How Technology is Eating the Brand World
Building a brand with an imperishable competitive edge can be difficult.
Technology companies however, are redefining what that edge means. By hastily responding to emerging consumer needs and leveraging the power of brand, these companies can continuously create meaningful solutions for real problems with scale.
Today’s animated chart highlights the most valuable brands in 2019 versus 2001, according to the annual “Best Global Brands” ranking by Interbrand. It illustrates the degree to which technology companies have been able to scale into massive brands over a short time frame, supplanting some of the best known companies in the world.
What is Brand Value, and How is it Measured?
Interbrand has created and consistently used a robust formula to measure brand value. Brand value is the Net Present Value (NPV) or the present value of the earnings that a brand is forecasted to generate in the future.
The formula evaluates brands based on their financial forecast, brand role, and brand strength. The full methodology can be found here.
Tech Reigns Supreme
In 2001, the cumulative brand value was $988 billion. Today, that value stands at $2.1 trillion and represents an average CAGR of 4.4%. Over the years, global tech giants have swiftly climbed the ranks, and now represent a significant amount of the total brand value.
In fact, with a combined brand value of almost $700 billion, tech companies account for half of the top 10 most valuable brands in the world. Perhaps unsurprisingly, Apple holds the title for the world’s most valuable brand in 2019—for the seventh year running.
Only 31 brands from the 2001 ranking remain on the Best Global Brands list today, including Disney, Nike, and Gucci. Coca-Cola and Microsoft are the few who have remained in the top 10.
Below is the full list of the world’s most valuable brands:
|Rank||Brand||Brand Value ($B)||1-Yr Value Change||Industry|
|#71||Hewlett Packard Enterprise||$8B||-3%||Technology|
|#86||Johnson & Johnson||$6B||-8%||Retail|
|#94||Tiffany & Co||$5B||-5%||Fashion|
Since 2001—the first year the report featured 100 brands—several tech companies have joined and climbed their way to the top of the list, while 137 notable brands dropped off entirely, including Nokia and MTV.
In an interesting turn of events, Facebook dropped out of the top 10, and into 14th place after a volatile year. The move however, is not surprising. The tech giant has been mired in controversies, ranging from data privacy issues to prioritizing political influence.
Which Brands Are Growing the Fastest?
2019’s fastest growing brands also signals tech domination, with Mastercard, Salesforce and Amazon leading the charge.
The companies in this ranking experienced a significant increase in their brand value year-over-year (YoY).
|Rank||Brand||Brand Value ($B)||YoY Growth|
According to Interbrand, the success of these brands may be attributed to their ability to anticipate rapidly changing customer expectations.
While the relationship between business performance and brand equity has been a widely debated topic for decades, it is clear that customer satisfaction bolsters brand equity, and encourages impressive financial results.
Disrupt, or Be Disrupted
Beyond anticipating changing needs, some of the most successful brands also cater to a younger customer base. This is the most evident in luxury and retail—the two fastest growing sectors for the second consecutive year.
This audience is tech-first in their buying habits and increasingly demand more elevated and shareable experiences. As a result, traditional brands across all sectors are innovating to keep up with this audience, and some are essentially becoming tech companies in the process.
For example, Gucci attributes their success to finding the perfect blend between creativity and technology. The company that once relied on its heritage, now focuses heavily on ecommerce and social media to engage with their Gen Z customers.
Similarly, Walmart recently announced that they are employing virtual reality headsets and machine-learning-powered robots in an attempt to compete with Amazon.
Will traditional companies ultimately become tech companies, or simply get eaten alive?
AIoT: When Artificial Intelligence Meets the Internet of Things
AI is emerging as a driving technology behind the internet of things (IoT). Learn about the new AIoT, and how it will impact the future.
AIoT: When AI Meets the Internet of Things
The Internet of Things (IoT) is a technology helping us to reimagine daily life, but artificial intelligence (AI) is the real driving force behind the IoT’s full potential.
From its most basic applications of tracking our fitness levels, to its wide-reaching potential across industries and urban planning, the growing partnership between AI and the IoT means that a smarter future could occur sooner than we think.
This infographic by TSMC highlights the breakthrough technologies and trends making that shift possible, and how we’re continuing to push the boundaries.
AI + IoT = Superpowers of Innovation
IoT devices use the internet to communicate, collect, and exchange information about our online activities. Every day, they generate 1 billion GB of data.
By 2025, there’s projected to be 42 billion IoT-connected devices globally. It’s only natural that as these device numbers grow, the swaths of data will too. That’s where AI steps in—lending its learning capabilities to the connectivity of the IoT.
The IoT is empowered by three key emerging technologies:
- Artificial Intelligence (AI)
Programmable functions and systems that enable devices to learn, reason, and process information like humans.
- 5G Networks
Fifth generation mobile networks with high-speed, near-zero lag for real time data processing.
- Big Data
Enormous volumes of data processed from numerous internet-connected sources.
Together, these interconnected devices are transforming the way we interact with our devices at home and at work, creating the AIoT (“Artificial Intelligence of Things”) in the process.
The Major AIoT Segments
So where are AI and the IoT headed together?
There are four major segments in which the AIoT is making an impact: wearables, smart home, smart city, and smart industry:
Wearable devices such as smartwatches continuously monitor and track user preferences and habits. Not only has this led to impactful applications in the healthtech sector, it also works well for sports and fitness. According to leading tech research firm Gartner, the global wearable device market is estimated to see more than $87 billion in revenue by 2023.
