Amazon has retaken top spot as the world’s most valuable brand despite its brand value falling 15% this year from US$350.3 billion to US$299.3 billion, according to a new report from leading brand valuation consultancy, Brand Finance.
Amazon’s brand has fallen by over US$50 billion this year, substantially in connection with its fall in brand strength, with its rating falling from AAA+ to AAA as consumers evaluate it more harshly in the post-pandemic world. Brand Finance’s research has found that customer perception of customer service at Amazon has fallen – at the same time as delivery times have lengthened – and in concert with this, consumers have become less likely to recommend Amazon to others. Concurrent with the conclusion of pandemic restrictions, people are returning to shopping in-person, slightly mitigating the need for online retail.
David Haigh, Chairman and CEO of Brand Finance, commented:
“Technology brands across the world have lost significant value in response to shifting demand patterns. Inflation has affected brands across many sectors, but as consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard. Additionally, disrupted supply chains, labour shortages, and greater obstacles to financing have left their mark.”
Apple (brand value down 16% to US$297.5 billion) has fallen to be the world’s second most valuable brand with its brand value falling from US$355.1 billion. This year’s fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products.
There was a total of 48 tech brands that featured in the ranking, two down from the 50 in 2022, after Snapchat and Twitter dropped out. Other tech-focused brands to lose value include Samsung Group (brand value down 7% to US$99.7 billion), Alibaba.com (brand value down 56% to US$10.0 billion), Facebook (brand value down 42% to US$59.0 billion) and WeChat (brand value down 19% to US$50.2 billion).
On the positive side, Instagram (brand value up 42% to US$47.4 billion) and LinkedIn (brand value up 49% to US$15.5 billion) have grown in the tech sector, with the brand value of each growing due to well-executed strategy to commercialise their services.
Some of the other big winners in brand value include electric car manufacturers Tesla (brand value up 44% to US$66.2 billion) and BYD (brand value up 57% to US$10.1 billion) as demand grows for electric cars as part of a broader transition to a low carbon economy.
In addition to the Global 500 2023 ranking of the world’s most valuable and strongest brands, Brand Finance is also launching the Brand Finance Sustainability Perceptions Index, in association with the International Advertising Association at the World Economic Forum in Davos. This report reveals that major global brands such as Amazon, Tesla, Apple and Google each have billions of dollars contingent on carefully managing a reputation for commitment to sustainability.
View the full Brand Finance Global 500 2023 report here
ENDS
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts thousands of the world’s biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The top 500 most valuable and strongest brands in the world are included in the annual Brand Finance Global 500 2023 ranking.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. The full ranking, additional insights, charts, more information about the methodology, and definitions of key terms are available in the Brand Finance Global 500 2023 report.
About Brand Finance
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance, Brand Finance evaluates the strength of brands and quantifies their financial value to help organisations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance is a regulated accountancy firm, leading the standardisation of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671, and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.
Disclaimer
Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.
The data presented in this study form part of Brand Finance's proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.
