Just how much is a consumer brand worth? Visual Capitalist, a provider of research focused on markets, technology, energy and the global economy, recently answered that by quantifying the 100 most valuable brands of 2021.
Unsurprisingly, Amazon.com Inc. (Tii:AMZN) topped the list with a brand valuation at over $683 billion due in part to a massive increase in online ordering. Apple Inc. (Tii:AAPL), Google, a subsidiary of Alphabet Inc. (Tii:GOOG) and Microsoft Corp. (Tii:MSFT) came in behind them with valuations of $612 billion, $458 billion and $410 billion, respectively. Visual Capitalist calculated the results by multiplying the brand’s monetary contribution to the parent company by its proportional impact on its parent company sales.
Let’s take a look at some of the other consumer brands that made the list.
Verizon Communications Inc. (Tii:VZ) – Brand Value: $101.9 billion
In an era where consumers suddenly found themselves working from home, it makes a great deal of sense that one of the largest Internet providers in the country would also become one of the most valuable brands of not just 2020 but 2021 as well. Consumers who may have taken their Internet connection for granted in the past suddenly needed stronger and faster connections – meaning that they turned to their Internet Service Provider to make that happen. Verizon benefited, as did competitors like AT&T (Tii:T), which came in just behind Verizon on the list with a $100.7 billion valuation.
The Home Depot, Inc. (Tii:HD) – Brand Value: $70.5 billion
One of the biggest brands that made significant gains during the lockdown was Lowes, spawned in large part by the COVID-19 pandemic. As consumers suddenly found themselves forced to remain in their homes, they naturally began to look around and think about DIY home improvement projects. This demand resulted in an approximate 20% increase in fiscal 2020 sales for the home improvement retailer. Similarly, Lowe’s Companies, Inc. (Tii:LOW), whose brand Visual Capitalist valued at $20.7 billion, experienced a 24% increase in net sales for its fiscal year ended January 29, 2021.
The Walt Disney Company (DIS) - Brand Value: $55.2 billion
While it may not necessarily come as a surprise that Disney is one of the most valuable brands of the year, the company earned this distinction for a decidedly unique reason. They happened to launch their streaming service Disney+ in the fall of 2019 - just before the onset of the pandemic. Thanks in large part to not only the popularity of shows like “The Mandalorian” and other original content but also a collective need to be entertained during a dire time, Disney+ grew incredibly fast. The streaming service now has more than 118 million subscribers globally and is giving Netflix, Inc. (Tii:NFLX) a run for its money. However, Netflix’s brand value topped Disney, with a valuation of $71.1 billion.
Zoom Video Communications, Inc. (Tii:ZM) – Brand Value: $36.9 billion
Last but not least, we have Zoom – perhaps the MVP of the pandemic. While video conferencing is certainly not a new idea, as lockdowns began to take hold, the workforce took to platforms like Zoom to remain productive and keep the communication going. As a result, the company reported that revenue for the fiscal year ended January 31, 2021, totaled $2,651.4 million, a 326% year-over-year increase. In the end, consumer behaviors are changing all the time – and can shift dramatically given unexpected conditions and new dynamics. Those brands that maintain their value are the ones that remain relevant despite shifts in the marketplace.