Published on June 11th, 2019 | by The GC Team0
Amazon ousts Google to become BrandZTM Top 100 Most Valuable Global Brand
Amazon has become the world’s most valuable brand, as ‘eco-system’ brands are now winning over consumers while many traditional brand categories crumble. This is according to the 2019 BrandZTM Top 100 Most Valuable Global Brands ranking released today by “creative transformation agency” WPP and research company Kantar.
Amazon’s smart acquisitions, which have led to new revenue streams, “excellent” customer service provision and its ability to stay ahead of competitors by offering a diverse eco-system of products and services, have allowed the retailer to continuously accelerate its brand value growth.
Technology companies have led BrandZ’s Top 100 since its first global brand value ranking in 2006, when Microsoft took the top spot. Rising in brand value by an impressive 52% year-on-year to $315.5 billion, Amazon moves ahead of Apple, which retained its No.2 position, and Google, which fell from first to third position, ending the technology companies 12-year dominance.
Hugh Fletcher, Global Head of Consultancy and Innovation at Wunderman Thompson Commerce, argues that the brand recognition is of little interest to Amazon, which he says will continue to innovate and build new infrastructure at the same pace to stay ahead of its competitors.
“Following Amazon’s exponential growth over the last decade, it’s unsurprising that the eCommerce giant has been named the most valuable brand in the world. While this news is interesting, brand recognition is of little interest to Amazon; its prime focus is commercial strength and profit.
“In fact, our own research says that brand is only the third most important factor online. So unless this ranking makes Amazon more money, it’s unlikely to be heralded as anything other than the by-product of great service by the Seattle HQ.”
Fletcher maintains that Amazon’s success is characterised by its “aggressive horizontality” approach, meaning the business no longer relies solely on its traditional online retailing model.
“The company has cleverly expanded into different industries such as entertainment, physical retail, grocery and more recently pop-ups, which has allowed it to stay ahead of its rivals. It is likely to continue to consolidate its position – our research found that it attracted 35% of online spend in the UK, and 52% in the US, so there is still room for improvement.”
The BrandZ Top 10 Most Valuable Global Brands 2019
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