The COVID-19 pandemic has had a significant impact on business, as well as the value of brands, with some companies coming out of the year looking better than others.
Communication brands have weathered the coronavirus storm better than other sectors, according to Interbrand’s Best Global Brands report. Instagram (#19), YouTube (#30) and Zoom (#100) all entered its rankings for the first time.
Spotify (SPOT) (#70), saw brand value increase by 52% to $8.4bn (£6.5bn) – jumping 22 places in the ranking, while Netflix (NFLX) rose to #41 with a 41% increase to $12.7bn, according to the report.
Business models have played a role in this success, with 62% of double-digit risers relying on significant subscription model businesses.
Tesla (TSLA) has re-entered the rankings at #40 having last appeared in the Best Global Brands table in 2017. Johnny Walker, also re-entered the ranking, placing 98 out of 100.
Tech dominated the top ten in this year’s report, with Apple (APPL), Amazon (AMZN) and Microsoft (MSFT) clinching the top three spots respectively.
Amazon saw the largest increased value, while Spotify and Netflix saw largest growth. Instagram was a new joiner, but leapt up the table.
Google (GOOG) has moved out of the top three for the first time since 2012. Meanwhile Samsung #5 ($62.3bn) has broken into the top five for the first time ever.
Unsurprisingly in the age of Zoom calls and online shopping, technology was the largest growing sector, while retail struggled.
Mastercard chief marketing and communications officer Raja Rajamannar said: “Reports like Interbrand’s Best Global Brands are important for companies to better understand how we’re being perceived in consumers’ hearts and minds.
“Especially during these unprecedented times, when consumer behaviours have shifted and trust is more important than ever, these rankings are a way for us to better understand how we can best serve our communities.”
The 2020 Best Global Brands ranking also saw the “coronavirus effect,” with global shop closures causing the brand values of Zara (#35) and H&M (#37) to fall 13% and 14% respectively, with both dropping at least six places in this years’ ranking.
After two years as the top growing sector, luxury brands took a hit in 2020, with all but one brand value (Hermes #28) falling between 1% and 9%.
Other brands and industries have benefitted from the “coronavirus effect,” notably logistics which saw an average of 5% growth – UPS (UPS) (#24), FedEx (FDX) (#75) and DHL (#81) all saw positive brand valuation growth, as the logistics sector became more central to our lives in lockdown.
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World news – THAT – Zoom and Instagram enter ranks of ‘best’ global brands