Major jump for Amazon in the BrandZ™ 100 Most Valuable Global Brands ranking. The e-trade giant grows 41% and retains top spot as Most Valuable Global Retail Brand in the 2017 BrandZ™ Top 100. Google is still the most valuable brand in the world. Tech increasingly dominates the list of most valuable brands. Technology, innovation and a Meaningfully Different position in the minds of consumers are the ways forward, says Lars Kaa Andersen, MD at Kantar Millward Brown.
Amazon has retained its title as the world’s most valuable retail brand in the 2017 BrandZTM Top 100 Most Valuable Global Brands ranking, released today by Kantar Millward Brown.
The brand was also the fastest-growing performer in the BrandZ Retail Top 20, up +41% ($40.1bn), year-on-year, thanks to continuing innovation. Amazon has made online shopping faster and more convenient. They also built their reputation for rethinking all forms of retail with concepts for check-out free stores where payment goes via an app.
Google and Facebook have disrupted the Danish media business and taken away a large share of the advertising spending. Now, Amazon is revolutionising the whole concept of retail globally, says Managing Director Lars Kaa Andersen at Kantar Millward Brown. – Amazon and other large international e-trade businesses such as Zalando are setting the platform on fire and traditional Danish retail stores haven’t found the means to fight back. Also, Danish web-retailers are under pressure and if they look towards Germany and France, they will see that Amazon is now the leading player there. This isn’t stopping and it is now or never for Danish companies if they want to avoid what happened to the Danish media business.
Defining and securing your brand position
According to Lars Kaa Andersen one means of fighting back is to have a Meaningful and Different offer to consumers and to stay top of mind.
If we look at some of the most recent advertising from Amazon we can see that they are stepping up their communication game. In their ‘Priest and Imam’ ad two old friends meet. We see one of them using the Amazon app, setting off the emotional payoff of being able to order with one click and have a gift delivered the next day. The ad is making Amazon more Meaningful and Different and is in the top quarter of ads tested. Amazon’s fast growing position and way to go to market should be a serious wake up call for Danish companies. They need to research if their brand position is strong enough and if their communication can protect them in an increasingly competitive environment.
Consumer-focused technology brands in power
Google, Apple and Microsoft retain the top three positions, all three continuing to grow their brand values. Facebook, at number 5, also continues to grow with an impressing 27%.
Nine of the Top 10 brands are technology-related brands, as are all seven of the newcomers to the Top 100 in 2017: XFinity, YouTube, Hewlett Packard Enterprise, Salesforce, Netflix, Snapchat and Sprint.
According to Lars Kaa Andersen, the 2017 ranking shows that the balance of power has truly tipped towards consumer-focused technology brands with the overall aim of making life easier and simpler. These brands also demonstrate willingness to enter new territories and new categories in order to develop and expand their customer bases.
Danske Bank is regaining consumers’ trust
This tendency can also be seen in the Danish part of the BrandZTM study where Danske Bank has made a full recovery after a difficult period. “This has to a large extent been driven by a strong end-consumer focus with new relevant service offerings such as the ever popular MobilePay solution that has changed our payment system considerably”, explains Lars Kaa Andersen. “Over a period of two years, the share of brand equity for Danske Bank has increased by 24% which is no less than mind blowing. More consumers now believe Danske Bank is meeting their needs and the bank has regained consumers’ trust and it’s overall Corporate Reputation.
I am very happy to see proof that the severe image problems kicked off by the New Standards-campaign have finally been solved. As long as Danske Bank is not further impacted by negative PR such as the recent lack of control with money laundering, the future looks bright for the brand, says Lars Kaa Andersen
Largest brand study in the world
Being the largest brand study in the world, BrandZ reflects the brands that are integrated into today’s consumer lifestyle. BrandZ is the only brand valuation study to combine interviews with over three million consumers globally with analysis of the financial and business performances of each company (using data from Bloomberg and Kantar Worldpanel).
The BrandZ Top 10 Most Valuable Global Brands 2017
|Rank 2017||Brand||Category||Brand value 2017 ($M)||Brand value change||Rank 2016|
Summary of headlines from the 2017 BrandZTM Top 100 Most Valuable Global Brands:
- Strong brands continue to outperform their competitors. Compared against key benchmarks over the past 12 years, the portfolio of BrandZ Top 100 brands grew 50% more in value than the S&P 500 and 3.5 times the MSCI All Country World Index.
- New brands are increasingly born global, allowing them to grow rapidly. Technology allows businesses to provide their offerings globally from day one. This fosters a new breed of entrepreneurs, who are not restricted by the geographical or sector boundaries that have traditionally limited the speed and scale of growth.
- Traditional non-tech brands are adopting technology to innovate and increase consumer appeal. Fastest riser Adidas has introduced 3D printing to produce its footwear, while fast food brand Domino’s Pizza offers customers a real-time tracker for their orders.
- The BrandZ Top 100 is getting younger. The average age of a brand is now 67 years, compared to 84 years in 2006, reflecting the entry of the newer technology brands and the emergence of new brands in China.
The BrandZ Top 100 Most Valuable Global Brands report and rankings and a great deal more brand insight for key regions of the world and 14 market sectors, are available online. The Global report, rankings, charts, articles and more can also be found via the BrandZ app. The BrandZ app contains the same features and functionalities for all BrandZ regional reports. It is free to download for Apple IOS and all Android devices from brandz.com/mobile or search for BrandZ in the respective iTunes or Google Play app stores.