Tech downturn slashes billions from value of world's top brands
Amazon has reclaimed top spot as the world's most valuable brand despite its brand value falling 15% from US$350.3 billion to US$299.3 billion, according to a new report from leading brand valuation consultancy, Brand Finance.
- Amazon is world's most valuable brand, despite losing US$51 billion in value
- Tech brands fall in value, Apple loses its top ranking, down US$57.6 billion
- Tesla and BYD are amongst the world's fastest-growing brands as sustainability-focused brands win big
- Inaugural Sustainability Perceptions Index measures value of brands' reputation for sustainability
Every year, leading brand valuation consultancy Brand Finance puts the world's biggest brands to the test, ranking brands across all sectors and countries. The 500 most valuable and strongest brands are included in the annual Brand Finance Global 500 ranking.
Amazon's brand value has fallen by over US$50 billion this year, with its brand strength rating falling from AAA+ to AAA as consumers evaluate it more harshly in the post-pandemic world. Brand Finance's research has found that customer perception of service at Amazon has fallen – at the same time as delivery times have lengthened – and consumers have become less likely to recommend Amazon to others. Concurrently, some people are returning to shopping in-person, reducing the need for online retail.
David Haigh, CEO of Brand Finance, commented:
"Technology brands across the world have lost significant value in response to shifting demand patterns. As consumer habits partially revert to pre-pandemic patterns, demand for the services of tech brands has been hit particularly hard. Additionally, disrupted supply chains, labour shortages, and greater obstacles to financing have left their mark."
Tech brands fall in value, Apple loses its top ranking, down US$57.6 billion
Apple (brand value down 16% to US$297.5 billion) has fallen to be the world's second most valuable brand. This year's fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labour market are expected to limit supply of its marquee hardware products.
There was a total of 48 tech brands that featured in the ranking, two down from the 50 in 2022, after Snapchat and Twitter dropped out. Other tech-focused brands to lose brand value include Samsung Group (down 7% to US$99.7 billion), Alibaba.com (down 56% to US$10.0 billion), Facebook (down 42% to US$59.0 billion) and WeChat (down 19% to US$50.2 billion).
On the positive side, Instagram (up 42% to US$47.4 billion) and LinkedIn (up 49% to US$15.5 billion) have grown in the tech sector, with the brand value of each growing due to well-executed strategy to commercialise their services.
Tesla and BYD are amongst the world's fastest-growing brands as sustainability-focused brands win big
Some of the big winners in brand value include electric car manufacturers Tesla (brand value up 44% to US$66.2 billion) and BYD (brand value up 57% to US$10.1 billion) as demand grows for electric cars as part of a broader transition a to low carbon economy.
Inaugural Sustainability Perceptions Index measures value of brands' reputation for sustainability
In addition to the Global 500 2023 ranking of the world's most valuable brands, Brand Finance is also launching the Sustainability Perceptions Index, in association with the International Advertising Association at Davos. This report reveals major global brands such as Amazon, Tesla, Apple and Google each have billions of dollars contingent on carefully managing a reputation for commitment to sustainability.
The full Sustainability Perceptions Index report is available at https://brandirectory.com/sustainability
The full Global 500 report is available at https://brandirectory.com/global