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Top brands boost value in spite of pandemic

By CHEN YINGQUN | China Daily | Updated: 2020-07-01 10:08
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The logo of Amazon is seen at the company logistics center in Lauwin-Planque, northern France, on April 22, 2020. [Photo/Agencies]

The world's most valuable brands have seen their total brand value increase by 5.9 percent despite the economic, social, and personal impacts of the COVID-19 pandemic, a report released on Tuesday has found.

The total brand value of the top 100 brands has reached $5 trillion, equivalent to the annual GDP of Japan, according to the "2020 BrandZ Top 100 Most Valuable Global Brands" report, which was released by global communication services provider WPP and Kantar.

These brands have been more resilient and less volatile during the pandemic than they were in the global economic crisis of 2008-09, adding $277 billion of brand value growth over the past year, the report said.

The rankings use valuation data incorporating stock price performances from April 2020 to reflect the impact of COVID-19. Against a backdrop of uncertainty, those companies that have consistently invested in longer-term marketing and in building strong brands have managed to stave off the worst of the crisis.

Before the global pandemic, the total brand value of the top 100 brands was set to increase by 9 percent, the report said.

US brands represented more than half of the top 100, with Amazon maintaining its position as the world's most valuable, followed by fellow technology giants Apple and Microsoft.

Asian brands represented a quarter of the top 100, with 17 from China, including Alibaba and Tencent in the top 10. Short video-sharing social network TikTok entered the rankings for the first time at No 79.

Significant improvement

"We see a significant improvement in brand equity now compared to 10 years ago because businesses understand the importance of investing in brand-building and are stronger and more resilient as a result," said David Roth, chief executive officer of The Store WPP in EMEA (Europe, Middle East and Africa) and Asia.

"While COVID-19 has impacted every business regardless of size or geography, consistent investment in marketing can and will help carry you through a crisis."

Doreen Wang, global head of BrandZ at Kantar, said that innovation has proved to be a key driver for growth in this year's top 100, and a way to prevent decline.

"Creativity is also an important trait for the world's most valuable brands," Wang said.

She added that, though business brands around the world have been hit by the coronavirus, those that can innovate to pass the stress-testing of the pandemic will have a better outlook.

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