BERLIN (Reuters) – Amazon has almost doubled its brand value to $316 billion (£243.75 billion) as it expands in areas like entertainment and smart speakers, while China’s Alibaba is now the world’s second most valuable retail brand, a survey showed on Tuesday.
The value of the Amazon brand jumped 91%, while Alibaba’s rose 48% to $131 billion, according to an annual ranking from ad group WPP and its data analytics unit Kantar, which combines financial performance with consumer surveys in more than 50 countries.
“Both Alibaba and Amazon are connecting with consumers across a wide variety of their needs,” said Graham Staplehurst, global strategy director for Kantar’s BrandZ ranking.
“They are growing more than others partly because of their activity outside retailing.”
Alibaba took second place from McDonald’s even though the brand value of the world’s biggest fast food chain grew 18 percent to $130 billion as it offered healthier menus and more environmentally friendly packaging.
“There has been a significant improvement in perceptions about how responsible they are,” Staplehurst said.
Meanwhile, rising environmental concerns about the impact of fast fashion weighed on the brand values of Inditex’s Zara, down 10% to $23 billion, and H&M, down 39% to $6.4 billion.
(Reporting by Emma Thomasson. Editing by Jane Merriman)