TikTok has entered the ranking of the 100 Most Valuable Global Brands for the first time, as people spend more time online during the pandemic browsing joyful and entertaining user-generated content, according to a new report.
Tech giants dominated the list once again, with Amazon AMZN,
maintaining first place as its brand value increased to $ 415 billion, a 32% jump from 2019, according to the ranking of the 100 most valuable global brands in BrandZ 2020 compiled by Kantar and WPP WPP,
Shares of the e-commerce giant have risen 45% this year as the COVID-19 crisis has accelerated consumer trends toward online shopping. Apple AAPL,
held second place after its brand value rose 14% to $ 352 billion, and Microsoft MSFT,
recovered the third, ahead of Google Goog,
and Visa VISA,
TikTok, the popular short video sharing social network owned by Chinese entertainment company ByteDance, was this year’s highest new entry, taking the no. 79 spot as it increased its brand value to $ 16.9 billion.
“TikTok’s achievement indicates the power of a brand that quickly grew in popularity in China to a global phenomenon, and reflects the growth of mobile entertainment,” said Doreen Wang, global head of BrandZ.
The app, which allows people to post 15-second videos, has more than tripled its American employees in the past 12 months, according to a recent Reuters report. However, Chinese ownership of TikTok has drawn scrutiny from US regulators and lawmakers, who have questioned the security of the personal data handled by the app, Reuters said.
On Monday, the Indian government banned dozens of Chinese mobile apps, including TikTok and Tencent-owned WeChat, citing cyber security concerns after a border clash between troops from the two countries left 20 Indian soldiers dead this month, according to The Wall. Street Journal.
Asian brands accounted for a quarter of the top 100 list, including 17 Chinese brands, such as tech giants Alibaba BABA,
and Tencent 700,
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TikTok joins UnitedHealthcare UNH,
(No. 86, $ 15.8 billion), Bank of China BACHY,
(No. 97, $ 13.7 billion), Lancôme, owned by L’Oréal LRLCY,
(n. 98, $$ 13,600 million) and Pepsi PEP,
(No. 99, $ 13.3 billion) as one of five new entrants to this year’s list.
Innovation and creativity have proven to be a key driver for growth in this year’s Top 100, and a way to prevent decline. “Companies like Amazon, Apple and Google, the technology giants that continue to innovate, successfully combine to remain relevant to consumers’ lives and make it easier for them to choose a brand,” said Wang.
The total brand value of the world’s top 100 brands reached $ 5 trillion, equivalent to Japan’s annual gross domestic product. It has increased 245% since 2006, when the full value of the brand first reached $ 1 trillion.
Before the pandemic, BrandZ had predicted that the total brand value of the top 100 brands would increase by 9%.
The ranking, now in its fifteenth year, combines analyzed Bloomberg market data with extensive consumer insights from more than 3.8 million consumers worldwide, covering more than 17,500+ different brands in 51 markets. This year, it used valuation data that incorporated the performance of the stock price since April 2020 to reflect the impact of COVID-19.
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Tech brands continued to dominate the top of the ranking, accounting for more than a third of the brand value in the top 100 and growing overall by 10%. Apple AAPL,
maintained its position as the second most valuable global brand (+ 14%, $ 352.2 billion) while Microsoft MSFT,
recovered the no. 3 positions (+ 30%, $ 326.5 billion) ahead of Google Goog,
(+ 5%, $ 323.6 billion) in no. 4, fueled by the growth of its cloud-enabled work ecosystem, allowing people to stay ‘business as usual’ during lockdown.
David Roth, President of BrandZ, said that strong brands are in a much better place than they were in the 2008-2009 global economic crisis and had shown that constant investment in marketing has helped them navigate the coronavirus crisis. “We see a significant improvement in brand value now compared to 10 years ago because companies understand the importance of investing in brand building and are stronger and more resilient as a result.”
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Brands have also found new and creative ways to interact with consumers, build trust, and create a level of intimacy, particularly in health and wellness.
Athleisure brand Lululemon LULU,
(+ 40%, $ 9.7 billion) was one of the most rising, having shifted its focus from yoga-inspired clothing to work-appropriate clothing, as well as offering online classes for people In the home.
.
