Amazon is on a trajectory to be the first company to have a brand valued at over $US400bn, according to the Interbrand 2019 Best Global Brands Report. The company came in third place, behind Apple and Google in the report, but displayed a 24% growth in brand value.
Speaking at the Best Global Brands event, Interbrand Australia and New Zealand CEO, Nathan Birch, stated that if Amazon continues growing consistently it will be set to surpass $US400bn.
“Amazon has an astounding 27% growth on brand valuation, year on year, since 2014. It is now third with a valuation of a $125bn. At the current rate of growth, it will surpass both Apple and Google within five years, possibly being the first brand to exceed the $400bn mark,” Birch said.
Nathan Birch presenting the 2019 Interbrand Best Global Brands report
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Birch attributed this growth to Amazon’s continued disruption of the market.
“Why is [Amazon] so big and continues to grow? Because it is the poster child for a bold brand,” he said.
“It continually disrupts itself: from books and videos to Kindles and streaming. It makes bold moves into emerging technologies like Alexa and voice, continues to listen intently – and that’s no slight to Alexa itself – to its customers, the acquisition of Whole Foods, the complete shifting of the distribution model.
“Amazon is a continuing trajectory of bold but calculated moves that keep it both relevant and responsive,” Birch explained.
Apple held onto its top position with 9% growth in the value of its brand, now sitting at US$234.241bn. Behind Apple with a valuation of US$167.713bn was Google which experienced an 8% increase in its value.
The Interbrand report also found that Facebook declined in its brand value by 12%, dropping to 14th place from ninth the year before. At its peak in 2017, Facebook’s brand value was $US41.188bn, ranking it 8th in the Interbrand report that year.
Disney made a return to the top 10 brands thanks to the success of the Marvel Cinematic Universe, new Star Wars films, Pixar and ESPN. The entertainment powerhouse grew by 11% to have a value of $US44bn.
The top 100 Best Global Brands in Interbrand’s 2019 report (Click to enlarge)
The top growing sector identified in the Best Global Brands report was luxury. 2019 saw Gucci rise to the 33rd most valuable brand after experiencing an increase of 23% and a value of US$15.949bn.
Birch attributed Gucci’s growth to its introduction of street-style fashion that has broadly attracted millennial consumers.
“The other surprise is Gucci. Strong brand momentum his year. Its aligning its heritage products with the modern street style that Gucci has become,” Birch said.
“It’s much more digital savvy now. It’s one of those luxury brands that managed, most successfully, to transform from a brand, to engage with new generations through an authentic and inclusive narrative.”
Birch also said that luxury brands were “leading the way in two of the most important aspects of brand management responsiveness and relevancy”.
New entrants to the list were Uber in 87th position and LinkedIn in 98th.
Competing with automotive brands at the top of the list – including Toyota, Mercedes and BMW – Uber has gained momentum in its brand value thanks to the trend of young people opting for ride sharing and mixed-mobility solutions over purchasing a car.
According to the report, Uber’s brand value is US$5.714bn and LinkedIn is valued at US$4.836bn.