The tech downturn has slashed billions from the world’s most valuable brands and Apple no longer has the top ranking after losing US$57.6 billion, according to a new report from leading brand valuation consultancy, Brand Finance.
Tesla and BYD are amongst the world’s fastest-growing brands as demand for electric vehicles grows and Amazon has retaken the top spot as the world’s most valuable brand despite its brand value falling 15% this year from US$350.3 billion to US$299.3 billion, according to Brand Finance.
Amazon’s brand has fallen substantially in connection with its fall in brand strength, with its rating falling from AAA+ to AAA as consumers evaluate it more harshly in the post-pandemic world. Brand Finance’s research has found that customer perception of customer service at Amazon has fallen – at the same time as delivery times have lengthened – and consumers have become less likely to recommend Amazon to others. With pandemic restrictions lifting, people are returning to shopping in-person, slightly mitigating the need for online retail.
Apple (brand value down 16% to US$297.5 billion) has fallen to be the world’s second most valuable brand with its brand value falling from US$355.1 billion. This relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products.
There was a total of 48 tech brands that featured in the ranking, two down from the 50 in 2022, after Snapchat and Twitter dropped out. Other tech-focused brands to lose value include Samsung Group (brand value down 7% to US$99.7 billion), Alibaba.com (brand value down 56% to US$10.0 billion), Facebook (brand value down 42% to US$59.0 billion) and WeChat (brand value down 19% to US$50.2 billion).
On the positive side, Instagram (brand value up 42% to US$47.4 billion) and LinkedIn (brand value up 49% to US$15.5 billion) have grown in the tech sector, with the brand value of each growing due to well-executed strategies to commercialise their services.
Some of the other big winners in brand value include electric car manufacturers Tesla (brand value up 44% to US$66.2 billion) and BYD (brand value up 57% to US$10.1 billion) as demand for electric cars continues to grow.
Rankings for Walmart and Costco
Walmart maintained its position as the 5th most valuable brand in the global ranking, after continuing to increase its e-commerce capabilities, improving customer experience, as well as growing new revenue streams.
Costco’s brand value has now more than doubled since the beginning of the pandemic, receiving a significant boost during the pandemic as consumer spending increased on self-prepared food, and its offering to consumers has becoming particularly appealing in 2022 as consumers continue to seek out the lowest-price food due to widespread cost increases in other sectors of the economy – especially industries such as restaurants and hospitality, which are facing significant labour supply shortages.
In addition to the Global 500 2023 ranking of the world’s most valuable and strongest brands, Brand Finance is also launching the Brand Finance Sustainability Perceptions Index, in association with the International Advertising Association at the World Economic Forum in Davos. This report reveals that major global brands such as Amazon, Tesla, Apple and Google each have billions of dollars contingent on carefully managing a reputation for commitment to sustainability.
See the full report here: https://brandirectory.com/rankings/global/#msdynttrid=hgYg-oMqBkkZHRISoy5IAwQc7eIthRWcPxG-qhPFCJ8
Source: Brand Finance
