Retailer makes history as brand value exceeds US$200 billion mark says new Brand Finance Retail 50 2020 report.
With brands in the retail sector likely to record mixed fortunes as a result of the COVID-19 pandemic, Amazon is primed for even further growth with it already dominating as the world’s most valuable retail brand.
According to the latest Brand Finance report – Brand Finance Retail 50 2020 – the top 50 most valuable retail brands, on average, should see a slight increase in brand value following the pandemic, growing a modest 1% – a result of the majority of the brands in the ranking either being ecommerce brands or dominant, well-known brands, which tend to have strong e-commerce capabilities.
And at the top of the tree, Amazon has already broken the US$200 billion brand value mark, following 18% growth from US$187.9 billion last year.
Amazon’s brand value has now reached US$220.8 billion, substantially ahead of second-placed, Walmart, with a brand value at US$77.5 billion. The majority of Amazon’s revenue still comes from its retail division, reported Brand Finance.
It is set for continued growth, too, as, along with fellow ecommerce brands, it has been benefitting from the surge in demand as consumers turn to online following bricks and mortar outlets.
“Amazon’s sheer dominance in the e-commerce space should stand them in good stead in the coming months as the world tackles the far-reaching repercussions of the COVID-19 pandemic,” said Richard Haigh, md of Brand Finance. “Brand Finance has calculated that Amazon’s brand value could grow a further US$4 billion thanks to the spike in demand.
“Nevertheless, the world’s online marketplace must look beyond the coming months to ensure that quality and speed are not compromised should it wish to maintain its exceptional reputation and thus retain new users.”
Meanwhile, in the traditional retail space, Walmart has seen its brand value rise, increasing 14% to US$77.5 billion.
Lidl (US$12.4 billion) and Aldi (US$14.3 billion) are the fastest growing retail brands in the ranking, growing 40% and 37% respectively.
However, Sainsbury’s is this year’s fastest falling brand after dropping 27% to US$4.2 billion. Two further British supermarkets feature in the ranking, Tesco (down 3% to US$11.0 billion) and Asda (up 14% to US$6.3 billion) claiming 16th and 28th position respectively.
In addition, Brand Finance’s COVID-19 impact analysis has also predicted that home furnishings and improvement stores are likely to lose the most brand value.
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