Amazon ranks as world's most valuable brand despite financial loss
2 Min Read
The report from Brand Finance reveals that Amazon's customer service is less satisfying to consumers.
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A view of the Amazon logo (Reuters)
Amazon still ranks as the world's most valuable brand although it lost $51 billion this year, which amounts to 15% of its value, according to the annual Brand Finance Global 500 ranking.
With that said, Amazon's value plunged to $299.3 billion from $350.3 billion just over the past year as its rating fell to AAA from AAA+ per post-pandemic consumer evaluation, according to the leading brand valuation consultancy.
The report from Brand Finance revealed that Amazon's customer service is less satisfying to consumers and due to extended delivery times, is also less likely to be recommended.
The report stated: "Despite its fall in value this year, Amazon’s brand is still up 36% in value since the beginning of the COVID-19 pandemic, as the Amazon brand has grown to become a dominant player across many different sectors of the economy,"
This comes just two weeks after Amazon's Chief Executive Andy Jassy announced that the retail giant plans to cut more than 18,000 jobs under the pretext of economic uncertainty and that the company hired too rapidly during the pandemic. He said the announcement was made suddenly "because one of our teammates leaked this information externally."
To some, a win-win situation
Apple, on the other hand, had its value drain 16% this year to $297.5 billion from $355.1 billion, reflecting revenue from the effect of the disruptions caused to the supply chain of goods and a restrained labor market.
Other tech giants such as Samsung fell 7% to $99.7 billion and Alibaba took a hard fall of 56% to $10.0 billion. However, there were winners, among them electric car manufacturer Tesla which went up 44% to $66.2 billion, while automotive maker BYD had its value increase by 57% to $10.1 billion as the world witnesses a growing demand for electric cars as a result of the transition to a low-carbon economy.
Read next: Twitter's Musk blamed for Tesla's lowest drop in shares in two years
