INTERNATIONAL. Interbrand has released its Best Global Brands 2020 report, which ranks brands by perceived monetary value (see methodology at the foot of this story).
With the list once again headed by technology giant Apple (brand value: US$322.99 billion), a notable riser in brand capital across the 12 months was its closest rival Amazon (+60% to US$200.67 billion), bringing into sharp focus the increasing ecommerce challenge to (and opportunity for) travel retail.
With the COVID-19 pandemic having a significant impact on business through the course of this year, social media and communication brands have risen rapidly, with Instagram (#19), YouTube (#30) and online meeting platform Zoom (propelled to #100 due to COVID-19) entering the rankings for the first time.
The ‘COVID effect’ – causing global shop closures – saw the brand values of retailers Zara (#35) and H&M (#37) fall -13% and -14% respectively in value, with both dropping at least six places in this year’s ranking.
After two years as the top growing sector, luxury brands took a hit in 2020, with all but one brand value (Hermès #28, flat at US$17.96 billion) falling between -1% and -9%.
The other luxury brands – all prominent in travel retail – to retain their top 100 rankings were Louis Vuitton (#17, US$32.7 billion), Chanel (#21, US$21.2 billion), Gucci (#32, US$15.68 billion), Cartier (#73, US$7.49 billion), Dior (#83, US$5.98 billion), Tiffany & Co. (#94, US$4.97 billion), Burberry (#97, US$4.81 billion) and Prada (#99, US$4.49 billion).
Buoyed by gains partly due to the pandemic and the rise of touchless payment methods are PayPal (#60), Visa (#45) and Mastercard (#57), which have risen in the rankings 12, ten and five places respectively.
The top alcohol brands this year were Budweiser (#33), Corona (despite or more likely because of its name, #78), Jack Daniel’s (#82), Heineken (#88), Hennessy (#91) and Johnnie Walker (#98), which entered the top 100 for the first time.
The overall value of the top 100 table has increased to US$2,336.49 billion (up +9% from 2019). Technology and tech platform brands now represent 48% of total table value versus only 17% in 2010.
The top three brands in the table (all tech) represent 30% of the value of the entire table versus only 16% in 2010.
You can access the full Interbrand Best Global Brands 2020 report and analysis here.
NOTE: Methodology
There are three key pieces of analysis that form the basis of Interbrand’s valuation methodology:
- The financial performance of the branded products or services
- The role the brand plays in purchase decisions
- The brand’s competitive strength and its ability to create loyalty and, therefore, sustainable demand and profit into the future
Interbrand was the first company to have its brand valuation methodology certified as compliant with the requirements of ISO 10668 (requirements for monetary brand valuation) and played a key role in the development of the standard itself.
