Amazon The Most Valuable Retail Brand, Followed By Alibaba

Innovative use of technology such as artificial intelligence and data analytics has helped e-commerce deliver numerous human benefits, fuelling a 33% growth in brand value for the most powerful players in retail.

This is according to the second annual BrandZ Top 75 Most Valuable Global Retail Brands ranking and report compiled by WPP and Kantar. Looking at luxury, apparel, retail and fast-food outlets, it reveals the world’s most valuable retail brands are worth $339bn more this year than last, a total of US$1.4trn.

The BrandZ brand valuation ranking combines analysis of retailers’ financial performance with the opinions of millions of consumers surveyed in more than 50 markets around the world.

The world’s most valuable retail brand, Amazon ($315.5 billion), accounts for nearly a quarter (23%) of the total brand value of the Top 75. Amazon is a major international influence on shopping and continually finds ways to improve the shopping experience for new and existing customers.

However, Amazon is not the only game in town. Chinese e-commerce giant Alibaba, the world’s largest online and mobile commerce business, arguably has more innovations than Amazon such as partnering with Starbucks (no.7) to have Starbucks in all Alibaba properties, and disrupting its logistics model to better facilitate super-fast delivery. Its brand value increased by +48% to $131.2bn putting it ahead of McDonald’s (no.3).

David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ, said: “We are entering the third era of digital retail as human rhythms meet algorithms enabling retailing to be much more digital but appear more human. This year’s rankings also signal the increasing importance of Chinese retailers in online and mobile commerce indicated by Alibaba’s rise to the number two position. It is at the cutting edge of where ecommerce, mobile and physical retail intersect with the consumer.”

Some online providers such as German fashion platform Zalando (no.62), a new entrant to the ranking, also made amazing growth strides as a result of an intent focus on service.

While ecommerce is a key success driver, providing a great customer experience in store is also an important part of the complex retail puzzle. Nike (no.5), and Nordstrom (no.63) are among a host of retail brands launching experiential stores designed to provide closeness to their brands and a more personalized interaction with expert staff. Discount supermarket Aldi (no.19), is shifting its highly standardized store formats towards models, including catering to the ‘commuter on the go’, that offer greater flexibility for the customer and better fulfil their shopping trip mission.

Graham Staplehurst, Global Strategy Director for BrandZ at Kantar, said: “What the e-commerce players have capitalized on so successfully is the importance of the human touch to online retail.  Access to unprecedented computing power and near limitless data as well as artificial intelligence and visual and voice technology interfaces gives retailers and brands the ability to absorb and process vast amounts of information but in a way that puts the shopping experience firmly back in the human domain.”

The BrandZ Top 10 Most Valuable Retail Brands 2019