Ranked: The Most Valuable Brands in the World in 2020
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Ranked: The Most Valuable Brands in the World

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Most Valuable Brands 2020

Ranking The World’s Most Valuable Brands

Due to its intangible nature, the power of a brand can be difficult to translate to a balance sheet. That said, a brand that truly connects with consumers and stands the test of time can deliver immense financial value.

Today’s graphic pulls data from the 2020 edition of Brand Finance’s annual Global 500 report, which ranks the world’s top brands by value using a multi-dimensional formula.

By quantifying the true value of a brand, investors and key decision makers can identify value that extends beyond quarterly earnings reports.

How much are brands really worth?

A Closer Look at the Leaderboard

With 18% growth in the last year resulting in an eye-watering brand value of $220 billion, Amazon is a clear winner as the world’s most valuable brand—towering over Google and Apple’s brand valuations. As the largest online marketplace on the planet, Amazon relies on innovative technologies and investments in fast-growing sectors, such as healthcare, to create a diverse retail ecosystem.

Although tech companies command five of the top 10 spots in the ranking, brands from more traditional industries are hot on their tails.

Here are the top 100 most valuable brands according to the report:

RankingBrand2020 Brand ValueYoY % ChangeCountrySector
#1Amazon$220B17.5%United StatesRetail
#2Google$160B11.9%United StatesTech
#3Apple$140B-8.5%United StatesTech
#4Microsoft$117B-2.1%United StatesTech
#5Samsung$94B3.5%South KoreaTech
#6ICBC$80B1.2%ChinaBanking
#7Facebook$79B-4.1%United StatesMedia
#8Walmart$77B14.2%United StatesRetail
#9Ping An$69B19.8%ChinaInsurance
#10Huawei$65B4.5%ChinaTech
#11Mercedes-Benz$65B7.8%GermanyAutomobiles
#12Verizon$63B-10.5%United StatesTelecoms
#13China Construction Bank$62B-10.2%ChinaBanking
#14AT&T$59B-32%United StatesTelecoms
#15Toyota$58B11.1%JapanAutomobiles
#16State Grid$57B11.1%ChinaUtilities
#17Disney$56B22.7%United StatesMedia
#18Agricultural Bank of China$55B-0.7%ChinaBanking
#19WeChat$54B6.8%ChinaMedia
#20Bank of China$51B-0.7%ChinaBanking
#21The Home Depot$50B7.3%United StatesRetail
#22China Mobile$49B-11.9%ChinaTelecoms
#23Shell$47B12.4%NetherlandsOil & Gas
#24Saudi Aramco$47BN/ASaudi ArabiaOil & Gas
#25Volkswagen$45B7.6%GermanyAutomobiles
#26YouTube$44B17.5%United StatesMedia
#27Tencent QQ$44B-11.3%ChinaMedia
#28Starbucks$41B4.5%United StatesRestaurants
#29Wells Fargo$41B2.3%United StatesBanking
#30BMW$40B0.0%GermanyAutomobiles
#31Deutsche Telekom$40B-13.6%GermanyTelecoms
#32Moutai$39B29.1%GermanySpirits
#33PetroChina$38B3.3%ChinaOil & Gas
#34Coca-Cola$38B4.8%United StatesSoft Drinks
#35Mitsubishi Group$38B42.8%JapanAutomobiles
#36McDonald’s$37B18.9%United StatesRestaurants
#37Taobao$37B-20.7ChinaRetail
#38NTT Group$36B-12.8%JapanTelecoms
#39Bank of America$35B-3.6%United StatesBanking
#40Nike$35B7.3%United StatesApparel
#41Porsche$33B15.6%GermanyAutomobiles
#42Sinopec$33B14.7%ChinaOil & Gas
#43IBM$33B1.5%United StatesTech
#44CITI$33B-9%United StatesBanking
#45Honda$33B28.6%JapanAutomobiles
#46Marlboro$33B-2.7%United StatesTobacco
#47Deloitte$32B9.6%United StatesCommercial Services
#48Chase$31B-13.8%United StatesBanking
#49Tmall$31B-15.9%ChinaRetail
#50UPS$29B0.6%United StatesLogistics
#51American Express$29B6.2%United StatesCommercial Services
#52Xfinity$29B6.4%United StatesTelecoms
#53United Healthcare$28B-7.4%United StatesHealthcare
#54Sumitomo Group$28B4.5%JapanMining, Iron & Steel
#55Intel$27B-5.5%United StatesTech
#56VISA$27B-3%United StatesCommercial Services
#57Instagram$27B58%United StatesMedia
#58China Life$25B-4.4%ChinaInsurance
#59Accenture$25B-3.8%United StatesIT Services
#60Allianz$25B7.5%GermanyInsurance
#61CSCEC$25B-3.3%ChinaEngineering & Construction
#62PWC$25B-0.3%United StatesCommercial Services
#63Lowe’s$25B3.4%United StatesRetail
#64Mitsui$24B15.8%JapanMining, Iron & Steel
#65General Electric$24B-14.4%United StatesEngineering & Construction
#66EY$24B2.1%United KingdomCommercial Services
#67Oracle$24B-6.7%United StatesTech
#68Cisco$24B7.1%United StatesTech
#69BP$23B2.6%United KingdomOil & Gas
#70CVS$23B9.1%United KingdomRetail
#71Total$23B8.1%FranceOil & Gas
#72FedEx$23B-5.1%United StatesLogistics
#73Netflix$23B8.4%United StatesMedia
#74China Merchants Bank$23B1.8%ChinaBanking
#75JP Morgan$23B15.3%United StatesBanking
#76Boeing$23B-29%United StatesAerospace & Defence
#77Costco$23B32.1%United StatesRetail
#78SK Group$22B-17.5%South KoreaTelecoms
#79Wuliangye$21B30.1%ChinaSpirits
#80Evergrande$21B0.5%ChinaReal Estate
#81Nestle$21B3.4%SwitzerlandFood
#82Hyundai Group$21B-2.8%South KoreaAutomobiles
#83China Telecom$21B-2.8%ChinaTelecoms
#84Siemens$21B-7.2%GermanyEngineering & Construction
#85TATA Group$21B2.3%IndiaEngineering & Construction
#86Mastercard$21B8.4%United StatesCommercial Services
#87Bosch$20B-14.6%GermanyEngineering & Construction
#88IKEA$19B-9.4%SwedenRetail
#89HSBC$19B-3.6%United KingdomBanking
#90Spectrum$19B25%United StatesTelecoms
#91Vodafone$19B-10.3%United KingdomTelecoms
#92Pepsi$19B2.2%United StatesSoft Drinks
#93Alibaba$19B28.8%ChinaRetail
#94Ford$18B-1.4%United StatesAutomobiles
#95AIA$18B17.3%ChinaInsurance
#96Orange$18B-13.7%FranceTelecoms
#97Nissan$18B-4.5%JapanAutomobiles
#98Chevron$18B4.7%United StatesOil & Gas
#99GUCCI$18B20.2%ItalyApparel
#100Dell Technologies$18B-22.9%United StatesTech

