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Insights and Data by Methodology and Valuation By Methodology and Valuation by Insights and Data by 7 Welcome David Roth, CEO, The Store WPP, EMEA & Asia 01 02 03 04 05 Introduction The BrandZ™ Focus on China Thought Leadership WPP Shopper 10 Overview Global Retail Top 25 70 Focus on China - The World’s 82 “Profitably Delivering Relevance” Marketing and E-commerce Hotspot by Bryan Gildenberg, Chief Knowledge Officer, 20 The BrandZ™ Global E-commerce 17 Implications for Kantar Retail Retail Top 25 Ranking Brands & Marketers 73 Our Insights Capability 86 “Win-Win-Win In The New Retail Era” 24 The BrandZ™ Global by Emma-Jane Steele, Shop+ Global Director, Mindshare 108 Introduction Retail Top 25 Brand Profiles Sir Martin Sorrell, CEO, WPP 88 “Of Machines and Men” by Hugh Fletcher, Digital Business Consultant, 110 WPP Shopper Salmon Marketing Expertise and Disciplines 92 “Opportunities For Growth In A Decelerating Economy” by Jason Yu, General Manager, 112 WPP Shopper Kantar Worldpanel China Marketing Agencies 96 “OMG & OBE: Panic And A Path 128 BrandZ™ Valuation Forward For Retail Brands Today” Methodology by Jon Bird, Managing Director, Retail & Shopper, VML and Labstore 100 Retail Trends Roundtable BrandZ™ Top 25 Most Valuable Global Retail Brands 2016 WELCOME [email protected] Twitter: davidrothlondon Blog: www.davidroth.com WELCOME TO THE NEW E-RA Welcome, and thank you for your interest Consumer loyalty is now that much 2 million consumers and B2B customers in the BrandZ™ Most Valuable Global harder to win, but with new ways of across more than 30 countries have Retail Brands 2016/2017 study. reaching people, and the ability to not shared their opinions about thousands of only meet their needs but to anticipate brands. In the 11 years that we at WPP have been them, the prize is potentially that much Kantar Retail has interpreted key retail valuing brands, never have we known a greater. brand developments and in this report time of such rapid and dramatic change. provide their insights into competitive And, in retailing, it seems the pressures As you will see in this report, the most advantages and challenges. affecting all business sectors are valuable retail brands are adapting their especially intense. services - and entire business models - to This year, several other WPP companies the fast-changing landscape in which have added commentary on the impact It was only four years ago that Amazon they find themselves. on retail brands of omni-channel took top spot in the retail brand rankings shopping, changing consumer paths from Walmart, a brand with immense Understanding what’s necessary and to purchase and the potential of the scale and more than 50 years’ experience what’s possible requires the kind of Internet-of-Things to automate shopping. in the sector. extensive global knowledge across These companies include: FITCH, sectors, markets and communications Salmon, Mindshare, Labstore and Kantar In the 2016/2017 rankings, the top two disciplines that WPP offers. Worldpanel. retail brands are both e-commerce TOP TWO RETAIL businesses, and there are three digital- We have offices in more than 112 I invite you to contact me directly with any first brands in the top 10. countries and a retail practice across questions, or to learn more about how BRANDS ARE our operating companies that extends WPP can help you better compete in E-COMMERCE These three brands – Amazon, Alibaba from insight to activation. It includes the fast-changing world of retailing and and eBay – together account for 40 research, advertising, marketing, digital, shopper marketing. BUSINESSES percent of the total brand value of the communications planning and media, PR, top 25 global retail brands. We are shopper marketing and retail. seeing that it’s difficult to overstate the THREE DIGITAL- significance of what this says about the This study draws on that expertise. Kantar way the world is being transformed. Millward Brown provided the valuations FIRST BRANDS based on the WPP’s proprietary BrandZ™ David Roth IN THE TOP 10 Never have challenges come from so research, the world’s largest and most CEO many directions. But then, neither have comprehensive brand equity tool. Over The Store WPP, EMEA and Asia opportunities. 