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Amazon, Alibaba & Ebay dominate retail sector: BrandZ
Jul '18
Amazon, Alibaba & Ebay dominate retail sector: BrandZ
The retail category surged ahead in 2018 with a 35 per cent increase due to a shift towards e-commerce, according to the 2018 BrandZ Top 100 Most Valuable Global Brands ranking and report. Tech-related brands like Amazon, Alibaba and Ebay dominate not just retail, but the BrandZ Global Top 100 list, accounting for over half the ranking’s value.

The report published by Kantar and WPP tracks the value of the world’s most valuable brands and provides insights on the potential of strong brands. The total brand value of the 2018 BrandZ Top 100 is $4.4 trillion following a record 21 per cent growth – equating to a rise of nearly $750 billion.

The apparel category’s brand value witnessed a year-on-year rise of 5 per cent and the total brand value of the top 10 apparel brands amounted to $111.3 billion, as per the report. Nike, Zara, Adidas, H&M and Uiqlo are the top 10 apparel brands in the world, says BrandZ.

“Apparel sales in developing markets, in Asia and elsewhere, outpaced sales in established markets. Sportswear and fast fashion drover the value growth of the apparel category, which increased 5 per cent, after a 7 per cent decline a year ago,” notes the report.

The definition of luxury expanded, as younger consumers discovered new niche brands and older customers sought traditional luxury products, but also found satisfaction and expressed individuality with exclusive experience as well as philanthropy. These dynamics, along with the rebound of China’s economy, drove the strong 28 per cent increase in category value, following a 4 per cent rise a year ago.

The top 10 brands in the luxury category include Louis Vuitton, Hermès, Gucci, Chanel, Burberry, Prada, Dior and Yves Saint Laurent.

China continues to grow its presence on the world stage with both Tencent and Alibaba ranking in the Top 10, and seven brands making the list of the Top 20 fastest-risers – three at the top of the list.

“Retail was the bellwether category. Having been battered and thoroughly transformed by e-commerce, retail led category value growth for the second consecutive year with a rise of 35 per cent,” says the report.

Brands from North America, primarily the US, rose 23 per cent in value. North America continued to dominate the ranking in number of brands (57) and proportion of value (71 per cent). (KD)

Fibre2Fashion News Desk – India

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