American retail giant Walmart enters 2020’s top 10 ranking with an impressive brand value increase of 14% to $77.5 billion. The retailer’s recent success could be partially attributed to its growing strategic partnership with Microsoft—which currently sits in sixth place. By tapping into Microsoft’s cloud services, Walmart can now provide a digital first retail experience for its customers.

Another brand that has experienced remarkable growth is China’s leading insurance company, Ping An. With 19.8% growth, resulting in a brand value of $69 billion, the financial conglomerate’s aggressive focus on fintech R&D has garnered the company 200 million retail customers and 500 million internet users—making it one of the largest financial services companies in the world.

While the majority of the world’s most valuable brands hail from the U.S. or China, which brands lead by region?

Most Valuable Brands by Region

Not surprisingly, Amazon leads as the most valuable B2C brand across the Americas, with the exception of Latin America. Beer brand Corona, was crowned as the leader in this region, boasting a brand value of $8.1 billion.

most valuable brands supplemental

In Europe, German companies outperformed other countries, with automotive brand Mercedes-Benz holding the title for the most valuable B2C brand for that continent—despite China being its biggest market.

On the other side of the world, Samsung reigns as Asia’s most valuable B2C brand. The company owns 54% of the nascent 5G market globally, having shipped 6.7 million 5G phones in the last year alone.

A Brand Eat Brand World

Whether brands are regional or global leaders, they still face the threat of being knocked of their perch by brands experiencing significant growth.

Climbing to the Top

With an increase of 65% to $12.4 billion, Tesla is officially the fastest-growing brand in the world. Despite concerns over not being able to keep up with demand, the electric car company is expected to exceed 500,000 vehicle deliveries in 2020. Having recently posted over $7 billion of revenue in the fourth quarter of 2019, the success of Tesla’s innovative models is sure to rattle the automotive brands in the ranking.

However, not everything comes down to innovation. European retailers Lidl and Aldi have seen growth of 40% and 37% respectively, and are only getting started.

