the brandz™ top 25 most valuable global retail brands 2016/17

68 Pages·2016·21.98 MB·English

Methodology and Valuation by Insights and Data by

Welcome 01 02 03 04 05
7
David Roth, CEO,
The Store WPP, EMEA & Asia
Introduction The BrandZ™ Focus on China Thought Leadership WPP Shopper
Global Retail Top 25 Marketing and
10 Overview 70 Focus on China - The World’s 82 “Profitably Delivering Relevance”
E-commerce
E-commerce Hotspot by Bryan Gildenberg, Chief Knowledge Officer,
17 Implications for 20 The BrandZ™ Global Kantar Retail Capability
Retail Top 25 Ranking
Brands & Marketers 73 Our Insights
86 “Win-Win-Win In The New Retail Era”
24 The BrandZ™ Global by Emma-Jane Steele, Shop+ Global Director, Introduction
Mindshare 108
Retail Top 25 Brand Profiles
Sir Martin Sorrell, CEO, WPP
88 “Of Machines and Men”
by Hugh Fletcher, Digital Business Consultant, 110 WPP Shopper
Salmon Marketing Expertise
and Disciplines
92 “Opportunities For Growth
In A Decelerating Economy”
112 WPP Shopper
by Jason Yu, General Manager,
Kantar Worldpanel China Marketing Agencies
96 “OMG & OBE: Panic And A Path 128 BrandZ™ Valuation
Forward For Retail Brands Today” Methodology
by Jon Bird, Managing Director, Retail & Shopper,
VML and Labstore
100 Retail Trends Roundtable
BrandZ™ Top 25 Most Valuable Global Retail Brands 2016
WELCOME
[email protected]
Twitter: davidrothlondon
Blog: www.davidroth.com
WELCOME TO THE NEW E-RA
Welcome, and thank you for your interest Consumer loyalty is now that much 2 million consumers and B2B customers
in the BrandZ™ Most Valuable Global harder to win, but with new ways of across more than 30 countries have
Retail Brands 2016/2017 study. reaching people, and the ability to not shared their opinions about thousands of
only meet their needs but to anticipate brands.
In the 11 years that we at WPP have been them, the prize is potentially that much Kantar Retail has interpreted key retail
valuing brands, never have we known a greater. brand developments and in this report
time of such rapid and dramatic change. provide their insights into competitive
And, in retailing, it seems the pressures As you will see in this report, the most advantages and challenges.
affecting all business sectors are valuable retail brands are adapting their
especially intense. services - and entire business models - to This year, several other WPP companies
the fast-changing landscape in which have added commentary on the impact
It was only four years ago that Amazon they find themselves. on retail brands of omni-channel
took top spot in the retail brand rankings shopping, changing consumer paths
from Walmart, a brand with immense Understanding what’s necessary and to purchase and the potential of the
scale and more than 50 years’ experience what’s possible requires the kind of Internet-of-Things to automate shopping.
in the sector. extensive global knowledge across These companies include: FITCH,
sectors, markets and communications Salmon, Mindshare, Labstore and Kantar
In the 2016/2017 rankings, the top two disciplines that WPP offers. Worldpanel.
TOP TWO RETAIL retail brands are both e-commerce
businesses, and there are three digital- We have offices in more than 112 I invite you to contact me directly with any
BRANDS ARE
first brands in the top 10. countries and a retail practice across questions, or to learn more about how
our operating companies that extends WPP can help you better compete in
E-COMMERCE
These three brands – Amazon, Alibaba from insight to activation. It includes the fast-changing world of retailing and
BUSINESSES and eBay – together account for 40 research, advertising, marketing, digital, shopper marketing.
percent of the total brand value of the communications planning and media, PR,
top 25 global retail brands. We are shopper marketing and retail.
THREE DIGITAL-
seeing that it’s difficult to overstate the
significance of what this says about the This study draws on that expertise. Kantar
FIRST BRANDS
way the world is being transformed. Millward Brown provided the valuations
based on the WPP’s proprietary BrandZ™ David Roth
IN THE TOP 10
Never have challenges come from so research, the world’s largest and most CEO
many directions. But then, neither have comprehensive brand equity tool. Over The Store WPP, EMEA and Asia
opportunities.
7
Introduction
BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17
OVERVIEW
AS CONSUMERS RETHINK NOT JUST THE
THINGS THEY BUY BUT THE LIVES THEY
LEAD, SO TOO HAVE RETAIL BRANDS
ALL CHANGE
BEEN RE-EVALUATING THE ROLE THEY
PLAY IN THOSE LIVES, AND THE WAY IN
WHICH THEY DO IT.
AS CONSUMERS
THE FORCES OF CHANGE ARE HUGE, AND THE
EFFECT ON ALL BUSINESSES – NOT JUST
What BrandZ™ data on brand value
THOSE IN RETAIL – ARE SIMILARLY VAST.
SEEK BRANDS shows, however, is that many retailers
are weathering the storm. The value of
retail brands rose 7 percent between
2015 and 2016, and four of the Top
10 fastest-rising brands across all
