Why are technology brands hitting higher values?
Technology brands dominate the rankings of the 2018 Best Global Brands Report from Interbrand. How are they consistently leading the charge in brand value and growth?
Apple, Google and Amazon were named the most valuable brands for 2018. The top two have remained unchanged for six years, but this year Amazon has enjoyed a massive 56% growth spurt, successfully propelling the online retailer into third position.
Technology brands accounted for 13% of the Top 100 2018 list, making the sector second only to the worldwide automotive industry. Of those 13, 10 companies are based in the US.
James Mueller, Associate Director, Strategy at Interbrand, commented: "Today, Apple, Google, Amazon, and Microsoft are four of the five most valuable brands in the world, and the companies behind them have an outsized influence on the everyday lives of billions of people and on the businesses underpinning the global economy.
"Not only have our phones become hundreds of times faster and more deeply integrated into every facet of our lives, but the tech vanguard has erupted into adjacent categories, like content creation (Amazon) and autonomous vehicles (Google), and invented entirely new categories, like cloud computing and artificial intelligence, that are revolutionising other industries."
The theme of the 2018 Best Global Brands report is 'Activating Brave', suggesting brands that favour decisive action and expansion into the unknown are out-performing traditional models.
Calculated risk is reflected throughout the list: Amazon's growth due in part to a massive diversification of their offering, Netflix's entry into the top 100 by pursuing original content, and McDonald's returning to the top 10 aided by digital orders in-store and home delivery, to name a few.
'Relevance' and 'Responsiveness' through the introduction of innovative processes and products for the consumer has become the keystone for brand growth.