Luxury brands are becoming more relatable and responsible, says BrandZ Top 75 Most Valuable Global Retail Brands ranking and report.
Innovative use of technology such as artificial intelligence and data analytics has helped e-commerce deliver numerous human benefits, fuelling a 33% growth in brand value for the most powerful players in retail, WPP and Kantar unveiled in a new report.
The second annual BrandZ Top 75 Most Valuable Global Retail Brands ranking and report – looking at luxury, apparel, retail and fast-food outlets – revealed the world’s most valuable retail brands are worth $339 billion more this year than last, a total of US$1.4 trillion.
BrandZ is the only brand valuation ranking that combines analysis of retailers’ financial performance with the opinions of millions of consumers surveyed in more than 50 markets around the world.
“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,” commented David Roth, CEO of The Store WPP EMEA and Asia and Chairman of BrandZ.
“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.”
The democratization of luxury fashion results in the second fastest growth category
Luxury brands are becoming more relatable and responsible, says the report. Over the past five years, the 10 most valuable have improved their perceived social and environmental responsibility and idealism while strengthening their online experience. New business models for resale or rental of luxury items are adding an interesting touch of competition to the sector for the traditional heritage luxury brands. However, some of the main players have achieved substantial growth. Gucci (no. 11) for example has undergone a radical creative makeover, driven by a new Creative Director, boosting creativity and desire for the brand, particularly amongst Chinese millennials.
“In today’s era of high-velocity retail, shoppers don’t care about channels, they care about connections, choice, convenience and speed of delivery,” said Ian McGarrigle, Chairman of the World Retail Congress.
“In a world where ‘good’ is no longer enough and being ‘average’ is punished hard, retailers are recognising that change it needed. The shopping experience is a key differentiator for brands and retailers whether they have a premium or low price-based offer. The BrandZ Retail ranking and report shine a light on the retailers that are excelling, offering consumers products that truly matter, and those that are at risk.”
Brand equity is still important to retailers focusing on price
Amazon, IKEA (no.15) and ALDI (no.19) all continue to grow their brand values in 2019 with their low-price propositions through building a strong brand and offering a great experience. Other retail brands – such as Adidas, Hermès and Lowe’s justify their price premium with strong equity and continue to grow their brand value.
Athleisure trend gives Lululemon fastest riser boost while Nike retains top spot in Apparel
Innovative new fabrics and designs that double as sports and leisurewear has boosted Lululemon by +94%. It is now no.35 in the ranking with a brand value of $6.9 billion. Nike is the most valuable apparel brand (no.5 in the retail ranking) worth $47.4 billion while Adidas (no.20) also grew +13% to $13.4 billion.
Levi’s enters the ranking
The legendary denim brand enters the retail ranking ahead of its IPO this year. After years of women choosing yoga pants over denim, Levi’s refocused positioning with women in the last few years which has led to strong growth in new markets including Italy and China. Levi’s brand value is $2.4 billion and enters at no.74.
The BrandZ Top 10 Most Valuable Retail Brands 2019
2. Alibaba (Retail);
3. McDonald’s (Fast Food);
4. The Home Depot (Retail)
5. Nike (Apparel);
6. Louis Vuitton (Luxury);
7. Starbucks (Fast Food);
8. Chanel (Luxury);
9. Walmart (Retail);
10. Hermès (Luxury).