Brand Finance Global 500 report: „we may be only months away from the startup bubble bursting right in our faces”

4 februarie 2020

Amazon makes history as first brand to exceed US$200 billion value mark and retains title of world’s most valuable brand for third consecutive year, according to Brand Finance Global 500, the annual report on the world’s most valuable and strongest brands.

Ferrari retains pole position as world’s strongest brand with Brand Strength Index (BSI) score of 94.1 out of 100 and elite AAA+ rating.

Lidl and Aldi are fastest-growing brands in retail proving that e-commerce is no longer only route to success in sector.

Squeezed by OTT competition and challenger brands, 4 out of 5 telecoms in ranking lose brand value, with AT&T fastest-falling – down 32%

Worry of brand bubble bursting as tech brands face reality check – failure to meet expectations slashes Uber’s brand value by one third, but Tesla races ahead as world’s fastest-growing brand.

Following largest IPO in history, Saudi Aramco is most valuable new entrant to 2020 ranking, claiming 24th place globally.

Despite many success stories, there are also clear signs of a slowdown. The combined value of the Brand Finance Global 500 has increased by less than 2% year on year, and while 244 brands have increased their brand value, another 212 are down, including 95 by 10% or more.

Those which once enjoyed long-term success are now needing to adjust in a world more unpredictable than ever, while many tech brands are suffering after failing to meet the bullish expectations of investors.

„The disrupter of the entire retail ecosystem, the brand that boasts the highest brand value ever, Amazon continues to impress across imperishable consumer truths: value, convenience, and choice. Today, Amazon’s situation seems more than comfortable, but what will the roaring twenties hold in store?”, said David Haigh CEO of Brand Finance.

Other main findings:

# Despite the unprecedented disruption caused by e-commerce, the popular assertion that entering digital operations brings instant success while bricks and mortar stores are doomed for extinction is being proved wrong. As digital operators find they need to remain attentive to consumers and traditional retailers, such as Walmart, successfully adapt to change, we are back to normal as all brands realise that ultimately the customer is king.

# It is not surprising that a number of telco brands have placed bets on new opportunities from video content rights to Internet of Things ventures. Focus on extracting as much value as possible from the declining segments cannot sustain growth in the long term, as the consumption of telecommunications has changed for good. AT&T is the perfect example of how to fight back against the shrinking of the traditional market as they lead the charge in 5G – an area ripe for expansion.

# Twenty years on from the dot-com bubble, as we witness global slowdown and the failure of hyped IPOs from WeWork to Uber, we may be only months away from the startup bubble bursting right in our faces. When expectation and reality do not match, the truth will out and the results can be devastating. The cost of capital is increasing, putting breaks on indefinite brand value growth, and a shift from a startup bidding war towards appraising real value is necessary

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Jan Schildbach – Analyst Deutsche Bank


„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”

Sondaj
In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale in 2020?
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