Apple overtook Amazon to become the most valuable brand in the world for the first time in five years, according to a global report.
The tech giant’s brand value rose 87% last year, to $ 263.4 billion, the Brand Finance Global 500 2021 Index found. The increase was due to Apple’s diversification strategy, which saw the company expand into digital and subscription services and potentially into electric cars in the future, said London-based brand assessment consultancy Brand Finance.
Apple AAPL,
became the first US company to reach a market value of $ 2 trillion in August last year. It is also expected to post its highest total quarterly revenue and its first total above $ 100 billion when it reports earnings on Wednesday.
“While Apple regains the title of the most valuable brand in the world from Amazon, five years since it took first place, we are witnessing Think Different once again. From the Mac to the iPod, to the iPhone, to the iPad, to the Apple Watch, to subscription services, to infinity and beyond, ”said Brand Finance CEO David Haigh.
Amazon AMZN,
the brand’s value grew 15%, to $ 254.2 billion, in a year in which the e-commerce giant benefited from orders that stay at home around the world and increased demand. The company has also innovated and expanded in recent months, launching an online pharmacy store and also the Halo fitness tracker. Earlier this month, Amazon bought its first fleet of planes, from Delta and WestJet airlines, to expand its airfreight network. However, the company lost its leading position to Apple.
GOOG, the technology giant,
has the third highest brand value, exceeding 1.4%, to $ 191.2 billion, while rival Microsoft MSFT,
came in fourth with a brand value of $ 140.4 billion, an increase of 20%, and the conglomerate Samsung 005930,
kept fifth place. Walmart WMT retailer,
jumped two positions to sixth, while social media company Facebook FB,
came in seventh.
In a year dominated by COVID-19, technology and innovation helped boost the value of the world’s biggest brands, with the Uber UBER app,
and Chinese eitu commerce platform Meituan 3690,
enjoying strong growth.
But Tesla TSLA,
was the fastest growing global brand in terms of value last year, jumping 158% to $ 32 billion. Brand Finance said record sales figures, increased production and expansion into new markets helped boost the electric car maker’s brand.
While some sectors performed well, others faced a difficult year. Airline and aerospace brands accounted for six of the 10 fastest-drop brands: Boeing BA,
American Airlines AAL,
United Airlines UAL,
Delta DAL,
Airbus AIR,
and Safran SAF,
Hotels also had a difficult year of 2020 due to travel restrictions and blocking measures, with Hilton’s HLT,
brand value falling 30% to $ 7.6 billion, while Marriott MAR,
out of the top 500, along with Airbnb ABNB,
Read: What will happen to airline tickets in 2021?
The value of a brand is the economic benefit it would achieve if it were licensed on the open market, according to the consultancy.
The combined value of the UK’s 21 brands among the top 500 in the world fell 11% year-over-year, making it the worst performing country, with Brexit uncertainty and the COVID-19 pandemic hitting the economy. Royal Dutch Shell RDSA,
maintained its position as the UK’s most valuable brand, but fell 11% to $ 42.2 billion, while rival BP BP, in second place
fell 8% to $ 21.4 billion.
“As the vaccine launches, it will be interesting to see which British brands thrive and which will fail while sailing in the future outside the European Union,” said Haigh.
The index also includes the strength of the brand, which is calculated as the effectiveness of a brand’s performance in relation to its peers.
The Chinese mobile app WeChat replaced car maker Ferrari RACE,
as the strongest brand in the world. WeChat ran several government-mandated health apps to track people traveling and quarantined, providing access to real-time data on COVID-19 and online consultations and self-diagnosis services, the index said, boosting its brand.