Economic Optimism Drives Brand
Values To Record Levels
The world’s most valuable brands have experienced record growth according to the Kantar BrandZTM Most Valuable Global Brands 2021 ranking, with the total worth reaching $7.1 trillion –equivalent to the combined GDP of France and Germany. The42% increase; more than four times the study’s annual average percentage increase over the past 15 years, has been driven by confidence derived from vaccine availability, economic stimulus packages and improving GDP outlooks. US brands account for 56 of the Top 100 brands, with Amazon and Apple leading the way – each now worth over US$½ trillion.
“Powerful brands have always provided marketers with strong returns, even during times of business as unusual caused by the pandemic. Despite the strong headwinds caused by COVID-19, we clearly saw that brands that invested in knowing and understanding their consumers’ evolving needs, and addressing them, did well. These brands made sure they remained meaningful in the evolving context, which by default ensured consumers continued to choose them over competition.” commented Amol Ghate, CEO Middle East, Insights Division, Kantar.
Key trends highlighted in this year’s Kantar BrandZ Most Valuable Global Brands study include:
- Amazon maintained its position as the world’s most valuable brand, growing 64% to US$684bn (or the equivalent GDP of Poland). Having first entered the BrandZ ranking in 2006, Amazon’s value grew by almost $268bn this year and became the first half-a-trillion-dollar brand, joined by Apple, valued at $612bn.
- Tesla is the fastest growing brand and became the most valuable car brand, growing its value by 275% year-on-year to $42.6bn.
- Five brands more than doubled their brand values: Pinduoduo, Meituan, Moutai and TikTok from China, and Tesla from the USA.
- Overall growth has been fuelled by 69 brands increasing their value by at least 5% since 2020, together with 13 new entrants, including Zoom, Nvidia and AMD, and Spotify
- Technology dominates the top end of the Kantar BrandZ ranking, with seven of the top ten brands coming from the tech sector. Tech has also enabled non-tech brands to achieve significant growth, for example Gucci – harnessing the power of TikTok during the pandemic, and Domino’s – leveraging online and delivery services. The Top 10 brands are today valued at $3.3 trillion, compared to $800 billion in 2011.
- US brands grew fastest in 2021 with their brand values growing an average 46%year-on-year, meaning the US now accounts for 74% of the Top 100’s total value, despite having just 24% of global GDP.
- China has consolidated its lead over Europe. Chinese brands have grown from 11% of the Top 100 value in 2011 to 14% today. European brands, in contrast, now represent 8% of the ranking’s value versus 20% in 2011.
“2020-1 has been a record year for brand growth, and despite many facing a difficult year, our research has again proven that strong brands deliver superior shareholder returns, are more resilient and recover more quickly,” comments Nathalie Burdet, CMO of Kantar. “With global ecommerce growing from 12% to 15% of all sales in 2020, it has been a positive year for brands involved in that value chain – from the retailers through to the couriers like FedEx and UPS.
However, we have also seen growth in industries where many were predicting challenges early in the pandemic. Apparel brands for example have collectively grown even more than media and entertainment brands in the ranking, and luxury brands, despite reduced travel and lockdowns globally, have refocused their energies and seen growth as a result.”
WorldTalk
10 | BIZPRENEUR MIDDLE EAST July 2021