Retail Industry Is Recovering According To The Best Retail Report By Interbrand

Posted: April 1, 2011 in Brand management

Surely, Interbrand is one of the leading brand consultancy with its authors of the annual Best Global Brands ranking of the top 100 world’s most valuable brands. Interbrand seems to focus on the global retail sector with its latest category rankings with Wal-Mart leading the way.

2011 Best Retail Brands ranks the top 50 U.S. retail brands by brand value, as well as the top retail brands from Asia Pacific, Canada, the U.K., France, Germany, and Spain. In collaboration with Interbrand Design Forum, the retail experience group within Interbrand, the U.S. brands are valued for the third time.

It should be taken granted that Walmart is the most valuable retail brand for the third consecutive year in the U.S, not least as it attracts 180m American customers, from 80% of residences, each year. “Some of the pricing and merchandising issues in Wal-Mart US ran deeper than we initially expected, and they require response that will take time to see results,” Mike Duke, Wal-Mart’s ceo, said recently. He added “Price leadership is critical to our success … This is what Wal-Mart was built on.” Similarly, retailers like Woolworths, Shoppers Drug Mart, Tesco, Carrefour, ALDI and Zara are ranked as the number one in their respective markets.

According to the findings, U.S.  retailers are making great strides in recovery as the U.S. was first suffered from the economic downturn in 2008. It is truism to say that retailers across Europe are in straits since it is difficult for them to generate value from cash-strapped consumers. On the other hand, Asian retailers seem to have both opportunities and challenges due to expanding of consumers’ preferences.

“Consumer confidence has been returning, yet people have been fundamentally changed by the recession, with markets opening up and rapid advances in technology that influence how and where people shop. For retailers, this means having to create new, exciting opportunities to truly connect with more skeptical and esavvier customers,” said Jez Frampton, Global Chief Executive of Interbrand.

Apparently, the most prominent global retail trends such as digital growth, human presence and global expansion gain acceptance across the sector. With digital growth, consumers have a chance of more seamless retail experience. Brands are increasingly aligning R&D with innovation in line with customer’s feedback and thus extending their brand to sleek iPad apps as well as interactive micro-sites.

If we consider another trend, namely, human presence, it is possible to see tha fact that brands with genuine character, definite core values, and a concern for community seems to profit the most. Corporate citizenship practices not only are becoming more common but also hold the promise of becoming differentiating factors in the decision-making process.

Moreover, global expansion is becoming a rule since retail brands regard their competition as both local and global. While many retailers are establishing an international presence, multichannel initiatives come into prominence as a way of developing segmented markets.

In its report, Interbrand shares its global insights into the trends set by the retailers in a number of countries. For instance, according to the report, brand-led companies in the United States prove resilient, responding rapidly to the downturn while taking advantage of its opportunities. Experts predict that Canadian brands will soon have to leverage their national heritage in order to compete with US entrants into the Canadian market.

In France, the trend of smaller multichannel shops is gaining power as these shops use the multichannel experience to foster long-term customer engagement. Interbrand expert advises German retailers to adandon their ‘Cheap is cool’ strategy and switch to “sound corporate citizenship and smaller shop concepts”. Speaking of Spain, Interbrand speaks favorably of such fashion brands as Mango and Zara that combine excellent local adaptation with global expansion, which might be used as a recipe for the brand success in the modern-day world. Furthermore, Interbrand adds that the brands in Asia Pacific are still going through the stage of the new value perception in after-crisis Asia as consumers are becoming “smarter, savvier, and more demanding”.

The Top 10 Most Valuable U.S. Retail Brands 2011 include:

1. Walmart (142,030 $m)

2. Target (3,301 $m)

3. The Home Depot (20,315 $m)

4. Best Buy (18,823 $m)

5. CVS (16, 561 $m)

6. Walgreens (14,443 $m)

7. Sam’s Club (12,400 $m)

8. Coach (11,588 $m)

9. Amazon.com (9,665 $m)

10.   Dell (8,880 $m)

To view top 50, please follow this link.

For the full version of the report, please visit Interbrand’s website

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