Alibaba has been named the most valuable non-US retail brand in the world and is second only to Amazon overall, according to a newly released report.
Conducted by data, insights and consulting company, Kantar, the second annual BrandZ top 75 most valuable global retail brands ranking and report, commissioned by WPP, has revealed the world’s most valuable retail brands are worth US$339 billion more this year than the previous year, totaling US$1.4 trillion.
Amazon topped the table and accounted for nearly a quarter (23%) of the total brand value of the top 75. Worth US$315.5 billion, Amazon is a major international influence on shopping and - according to the report - continually finds ways to improve the shopping experience for new and existing customers.
Alibaba jumped from the third spot in 2018 to second this year, replacing McDonald's position which has slipped to the third place, and is the largest non-US brand in the world.
The BrandZ Top 10 Most Valuable Retail Brands 2019
4. The Home Depot
6. Louis Vuitton
The report said that though not the top banana, Alibaba has a greater number of innovations than Amazon. These include partnering with Starbucks (No.7) to have a coffee chain location in all Alibaba properties and the disruption of its logistics model to better facilitate super-fast delivery.
"This year’s rankings signal the increasing importance of Chinese retailers in online and mobile commerce indicated by Alibaba’s rise to the second position. It is at the cutting edge of where eCommerce, mobile and physical retail intersect with the consumer," said David Roth, CEO of The Store WPP EMEA and Asia and chairman of BrandZ.
Other than eCommerce, providing a great customer experience in store is also an important part of retail. The report has singled out Nike (No.5) and US luxury department stores Nordstrom (No.63) as they were among a host of retail brands launching experiential stores designed to provide closeness to their brands and a more personalised interaction with expert members of staff.
"What the eCommerce players have capitalised on so successfully is the importance of the human touch to online retail," said Graham Staplehurst, global strategy director for BrandZ at Kantar.
"Access to unprecedented computing power and near limitless data, as well as artificial intelligence and visual and voice technology interfaces, gives retailers and brands the ability to absorb and process vast amounts of information, but in a way that puts the shopping experience firmly back in the human domain," he concluded.