The most successful retail brands in the 2014 BrandZ Top 100 Most Valuable Global Brands ranking compiled by Millward Brown Optimor focused on being present everywhere that consumers are.
Amazon, the No 1 retail brand, increased sales in 2013 by 22% and grew its brand value by 41% to $64bn. The e-tailer come retailer’s brand is successfully embedded into all aspects of consumers’ daily routine and now provides apparel, health and beauty, movies and grocery lines and competes with other established industries such as online food providers and media companies.
Wal-Mart’s brand value declined by -2% but it remains No 2 in the retail ranking with a brand value of $35bn. Trading space for speed, Wal-Mart has appealed to the overwhelming need for convenience demanded by shoppers and partitioned some of its 3,300 US superstores into smaller stores with adjacent distribution centres to help them deliver higher margin non-food items with grocery deliveries.
Wal-Mart’s UK brand Asda (No 20 in the global retail ranking with brand value of $4.6bn), tested same-day collection at several underground stops. Commuters placing orders in the morning can pick up their packages on the way home.
Tesco, which declined by -9% in the ranking and is now in sixth place with a brand value of $14.8bn, also introduced click and collect locations near libraries and other public facilities.
“Tomorrow’s retailers have grasped the change in consumer attitudes to when and how they shop and are thinking about the overall value, whatever the channel, they provide to cash-crunched and time-poor shoppers,” said Alison Casey, senior client director at Millward Brown. “Many retailers are hampered by their large format stores designed for weekly grocery stock-ups rather than the ‘when I need it’ attitude of millennials. Focus on seamless customer experiences and share of life rather than share of wallet is more important than ever to retailers.”
IKEA is the top riser in the retail ranking. The Swedish home retailer grew its brand value by 61% to $19.4bn on the back of strong sales in China, Russia and the US, where it continues to expand. It also gained 24 places in the Global Top 100, moving to No 50.
The BrandZ Top 10 Most Valuable Retail Brands 2014
|Rank 2014||Brand||Brand Value 2014 ($M)||Brand Value Change||Rank 2013|
|3||The Home Depot||22,165||+20%||3|
In the global ranking Google overtook Apple to become the world’s most valuable global brand in the 2014 BrandZ Top 100 Most Valuable Global Brand ranking, worth $159bn, an increase of 40% year on year. After three years at the top, Apple slipped to No 2 on the back of a 20% decline in brand value, to $148bn. Whilst Apple remains a top performing brand, there is a growing perception that it is no longer redefining technology for consumers, reflected by a lack of dramatic new product launches.
The BrandZ Top 100 Most Valuable Global Brands study, commissioned by WPP and conducted by Millward Brown Optimor, is now in its ninth year. It is the only ranking that uses the views of potential and current buyers of a brand, alongside financial data, to calculate its value.