With a valuation of over $500 billion, both Amazon and Apple are considered among the world’s most valuable brands. However, they’ll have to pay attention because there are Chinese e-commerce companies that are gradually but definitely moving up the ranks.
Which companies are going to be the top brands?
Chinese social networking and video games firm Tencent ranks fifth in this year’s Top 100 Most Valuable Global Brands list by Kantar BrandZ, a company that evaluates brand equity.
The Kantar BrandZ method is used to calculate a company’s worth. “It’s called a holistic picture of a company’s brand equity: a picture that combines how investors value a company’s brand assets, as well as how the general public views those assets.”
However, Amazon’s worth climbed 64% this year to a market cap of $684 billion, while Tencent’s increased 60% to $240 billion. Tesla’s price gained a staggering 275% to end the day with a market cap of $43 billion, putting it in 47th position on the list.
Additionally, almost two dozen additional Chinese firms made the list, including many having more than doubled in value in the last year: Moutai 600519, -0.27 percent; Meituan 3690, -2.19 percent; and Pinduoduo PDD, -3.40 percent.
The most recently valued company, TikTok, is highly expected with a valuation of $44 billion.
According to Graham Staplehurst, global strategy director at Kantar BrandZ, “Chinese companies are consistently and quietly developing.” They have gained substantial ground as businesses from all over the world use their technical innovations and prove that they can align with the main market trends that are influencing China and the rest of the world.
Most European brands had different growth patterns, although there were some similarities. Only eight percent of the top 100 brands are owned by these companies, compared to 20 percent ten years ago. Louis Vuitton was the 21st most valuable European brand, making it France’s most valued fashion label. The UK telecoms firm Vodafone was 60th while the German software business SAP scored 26th.
Fifty-four percent of the list was made up of American brands. ZM, -1.33 percent, ranked 52nd with $37 billion, and SPOT, -0.82 percent, placed 99th with $19 billion, were all included for the first time.
The total market value of all 100 of the listed brands reached $7.1 trillion, a significant rise over the $5 trillion recorded the previous year.