THAT ALLOW categories in the Top 100 Most Valuable
Global Brands were e-commerce
brands, including the number one riser, Space is being reconfigured; The retail brands with the fastest
Amazon. unproductive space is being disposed growing brand value are those that are
of as many shoppers switch from big reading the signs and responding – or
THEM NOT
Analysis by Kantar Retail, WPP’s global shopping trips to a focus on frequent anticipating – accordingly.
retail and shopper consultancy, shows quick trips and e-commerce. Kantar
that retailers are investing in optimizing Worldpanel data shows that in the 12 The most valuable brand in the
productivity, improving the retail months to June 2016, while FMCG sales sector, Amazon, posted 59 percent
JUST TO BUY, experience and increasing shopper globally grew by just 1.6 percent, grocery brand value growth in 2016, further
engagement. General retailers are e-commerce sales were up 15 percent. extending its lead in the rankings.
enhancing cross-merchandising and Kantar Worldpanel predicts that by 2025, The brand is significant not just for
adding in-store delivery options for online will account for 9 percent of all consistently setting new standards
online orders in an effort to improve FMCG sales, up from 4 percent now. for the industry in terms of service,
BUT TO BE
convenience in big box stores originally but also for elevating consumers’
intended as dense, self-service In other cases, space is being turned expectations of choice, price and
environments. over from a place for stacking stock fulfilment. JD.com, China’s second-
into somewhere that can offer services largest e-commerce specialist, also
Many are reducing store footprints and or create an experience that enables outperformed the market with 37
repurposing space as they reassess the brands to connect with shoppers in richer, percent growth in brand value in 2016.
role of physical retail in an increasingly more interesting ways. Consumers are
omni-channel world. No longer is retail beginning to look at retailers as places not But the rankings also show that nimble
space simply a place to maximize the just for buying, but for being. retail brands with a heritage in physical
number of SKUs. The gradual slide of stores can grow in this market. Home
Walmart – pioneer of the ‘Everyday low This change applies to digital retail Depot, the DIY retailer, and Costco, the
prices’ approach to sales – from first to brands as well; Amazon is a dominant warehouse club, posted 32 percent
fourth place in the BrandZ™ ranking of force in categories well beyond retailing, and 29 percent increases in brand
the most valuable global retail brands in capturing not only a share of sales but value respectively.
just four years is symptomatic of this. also a growing share of people’s lives.
>>
10 11
BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17
OVERVIEW
AISLE
BE BACK
THE MOST EFFICIENT RETAILERS ARE THOSE THAT FOCUS ON THE FASTEST-SELLING
PRODUCTS THAT JUSTIFY THE SPACE THEY OCCUPY. SLOWER MOVERS, AND THE ITEMS
CONSUMERS ARE HAPPY TO ORDER WITHOUT SEEING THEM FIRST IN THE FLESH, CAN
SOMETIMES BE DELIVERED MORE EFFICIENTLY THROUGH E-COMMERCE.
What that means is that stores have an browsing and buying. Too many retail experience, to seek help and confirmation
opportunity to become places of retail brands are still trapped in separate from an expert, to taste something, to
theatre; destinations for immersion in the channels or streams for online and offline, touch it, to try it on. It is a superior venue
brand, something brands such as Apple and this distinction jars with consumers for the act of browsing and comparing. It
have become expert in. The idea of the for whom the difference is no longer can often, however, be a time-consuming
physical store design serving as a lasting relevant. Presenting omni-channel buying and unpleasant way to actually make a
monument is disappearing, as is the idea options is one thing for a retail brand, but transaction.
that all stores serve the same function. omni-channel thinking is quite another.
There is a difference in consumers’ minds This is the challenge for brands in the
– and increasingly in the retail world – At the moment, the Internet is an excellent future: to improve the shopping online,
between the everyday and the iconic. destination for the act of buying. Sites and the buying in-store, and coordinate
And, just as consumers expect their and cookies know the shopper, their both of them as seamlessly as possible.
mobile apps to get updated regularly, they preferences, their credit card details, and The answer – at least for those retailers
expect physical stores to offer something where to send their stuff. The process not entirely operating online - is a true
new or to reconfigure the experience they is becoming frictionless. And yet, the omni-channel approach. Done well, this