After disrupting Europe’s entire supermarket industry by offering quality products at significantly lower prices, the chains now have their sights set on the U.S. market, with Aldi expected to surpass Kroger in sales.

Despite the unprecedented disruption caused by e-commerce, the popular assertion that entering digital operations brings instant success while bricks and mortar stores are doomed for extinction is being proved wrong

—David Haigh, CEO Brand Finance

In contrast, there are also well established brands that have struggled to retain brand value.

Racing to the Bottom

Chinese search engine Baidu—also known as the Google of China—recorded the largest drop in brand value, decreasing by 54% to $8.9 billion. The brand has struggled with a poor reputation and intensifying market competition. As a result, the brand’s revenues and subsequently its brand value were heavily impacted.

Boeing is a prime example of the unpredictability of brand value. As a company that once imbued trust and excellent safety standards, the brand’s value has dropped by 29% due to the recent reports of accidents that have tarnished its reputation.

The True Power of Brand

Boeing’s recent hardships reflect the volatile nature of brand value. While 244 brands in the entire ranking have increased their brand value year-over-year, another 212 have taken a hit.

Part of a brand’s purpose is to manage reputation, retain loyal customers, and generate awareness. Given that a brand is the sum of its parts, the ranking proves that an issue with any of these things could trigger a chain reaction, negatively impacting a brand’s bottom line.

So is it worth companies investing in their brand? All signs point to yes, for now.

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Interest Rate Hikes vs. Inflation Rate, by Country

Inflation rates are reaching multi-decade highs in some countries. How aggressive have central banks been with interest rate hikes?

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Interest Rate Hikes vs. Inflation Rate, by Country

Imagine today’s high inflation like a car speeding down a hill. In order to slow it down, you need to hit the brakes. In this case, the “brakes” are interest rate hikes intended to slow spending. However, some central banks are hitting the brakes faster than others.

This graphic uses data from central banks and government websites to show how policy interest rates and inflation rates have changed since the start of the year. It was inspired by a chart created by Macrobond.

How Do Interest Rate Hikes Combat Inflation?

To understand how interest rates influence inflation, we need to understand how inflation works. Inflation is the result of too much money chasing too few goods. Over the last several months, this has occurred amid a surge in demand and supply chain disruptions worsened by Russia’s invasion of Ukraine.

In an effort to combat inflation, central banks will raise their policy rate. This is the rate they charge commercial banks for loans or pay commercial banks for deposits. Commercial banks pass on a portion of these higher rates to their customers, which reduces the purchasing power of businesses and consumers. For example, it becomes more expensive to borrow money for a house or car.

Ultimately, interest rate hikes act to slow spending and encourage saving. This motivates companies to increase prices at a slower rate, or lower prices, to stimulate demand.

Rising Interest Rates and Inflation

With inflation rates hitting multi-decade highs in some countries, many central banks have announced interest rate hikes. Below, we show how the inflation rate and policy interest rate have changed for select countries and regions since January 2022. The jurisdictions are ordered from highest to lowest current inflation rate.

JurisdictionJan 2022 InflationMay 2022 InflationJan 2022 Policy RateJun 2022 Policy Rate
UK5.50%9.10%0.25%1.25%
U.S.7.50%8.60%0.00%-0.25%1.50%-1.75%
Euro Area5.10%8.10%0.00%0.00%
Canada5.10%7.70%0.25%1.50%
Sweden3.90%7.20%0.00%0.25%
New Zealand5.90%6.90%0.75%2.00%
Norway3.20%5.70%0.50%1.25%
Australia3.50%5.10%0.10%0.85%
Switzerland1.60%2.90%-0.75%-0.25%
Japan0.50%2.50%-0.10%-0.10%

The Euro area has 3 policy rates; the data above represents the main refinancing operations rate. Inflation data is as of May 2022 except for New Zealand and Australia, where the latest quarterly data is as of March 2022.

The U.S. Federal Reserve has been the most aggressive with its interest rate hikes. It has raised its policy rate by 1.5% since January, with half of that increase occurring at the June 2022 meeting. Jerome Powell, the Federal Reserve chair, said the committee would like to “do a little more front-end loading” to bring policy rates to normal levels. The action comes as the U.S. faces its highest inflation rate in 40 years.

On the other hand, the European Union is experiencing inflation of 8.1% but has not yet raised its policy rate. The European Central Bank has, however, provided clear forward guidance. It intends to raise rates by 0.25% in July, by a possibly larger increment in September, and with gradual but sustained increases thereafter. Clear forward guidance is intended to help people make spending and investment decisions, and avoid surprises that could disrupt markets.

