Amazon overtook Apple as the world’s most valuable brand despite losing over $50 billion in brand value, according to a brand valuation consultancy report.
Amazon’s brand has fallen by over US$50 billion this year, substantially in connection with its brand strength, with its rating falling from AAA+ to AAA as consumers evaluate it more harshly in the post-pandemic world.
“Our research has found that Amazon’s brand value comes from its strong dominant position in both B2C and B2B sectors of the economy, as a dominant operator in the massive markets of online retail and cloud computing services," David Haigh, Chief Executive and Chairman of Brand Finance, said.
Brand Finance’s research has found that customer perception of customer service at Amazon has fallen–at the same time as delivery times have lengthened. In concert with this, consumers have become less likely to recommend Amazon to others.
Concurrent with the conclusion of pandemic restrictions, people are returning to shopping in person, slightly mitigating the need for online retail.
Apple (brand value down 16% to US$297.5 billion) has fallen to be the world’s second most valuable brand, with its value falling from US$355.1 billion. This year’s fall in brand value relates to a fall in forecast revenue as a disrupted goods supply chain and a constrained labor market are expected to limit the supply of its marquee hardware products.