Amazon Breaks Record as it Leads for the Third Consecutive Year

According to a report released by Brand Finance Global 500 2020 e-commerce giant Amazon.com (AMZN) made history as the first company to ever exceed US$200 billion value mark.

Not only did Amazon break the record but also it was the third time uninterrupted Amazon emerged as the most valuable brand in the world.

A value brand is how much the brand is worth financially, it incorporates the effectiveness of a brand’s performance relative to its competitors in its calculations.

Amazon registered $220.8 billion in 2020, a value 18% higher than the $187.9 billion it registered in 2019. Below Amazon were Alphabet Inc.’s Google (GOOGL) and Apple Inc. (AAPL) which were ranked second and third respectively.

According to Brand Finance, the major reason for Google and Apple lagging behind Amazon is they are more limited in goods and services they offer.

“What Amazon has done particularly well it’s value proposition has always been the everything store. When you are the everything store, you can reach across multiple marketplaces,” said Brand Finance Director of Americans Laurence.

“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,” said David Haigh, Brand Finance CEO.

The CEO also dismissed the assumption that shopping online is set to phase out physical stores. He was citing his argument from the fact that eBay Inc. (EBAY) declined by 9% while brick and mortar retailers among them Walmart Inc. (WMT) recorded notable positive changes.

“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,” added the CEO.