THE WHAT? Brand Finance has named Amazon the World’s Most Valuable Retail Brand and predicted that its dominance over retail will likely grow as the COVID-19 pandemic sends consumers online, smashing the ‘unobtainable’ US$200 billion brand value mark.
THE DETAILS Indeed, brands in the retail sector are likely to record mixed fortunes as a result of the pandemic, with e-tailers forecast to fare considerably better than their bricks-and-mortar peers.
The top 50 most valuable retail brands are all projected to grow by an average of 1 percent following the pandemic – the majority are, unsurprisingly, e-commerce operators, although supermarkets have also witnessed a surge in popularity – Walmart was ranked second, thanks to a 14 percent jump in brand value. Chinese e-commerce giants Tabao and Tmall took fourth and fifth place respectively, CVS was ranked seventh, and Alibaba just scraped into the top 10.
“The sheer size and diversification of the retail sector means that brands are inevitably going to be affected differently by COVID-19,” said Richard Haigh, Managing Director, Brand Finance. “Brand Finance’s analysis demonstrates that e-commerce brands and dominant retailers in the market, could buck the trend and thrive as demand spikes in the online space. At the other end of the scale, automotive retailers could see a 15% drop in brand value as supply chains falter, car use drops and consumer spending habits change.”
THE WHY? Amazon has benefitted from an unprecedented surge in demand as consumers turn online following store closures.