Amazon has become the first ever company to see its brand valuation top $200 billion, cementing its place as the world’s most valuable brand for the third year running.
The ecommerce giant’s brand valuation jumped 17.5 per cent to a record $220.8 billion (£168.09 billion) over the last year, becoming the first company in history to reach such a milestone according to the latest Brand Finance Global 500 report.
“The disrupter of the entire retail ecosystem, the brand that boasts the highest brand value ever, Amazon continues to impress across imperishable consumer truths: value, convenience, and choice,” Brand Finance’s chief executive David Haigh said.
The top five most valuable brands were made up entirely of tech-led companies with Google, Apple, Microsoft and Samsung coming behind Amazon respectively.
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Though Google overtook Apple to secure second place, Amazon was valued at $60 billion (£45.7billion) more than its nearest rival ($159.8 billion).
The report highlights Amazon’s investment into cloud computing, artificial intelligence, consumer electronics, digital streaming and logistics as a key driver of its success, diversifying its operations well outside of its core retail arm.
However, it also warns that the majority of Amazon’s revenue still comes from retail and the challenges facing the sector may results in brand value stagnation.
Fourty-four other retail brands were included in this year’s top 500 brand value index with a combined value of more than $800 billion (£609 billion).
Though Amazon’s digital foundations are core to its success, the report points out that many bricks-and-mortar retailers are making gains while digitally focused retailers are losing value.
Aldi and Lidl remain the fastest growing retailers on the list increasing 40 per cent and 37 per cent respectively, while online giant’s like Ebay saw its brand value fall nine per cent to $8.2 billion (£6.24 billion).
“Despite the unprecedented disruption caused by e-commerce, the popular assertion that entering digital operations brings instant success while bricks and mortar stores are doomed for extinction is being proved wrong,” Haigh added.
“As digital operators find they need to remain attentive to consumers and traditional retailers, such as Walmart, successfully adapt to change, we are back to normal as all brands realise that ultimately the customer is king.”