Best Global Brands 2020: The Rise Of Technology
By Nancy Villanueva, Interbrand, CEO Iberia & Middle East
In a year with deep declines in the GDP of a vast number of countries throughout the world, the list of the 100 most valuable brands, included in the Best Global Brands 2020 report, has increased its value by 9% to USD 2,326,491m. It is worth asking ourselves what are the reasons that justify a growth in brand value that may seem paradoxical.
When we dive into the details, we understand that the last edition of our report is led by the prominent growth of those brands that have obtained positive results since the pandemic exploded: technology and tech platform brands – Apple, Amazon, Microsoft, Google, Samsung, Intel, Huawei, Uber, Zoom, Facebook, Instagram, LinkedIn, Netflix, Spotify, YouTube, eBay, Adobe, PayPal and Salesforce.
This group of brands now represent 48% of total value of the table. Additionally, their average growth exceeds 20%. If we focus only on the Top 3 Best Global Brands, this percentage rises to 50%. Apple, Amazon and Microsoft account for 30% of the total value of the entire ranking versus only 16% in 2010.
There is, therefore, a set of brands that is taking advantage, thriving in a scenario dominated by uncertainty and by consumers whose needs are becoming deeper and more emotional in a constant tension between fear and hope. These brands, already strong before the start of the pandemic, have gained even more strength and momentum in 2020 that has exponentially multiplied the speed of digital transformation across all sectors.
It is clear that those brands that have made consumers’ lives easier at home while confined or socially distant will witness a rise in income. However, it is not only the increase in revenue that justifies their brand value growth. There are specific Brand Strength factors in which top growing brands stand out, and that explain the drivers that will allow to navigate a scenario of continuous disruption: empathy, agility and affinity.
Empathy measures the ability of brands to be close to their customers and key stakeholders, actively listening and anticipating their changing needs, beliefs and desires, and responding appropriately and effectively. Empathy has never been more critical in brand building, as it requires a deep understanding of consumers (and Human Truths) to move forward and act with confidence in the marketplace. Empathy has driven, for example, the exceptional transformation of Microsoft over the past six years, in which it has doubled its brand value – or the remarkable growth of brands such as PayPal, whose brand value amounts to USD 10,514m this year.
Agility is the speed a company demonstrates in launching new products and services and pivoting when there is an opportunity or challenge in the market to anticipate the changing needs of consumers. Fast growing brands are able to combine a long term vision with an agile short term action thanks to the use of technologies such as artificial intelligence, machine learning, IoT… Amazon, whose brand value grows by 60% in 2020, is redefining the notion of agility year after year: its processes and actions have managed to set a new standard in the e-commerce sector, changing consumer expectations in much of the world.
Finally, affinity measures the degree to which consumers feel a positive connection with a brand, based on the benefits obtained or the feeling of having shared values. Top growing brands ultimately create emotional connections with their customers, adding value and playing a significant role in their lives. Affinity is about sharing with consumers the same perspective on what really matters in a time of deep questioning. Nike (+6%), for example, leads the cultural zeitgest with a clear and bold viewpoint that is currently accompanied by a social movement in the U.S. in favor of equality and diversity.
Empathy, agility and affinity are the three factors that define the success of technology and tech platform brands, whose performance enlightens the path of innovation and growth for other industries, promoting their leadership, engagement and relevance. This is something worth considering and adopting by brands across all industries.