The world’s most valuable brands have experienced record growth according to the Kantar BrandZ Most Valuable Global Brands 2021 ranking. The total worth has reached US$7.1 trillion. That’s equivalent to the combined GDP (gross domestic product) of France and Germany. 

GDP is a monetary measure of the market value of all the final goods and services produced in a specific time period.

U.S. brands account for 56 of the Top 100 brands. Amazon and Apple leading the way – each now worth over US$½ trillion. The latter is now worth approximately $6.1 trillion. That’s a 74% change from 2020.

The 42% brand confidence increase is more than four times the study’s annual average percentage increase over the past 15 years. The Kantar research group says it’s been driven by confidence derived from vaccine availability, economic stimulus packages and improving GDP outlooks. 

Key trends highlighted in this year’s Kantar BrandZ Most Valuable Global Brands study include:

  • Amazon maintained its position as the world’s most valuable brand, growing 64% to US$684 billion (or the equivalent GDP of Poland).
  • Tesla is the fastest growing brand and became the most valuable car brand, growing its value by 275% year-on-year to $42.6 billion.
  • Five brands more than doubled their brand values: Pinduoduo, Meituan, Moutai and TikTok from China, and Tesla from the U.S.
  • Technology dominates the top end of the Kantar BrandZ ranking, with seven of the top ten brands coming from the tech sector. 
  • U.S. brands grew fastest in 2021 with their brand values growing an average 46% year-on-year, meaning the US now accounts for 74% of the Top 100’s total value, despite having just 24% of global GDP
  • China has consolidated its lead over Europe. Chinese brands have grown from 11% of the Top 100 value in 2011 to 14% today. European brands, in contrast, now represent 8% of the ranking’s value verses 20% in 2011.

Companies rewarded for meeting changing customer needs

Across industries brands have been rewarded for meeting consumers’ changing needs and behaviors:

  • Subscription models have been a significant driver of success for many. Microsoft is one of the best examples of this (+26%) innovating offers to adapt to new working environments and transitioning to subscription models to improve convenience and scalability. Xbox (+55%), Disney (+13%) and Netflix (+55%) all saw growth, while Spotify entered the ranking following a 454% growth in subscribers from 2015-20 and a significant improvement in consumer brand equity. Beyond technology, subscription-based models are also increasing the value of a broad range of brands including Lululemon, Nike, Mercedes-Benz and Heineken
  • Alcohol maintained its growth throughout the pandemic, fuelled by Chinese Baiju brands. The most valuable alcohol brand in the world is Moutai ($109.3 billion)– which doubled its valuation in one year and is now four times the size of Budweiser (with the second biggest alcohol valuation of $25.5 billion). Heineken was the fastest growing beer brand growing 16% (#4 in alcohol ranking).

Article provided with permission from AppleWorld.Today