The pandemic has businesses everywhere on the ropes, with many firms filing for bankruptcy since lockdowns began. Despite the uncertainty, tech giants and major digital retail brands are still thrivingand some are running circles around those that are less pandemic-proof.
Using data from Kantar and Bloomberg, a recent brand report released by BrandZ shows which tech companies are proving their worth to consumers during COVID-19 chaos. With data covering almost 4 million consumers, BrandZ also reveals that the tech sector leads the worlds 100 most valued brands in terms of financial power and consumer sentiment.
Heres how the top 20 tech brands from the report stack up:
Out of the top five tech brands, Microsoft made the biggest moves with 30% brand value growth. Other big movers in the top 20 were Instagram (owned by Facebook), Adobe, and LinkedIn (owned by Microsoft), rising 47%, 29%, and 31%, respectively.
Broken down by nation, U.S. brands are dominating techs heavy hitters, claiming 14 of the worlds top 20 tech brands. Chinese brands round out much of the remaining top 20, including tech entertainment and social media giant Tencent, which rose 15% in brand value since 2019.
Techs top brands are raking in billions of dollars, capturing consumer mindshare, captivating people, and comforting them during volatile months. Apple, Microsoft, Google, Tencent, and Facebooktechs leading contingenthave made those moves look easy during what are rough times for many world brands.
While most tech brands in the upper half of the top 20 saw significant increases in brand value, only Facebook and IBM were in decline from 2019, at -7% and -3% respectively. The biggest loss in techs top 20 came from Chinas Baidu, which fell by -29% in 2020.
Waning consumer trust, thanks in part to the perceived misuse of personal data, is a gap that techs popularity alone wont fill forever. (Following the Cambridge Analytica scandal, nearly 25% of Facebook account holders reported being extremely or very concerned about their personal data.)
Coming in at eighth place, Facebook-owned Instagram gained 47% in brand valuea huge percentage, but less than the whopping 95% growth it had in 2019.
On the whole, digital apps have been faring well during the pandemic, especially those built for entertainment, shopping, social connection, and delivery.
These brands had anticipated, even invented, the online-offline dynamics of modern life that became indispensable for survival during the lockdown homebound weeks of avoiding the contagion.
BrandZ 2020 Global Top 100 Report
While the brand value growth rates of tech giants arent entirely immune to the effects of COVID-19, the likes of Apple, Microsoft, and Google are growing steadily, surpassed only by e-commerce leader Amazon.
With data collected into April 2020, BrandZs report on the worlds top 100 brands reflects multiple shifting needs and consumer concerns at a categorical scale.
While consumer affinity for e-commerce and social media brands has increased, fast food and beer brands took a hit, despite reports of increased alcohol consumption and food delivery during lockdown. It would seem then, that consumers have been valuing their tools and means of consumption.
Of the reports 14 brand categories, only six increased in value, mostly by less than 5%. Of the top risers, six were tech brands and six were mainly e-commerce.
Other upwardly mobile brands were those in the apparel and personal care categories. Much like retail, those categories had an increasing reliance on technology to deliver their products.
The above chart shows overall categorical changes for 2020 led by retail, tech, and insurance. In the opposite corner, energy, and bank brands took the biggest hits.
The economic impacts of COVID-19 are undeniable. Even still, BrandZs top 100 brands marked a steady increase of 6% in value in 2020, compared to 7% the previous year.
This pandemic has offered up era-defining change, with tech and e-commerce seizing the day. But in a climate where nothing can be taken for granted, brands large and small are still taking their knocks.
For now, the brands that are embraced by consumers will be those that can apply a salve to the blows that 2020 keeps delivering.
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