provide on a regular basis. Internet remains a frustrating place for combines the pleasure of browsing,
browsing and discovery. exploring and discovering that tends
Shoppers are now comfortable moving to come from physical retail with the
seamlessly between media and Well-executed physical stores, on the convenience of e-commerce. Omni-
marketplaces that are online and offline, other hand, enable shoppers to readily channel retailing allows the consumer to
using both to achieve their twin goals of seek and find new things, to have an use both store and screen as they wish.
>>
12
BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17
OVERVIEW
Never before has brand been such an
important differentiator between retailers
A YEAR
IN THE
DEPARTMENT STORES
BUSINESS
Department stores faced falling
traffic at mall locations, but
fared better with their flagship
stores, where a more immersive
OF RETAIL brand experience is possible.
ONLINE TO OFFLINE
CROSSING BOUNDARIES
Online brands moved offline, with URBAN STORES
Boundaries are being crossed.
The BrandZ™ retail category includes Never before has brand been such an Amazon opening a bookstore near
Kroger has opened a new concept
physical and digital distribution channels important differentiator between retailers; we Seattle and making plans for a
store with a wine bar and craft beer
in grocery and department stores and see many cases in which stores carrying similar second in California, while Alibaba Urban stores are growing in
assortment and a limited apparel
specialists in drug, electrical, DIY and home goods in a similar format fare very differently in opened its first physical store in number. Localized selections of
offering, and discount supermarkets
furnishings. Brand value growth between terms of brand value growth. This is because Tianjin, in northern China. goods at inner-city locations are
Lidl and Aldi have broadened their
2015 and 2016 varied significantly, not only the experience of shopping is about so much finding a ready market of millennial
non-food assortment.
by retail channel, category and geography, more than the goods in the basket; it is about consumers. Tesco and Carrefour are
but also within sectors, as brands the overall proposition for consumers – a SHRINKING STORES among the leading supermarket and
responded differently to the conditions they combination of range, value, experience and hypermarket brands to be highly
GROWING SERVICES
face. the meaning of a retail brand to the individual. focused on small urban stores with
Stores continued to shrink, reflecting an assortment that varies significantly
consumers’ changing shopping habits, by location. IKEA is opening inner-
Selling is only part of the equation.
FOOD RETAILERS but many offered more services, such city pick-up outlets, and organic food
Services are a growing part of the
as click-and-collect. Walmart was specialist Whole Foods has also
retail brand offering. Drugstore chain
among the big-box retail brands that launched a pared-down version of
CVS, for instance, is growing the
Food retailers in the past year have has closed some of its larger stores its larger stores, with a customized
number of in-store clinics it operates,
expanded offerings of fresh and and expanded its online offering, assortment and lower prices, called
while Amazon and Alibaba are
organic food, and increased pick-up and has launched its hugely popular 365 by Whole Foods Market.
expanding their ‘share of life’ with
and delivery options. Kroger, a US store pick-up service, modelled on
cloud computing services and, in the
grocery chain with more than 3,700 similar services operated by European
case of Amazon, voice-controlled
stores, is a stand-out example of this hypermarket and supermarket chains.
search devices and the Dash
trend in action. Kroger, which is also a
automated ordering system.
significant investor in data analytics,
this year enters the BrandZ™ Retail
Top 25 for the first time. >>
14 15
The BrandZ™
Global Retail
Top 25
BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17 1 2 3
# # #

THE BRANDZ™

Brand Value Brand Value Brand Value
$98,988 mil. $49,298 mil. $36,440 mil.
Brand Value Change Brand Value Change Brand Value Change
TOP 25 MOST
+59% -26% +32%
Brand Contribution 3 Brand Contribution 2 Brand Contribution 2
VALUABLE 4 5 6
# # #
GLOBAL

Brand Value Brand Value Brand Value
RETAIL
$27,275 mil. $18,082 mil. $14,461 mil.
Brand Value Change Brand Value Change Brand Value Change
-23% +6% +29%
BRANDS
Brand Contribution 2 Brand Contribution 3 Brand Contribution 2
7 8 9
# # #
2016/17

Brand Value Brand Value Brand Value
$13,001 mil. $12,077 mil. $12,074 mil.
Brand Value Change Brand Value Change Brand Value Change
+21% +4% +17%
Source: BrandZ™ / Kantar Millward Brown (including data from Bloomberg)
Brand contribution measures the influence of brand alone on financial value, on a scale of 1 to 5, 5 highest.
Brand Contribution 2 Brand Contribution 2 Brand Contribution 3
20