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22 Jul 2024 02:57

Editor's Pick Media-Avataar Insights The Latest

Discount retail brands rise in brand value as customers curb spending

New data from Brand Finance reveals that brands like Dollar Tree, Family Dollar, and B&M are rising while retail giants struggle to build brand value

Eight of the world’s top ten retail brands experienced declines in brand value this year; Amazon maintains its number one global ranking

Retail sector in emerging markets rising as major economies decline

Major shifts among the world’s strongest retail brands: Bunnings and Decathlon emerge on top

Lazada surges 40% to become the world’s fastest-growing retail brand, followed by Metro and Chedraui

Amazon’s brand value increased 3% to USD308.9 billion, reaffirming its position as the world’s most valuable retail brand, as new data from Brand Finance indicates an American retail sector struggling to maintain brand value. Household names like Walmart (-15% to USD96.8 billion) and Home Depot (-14% to USD52.8 billion) maintained second and third ranks, respectively, despite brand value declines.

Discount and more affordable brands such as Dollar Tree (brand value up 23% to USD5.1 billion), Ross Dress for Less (brand value up 18% to USD5.1 billion), Family Dollar (brand value up 15% to USD3.2 billion), and the UK’s B&M (brand value up 19% to USD2.3 billion) each saw improved brand values. This reflects a shift in consumer brand preferences in response to inflationary and cost-of-living pressures.

Annie Brown, General Manager, UK Consulting, Brand Finance, commented: “Brand Finance research reveals a significant trend, as major economies are witnessing declines in total brand values across the sector, with the US down 3%, China down 22%, Germany down 4%, the UK down 12%, and Japan down 9%. In contrast, our Retail 100 2024 ranking indicates brand value growth in emerging markets, as Mexico’s total brand value surged 38%, while Italy’s rose 18%. This year’s fastest-growing brands include Mexico’s Chedraui and Italy’s Conad, with brand values increasing by 33% and 27%, respectively.”

With a Brand Strength Index (BSI) score of 88.2 out of 100 and a corresponding AAA rating, Australia’s Bunnings is the world’s strongest retail brand. According to Brand Finance research, Bunnings earned outstanding scores for several metrics, including promotion and word of mouth, with 70% of respondents in Australia reporting having a conversation about the brand. Decathlon ranks second for brand strength with a BSI score of 87.3 out of 100 and an AAA rating and continues to score highly in terms of perceptions of its people (customer service), familiarity, and reputation, excelling in value for money and loyalty.

Lazada, one of Southeast Asia’s largest ecommerce operators, is now the world’s fastest-growing retail brand, with a 40% increase in brand value to USD2.1 billion. In 2023, Lazada introduced its value offering “Choice”, aiming to compete with value brands like Temu and Shein. Up 39% to USD3.0 billion, Metro is the world’s second fastest-growing retail brand, followed by Chedraui in third with a 33% increase to USD2.1 billion.

India, a key emerging market, is notably absent from the top 100, despite its economic scale and growing global prominence. However, India’s retail sector is poised for rapid growth, with projections suggesting it could exceed USD2 trillion by 2030 or 2032, positioning it as a market to watch closely in future rankings.

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