Amazon has become the world’s most valuable global retail brand in the 2016 BrandZ Top 100 Most Valuable Global Brands ranking, released by WPP and Millward Brown.
In the year that Amazon expanded its reach into the logistics sector by shipping its own packages, it also extended the brand experience to include new technology devices that cater for consumers’ personal needs at home, building on last year’s introduction of Amazon Dash, automated replenishment buttons for key FMCG items. The company has boosted its brand value by 59% to just under $100bn.
It replaces Chinese e-tailer Alibaba, which now takes the no.2 spot in a global retail sector that has performed strongly overall with an 8% rise in total value to $377bn for the Top 20 brands.
The highest-ranking UK retail brand was Tesco, worth $8.9bn and no.15 in the BrandZ Retail Top 20. The report said that Tesco is leading the way in showing UK retailers how to put their existing estate at the heart of a new seamless multichannel strategy. Service and realistic delivery offers now sit at the heart of a new vision for retail.
Fifteen years after Apple revolutionised retail with its Apple Store, UK retailers are putting maximum emphasis on the retail experience – even for consumers who have bought online. The store now sits at the heart of a seamless strategy designed to put the social value of shopping and quality of service centre stage.
Although Tesco still leads the market for online grocery shopping, revenues still only represent around 10% of its total sales as it has focused on boosting in-store service. Similarly Marks & Spencer has also recently announced plans to boost in-store service (as well as price reductions).
The retailers’ goal is to combat the online-only brands, which are beating multichannel retailers globally on measures such as Innovation and Brand Experience.
UK retailers are also being more ruthless in assessing the value of online shoppers, driving online customers to their bricks and mortar stores via smart click and collect facilities, where the service element of their offer can swing into action. John Lewis has even started Click and Collect delivery which is free for orders over £30.
Similarly discount grocery brands such as Aldi – valued at $12.1bn – are being targeted with their online offers. The German-owned supermarket has focused on high-value offers such as a half case of champagne, rather than providing a full online shopping service.
“In putting their stores at the heart of their multi-channel strategy, retailers are not ignoring digital technology. What they are identifying are the clear areas where they can demonstrate a more compelling offer than the online only retailers. While stores want to sell online as well as in store, the integration of the two helps reinforce the value of service and their ability to do more than just deliver a brown cardboard box quickly,” said Alison Casey, Senior Client Director at Millward Brown UK.
The BrandZ Top 20 Most Valuable Retail Brands 2016
|Rank 2016||Brand||Brand value 2016 ($M)||Brand value change||Rank 2015||Rank in global Top 100|
|3||The Home Depot||36,440||32%||4||26|
The full global and retail ranking is available from www.millwardbrown.com/brandz