7 Introduction BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17 OVERVIEW AS CONSUMERS RETHINK NOT JUST THE THINGS THEY BUY BUT THE LIVES THEY LEAD, SO TOO HAVE RETAIL BRANDS BEEN RE-EVALUATING THE ROLE THEY PLAY IN THOSE LIVES, AND THE WAY IN ALL CHANGE WHICH THEY DO IT. THE FORCES OF CHANGE ARE HUGE, AND THE EFFECT ON ALL BUSINESSES – NOT JUST AS CONSUMERS What BrandZ™ data on brand value shows, however, is that many retailers THOSE IN RETAIL – ARE SIMILARLY VAST. are weathering the storm. The value of retail brands rose 7 percent between 2015 and 2016, and four of the Top SEEK BRANDS 10 fastest-rising brands across all categories in the Top 100 Most Valuable Global Brands were e-commerce brands, including the number one riser, Space is being reconfigured; The retail brands with the fastest Amazon. unproductive space is being disposed growing brand value are those that are THAT ALLOW of as many shoppers switch from big reading the signs and responding – or Analysis by Kantar Retail, WPP’s global shopping trips to a focus on frequent anticipating – accordingly. retail and shopper consultancy, shows quick trips and e-commerce. Kantar that retailers are investing in optimizing Worldpanel data shows that in the 12 The most valuable brand in the THEM NOT productivity, improving the retail months to June 2016, while FMCG sales sector, Amazon, posted 59 percent experience and increasing shopper globally grew by just 1.6 percent, grocery brand value growth in 2016, further engagement. General retailers are e-commerce sales were up 15 percent. extending its lead in the rankings. enhancing cross-merchandising and Kantar Worldpanel predicts that by 2025, The brand is significant not just for adding in-store delivery options for online will account for 9 percent of all consistently setting new standards JUST TO BUY, online orders in an effort to improve FMCG sales, up from 4 percent now. for the industry in terms of service, convenience in big box stores originally but also for elevating consumers’ intended as dense, self-service In other cases, space is being turned expectations of choice, price and environments. over from a place for stacking stock fulfilment. JD.com, China’s second- into somewhere that can offer services largest e-commerce specialist, also BUT TO BE Many are reducing store footprints and or create an experience that enables outperformed the market with 37 repurposing space as they reassess the brands to connect with shoppers in richer, percent growth in brand value in 2016. role of physical retail in an increasingly more interesting ways. Consumers are omni-channel world. No longer is retail beginning to look at retailers as places not But the rankings also show that nimble space simply a place to maximize the just for buying, but for being. retail brands with a heritage in physical number of SKUs. The gradual slide of stores can grow in this market. Home Walmart – pioneer of the ‘Everyday low This change applies to digital retail Depot, the DIY retailer, and Costco, the prices’ approach to sales – from first to brands as well; Amazon is a dominant warehouse club, posted 32 percent fourth place in the BrandZ™ ranking of force in categories well beyond retailing, and 29 percent increases in brand the most valuable global retail brands in capturing not only a share of sales but value respectively. just four years is symptomatic of this. also a growing share of people’s lives. >> 10 11 BrandZ™ Top 25 Most Valuable Global Retail Brands 2016/17 OVERVIEW AISLE BE BACK THE MOST EFFICIENT RETAILERS ARE THOSE THAT FOCUS ON THE FASTEST-SELLING PRODUCTS THAT JUSTIFY THE SPACE THEY OCCUPY. SLOWER MOVERS, AND THE ITEMS CONSUMERS ARE HAPPY TO ORDER WITHOUT SEEING THEM FIRST IN THE FLESH, CAN SOMETIMES BE DELIVERED MORE EFFICIENTLY THROUGH E-COMMERCE. What that means is that stores have an browsing and buying. Too many retail experience, to seek help and confirmation opportunity to become places of retail brands are still trapped in separate from an expert, to taste something, to theatre; destinations for immersion in the channels or streams for online and offline, touch it, to try it on. It is a superior venue brand, something brands such as Apple and this distinction jars with consumers for the act of browsing and comparing. It have become expert in. The idea of the for whom the difference is no longer can often, however, be a time-consuming physical store design serving as a lasting relevant. Presenting omni-channel buying and unpleasant way to actually make a monument is disappearing, as is the idea options is one thing for a retail brand, but transaction. that all stores serve the same function. omni-channel thinking is quite another. There is a difference in consumers’ minds This is the challenge for brands in the – and increasingly in the retail world – At the moment, the Internet is an excellent future: to improve the shopping online, between the everyday and the iconic. destination for the act of buying. Sites and the buying in-store, and coordinate And, just as consumers expect their and cookies know the shopper, their both of them as seamlessly as possible. mobile apps to get updated regularly, they preferences, their credit card details, and The answer – at least for those retailers expect physical stores to offer something where to send their stuff. The process not entirely operating online - is a true new or to reconfigure the experience they is becoming frictionless.
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