Five years after its last top spot, Apple was named the World’s Most Valuable Brand by the Brand Finance Global 500 2021 with a brand value of US $ 263.4 billion.
According to Brand Finance, Apple is grateful for its successful diversification strategy, which has significantly increased its brand value by 87%.
Under Tim Cook’s leadership, Apple has begun to focus on developing growth strategies beyond the iPhone, especially over the past five years. It accounted for half of sales in 2020 and two-thirds in 2015.
The diversification policy has expanded the brand to digital and subscription services such as the App Store, iCloud, Apple Podcasts, Apple Music, Apple TV, and Apple Arcade. On New Year’s Day alone, App Store customers spent US $ 540 million on digital products and services.
Brand Finance CEO David Haigh sets Apple’s ability to transform and reform itself over and over again, setting it apart from other hardware makers and reaching a market capitalization of US $ 2 trillion in August 2020. He said he helped become the first US company to do so. ..
With rumors re-emerged that Apple’s long-awaited Titan electric car expansion is underway again, there seems to be no limit to what the brand can reach out.
“Steve Jobs’ legacy continues to flow through Apple, incorporating innovation into the brand’s DNA,” says Hague.
“As Apple regains the title of the world’s most valuable brand from Amazon five years after it last took the top spot, we’re witnessing it again thinking it’s different. Mac to iPod , IPhone, iPad, Apple Watch, services up to subscriptions, infinity, and beyond. ”
Amazon will prosper in 2020
Despite abandoning its top position, Amazon in second place still recorded healthy growth in brand value of 15%, reaching US $ 254.2 billion. Retail giants are one of the few brands that have benefited from a pandemic, and consumers went online after the store closed, resulting in an unprecedented surge in demand. In the second and third quarters of 2020, the e-commerce platform achieved the highest revenue growth since 2016.
More recently, taking advantage of the pandemic situation, Amazon has acquired 11 airliners from North American airlines struggling to expand their aviation logistics capabilities. With tactical purchases to support a fast-growing customer base, as well as strategic moves to build its own end-to-end supply chain, the fleet will eventually make the brand seriously competitive in air transportation. Allows you to become a partner.
As another example of Amazon’s constant innovation in the face of global adversity, the brand also announced its entry into the health sector with the launch of Amazon Pharmacy and fitness tracker Halo. Bold diversification was already a hallmark of Amazon’s growth strategy before it brought Apple to success, and it continues to pursue with impressive results.
“Amazon, which plays a key role in supporting the new economic mode of blockade, is getting more attention than ever,” says Haigh.
“As revenues increased, reputation risks arose, from questions about how workers were treated, to accusations of benefiting from the pandemic tragedy, to backlash against global companies backing local retailers. Jeff Bezos steers. It has a difficult challenge. The Amazon brand goes through dangerous waters, “he says.
Google, which has made a leap forward by Apple, is in third place after its brand value has risen by just 1% to US $ 191.2 billion. Google is slightly behind its peers in terms of diversification, recording its first revenue decline as a result of a pandemic. Most of the brand’s revenue comes from advertising, and last year was hit by tight marketing budgets.
Technology drives brand value
In a year symbolized by global lockdown, working from home has become a new norm, and with unprecedented reliance on digital communications, retail and entertainment, brands that take advantage of technology brands and innovations can significantly increase their brand value. I raised it. Technology, which accounts for 14% of total brand value in the 2021 ranking, is the most valuable sector of the Brand Finance Global 500, representing 47 brands with a total brand value of US $ 1 trillion, US $ 998.9 billion. I’m sorry.
Backed by growing demand for home delivery and secure transportation during a pandemic, Uber jumped 34% of its brand value to US $ 20.5 billion, making it into the top 100 in 82nd place. Similarly, China’s largest on-demand online service provider, Meituan, jumped 62% to US $ 7.2 billion, jumping from 216th to 265th, raising its ranking to the maximum.
Similarly, software providers such as Microsoft (up 20% to $ 140.4 billion), SAP (up 9% to $ 18 billion), Salesforce (up 29% to $ 13.2 billion), and Adobe (up 25% to $ 11.7 billion). Also, all new entrants to the ranking, Servicenow (up 39% to US $ 4.3 billion), have brand value as companies compete to move online and offices have replaced remote work for most of last year. Enjoyed the improvement of.
“With the outbreak of the pandemic, tech brands have experienced unprecedented demand for their products and services,” says Hague.
“At the same time, brands that push the boundaries of innovation across sectors remain more cut than other brands and can pivot their businesses to adapt to the changing needs of consumers. 2021 is the last call to join everyone The brand is still stuck in the 20th century. “
Tesla competes for ranking
The importance of technological innovation as the driving force behind brand value is best demonstrated by Tesla (up 158% to US $ 32 billion), the fastest growing brand in the Brand Finance Global 500 2021 ranking. Tesla’s market capitalization, which has emerged intact from the various controversies surrounding CEO Elon Musk, has grown tremendously US $ 500 billion last year and is worth the combination of nine of the world’s largest car makers.
The California-based car brand also achieved record sales this year, increased production of Model Y cars and expanded into new markets by opening a factory in Shanghai. Tesla is the world’s best-selling plug-in and battery-powered electric vehicle manufacturer and a pioneer in the use of artificial intelligence in the automotive industry, continuing to pursue innovation and sustainability for more efficient battery cells. Has been developed.
Tesla races in front of the crowd, but this year has been a difficult year for most traditional car brands in the Brand Finance Global 5002021 ranking, as four in five have fallen or stagnated. Last year, the industry’s most valuable brand, Mercedes-Benz (down 10% to US $ 58.2 billion), showed the biggest decline in brand value among all car makers in the ranking. The iconic German mark struggled to formulate a consistent electric vehicle strategy and convey a clear vision of its electric vehicle model. Further impact of the COVID-19 pandemic, Mercedes-Benz fell to the second-largest ranking after Toyota (up 2% to US $ 59.5 billion).
As another proof of technology’s role in driving brand value, Hague said e-commerce brands have been one of the most prosperous retailers of the past year, centered on Amazon’s remarkable performance. Stated.
China’s equivalent, Alibaba.com, has also benefited from an unprecedented surge in demand as consumers turned to online shopping during the pandemic. The brand value of the retail giant has been boosted to US $ 39.2 billion by a stunning 108%, making it the second fastest growing brand in the ranking after Tesla. Alibaba’s subsidiary Taobao is up 44% to US $ 53.3 billion and Tmall is up 60% to US $ 49.2 billion, with parallel success and an online business model of consumer accessibility and convenience. Is provided.
Digital media stream on
In addition, by demonstrating the importance of future-oriented brands through the use of digital, gaming and streaming services, the pandemic has prompted users to turn to online entertainment, significantly increasing brand value this year. did.
Netflix surged in usage, increasing brand value by 9% to US $ 24.9 billion. Netflix’s success with 37 million new users by the end of 2020 has improved revenue forecasts and brand equity scores. Nonetheless, streaming platform growth wasn’t as great as last year due to challenges raised by competitors such as Disney (down 9% to $ 51.2 billion) and new entrant HBO (down 3% to $ 4 billion). did.
In line with the positive trend of brand value in the new media sector, Spotify entered the rankings for the first time, increasing brand value by 39% to US $ 5.6 billion. Last year, the music streaming platform expanded into 13 new markets, resulting in a significant increase in new users.
Apple regains spot as the most valuable brand in the world
Source link Apple regains spot as the most valuable brand in the world