Brands
Zoom makes Interbrand’s 2020 Best Global Brands list
MUMBAI: With people confined to their homes during the Covid2019 pandemic, social media and communication brands have fared well, according to Interbrand’s 2020 Best Global Brands report.
Instagram came in at #19, while YouTube (#30) and Zoom (#100) entered the rankings for the first time. On the flip side, Facebook’s value fell by 12 per cent to $35.2bn – although it moved up a place to #13 in the ranking.
Amazon, Microsoft and Spotify have added the most to their brand value in the past year. The e-commerce giant ranked at #2 and increased its brand value by 60 per cent, with a valuation of nearly $201 billion.
Music streaming service Spotify (#70) saw brand value increase by 52 per cent to $8 billion, jumping 22 places in the ranking, while Netflix rose to #41 with a 41 per cent increase to $12 billion. Business models have played a role in this success, with 62 per cent of double-digit risers relying on significant subscription model businesses.
Tesla re-entered the rankings at #40 with a brand value of $12.7 billion, having last appeared in the Best Global Brands table in 2017.
Read more news on Interbrand’s Best Global Brands
Apple retained its top spot, growing its value 38 per cent to $323 billion and becoming the first brand to surpass the $300 billion-mark. Microsoft overtook Google (#4) to reach the number three spot. This is the first time the search engine has dropped from the top three.
Meanwhile, Samsung (#5) broke into the top five for the first time ever. The remainder of the Top 10 comprises: Coca-Cola #6 ($56 billion), Toyota #7 ($51 billion), Mercedes-Benz #8 ($49 billion), McDonald’s #9 ($42 billion) and Disney #10 ($40 billion).The top ten brands accounts for 50 per cent of the total table value this year.
The 2020 Best Global Brands ranking also saw the ‘Covid effect’, with global shop closures causing the brand values of Zara (#35) and H&M (#37) to fall 13 per cent and 14 per cent respectively, with both dropping at least six places in this years’ ranking. After two years as the top growing sector, luxury brands took a hit in 2020, with all but one brand value (Hermes #28) falling between 1-9 per cent.
Other brands and industries have benefited from the ‘Covid effect’, notably logistics which saw an average of 5 per cent growth – UPS (#24), FedEx (#75) and DHL (#81) all saw positive brand valuation growth, as the logistics sector became more central to our lives in lockdown. PayPal (#60), Visa (#45) and Mastercard (#57) have also risen in the rankings – 12, 10 and 5 places respectively. The pandemic led to a sudden shift to electronic as the primary payment method and the swift roll out of programs to support local business during lockdown benefitted these brands, who provide access to capital in times of economic uncertainty.
“Reports like Interbrand’s Best Global Brands are important for companies to better understand how we’re being perceived in consumers’ hearts and minds,” said Mastercard Chief Marketing and Communications Officer Raja Rajamannar. “Especially during these unprecedented times, when consumer behaviours have shifted and trust is more important than ever, these rankings are a way for us to better understand how we can best serve our communities.”
Brands
Flipkart completes reverse flip to India ahead of IPO
Walmart-owned e-commerce giant shifts domicile from Singapore to Bengaluru
MUMBAI: Flipkart has completed its restructuring to move its parent company from Singapore back to India, marking a key milestone as the Walmart-owned marketplace prepares for a potential initial public offering on Indian stock exchanges, ET reported, citing people aware of the matter.
The move, often referred to as a “reverse flip”, relocates the company’s legal home to India and aligns its corporate structure more closely with its largest market. It also clears an important regulatory step for Flipkart as it explores listing plans.
As part of the restructuring, several Singapore-based entities have been merged into Flipkart Internet Private Limited, which will now serve as the main holding company for the entire group.
The consolidation brings a number of major businesses directly under the Indian parent company. These include fashion platform Myntra, logistics arm Ekart, travel booking platform Cleartrip, healthcare marketplace Flipkart Health, and fintech venture Super.money.
Under the new structure, global investors including Walmart, Microsoft, SoftBank, and the Canada Pension Plan Investment Board will hold their stakes directly in the Indian entity rather than through an overseas holding company.
The redomiciliation required approval from the Indian government because Chinese technology company Tencent owns around a 5 to 6 per cent stake in Flipkart. Under Press Note 3, investments from countries sharing a land border with India require prior government clearance.
Flipkart had already secured approval from the National Company Law Tribunal in December. With the latest clearance from the central government, the company has now obtained all the regulatory approvals needed to complete the relocation, ET reported earlier.
Flipkart had originally shifted its holding structure to Singapore in 2011 to tap global capital more easily. However, as India’s capital markets have matured, several start-ups have begun returning their domiciles to the country ahead of public listings. Companies such as Razorpay, Groww, and Meesho have taken similar steps.
The company is now expected to move ahead with its IPO preparations and has begun early discussions with merchant bankers. According to people familiar with the matter, Flipkart could file its draft prospectus later this year, setting the stage for what may become one of the most closely watched listings in India’s e-commerce sector.
Flipkart has been majority-owned by Walmart since 2018, when the US retail giant acquired a 77 per cent stake in the company for $16 billion in one of the largest e-commerce deals globally.
