13 Jun Amazon conquers the world
Whiplash team, June 14, 2019
Amazon conquers the world
For Amazon, lately, everything seems to be good news: at the end of May the company won, provisionally, the dispute it had with several Amazonian countries for the use of the .amazon domain, and this week the retailer surpassed technological giants Google and Apple and crowned itself as the most valuable brand of the planet. The value of the company, founded by Jeff Bezos in 1994, increased by 52% compared to the previous year to settle at 315 billion dollars, according to the “2019 100 Top BrandZ” Kantar research agency report. A non-negligible growth that aligns with users’ perception that consider Amazon the most reliable retail brand.
It is the first time in the last 12 years that a non-technological company leads the ranking of the most valuable brands, traditionally headed by Google, Apple and Microsoft. In this occasion, thanks to a series of “key acquisitions, in addition to a superior customer service and a disruptive business model”, according to Kantar’s press release, Amazon jumped from third place on the podium to first, leaving Apple in the second place and displacing Google to third.
The Kantar report adds that “disruptive models are flourishing in regions like Asia, where consumers have greater technological capacity and brands are integrate into every aspect of people’s daily life”. But not only in Asia, also in Europe and the United States.
The fact is that being disruptive is part of Amazon’s DNA. 25 years ago, it broke into the market as a virtual bookstore, transforming retail and displacing the segment leaders of the time, Borders and Barnes & Noble. Today is the largest retailer in the world. Its formula combines intuitive navigation, a powerful CRM and an offer of attractive products, with fast purchasing processes and a flat rate of shipping costs. In short, a fluid multi-channel experience with an emphasis on customer satisfaction throughout the whole customer journey –including devolutions– which has given and continues to bear fruit.
Kantar’s report points out that among the initiatives that keep Amazon at the top of the world ranking is its investment policy, that includes companies such as Aurora, or the electric truck Rivian, as well as the expansion of Amazon Air, its aircraft business. But also, companies like Whole Foods Market, Ring, Zappos, or PillPack, that are just a sample of how Amazon has diversified through the acquisitions policy carried out over the past two decades, and especially in the last two years. Other notable acquisitions include Goodreads, Alexa Internet and Internet Movie Database (IMDb).
However, in addition to its acquisition strategy, Kantar emphasizes Amazon’s ability to “stay ahead of its competitors by offering a diverse ecosystem of products and services that have allowed it to continuously accelerate the growth of its brand value”. Doreen Wang, global director of Brandz of Kantar, explained that “now brands are now less anchored to individual categories and regions”, and as technology is increasingly fluid, the limits are blurred and companies like Amazon, Google or Alibaba use their experience and their customers’ experience to enter service sectors, creating new opportunities for brand growth through the multiple touch points with consumers.
The fact is, since its birth Amazon has not stopped to evolve, expand and adapt to a changing world. It is not just a retail company, it is also a cloud computing services company and a global entertainment platform that extends its content offer daily, in addition to many other things. Step by step, the multinational continues to increase Amazon Prime Video’s subscriber base, and to sum up, the company has just announced the signing of a three-year contract with the Premier League to broadcast 20 games per season. So far, it is only emissions for the United Kingdom, but according to experts the agreement is the first step to take over the sports broadcast market.
In Spain, for example, Amazon now ventures into financial services together with Cofidis, the French financial institution specializing in consumer loans. Together they are preparing to launch Paga en 4 (Pay in 4), a payment option that will enable customers to finance their purchases between 75 and 1,000 euros in four monthly installments. An initiative that will undoubtedly stimulate consumption among Spanish customers.
In any case, Amazon has been crowned as the most valuable brand is not surprising. Not only does it have a disruptive business model and a procurement policy that increases the value of the brand. It is also a brand that users want and trust. Without going very far, just a little less than a year ago, the a.network studio Brand Trust Index Retail Report, from the marketing technology developer Soulmates.ai, revealed that Amazon is the most reliable retail brand for consumers, that the They consider “emotionally attractive”.
Meanwhile, Amazon continues to add categories and expand the sectors in which it services and it seems likely that the company will continue with its current acquisitions policy, although it is more difficult to predict in which areas it will focus. For the time being, we can count on Jeff Bezos’ company to continue to surprise its customers, creating new expectations and, ultimately, building a significant and distinctive brand with cultural relevance, based on an excellent customer experience.