If you decide only to follow the logic, you can safely assume that Apple should be the Millennial’s favorite brand. Its products are (was?) stylish and innovative. On top of that, Apple is an early adopter of eco-friendly initiatives and does everything to minimize its carbon footprint. Nevertheless, Cupertino bites the dust, while Amazon outs it as the millennials’ favorite brand.
The race for the most valuable brand and the millennials’ favorite brand is a serious one. Both of these titles are prestigious and mean a lot to the companies that win them. It is free media exposure and online chatter that can only result in increased sales and a significant boost in stock prices.
Amazon Breaks The Tradition
There are a lot of research agencies out there that specialize in market analytics. One of them, Kantar, did a WPP study to assess the value of the most popular brands. Breaking down the brand value was not that easy, but this agency made it possible. The results were fascinating.
According to the WPP report, Amazon’s brand is worth $315.5 billion. We are talking about the brand here, not the company. So, you will have to pay over $300 billion just to purchase the Amazon brand. Compared to stats from a year before, Amazon’s brand value increased by 52%. The same report shows annual brand value rankings. Behind Amazon is Apple, valued at $309.5, and Google, valued at $309.
So, why the dramatic “Amazon Breaks The Tradition” heading? Because for the past 12 years, the top position on the most valuable brand list was reserved for either Google or Apple. This is the first time Amazon climbed to the top.
What Makes The Amazon Brand Most Valuable
There was no luck in Amazon climbing the ladder of the most valuable brands was no luck. Apparently, the company had a brilliant strategy that allowed them to grow and increase brand value. Experts say that Amazon achieved success thanks to smart acquisitions, top-notch customer service, and the ability to deliver a great variety of products and services to customers.
The acquisitions are definitely noteworthy. In the prior period, Amazon acquired self-driving trucks and car platforms. The most valuable acquisition was definitely PillPack. But, perhaps the smartest move was a $600 million investment in Deliveroom, a London-based delivery service.
Winner From The Shadows
Nobody expected to see Amazon as the most valuable brand, let alone as the millennials’ favorite brand. There are several reasons for this. Let’s start with the company’s bad reputation regarding in-house working conditions.
It appears that working conditions in Amazon are not stellar, as the company tends to present them. Amazon was accused of bad working conditions on several occasions. Most of these accusations had to do with working conditions in Amazon’s warehouses.
According to Sunday Mirror, some of the workers fell asleep during business hours due to exhaustion. The exhaustion followed long shifts and workers struggling to keep up with unrealistic targets.
Workers often have to walk over 20 miles per day in warehouses just to meet the targets. The situation went grim once the strikes started. Both workers in the US and Europe organized strikes for better working conditions in Amazon warehouses.
There is also the question of counterfeit products and product safety. The last couple of years were really challenging for the e-commerce giant in a legal sense. Amazon was sued on numerous occasions on the basis of selling faulty products.
A drop that spilled the glass was, in fact, a faulty retractable dog leash. Amazon was found responsible and accountable by the presiding judge. To protect its image, Amazon decided to make a move. All Amazon merchants are forced to carry a product liability insurance policy to be able to sell on this platform.
When you have these facts in front of you, it is not a logical assumption that a brand with a public image as this one is going to become the most valuable brand on the plant, let alone become the millennials’ favorite brand.
Negative Publicity Has No Effect On Millennial’s Opinion
We can’t leave it like this. There has to be some reason why Amazon is the favorite brand of one entire generation, despite the workers’ strikes, a series of bad news hitting the covers of respected world’s newspapers, and the company’s name being dragged through federal courts in the US.
The answer is hidden in the Nielsen Category Shopping Fundamentals study. More specifically, in the Millennials on Millenials report. Millennials are immune to Amazon’s negative publicity. Why? Because they are biased. Their purchasing behavior and the convenience Amazon brings to the table go hand in hand. In fact, Millenials purchase more goods online than the greatest generation, baby boomers, and Generation X.
If a company adheres to all of your needs and helps you achieve your goals as a consumer, you would probably label it as your favorite company. And this is what Amazon is to Millennials exactly.
Brands on the Millennials’ favorite brands list behind Amazon go as follows: Apple, Nike, Walmart, and Target. The sixth place on the list belongs to Samsung, while Google sits in seventh place.
We will let you decide which is the most relevant factor that led to Amazon becoming the Millennials’ favorite brand. On the one hand, you have Amazon becoming the most valuable brand, more valuable than Google and Apple. And, on the other, you have Millennials’ and their unique shopping behavior, goals, and needs. Don’t forget to factor in the bad publicity as well.
In any case, the title of the Millennial’s favorite brand of 2019 goes to Amazon.