Saturday, November 18, 2017

Alibaba overtakes Amazon as Most Valuable Global Retail Brand worth $66.4bn

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In the tenth annual BrandZTM Top 100 Most Valuable Global Brands ranking, released today by WPP and Millward Brown, the most valuable retail brands lack physical stores. Chinese e-tailer Alibaba shot into the top spot of the retail ranking after its IPO, overtaking Amazon and adding its $66.4bn brand value to the sector. Retail is now one of the fastest growth categories alongside technology.  

 

Amazon, the no.2 retail brand, saw a 3% decline in its brand value to $62.3bn but remains more valuable than Walmart, which it overtook in 2013. Walmart, no.3 in the retail ranking is worth $35.2bn and has 11,000 stores worldwide.

 

Discount retailers, with their value and quality offers have shown strong growth in recent years.  Aldi (no.8), grew its brand by 22% to $11.7bn and Lidl (no.20), was up 27% to $6.0bn. Advertising focusing on promoting quality produce equal to the major multiples has helped the discounters‘ value proposition and resulted in a shift in the balance of power. The major supermarkets no longer dominate the retail ranking.

Elspeth Cheung, Global BrandZ Valuation Director at Millward Brown said, “As retailers continue to fight off fierce price competition and operate in a category undergoing a radical transformation, there‘s an underlying urgency to remain relevant to shoppers. Adopting a shopper-first attitude is not enough; retailers also need to create meaningful and differentiated brands if they want to find a path to growth.”

 

The BrandZ Top 20 Most Valuable Retail Brands 2015

Rank 2015

Brand

Brand value 2015 ($M)

Brand value change

Rank 2014

Rank in global Top 100

1

 Alibaba

66,375

N/A

New

13

2

 Amazon

62,292

-3%

1

14

3

 Walmart

35,245

0%

2

26

4

 The Home Depot

27,705

25%

3

31

5

 Ikea

17,025