The most valuable retail brands in the world are growing their brand value at a pace that outstrips brands in other business sectors – despite seismic shifts in consumers’ habits, priorities, and expectations of the shopping experience. This is according to the inaugural BrandZ™ Top 75 Most Valuable Global Retail Brands ranking announced recently by WPP with data prepared by Kantar.
The ranking shows that while store closures often grab headlines, those retailers rising to the challenges of the current climate are innovating their way out of trouble, and winning consumers’ hearts in the process.
Together, the BrandZ Top 75 Retail Brands – from markets as diverse as the US and Spain, China and Chile – are worth over US$1 trillion in brand value. The ranking was launched in conjunction with the World Retail Congress, on the first day of the 2018 Congress in Madrid in April.
Chinese e-retailer JD.com ranked No.15 with a brand value of US$14.58 billion, while Suning made the cut at No.54 with an evaluation of US$3.39 billion.
For the first time in a BrandZ retail ranking, the Top 75 brings together brands in four categories, of which Pure Retail (supermarkets, e-commerce platforms, department stores, convenience stores and DIY chains) is just one. The ranking includes brands of Luxury brands, Apparel, and Fast Food retailers.
“Shopping is no just longer just about buying things,” said David Roth, CEO of WPP The Store, EMEA, and Asia. “Often, a decision to shop is a search for entertainment – whether in a physical space or the virtual world. It can be a way of spending time with like-minded people or being in an environment that reflects an individual’s values.
“Shopping is also a way of simply feeling good – what we used to call ‘retail therapy’. This explains why the BrandZ Top 75 Most Valuable Global Retail Brands includes brands specializing in everything from business suits and bras to bath oil and burritos. Today everyone is a retailer.” Roth said.
The BrandZ Top 75 Retail Brands report shows how retail brands are seeking new ways to connect with consumers, through unique experiences and products customized for groups of shoppers and individuals.
Leading brands are identifying new shopping missions and fresh ways to build loyalty. And while competitive pressures for many years led inevitably to price wars, now there are innovation wars.
Ian McGarrigle, Chairman of the World Retail Congress, said: “A global brand today can no longer just be about longevity, because a new concept, platform or product can gain an almost immediate global following.
“Retail brands are being forced to adapt and innovate at incredible speeds. What this report shows is that they are doing exactly that,” he added.
Highlights from the BrandZ Top 75 report:
- Retail brands have been growing value 35% faster over 10 years than non-retailers
- Innovation in services, linking online and offline, is helping brands stand out
- A good deal has overtaken “low prices” as shoppers’ biggest priority
- Having a stress-free experience is almost as important as price
- Personalization is helping brands justify a premium and avoid price wars
- Voice-controlled devices promise to transform consumer loyalty
- China is showing what’s possible in speed, online with offline and seamless shopping
The unique BrandZ calculation of brand value links financial performance with the opinions of millions of consumers surveyed in more than 50 markets around the world.
This post was originally published on Kantar.com.