Most valuable retail brands
Amazon has successfully embedded into all facets of consumers’ daily routine, increasing sales in 2013 by 22 per cent. The brand value grew by 41 per cent to $64 billion.
The only Australian retailer to make the top 10 is Woolworths, which came in at number seven, one place ahead of 2013.
Walmart, ranked at number two, saw its brand value declined by two per cent, at $35 billion. Trading space for speed, Walmart has appealed to the overwhelming need for convenience demanded by shoppers and partitioned some of its 3300 US superstores into smaller stores with adjacent distribution centres to help deliver higher margin non-food items with grocery deliveries.
Ikea is the top riser in the retail ranking. The Swedish home retailer grew its brand value by 61% to $19.4 billion on the back of strong sales in China, Russia and the US, where it continues to expand. It also gained 24 places in the Global Top 100, moving to No 50.
Peter Walshe, global Brandz director at Millward Brown, said tomorrow’s retailers have grasped the change in consumer attitudes, and are thinking about the overall value they provide to “cash crunched and time poor shoppers”.
“Many retailers are hampered by their large format stores designed for weekly grocery stock-ups rather than the ‘when I need it’ attitude of millennials. Focus on seamless customer experiences and share of life rather than share of wallet is more important than ever to retailers,” said Walshe.
Nike leads the apparel rankings, rising 55 per cent in brand value to $24.6 billions, overtaking Zara, which grew by just 15 per cent to $23.1 billion.
Other apparel brands to make the cut include H&M, Uniqlo, Lululemon.
Apparel is the fastest growing sector, having grown 29 per cent year on year, with the top 10 brands now worth just shy of $100 billion in cumulative value.
Louis Vuitton, Hermes, and Gucci topped the list of global luxury brands.
Despite changes in shopper behaviour, leading brands remain constant with seven of the top 10 brands staying in the luxury ranking since 2006. Louis Vuitton reigns supreme for the ninth year in succession. The number one luxury brand grew by 14 per cent in the last year and is now worth more than $25 billion.
Anastasia Kourovskaia, VP of Millward Brown Optimor, said during the recession luxury became a stealth indulgence after years of conspicuous consumption.
“Marked by that experience, today’s shoppers continue to adopt a more considered approach to their luxury lifestyle choices favouring design and craftsmanship over ostentatious displays of status,” she said.