This year has been a significant test for major brands to maintain their market value amid the pandemic. Brands that offered essential services during the pandemic have seen their value surge to new highs.
Data presented by Bankr indicates that the top ten firms have a cumulative brand value of $1.15 trillion as of November 2020. American tech giant Apple’s brand value has surged by 38% to $322.99 billion. Amazon has recorded the largest brand value growth on a year-to-date basis by 60% to $200.66 billion. Disney’s brand value lies in the tenth position at $40.77 billion after recording a negative growth of -8%.
The research also highlighted some of the biggest risers in brand value year-to-date. Amazon is the biggest gainer at 60%, followed by Microsoft at 53%. Spotify is third, with a growth of 52%. Mastercard is the tenth-largest gainer at 17%. The brand value was arrived at after conducting a financial analysis of the product or service being offered, the role the brand plays in purchase decisions, and the brand’s competitive strength.
Essential services brands soar in value
From the data, technology and eCommerce companies that benefited from the Coronavirus pandemic have emerged top. The pandemic led to widespread lockdowns forcing people to move online for shopping, entertainment, and socializing. This explains why Amazon was the biggest gainer in the highlighted companies.
It is worth mentioning that Amazon showed its strengths after beating earlier fears that it would fail to meet surging home delivery demands. Initially, the company’s home delivery logistics were stretched. The ability to manage the changing environment was a bonus for Amazon. Overall, the lockdown-induced online shopping boom also spelled good fortunes for logistics and shipping companies.
Similarly, the pandemic triggered a sudden move to digital payments. The shift largely benefitted high-profile payment companies like PayPal and Mastercard that recorded a surge in brand value.
Among the top ten highlighted companies, six saw their brand value drop. Brand value often falls because companies face challenges defending brand positioning. In this case, companies end up struggling to manage competition, leading to declines that reflect the pressure put on them.
Notably, brands that enabled people to navigate digital devices and achieve convenience and comfort during the pandemic have increased in value. Some have outperformed in their specific categories.
Focus on future growth and recovery
In general, brand value is reflected mainly in changing consumer behaviors. Most people were not meeting physically; hence brands like Disney recorded declines in their value. Disney amusement parks were closed to minimize the exposure of the virus to both staff and visitors. Companies that rely on physical meetings of people are looking at recoveries as different economies continue to reopen.
After the 2008-2019 financial crisis, most top brands focused on innovating new means of remaining resilient. For this case, experts believe that the widespread impact on companies during the current crisis will be less compared to a decade ago due to preparedness. Most top brands are expected to recover quickly due to containment measures put in place.
Overall, the highlighted top brands are still growing. For example, the leading brands have substantial equity and new entrants might find it hard dislodging them. Among the companies with strong brand growth, they have strong leadership, engagement, and relevance to adapting to the changing business environment.