Created in 1998, BrandZ™ is a global brand equity database, used to estimate the value of brands. It covers over 100,000 brands across 45 countries. Each year, since 2006, WPP, an advertising and public relations company, and Kantar, a worldwide data, insights and consulting company, publish the BrandZ™ Top 100 most valuable brands report. All the 100 brands on BrandZ™’s ranking are based on its unique brand valuation methodology that combines on-going consumer insights and financial analysis.
Apple and Google get knocked down after 12 years by Amazon. This is the story of how customer satisfaction can be the key to building a successful empire.
This year, Amazon is ranked as the top most valuable brand in the world, dislodging Apple and Google, which have held the top 2 places in the BrandZ™ ranking since 2007.
Customers, this time, conveyed their desire for a smooth customer experience. Amazon tapped into that demand to deliver friction-free service to their customers, including rapid delivery. The business philosophy of Amazon’s emblematic CEO, Jeff Bezos, has been clearly defined as customer satisfaction over the years. Being at the top of the ladder as the world’s most valuable brand shows how committed Amazon was to this philosophy.
New categories are on the rise, while the Asian market is consolidating its place in the global landscape. Discover who the newcomer brands are.
While the Top 10 is dominated by the technology category with 5 brands (Apple, Google, Microsoft, Facebook and Tencent), retail was among the three rising categories in this year’s ranking – it rose by 25%. As a matter of fact, Alibaba, a retail company, is also in the Top 10 along with Amazon.
Luxury and Insurance are the two other rising categories, with a rise of 29% and 15% respectively. Chanel, a famous luxury brand, and LIC, an Indian insurance company, happen to be among the newcomer brands in the Top 100.
Moreover, this year’s BrandZ™ ranking also sheds light on Asia as a rising industry. Among the nine newcomer brands, four are from China and two from India: Didi Chuxing (a Chinese ride-sharing app), Xiaomi (a Chinese smartphone company that is the market leader in India), Meituan (China’s largest online booking side), Haier (a Chinese home appliance company, present across Europe), Tata Consultancy services (an Indian global technology consultancy), and LIC.
Altogether, 15 Chinese brands are ranked in the Global Top 100 Most Valuable Brands 2019, compared with only one Chinese brand, 13 years ago, when the first ranking was published. It is worth mentioning that these 15 brands come from nine categories, thus highlighting the diversity of the Chinese market.
Global BrandZ™ 2019: how ecosystem brands are prospering; the way in which disrupting the market can be positive for brands; and the decline of Facebook while Instagram is on the rise.
BrandZ™’s 2019 ranking also highlights the power of ecosystem brands. These are the brands that respond to customers’ needs and demands by diversifying themselves to offer numerous services. Amazon and Alibaba are two such brands, which explain their place in the Top 10.
The presence of the aforementioned newcomer Asian brands in the Top 100 can also be attributed to them being ecosystem brands. For example, Didi Chuxing has a similar concept to Uber, but with a broader strategy that includes automobile services, including lease and rental, car and bike sharing, and even food delivery. Meituan provides services such as restaurant bookings, buying movie tickets, and making travel arrangements; and Haier has revisited its home appliance business by responding to the demand for smart systems instead of individual products.
Furthermore, brands in this year’s ranking scored 112 in their ability to disrupt the market, an increase from a score of 107 four years earlier. Between 2015 and 2019, brands that appear in both years’ rankings, have increased an average of 40% in value. This growth can be attributed to them being disruptive, as one of the underlying benefits is accelerated value growth.
On the other hand, while Instagram grew exponentially, becoming the fastest rising brand in the BrandZ™ Global Top 100, Facebook has known a slight decline in value. This is due to a growing desire for privacy protection, where Facebook’s reputation took a serious hit after the Facebook-Cambridge Analytica data scandal.
The methodology: how BrandZTM determines which brands are the most valuable.
BrandZ™ prides itself in getting to the core by assessing how much a brand alone contributes to corporate value.
Worldwide, on-going, in-depth quantitative consumer research is also carried out, covering 3.7 million consumer interviews and more than 165,000 different brands in over 50 markets, because how consumers perceive and feel about a brand is essential. Thus, two important elements are calculated and combined: the financial value, and the brand contribution.
Note: All pictures are from BrandZ™/Kantar