Amazon has once again been named the world’s most valuable retail brand, with a brand value of US$299.3 billion, according to leading brand valuation consultancy, Brand Finance. This is more than double the brand value of Walmart (brand value up 2% to US$113.8 billion). Amazon’s brand value has increased 36% since the beginning of the COVID-19 pandemic and is the world’s most valuable brand across all sectors, according to Brand Finance’s Global 500 2023 report.
Richard Haigh, Managing Director of Brand Finance commented:
“The sheer dominance of Amazon in the retail sector – and beyond – cannot be ignored. The brand’s relentless pursuit of customer-centric innovation has not only transformed the way we shop but has challenged and overhauled traditional business models. The retail giant must now look to maintain its competitive edge amid the rapidly evolving landscape, especially as eyes are on the brand now more than ever.”
Mexican retail brand OXXO (brand value up 56% to US$2.3 billion) enters the retail 100 ranking as the fastest-growing brand this year. Its parent-brand Femsa launched an enormous expansion plan for OXXO last year, aiming to increase the number of stores across Latin America by as much as half over the next decade.
ASOS (brand value down 41% to US$1.2 billion) has reported a significant loss as its customers are spending less on fashion due to rising living costs. In general, investor sentiment towards fast fashion firms like ASOS and Boohoo has declined as their growth during the lockdown era fails to translate into post-pandemic profitability. As the fashion giant struggles, ASOS had to write off over £100 million worth of stock after experiencing a slowdown in sales growth.
America’s largest retailer, Walmart (brand value up 2% to US$113.8 billion) holds onto its 2022 rank in second place, while Home Depot (brand value up 8% to US$61.1 billion) maintains third rank. Walmart has benefited from changing consumer spending habits in the post-pandemic world, while the giant has also expanded its advertising initiatives through Walmart Connect, aiming to strengthen the relationships between brands and customers across multiple channels. American home improvement firm Home Depot has also been enhancing its strong reputation for quality and customer satisfaction, in addition to bolstering its sustainability initiatives.
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors.
MercadoLibre (brand value down 1% to US$3.7 billion) is the largest e-commerce company in Latin America. The brand has gained consumer trust through its secure transaction platform, MercadoPago, which processed over $100 billion in transactions in 2022. The brand has also expanded its efforts in advertising, further enhancing its brand recognition and familiarity among consumers.
El Corte Inglés (brand value down 39% to US$4.3 billion) has shot up from 53rd place to an impressive 6th for brand strength this year. Following the pandemic, the Spanish retailer launched an initiative to build its strategic alliances. The company secured a strategic deal with Mutua Madrileña Group, while the merger between Viajes El Corte Inglés and Logitravel has solidified the brand’s leadership and enhanced its strong brand recognition in the tourism sector. El Corte Inglés’ acquisition of the Sánchez Romero supermarket chain has also bolstered the brand’s presence in the high-end supermarket segment.
As part of its analysis, Brand Finance assesses the role that specific brand attributes play in driving overall brand value. One such attribute is sustainability. Brand Finance assesses how sustainable specific brands are perceived to be through its annual survey of over 150,000 consumers across 36 countries, represented by a ‘Sustainability Perceptions Score’. The value linked to sustainability perceptions, the ‘Sustainability Perceptions Value’, is then calculated for each brand.
Amazon has the highest sustainability perceptions value of any brand, US$19.9 billion. Amazon has been making strides is in its renewable energy initiatives. As the largest corporate buyer of renewable energy globally, Amazon is committed to powering all its operations with 100% renewable energy by 2025. To achieve this goal, the brand has already announced more than 400 projects as of January 2023, highlighting its notable progress in this endeavour.