Amazon Named As The Leading Global Brand After Surpassing Google And Apple
Amazon is currently the king in a world full of the cutthroat competition after it was named the top global brand according to the 2019 100 Top BrandZ reports published by the Kantar market research agency.
Amazon moves above both Apple and Google
The report revealed that Amazon’s brand value grew to US$315 billion, marking a 52% jump year-over-year. This impressive growth allowed it to jump from previously being the third leading brand globally to the first, thus surpassing Apple and dethroning Google. Meanwhile, Apple jumped to the second spot, pushing Google to the third spot.
Kantar revealed that Amazon managed to surpass Google and Apple through strategic acquisitions that boosted its revenue. Such acquisitions have not only allowed the company to one-up the competition but also to provide better services to customers. The research agency also revealed that Amazon is going full steam ahead with no signs of slowing down.
The announcement about Amazon leading the pack as far as global brands are concerned also aligns with previous reports of its CEO Jeff Bezos topping the Forbes list of top billionaires in the world. It is thus a double whammy for Bezos whose bet in e-commerce has paid off massively, earning him and his company global recognition.
U.S. brands have a significant influence on the top 10
Interestingly, U.S. brands dominated the top ten list of top brands according to the Kantar report. Following Amazon was Apple with its brand value at US$309.5 billion, while Google followed closely at $309 billion. Microsoft earned the fourth position with its brand value rising to US$251 billion while PayPal took the fifth spot at US$178 billion.
Facebook, Netflix, Uber also climb up on the chart
Facebook garnered the 6th position with its brand value at US$159 billion. The fact that U.S-based companies took the first six spots is nothing short of impressive. Other U.S-based companies that demonstrated significant gains include PayPal whose brand value came in at $34.3 billion after a +65% year-over-year gain, earning it the 34th spot on the list.
Uber managed to secure the 53rd position after a +51% year-over-year gain to $24.2 billion. Instagram was valued at $28.2 billion allowing it to secure the 44th position even though social media platforms have been going through a period of distrust and less appeal.
Instagram had the highest year-over-year growth rate at +95%, which allowed it to go up 46 places. It is worth noting that most of the U.S. companies that made it to the list are those that leverage technology to add more value to society.
Alibaba ahead of Tencent
The list also acknowledged foreign companies that made it to the top ten list. Alibaba took the 7th position with its brand value rising to US$131.2 billion after a +16% year-over-year growth. It also makes it the leading Chinese brand, which marks an impressive feat after overtaking the Tencent, which previously held that title.
Tencent dropped to the 8th position after a 27% decline which pulled down its year-over-year brand value to $130.9 billion. BrandZ attributes Tencent’s decline to the highly volatile economic conditions that have prevailed in China and the rest of the world in 2019.
Some of the other notable Chinese companies that made it to the list include Xiaomi whose brand value came in at $19.8 billion. This Chinese handset manufacturer proved itself a formidable force in the smartphone industry and other segments, including the Internet of Things. Its products have a huge demand in Russia, Malaysia, and India.
Another Chinese brand that made a list is Meituan, which earned the 78th spot with its brand value at $18.8 billion. This particular company has emerged as a key player in areas such as ride-hailing, room booking, bike rentals, and food delivery, among others by leveraging disruptive technology.
Another Chinese firm called Haier also cut position 89, after it’s brand value grew to $16.3 billion. It has been making its mark in the IoT and home appliances segment, thus appealing to many customers.
Growth categories that demonstrated the most growth
BrandZ also noted some other vital details about the top 100 performing companies. For example, the luxury segment had was the fastest growing category with an overall +29% year-over-year growth. It was closely followed by the retail segment, which grew by +25%, mainly driven by higher preference by Generation Y and Generation Z consumers.
Retail, finance, and technologies were the most dominant categories and companies within this category collectively hold over two-thirds of total brand value. Nine companies were new to the top 100 leagues. Among them include Haier, Xbox, Xiaomi, Meituan, and Dell Technologies, to name a few.
There was a notable increase in the number of Asia brands that were in the top 100 leagues. Fifteen of them were Chinese, one was from Indonesia, and three Indian brands also earned their spot on the list. There were a total of 23 companies from the Asian region on the BrandZ list of top 100 brands.
Another notable trend is that Generation Z brands (Founded after 1996) have been achieving higher growth rates than those that were made in the Millennial age (1977 to 1995). The Generation Z brands have been gaining value at four times the rate of the brands of the millennial era. A total of 23 Generation Z brands made it to the top 100 list while only 18 millennial generation brands were in the top 100.
Judging by the strong performance of the Generation Z brand, it is safe to say that the generation has quite a significant impact on the existing industries. It is, therefore, essential for brand owners to align their ideas with the consumer habits of such an influential generation group.
There is also no doubt that some important industries have been struck by the ongoing trade war between China and the U.S. Banking, logistics and the automobile industry are among the segments that have been most impacted by the trade war. Meanwhile, digital technologies are taking center stage as far as growth is concerned.