Despite the weakness of the stock market, in 2022, the overall value of the world‘s top 500 trademarks has decreased by just 1%a clearly lower reduction than that recorded by the main stock market indices worldwide.
This is what emerges from the report Brand Finance Global 500 2023which ranks the world‘s leading brands based on the value generated by image and reputation, according to which a strong brand remains a very resilient asset and less subject to the economic situation.
However, the study also shows that the financial values generated by image and reputation, especially of big tech americane and Chinese; declines which were partially offset by the growth of the brands of banks, construction companies, oil & gas, commercial services, clothing, food and restaurants.
Amazon best brand in the world
Although Amazon has lost beyond 50 billion dollars of value over the last year, has turned out to be the most valuable brand in the worldthus blowing the place from Apple which thus loses its first position in the standings after having lost more 57 billion dollars. Thus, despite Amazon’s 15% reduction in brand value ($299 billion), it is the world‘s most valuable brand this year, at the expense of Apple, whose brand value fell by 16%.
With reference to Amazon, Brand Finance’s research has shown that the customers’ perception of Amazon’s customer service has declinedwhile i delivery times have lengthened and as a result, consumers have become less likely to recommend Amazon to others.
All this in a context where the end of the restrictions due to the pandemic is approaching, one factor is stimulating people to return to shopping in person in physical stores, slightly mitigating the need for online retail. These elements would also be confirmed by Amazon’s rating which dropped from AAA+ to AAA in the last year and that’s why consumers rate it more harshly in the post-pandemic world.
“Tech brands around the world have lost significant value in response to changing demand patterns. Inflation has hit brands in many areasbut as consumer habits have partially returned to pre-pandemic patterns, the demand for services from tech brands has been hit particularly hard.
Additionally, disrupted supply chains, labor shortages and increased funding hurdles have left their mark.”he comments David Haigh, President and CEO of Brand Finance.
Apple drops to second place, penalized by the supply chain
Apple now sits in second place of the ranking of the most prestigious brands in the world with a brand value that has fallen from 355.1 billion dollars, to the current $297.5 billion. This year’s decline in Apple brand value is related to a decline in expected revenue since it is expected that a disrupted supply chain of goods and a limited job market, factors that will limit the supply of its hardware products.
In the latest survey there are a total of 48 technology brands present in the ranking drawn up by Brand Finance, two less than the 50 in 2022after the abandonment of Snapchat and Twitter.
Other technology brands that lose value I am:
- Samsung Group (brand value down 7% to $99.7 billion)
- Alibaba.com (brand value down 56% to $10.0 billion)
- Facebook (brand value down 42% to $59.0 billion)
- WeChat (brand value down 19% to $50.2 billion).
Leap forward for Instagram, LinkedIn and Tesla
Boom per Instagramwhose brand value it increased 42% to $47.4 billion e LinkedIn whose brand value increased by 49% to $15.5 billion. Both have grown thanks to a well-executed strategy in terms of marketing their services.
Some of the other big winners for brand value include major electric car manufacturers who have benefited from the rapid growth in demand for electric vehicles, as part of a wider transition to a low-carbon economy.
In this sense, Tesla now has $66.2 billion in brand value +44%. But not only that, it grows considerably too BYDthe Chinese electric car maker, whose brand value increased by 57% to $10.1 billion.
“ Il collapse of Big Tech is not only due to factors such as rising rates, inflation, war or energy: our analyzes show that there is a weakening of the image and reputation of many brands in the sector. As if after the pandemic the love and enthusiasm for technology has lost strength. For years we haven’t seen innovations able to seduce customers and the contents of the messages are basically always the same. Even technology, such as telecommunications, risks becoming a commodity. It seems clearly the time has also come for Big Techs to question their strategy in order not to further lose favor with consumers”, he comments Massimo Pizzo managing director Italy of Brand Finance.
And in Italy? Here are the best companies on the world market
This year there are 10 Italian brands present in the Brand Finance Global 500. In addition to the brands present last year, it was added Prada (490°), the only brand on the rise together with Conad (415th). Indeed, this year all non-American brands were penalized by the unfavorable change as the ranking is in US dollars.
Therefore, i best brands in Italy I am:
- Prada (490°)
- Conad (415°)
- Tim (367°)
- Ferrari (304°)
- Later (283°)
- generals (248°),
- Understanding (221°)
- ENI (206°)
- Enel (171°)
- Gucci (109°)
Tim and Enel are the only two Italian brands that have actually lost value year on year.