BrandZ 2020: Amazon remains the world's most valuable brand - TikTok best newcomer
With a brand value of 415.9 billion U.S. dollars (USD), online retailer Amazon retains the top spot in the 15th edition of the BrandZ brand value study, published annually by Kantar —followed by Apple (352.2 billion USD) and Microsoft (326.5 billion USD).
Amazon is once again the most valuable brand in the world. Last year, the online retailer topped the BrandZ ranking of the world's 100 most valuable brands for the first time. The company from Seattle (USA) has now impressively defended its top position: marketing consultancy Kantar - which publishes the ranking together with WPP - calculated a brand value of USD 415.9 billion for the retail giant (+32% compared to 2019). Amazon thus accounts for around a third of the total growth of the top 100. The BrandZ brand value study determines the value of the largest global brands by combining an analysis of key financial figures with a survey of 3.8 million consumers worldwide.
Technology brands remain particularly present at the top of the ranking. With Apple (2nd place with USD 352.2 billion), Microsoft (3rd place with USD 326.5 billion), Google (4th place with USD 323.6 billion), Tencent (7th place with USD 151 billion) and Facebook (USD 147.2 billion), there are five tech brands in the top ten. While Apple remains Amazon's first pursuer with solid growth of 14%, Microsoft and Google swapped places. Microsoft increased its brand value by 30 percent. One reason for this is the growth of the cloud-based workplace ecosystem with Office 365 and Microsoft Teams. The solutions have helped users to continue working as usual during the COVID-19 lockdown. Google, on the other hand, only recorded moderate growth of five percent.
| Rank 2020 | Brand | Category | Brand value 2020 (USD billion) | Change in brand value | Rank 2019 |
|---|---|---|---|---|---|
| 1 | Amazon | Retail | 415,9 | 32% | 1 |
| 2 | Apple | Technology | 352,2 | 14% | 2 |
| 3 | Microsoft | Technology | 326,5 | 30% | 4 |
| 4 | Technology | 323,6 | 5% | 3 | |
| 5 | Visa | Financial Services | 186,8 | 5% | 5 |
| 6 | Alibaba | Retail | 152,5 | 16% | 7 |
| 7 | Tencent | Technology | 151,0 | 15% | 8 |
| 8 | Technology | 147,2 | -7% | 6 | |
| 9 | McDonald's | Fast Food | 129,3 | -1% | 9 |
| 10 | MasterCard | Financial Services | 108,1 | 18% | 12 |
The world's most valuable brands have increased their total brand value by 5.9 percent and USD 277 billion despite the impact of COVID-19. This makes them more resilient and less volatile than during the 2008/2009 financial and economic crisis. The Top 100 portfolio outperformed the market - including the S&P 500 and MSCI World equity indices. In order to incorporate the impact of COVID-19 on performance into the ranking, the study uses data that reflects share price performance from April 2020. Before the outbreak of the pandemic, the growth of the top 100 was still nine percent. The total brand value of the global top 100 reaches the USD 5 trillion mark for the first time - equivalent to Japan's annual GDP.
"The continuous growth in value of the BrandZ Top 100 is proof of the importance of strong brands. Especially in times of crisis, as in the case of COVID-19, it shows how important long-term investments in marketing activities and brand management are. Companies that continuously and consistently focus on brand development are more robust in difficult times and overcome crises more efficiently. Another lesson from the current ranking: innovation and creativity are important growth drivers as people spend more and more time online," explains Christoph Prox, Managing Director Brand, Media & Communication at Kantar Germany.
A quarter of the world's most valuable brands now come from Asia - 17 of them from China. Alibaba (USD 152.5 billion, +16%) is the most valuable Chinese brand in sixth place, followed by internet giant Tencent (USD 151 billion, +15%) in seventh place among the world's most valuable brands. The highest newcomer to the top 100 also comes from China. The video portal and social network TikTok enters in 79th place - with a brand value of USD 16.9 billion.
Key findings from the BrandZ study 2020
Driven by the large e-commerce companies, the retail sector recorded the strongest growth with a cross-sector increase in brand value of 21%. More than half of the brands in the media and entertainment sector are among the top 20 fastest-growing brands: Netflix moved up eight places to 26th (USD 45.9 billion, +34 percent), Instagram moved up 15 places to 29th (USD 41.5 billion, +47 percent), LinkedIn moved up to 43rd (USD 29.9 billion, +31 percent) and Xbox moved up 22 places to 65th (USD 19.6 billion, +18 percent).
The e-commerce giants Amazon, Alibaba and JD (rank 52, USD 25.5 billion, +24%) demonstrated their innovative strength and agility in difficult times. However, this also applies to traditional retailers such as Walmart (rank 27, USD 45.8 billion, +24%), which has successfully expanded its e-commerce services.
Many brands, particularly in the health and wellness sector, have found new and creative ways to engage with consumers in order to gain or strengthen their trust. Leisure sports brand Lululemon (USD 9.7 billion, +40%) is one of the fastest-growing up-and-comers in this segment. Growth was boosted by the fact that the company has shifted its focus from yoga-inspired clothing to clothing suitable for work and now also offers online yoga classes for home use.
"Innovation has proven to be a key driver of growth in this year's Top 100 - and a successful way to counter the potential downturn. Creativity is also a particularly important aspect for the world's most valuable brands. Tech giants such as Amazon, Apple and Google successfully combine both and remain relevant to consumers precisely because of this. On this basis, they make it easier for people to choose their brand," says Christoph Prox.
These are further important results and trends from the current BrandZ ranking:
- MasterCard is in the top ten for the first time this year, which is due to the company's strong financial performance. This is supported by the growing brand value, in particular due to a stronger connection to the consumer. MasterCard is becoming increasingly relevant in the everyday lives of its users and is building a close emotional bond with them through targeted positioning.
- Five newcomers in the top 100: The list of newcomers is headed by TikTok, followed by UnitedHealthcare (rank 86, USD 15.8 billion), Bank of China (rank 97, USD 13.7 billion), Lancôme (rank 98, USD 13.6 billion) and Pepsi (rank 99, USD 13.3 billion).
- Creating your own ecosystems has become an important trend in the global economy. Haier (rank 68, USD 18.7 billion) is the leading brand for IoT ecosystems for the second year in a row.
- Half of all top 100 brands come from the USA
- Sustainability is the new luxury: younger consumers value the quality features associated with luxury as well as sustainable materials and less packaging. Brands that combine these are rewarded by consumers. This year, four luxury brands made it into the top 100, led by Louis Vuitton (19th place, USD 51.8 billion, +10%).
About the study:
The BrandZ ranking of the 100 most valuable brands in the world was developed by Kantar and carried out for the 15th time this year. BrandZ is the only study worldwide that analyzes and calculates the value of more than 166,000 brands from over 50 markets based on the evaluation of market and consumer research, combined with financial data from Bloomberg and Kantar Worldpanel. Over 3,800,000 consumers worldwide were surveyed for this purpose. In addition to business success, market capitalization is also taken into account. A key criterion for determining the market value of a brand is the consumer's assessment of the brand, as brand value is determined in particular by the following factors: Business results, product design, clear positioning and market leadership. The ranking takes regional differences into account. The measurements can sometimes differ greatly within individual countries, even for globally known brands.
The complete BrandZ ranking of the 100 most valuable brands in the world can be found at Brandz.com can be downloaded. The overall report, rankings, graphics, specialist articles and other information can also be found in the BrandZ app. The app offers the same functions for all regional BrandZ studies and can be downloaded free of charge for Apple IOS and all Android devices at Brandz.com/mobile or downloaded from the respective iTunes or Google Play app stores.