Pacing Interest Rate Hikes

Raising interest rates is a fine balancing act. If central banks raise rates too quickly, it’s like slamming the brakes on that car speeding downhill: the economy could come to a standstill. This occurred in the U.S. in the 1980’s when the Federal Reserve, led by Chair Paul Volcker, raised the policy rate to 20%. The economy went into a recession, though the aggressive monetary policy did eventually tame double digit inflation.

However, if rates are raised too slowly, inflation could gather enough momentum that it becomes difficult to stop. The longer high price increases linger, the more future inflation expectations build. This can result in people buying more in anticipation of prices rising further, perpetuating high demand.

“There’s always a risk of going too far or not going far enough, and it’s going to be a very difficult judgment to make.” — Jerome Powell, U.S. Federal Reserve Chair

It’s worth noting that while central banks can influence demand through policy rates, this is only one side of the equation. Inflation is also being caused by supply chain issues, a problem that is more or less outside of the control of central banks.

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3 Insights From the FED’s Latest Economic Snapshot

Stay up to date on the U.S. economy with this infographic summarizing the most recent Federal Reserve data released.

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us economic snapshot

3 Insights From the Latest U.S. Economic Data

Each month, the Federal Reserve Bank of New York publishes monthly economic snapshots.

To make this report accessible to a wider audience, we’ve identified the three most important takeaways from the report and compiled them into one infographic.

1. Growth figures in Q2 will make or break a recession

Generally speaking, a recession begins when an economy exhibits two consecutive quarters of negative GDP growth. Because U.S. GDP shrank by -1.5% in Q1 2022 (January to March), a lot rests on the Q2 figure (April to June) which should be released on July 28th.

Referencing strong business activity and continued growth in consumer spending, economists predict that U.S. GDP will grow by +2.1% in Q2. This would mark a decisive reversal from Q1, and put an end to recessionary fears for the time being.

Unfortunately, inflation is the top financial concern for Americans, and this is dampening consumer confidence. Shown below, the consumer confidence index reflects the public’s short-term outlook for income, business, and labor conditions.

consumer price index 2005 to 2022

Falling consumer confidence suggests that more people will delay big purchases such as cars, major appliances, and vacations.

2. The COVID-era housing boom could be over

Housing markets have been riding high since the beginning of the COVID-19 pandemic, but this run is likely coming to an end. Here’s a summary of what’s happened since 2020:

  • Lockdowns in early 2020 created lots of pent-up demand for homes
  • Greater household savings and record-low mortgage rates pushed demand even further
  • Supply chain disruptions greatly increased the cost of materials like lumber
  • Construction of new homes couldn’t keep up, and housing supply fell to historic lows

Today, home prices are at record highs and the cost of borrowing is rapidly rising. For evidence, look no further than the 30-year fixed mortgage rate, which has doubled to more than 6% since the beginning of 2022.

Given these developments, the drop in the number of home sales could be a sign that many Americans are being priced out of the market.

3. Don’t expect groceries to become any cheaper

Inflation has been a hot topic this year, especially with gas prices reaching $5 a gallon. But there’s one category of goods that’s perhaps even more alarming: food.

The following table includes food inflation over the past three years, as the percent change over the past 12 months.

DateCPI Food Component (%)
2018-02-011.4%
2019-05-012.0%
2019-06-011.9%
2019-07-011.8%
2019-08-011.7%
2019-09-011.8%
2019-10-012.1%
2019-11-012.0%
2019-12-011.8%
2020-01-011.8%
2020-02-011.8%
2020-03-011.9%
2020-04-013.5%
2020-05-014.0%
2020-06-014.5%
2020-07-014.1%
2020-08-014.1%
2020-09-014.0%
2020-10-013.9%
2020-11-013.7%
2020-12-013.9%
2021-01-013.8%
2021-02-013.6%
2021-03-013.5%
2021-04-012.4%
2021-05-012.1%
2021-06-012.4%
2021-07-013.4%
2021-08-013.7%
2021-09-014.6%
2021-10-015.3%
2021-11-016.1%
2021-12-016.3%
2022-01-017.0%
2022-02-017.9%
2022-03-018.8%
2022-04-019.4%
2022-05-0110.1%

From this data, we can see that food inflation really picked up speed in April 2020, jumping to +3.5% from +1.9% in the previous month. This was due to supply chain disruptions and a sudden rebound in global demand.

Fast forward to today, and food inflation is running rampant at 10.1%. A contributing factor is the impending fertilizer shortage, which stems from the Ukraine war. As it turns out, Russia is not only a massive exporter of oil, but wheat and fertilizer as well.

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