Kantar announce Latin America retail win at 2020 BrandZ Top 50 Most Valuable Brands
With an overall brand value increase of 38%, the Latin American retail sector has outperformed all other categories in the 2020 BrandZ Top 50 Most Valuable Latin American Brands report, launched today by WPP and Kantar. The huge growth in retail compares to just 2.6% growth in value of the overall BrandZ LatAm ranking this year.
Investment in digital transformation has been key; the most valuable retailers are driving customer engagement and business value with innovative business models, including omnichannel solutions, online and mobile platforms and digital payment systems. Mexico’s Walmart-owned discount store, Bodega Aurrera (No. 6, US$5.4 billion/£4.26 billion ) was the best performer overall with a 44% increase in brand value and a rise of four places in the ranking. This follows aggressive expansion plans that saw new store openings to help strengthen its distribution capabilities and physical presence in the region.
Chile’s Falabella (No. 7, US$5.2 billion/£4.105 billion) was the other retail brand to make the top 10, thanks to the development of an integrated digital retail platform to maximise its diverse portfolio and to leverage its omnichannel strategy. Other top retail performers included Lider (No. 13, US$3.2 billion/£2.5 billion), Liverpool (No. 21, US$2.4 billion/£1.9 billion) and Lojas Americanas (No. 39, US$1.3 billion/£1.026 billion) with 19%, 10% and 23% brand value growth respectively.
The highest-ranked newcomer this year was e-commerce company MercadoLibre (No. 19, US$2.5 billion/£1.97 billion ), with a presence in around 20 LatAm countries, which recently introduced new digital payment methods including QR codes, virtual wallets and discounts with the Mercado Pago app. Supermarket chain Magazine Luiza (No. 24, US$2.3 billion/£1.8 billion) and fast-fashion retailer Renner (No. 29, US$1.9 billion/£1.5 billion), both Brazilian brands, also entered the Top 50 this year.
Overall there were 11 retail brands in the Top 50, with the others being Sodimac (No. 12, US$3.2 billion/£2.5 billion), Ipiranga (No. 38, US$1.3 billion/£1.026 billion) and Tottus (No. 45, US$1.1 billion/£869 million). Their combined value was US$27.1 billion/£21 billion, 20.2% of the total ranking compared to 15.1% in the previous report.
Financial institutions topped the ranking for the first time, with Brazilian banks, Bradesco (No. 1, US$9.5 billion/£7.5 billion) and Itau (No. 2, US$8.4 billion/£6.6 billion) both growing 35%. Facing threats from the rise of fintech and neobanks, established financial institutions have also invested in technology to deliver financial services to customers. These include new digital payment methods, such as the Mexican state-owned Cobro Digital (CoDi), a new system introduced by the Bank of Mexico (Banxico) that is set to revolutionise finance in Mexico in line with the government’s objective to move to a cashless economy.
With a total brand value of US$134.3 billion/£106.1 billion, up from US$130.8 billion/£103.3billion in the previous year’s ranking, the 2020 BrandZ Top 50 Most Valuable Latin American Brands report features a range of industry sectors, from energy and healthcare companies to communications providers and airlines, and includes brands from across six Latin American countries – Argentina, Brazil, Chile, Colombia, Mexico, and Peru.
Brazil has overtaken Mexico as the leading country in the ranking for the first time in five years. Overall, Brazilian brands grew 21% to make up 40% of the ranking’s value. The local brands continued to dominate the beer sector, despite beer consumption slowing in Latin America. Twelve are included in the ranking, including Corona (No. 3, US$7.5 billion/£5.9 billion) and Skol (No. 4, US$7.2 billion/£5.691 billion). The focus has been on maintaining local characteristics and communicating them in each market.
Brazilian telecoms brands, Claro (No. 15, US$3 billion/£2.371 billion), and Embratel (No. 50, US$944 million/£746 billion) are owned by America Movil, the giant Latin American telecoms group, but have also managed to remain relevant to the local market, providing proven, tailored solutions and seamless customer experience to help local businesses of all sizes evolve and adapt to change.
The 2018–2019 Americas Edition, a biennial edition of the World Branding Awards, took place at the Plaza Hotel on Fifth Avenue in New York City. Hosted by comedian Moody McCarthy, the awards saw more than 1,500 Americas and Caribbean brands from 22 countries participate, and 81 brands from 16 countries awarded.
The 2020 Americas Edition will be happening in July at the Plaza Hotel on Fifth Avenue in New York City.
