Page 37 - BrandZ Top 100 Most Valuable Global Brands 2014

Section 03 | The Categories
Consumer and Retail | Retail

Retail

Consumer expectations

for range and convenience

drive retail reset

Brands invest for a seamless future

Retail is in the midst of major Share of life

transformation.
Successful brands did not pursue share
After years of caution following the
inancial crisis, shoppers are back. But of wallet (what can we sell you?) but
they’ve changed. They want everything
rather share of life (how can we help
you?). The outcome may be the same,
– the range of online shopping and the more sales, but the mentality is different.
immediate gratiication of physical stores
– and they expect it all the time.
Share of life, insinuating the retail brand
And in developed markets, the legacy of into all aspects of the customer’s routine,
big stores designed for a weekly grocery is best illustrated by the brand that
invented the approach – Amazon, the
stock-up is mismatched with shopping world’s most valuable retail brand, which
behavior shaped by increased urbanization, reported a 22 percent increase in sales to Top 20 Retail
more boomer empty nesters and delayed
family formation by Millennials.
$74.4 billion, in 2013. Launched as an
ecommerce site for the purchase of Brand
Brand Value
books in 1995, Amazon ended 2013 with Value Brand
% Change
Even the retail lexicon of the recent past over 237 million customers worldwide.
– multichannel, omni-channel, 2014 $M Contribution 2014 vs 2013
“showrooming” – is inadequate as 1 Amazon 64,255 3 41%
retailers attempt to provide seamless, According to some estimates, Amazon
customer-centric experience and gain now has over 20 million members of its 2 Walmart 35,325 2 -2%
Prime program, which connects the With a relentlessly focused brand
greater customer share of life.
consumer to the brand with free shipping proposition, Costco gained share of life 3 The Home Depot 22,165 2 20%
and a growing amount of online content, with its roughly 650 warehouse club
Retailers adjusted to these new realities 4 Ikea 19,367 3 61%
as quickly as possible, given that many including movies, as Amazon becomes
stores in eight countries, from customers
are weighted down with big stores, siloed a media company as well as a retailer. who trust the brand for providing 5 eBay 15,587 2 -12%
organizations, narrow skill sets and old IT Around 19 percent of all primary convenience, range, quality and low
household shoppers in the US are prices. Annual turnover surpassed $100 6 Tesco 14,842 4 -9%
systems, the ballast of the business as it Amazon Prime members, according to billion for the irst time.
was in the recent past.
Kantar Retail.
7 Woolworths 11,953 3 8%
16%
8 Aldi 9,584 2 8%
The retail category improved 16 percent in The conversation around national
brand value, following a 17 percent rise a Along with hardlines, Amazon also offers healthcare in the US helped strengthen 9 Costco 9,454 2 39%
apparel, health and beauty, and grocery. the brand presence of drug store leaders
year ago, as developed market economies To aim speciically at the warehouse Walgreens and CVS. Walgreens 10 Target 9,438 2 -21%
strengthened and retailers met the new clubs, Amazon launched its Pantry continued to cultivate share of life,
realities with actions, including:
11 Whole Foods 9,200 4 37%
program, in which Prime customers can integrating over 8,100 stores and its
New skills Retailers gained new skills receive free shipping for a box load of website. The website includes products 12 Carrefour 9,114 3 24%
household staples, items that would
from Boots, its UK partner in building
by hiring staff from other disciplines, be unproitable if ordered individually.
a global business in health and wellness 13 Lowe's 8,764 2 16%
an approach taken by Germany’s and what the brand calls “daily living.”
14 CVS 8,485 3 51%
Metro, and by learning from
international partners.
In the physical world
15 Walgreens 8,344 3 41%
Deinition
The Walgreens slogan, “at the corner of
New viewpoints happy and health,” articulates the brand’s 16 M&S 5,411 3 16%
Carrefour set up In its Fresh program, which competes combination of convenience, attitude and
programs to identify talented women The retail category includes with other online food providers, Amazon purpose. CVS, in promising to eliminate 17 Falabella 5,187 4 -8%
employees, mentor them, and physical and digital distribution adds the advantage of being able to tobacco sales from its stores by October
accelerate their advancement into channels in grocery and deliver non-food from the
18 Coles 5,076 3 15%
management.
department stores and specialists same distribution centers, which helps 2014, afirmed its brand commitment to
in drug, electrical, DIY and home improve margins and also accelerates improving healthcare, reducing chronic 19 Lidl 4,748 2 5%
disease and controlling healthcare costs. Asda
New attitudes The US drug chain CVS furnishings. Amazon appears
delivery time, burnishing the brand’s Both Walgreens and CVS enjoyed strong 20 4,675 2
1%
planned to close its $2 billion-a-year in retail because it achieves reputation for convenience. Amazon stock appreciation.
Source: Valuations include data from BrandZM, Kantar Retail, Bloomberg and BrandAnalytics.
tobacco business because of its approximately 90 percent of its made ecommerce local by sourcing
Brand contribution measures the inluence of brand alone on earnings, on a scale of 1 to 5, 5 highest.
inconsistency with the brand’s
sales from online retailing.
from local suppliers.

essence as a healthcare destination.

72 BrandZM Top 100 Most Valuable Global Brands 2014
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