2. Smart Home
Houses that respond to your every request are no longer restricted to science fiction. Smart homes are able to leverage appliances, lighting, electronic devices and more, learning a homeowner’s habits and developing automated “support.”
This seamless access also brings about additional perks of improved energy efficiency. As a result, the smart home market could see a compound annual growth rate (CAGR) of 25% between 2020-2025, to reach $246 billion.
3. Smart City
As more and more people flock from rural to urban areas, cities are evolving into safer, more convenient places to live. Smart city innovations are keeping pace, with investments going towards improving public safety, transport, and energy efficiency.
The practical applications of AI in traffic control are already becoming clear. In New Delhi, home to some of the world’s most traffic-congested roads, an Intelligent Transport Management System (ITMS) is in use to make ‘real time dynamic decisions on traffic flows’.
4. Smart Industry
Last but not least, industries from manufacturing to mining rely on digital transformation to become more efficient and reduce human error.
From real-time data analytics to supply-chain sensors, smart devices help prevent costly errors in industry. In fact, Gartner also estimates that over 80% of enterprise IoT projects will incorporate AI by 2022.
The Untapped Potential of AI & IoT
AIoT innovation is only accelerating, and promises to lead us into a more connected future.
|Edge computing||Smart thermostats|
|Voice AI||Smart speakers||Natural language processing (NLP)
ePayment voice authentication
|Vision AI||Massive object detection||Video analytics on the edge
Super 8K resolution
The AIoT fusion is increasingly becoming more mainstream, as it continues to push the boundaries of data processing and intelligent learning for years to come.
Just like any company that blissfully ignored the Internet at the turn of the century, the ones that dismiss the Internet of Things risk getting left behind.
—Jared Newman, Technology Analyst
Where Will the Next Billion Internet Users Come From?
When it comes to worldwide internet use, which regions are the most disconnected? And which regions have the most opportunity for growth?
Where Will the Next Billion Internet Users Come From?
Internet adoption has steadily increased over the years—it’s more than doubled since 2010.
Despite its widespread use, a significant portion of the global population still isn’t connected to the internet, and in certain areas of the world, the number of disconnected people skews towards higher percentages.
Using information from DataReportal, this visual highlights which regions have the greatest number of people disconnected from the web. We’ll also dive into why some regions have low numbers, and take a look at which countries have seen the most growth in the last year.
Top 10 Most Disconnected, by Number of People
The majority of countries with lower rates of internet access are in Asia and Africa. Here’s a look at the top 10 countries with the highest numbers of people not connected to the web:
|Rank||Country / Territory||Unconnected People||% of Population|
|8||Democratic Republic of Congo||71,823,319||81%|
*Note: Rankings only include countries/territories with populations over 50,000.
Interestingly, India has the highest number of disconnected people despite having the second largest online market in the world. That being said, 50% of the country’s population still doesn’t have internet access—for reference, only 14% of the U.S. population remains disconnected to the web. Clearly, India has some untapped potential.
China takes second place, with over 582 million people not connected to the internet. This is partly because of the country’s significant rural population—in 2019, 39% of the country’s population was living in rural areas.
The gap in internet access between rural and urban China is significant. This was made apparent during China’s recent switch to online learning in response to the pandemic. While one-third of elementary school children living in rural areas weren’t able to access their online classes, only 5.7% of city dwellers weren’t able to log on.
It’s important to note that the rural-urban divide is an issue in many countries, not just China. Even places like the U.S. struggle to provide internet access to remote or rugged rural areas.
Top 10 Most Disconnected, by Share of Population
While India, China, and Pakistan have the highest number of people without internet access, there are countries arguably more disconnected.
Here’s a look at the top 10 most disconnected countries, by share of population:
|Rank||Country / Territory||% of Population||Unconnected People|
|7||Papua New Guinea||88%||7,761,628|
|10||Central African Republic||86%||4,132,006|
There are various reasons why these regions have a high percentage of people not online—some are political, which is the case of North Korea, where only a select few people can access the wider web. Regular citizens are restricted from using the global internet but have access to a domestic intranet called Kwangmyong.
Other reasons are financial, which is the case in South Sudan. The country has struggled with civil conflict and economic hardship for years, which has caused widespread poverty throughout the nation. It’s also stifled infrastructural development—only 2% of the country has access to electricity as of 2020, which explains why so few people have access to the web.
In the case of Papua New Guinea, a massive rural population is likely the reason behind its low percentage of internet users—80% of the population lives in rural areas, with little to no connections to modern life.
Fastest Growing Regions
While internet advancements like 5G are happening in certain regions, and showing no signs of slowing down, there’s still a long way to go before we reach global connectivity.
Despite the long road ahead, the gap is closing, and previously untapped markets are seeing significant growth. Here’s a look at the top five fast-growing regions:
|Rank||Region||Change in internet use (From 2019 to 2020)|
Africa has seen significant growth, mainly because of a massive spike of internet users in the Democratic Republic of Congo (DRC)—between 2019 and 2020, the country’s number of internet users increased by 9 million (+122%). This growth has been facilitated by non-profit organizations and companies like Facebook, which have invested heavily in the development of Africa’s internet connectivity.
India has also seen significant growth—between 2019 and 2020, the number of internet users in the country grew by 128 million (+23%).
If these countries continue to grow at similar rates, who knows what the breakdown of internet users will look like in the next few years?
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