As retailers face supply and demand challenges that require innovation and agile responses, Amazon has once again ranked as the world’s most valuable global brand, followed by Alibaba and McDonald’s.
The COVID-19 pandemic disrupted all verticals, including the world of retail and online shopping. These verticals are the domain of Amazon, Alibaba, and McDonald’s, and COVID-19 induced uncertain times to put different business models and approaches to the test.
Amazon’s readiness to respond quickly and in innovative ways helped the company propel itself ahead of the competition. Amazon is officially the world’s most valuable global brand ahead of Alibaba and McDonald’s, according to a BrandZ report.
BrandZ is a global go-to source for brand evaluations and insights. It has a long history of delivering unbiased reports on brands world-wide. BrandZ compares brands’ performances and ranks them by the largest absolute revenue contribution, taking into consideration how this contribution reflects the total value of parent companies.
Amazon’s Agile Response
Amazon quickly responded to the COVID-19 pandemic. The company recognized all the potential impacts of the pandemic and adjusted its operations accordingly. Experts believe that this was crucial for Amazon’s success and its ability to stay ahead of the competition.
What was the trick that Amazon pulled out of its sleeve? Immediately after the World Health Organization officially declared a world-wide pandemic, Amazon reduced its speed of delivery. The company prioritized essential products, enabling its services to delight customers who required “priority products.”
According to the recently released BrandZ Top 75 Most Valuable Global Retail Brands ranking, Amazon has grown 32%. The growth reached $415.9 billion in brand value, ensuring a safe leading position to Amazon and the prestigious title of the world’s most valuable retail brand.
This is huge. BrandZ is a leader when it comes to delivering reports across industries. WPP and Kantar released the latest reports too. The numbers tell us which brands are going to be capable of making it through the COVID-19 crisis and compete in the markets once the pandemic is over. Amazon continues to play a pivotal role in the world’s retail sector as well as in the global economy.
Amazon in BrandZ Top 75 Most Valuable Global Retail Brands
According to the recently released rankings, the world’s top retail brands went up by 12%. Currently, the top retail brands are worth $1.5 trillion. Amazon is the absolute leader growth-wise. Its value is now at 27% of the overall value of the 75 most valuable brands.
However, Amazon has Alibaba and McDonald’s breathing down its neck. These two brands can jeopardize Amazon’s position and redefine the retail market as we know it. The developments we see are the result of the COVID-19 crisis, and the role brands played to cushion the blow of the pandemic.
The Chairman of BrandZ and CEO of the Store WPP EMEA pointed out the role the world’s largest brands have in these uncertain times, “The Coronavirus crisis underscores the essential role that retail plays in both our daily lives and the overall global economy.”
As a leader, Amazon did several things. Besides reducing the speed of delivery to efficiently deliver priority products, Amazon did a few more things. The company decided to reinvest its profits into thermal cameras, thermometers, protective gear, and new COVID-19 test laboratories. Alibaba, the company on the 2nd position on the BrandZ list, is valued at $152.5 billion.
Amazon & Other Brands: Surviving the COVID-19 Pandemic
BrandZ report this year showcases brands from a different point of view. For the first time in history, the world’s largest brands had to tackle challenges brought by a pandemic. The brands’ ability to adjust services to meet the new consumer needs was crucial for survival.
The BrandZ database, which now contains data collected over 20 years, shows that one methodology consistently helped brands come through hard times stronger than before. Roth addressed this in a statement, “While this is a fast-moving and ongoing story, the report allows us to show that those businesses that have invested in becoming a strong brand are potentially better able to withstand the current shock.”
Retail brick and mortar stores also managed to establish a steady growth during the coronavirus age. Costco, Target, and Walmart are among the brands with high scores as well. They went up 35%, 27%, and 24%, respectively.
According to the report, online retail brands accomplished the most noticeable growth, including Amazon, JD, and Alibaba. Amazon is definitely the world’s most valuable brand, with a whopping 32% growth rate. As the fastest riser, Amazon continues to dominate the eCommerce vertical.
At the moment, it is safe to assume that the company is going to continue growing at the same pace because it has other income resources such as Amazon Web Services, which is expected to boom once the hospitality and travel industries recuperate from the COVID-19 blow.