The Strategist

BrandZ: Amazon is the most expensive brand of 2019

06/12/2019 - 14:59

According to WPP and Kantar, the most expensive brand in 2019 is Amazon. The value of the online retailer's brand has increased by 51% to $ 315.5 billion over the year. Thus, Amazon pushed away Google and Apple corporations, which had been sharing the first two places in the ranking since 2007. In general, the rating included 54 US companies and 15 Chinese companies.

Aurelijus Valeiša via flickr
Aurelijus Valeiša via flickr
For the first time since 2006, Google and Apple were pushed aside from the first two places in the BrandZ, the world’s most expensive brands rating, which is annually published by WPP advertising holding and research company Kantar Millward. The online retailer Amazon took the first place this year. The value of this brand is estimated at $ 315.5 billion. Thus, the company showed a very strong growth - by 51% from $ 207.6 billion a year earlier. For comparison, the value of the Apple brand, which occupies the second line of the rating, grew by 3% to $ 309.5 billion, and Google, which takes the third place, grew by 2% to $ 309 billion.

According to the rating’s authors, the sharp rise of Amazon reflects its success in diversifying its business. The company does not focus exclusively on online retail, but develops a wide variety of areas, from unmanned vehicles and voice assistants to production of films and TV shows.

According to David Roth, head of WPP's global retail practices and director of BrandZ, this proves that Amazon has a good “brand expansion” in a wide variety of categories.

The rating is based on assessments of the company's tangible assets (real estate, enterprises, current assets, free cash reserves), intangible assets (patents, copyright certificates, trademarks), financial performance of the company for the last fiscal year, as well as a survey of about 4 million consumers from 51 countries of the world.

In total, the rating includes 100 companies. Their value as a whole grew in comparison with last year by 7%, reaching $ 4.7 trillion.

The top ten in terms of brand value included eight American and two Chinese companies. Among the US companies from the top 10 are also Microsoft ($ 251.3 billion), Visa ($ 177.9 billion), Facebook ($ 159 billion), McDonald`s ($ 130.4 billion) and AT&T ($ 108.4 billion). Chinese companies - Alibaba ($ 131.3 billion) and Tencent ($ 130.9 billion) - ranked seventh and eighth, respectively.

The most places in the rating by American companies. There are 54 of them, that is, more than half of the entire rating. In second place is China with 15 companies, Germany with eight companies takes the third place.