Amazon has topped the list of the world’s most valuable retail brands thanks to its “access to unprecedented computing power and near limitless data”.
The second annual BrandZ Top 75 Most Valuable Global Retail Brands ranking report, collated by WPP and Kantar, revealed that the world’s most valuable retail brands are worth a collective $1.4 trillion (£1.08 trillion), $339 billion (£261.9 billion) more than last year.
According to the report, ecommerce giants like Amazon and Alibaba have utilised innovation and technologies such as artificial intelligence and data analytics to push ahead of their rivals.
These innovations have elevated Amazon to the top spot, reportedly accounting for nearly a quarter (23 per cent) of the entire total brand value of the top 75 companies at $315.5 billion (£243.7 billion).
However, its Chinese counterpart Alibaba overtook McDonald’s this year thanks to its stellar 48 per cent growth, bringing its total brand value to $131.2 billion (£101.4 billion).
|Rank 2019||Brand||Brand value 2019 ($bn)||Category||Rank 2018|
|4||The Home Depot||53.5||Retail||5|
“We are entering the third era of digital retail as human rhythms meet algorithms enabling retailing to be much more digital but appear more human,” BrandZ chairman David Roth said.
“This year’s rankings also signal the increasing importance of Chinese retailers in online and mobile commerce indicated by Alibaba’s rise to the number two position. It is at the cutting edge of where ecommerce, mobile and physical retail intersect with the consumer.”
Notable companies outside of the top 10 include athleisure brand Lululemon, which saw its brand value grow 94 per cent over the last year, making it the fastest rise at number 35.
The luxury sector was also the second fastest growing sector, thanks to its recent focus on social and environmental issues, alongside the integration of new innovative business models such as rental items.