Apple overtakes Amazon to become world’s most valuable brand, while Tesla grows fastest



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Apple overtook Amazon to become the world’s most valuable brand for the first time in five years, according to a global report.

The tech giant’s brand value soared 87% in the past year to $ 263.4 billion, according to the 2021 Brand Finance Global 500 Index. The rise is due to the company’s diversification strategy. Apple, which has enabled the company to expand into digital and subscription services and potentially into electric cars in the future, said London-based brand valuation consultancy Brand Finance.

Apple AAPL,
+ 0.17%
became the first US company to achieve a market capitalization of $ 2 trillion in August of last year. It is also expected to post its highest quarterly revenue on record and its first-ever total above $ 100 billion when it releases its results on Wednesday.

“As Apple reclaims the title of the world’s most valuable brand on Amazon five years since it last held # 1, we are witnessing Think Different again. From Mac to iPod, iPhone, iPad, Apple Watch, subscription services, endlessly and beyond, ”said David Haigh, Managing Director of Brand Finance.

AMZN from Amazon,
+ 0.98%
The brand value increased 15% to $ 254.2 billion, in a year in which the e-commerce giant benefited from worldwide door-to-door orders and growing demand. The company has also innovated and developed in recent months, launching an online pharmacy as well as the Halo fitness tracker. Earlier this month, Amazon bought its first fleet of planes, from airlines Delta and WestJet, to expand its air cargo network. However, the company lost its top spot to Apple.

Google GOOG technology giant,
+ 0.94%
has the third-highest brand value, rising 1.4% to $ 191.2 billion, while rival Microsoft MSFT,
+ 1.22%
remained fourth with a brand value of $ 140.4 billion, a 20% increase, and Samsung conglomerate 005930,
-1.27%
kept fifth place. Walmart WMT Retailer,
+ 0.90%
jumped two places to sixth, while social media company Facebook FB,
+ 1.45%
remained seventh.

In a year dominated by COVID-19, technology and innovation have helped increase the value of the world’s biggest brands, with the Uber UBER app,
-4.37%
and the Chinese e-commerce platform Meituan 3690,
-3.86%
enjoying strong growth.

But Tesla TSLA,
+ 0.26%
was the fastest growing global brand in terms of value last year, jumping 158% to $ 32 billion. Brand Finance said record sales figures, ramping up production and expansion into new markets have helped strengthen the electric car maker’s brand.

While some sectors behaved well, others have had a difficult year. Airlines and aerospace brands accounted for six of the 10 fastest brands: Boeing BA,
-0.64%,
American Airlines AAL,
+ 0.65%,
United Airlines UAL,
+ 2.15%,
Delta DAL,
+ 1.08%,
Airbus AIR,
-0.79%
and Safran SAF,
+ 0.79%.
Hotels also had a difficult 2020 due to travel restrictions and lockdowns, with Hilton’s HLT,
-0.43%
brand value drops 30% to $ 7.6 billion, while Marriott MAR,
+ 0.69%
dropped out of the top 500 completely, with Airbnb ABNB,
+ 8.57%.

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The value of a brand is the economic benefit it would gain if it were allowed in the open market, according to the consulting firm.

The combined value of the 21 UK brands in the top 500 in the world fell 11% year over year, making it the worst performing country, as Brexit uncertainty and the COVID-19 pandemic have hit the economy. Major oil tanker Royal Dutch Shell RDSA,
-0.30%
retained its place as the UK’s most valuable brand, but fell 11% to $ 42.2 billion, while rival BP BP, second,
-0.43%
fell 8% to $ 21.4 billion.

“As the vaccine rollout progresses, it will be interesting to see which UK brands thrive and which flounder while sailing in the future outside the European Union,” Haigh said.

The index also includes brand strength, which is calculated as the efficiency of a brand’s performance relative to its peers.

Chinese mobile app WeChat replaced car maker Ferrari RACE,
-0.79%
as the strongest brand in the world. WeChat has managed several government-mandated health apps to track people traveling and in quarantine, providing access to real-time data on COVID-19 and online consultations and self-diagnosis services, the said. index, thus strengthening its brand.

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