Amazon has retaken the top spot as the world’s most valuable brand despite its brand value falling to 15% this year from US $350.3 billion to US $299.3 billion, according to a new report from a leading brand valuation consultancy, Brand Finance. Amazon’s brand has fallen by over US $50 billion this year, substantially in connection with its fall in brand strength, with its rating falling from AAA+ to AAA as consumers evaluate it harshly in the post-pandemic world.
What were the key findings of the research?
Brand Finance’s research found that customer perception of customer service at Amazon has fallen – at the same time, delivery times have lengthened. Consequently, consumers have become less likely to recommend Amazon to others. Concurrent with the conclusion of pandemic restrictions, shopping in-person has returned, mitigating the need for online retail.
David Haigh, Chairman and CEO of Brand Finance, commented: “Technology brands across the world have lost their significant value in response to shifting consumer demand patterns.”
“Inflation has affected brands across many sectors, but as consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard due to the fact that movements aren’t restricted anymore. Additionally, disrupted supply chains, labour shortages, and greater obstacles to financing have now left their mark.”
Apple (brand value down 16% to US $297.5 billion) has fallen, but is currently the world’s second most valuable brand with its brand value falling from US $355.1 billion. This year’s fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products.
There was a total of 48 technology brands that featured in the ranking, two down from the fifty in 2022, after Snapchat and Twitter unfortunately dropped out. Other technology-focused brands predicted to lose value include Samsung Group (brand value down 7% to US$99.7 billion), Alibaba.com (brand value down 56% to US $10.0 billion), also Facebook (brand value down 42% to US $59.0 billion) and WeChat (brand value down 19% to US $50.2 billion).
What were the positive discoveries of the research?
On the positive side, Instagram (brand value up 42% to US$47.4 billion) and LinkedIn (brand value up 49% to US$15.5 billion) have grown in the technology sector, with the brand value of each of them growing due to well-executed and strategies to commercialise their services.
Some of the other big winners in brand value include electric car manufacturers Tesla (brand value up 44% to US$66.2 billion) and BYD (brand value up 57% to US$10.1 billion) as demand grows gradually for electric cars as part of a broader transition to a low carbon economy.
In addition to the Global 500 2023 ranking of the world’s most valuable and strongest brands, Brand Finance is also launching the Brand Finance Sustainability Perceptions Index, in association with the International Advertising Association at the World Economic Forum in Davos. This report reveals that major global brands like Amazon, Tesla, Apple and Google have billions of dollars contingent on managing a reputation for commitment to sustainability.
