grow by over18 per cent to a brand value of $130.4 billion.
Growing by a robust 94 per cent from last year, sports and leisure wear brand Lululemon is ranked 35th. It has a total brand value of $6.9 billion. Nike with a brand value of $47.4 billion, has emerged as the most valuable apparel brand while Adidas, whose brand value increased by 13 per cent to $13.4 billion is placed 20th in the rankings.
A new entry on the list Levi’s ranked 74th with a brand value of $2.4 billion. The brand recently shifted focus back on women’s denims leading to strong growth in new markets such as Italy and China.
Luxury brands adopt new resale and rental models
Over the past five years, luxury brands have become more responsible towards social and environmental issues. Besides strengthening their online operations, these brands are adopting new resale and rental models to compete with traditional heritage luxury brands. However, some of the main players have achieved substantial growth. Gucci (ranked 11th) for example has undergone a radical creative makeover, driven by a new creative director, boosting creativity and desire for the brand, particularly amongst Chinese millennials.
Price plays an important role in brand value
The brand value of Amazon, Ikea and Aldi will continue to grow in 2019 due to the lower prices and a great shopping experience that they offer to their customers. Other retail brands – such as Adidas, Hermès and Lowe's – justify their price premium with strong equity and continue to grow their brand value. However, the brand value of Zara and H&M declined by 10 per cent and 39 per cent respectively due to rising concerns about increasing production, transportation and selling prices.
There were nine new entrants to this year's rankings. These highly differentiated and purposeful brands include outdoor sports brand The North Face at 66th position and Indian jeweler Tanishq ranked 72nd. Today, shoppers value the human connection that a brand offers alongwith other benefits like the freedom of choice, convenience and speed of delivery. The BrandZ Retail ranking and report thus hails those retailers who are offering a true value for money experiences to their customers.