The brand is a mark and a trademark of a manufacturer with a strong reputation among customers, as per Wikipedia.
We should remember that the brand’s definition is far broader than that of a company. A company can own multiple brands, such as Google is a brand, and Alphabet Inc. is the parent company that owns that brand.
In this post, as of January 2021, we gathered the latest data on the most valuable (richest) brands from around the world. How about you take a look at it and compare it by market capitalization with our list of the largest firms.
So, let’s start off.
Top 5 Most Valuable Brands In The World
1. Apple inc. $323 bln.
The spot for the world’s most valuable brand is taken by Apple. A lot of people today recognize the company just by its logo, as Apple has truly been the most popular and influential brand ever. Its worth is calculated by analysts from rating agencies at $323 billion.
The business was founded by Steve Wozniak, Ronald Wayne, and Steve Jobs on 1 April 1976. Initially, the trio were interested in assembling home computers and designing proprietary PC models. But their biggest success came in recent years when Apple launched iPhone smartphones and iPad tablets to the world with its line of electronic products.
The range of Apple products today is wide and includes smartwatches, laptops and computers, tablets, smartphones, and more. The hallmark of the success of “apple” devices, however, is high quality, trendy design, and a brilliant marketing campaign all coming from Steve Jobs.
Today, Apple has thousands of offices, brand stores, and service centers worldwide and employs approximately 132,000 workers.
Apple’s headquarter is located in Cupertino, California, USA.
2. Amazon $200.7 bln.
Yes, you may have guessed it. Amazon is the world’s second richest brand. By market capitalization, Amazon also ranks as the fourth most expensive company.
Amazon is the largest and fastest retail company in the United States for selling and distributing different products over the Internet.
Using Amazon’s website as an online marketplace, Internet users, retailers, and manufacturers can sell any product on their own. So, the main business line of the company is the sale of goods. Due to high-quality items, low prices, quick delivery, and a wide variety, the popularity of the service has reached sky high.
The organization was founded in 1994 by Jeff Bezos and is headquartered in Seattle, Washington.
The brand employs about 647,500 workers, has more than $162 billion in assets and the annual turnover amounts to approximately $232 billion.
3. Microsoft $166 bln.
Bill Gates established the foundation of the internationally popular Microsoft Corporation in 1975. Microsoft was the first software developer at the time to propose the use of packaged personal computer software (PC) that would make the experience user-friendly and intuitive. This program named Windows operating system was a classic innovation because it made it easy for a common man to learn PC skills. The idea provided the business with tremendous success and immense profits.
Microsoft is also one of the leading companies in the market for PC applications today. It launches Windows operating systems of the latest generation, a collection of applications to work with Microsoft Office documentation, and many other software programs. In addition, Microsoft manufactures its own products and accessories for mobile devices, video, audio and office equipment.
The headquarter is located in Redmond, Washington, USA.
4. Google $165.4 bln.
Must have been waiting for this one. Google is now the world’s 4th largest brand. As it is the most popular search engine on the internet, Google is undoubtedly familiar to all users of the global network. That is why the brand ranks as one of the most expensive in the list of global rankings.
According to the analysts, it’s worth is estimated at $165.4 billion, making the brand world’s second most expensive brand.
Sergey Brin and Larry Page founded the business in 1993. It offers a search service that manages billions of daily queries. Google has a powerful search engine and because of that the developers managed to introduce one of the most powerful collections of advertisements on the Internet, which produces the single largest share of the company’s revenue.
However, the company has more to it. New projects are continuously being developed by Alphabet Inc. For example, Google recently launched its own mobile phones along with the apps to work with them (e.g. Android OS), and owns many common Internet services such as YouTube, Gmail, Google Maps, Google AdWords, etc.
Headquarter is located in Mountain View, California, USA.
5. Samsung $62.3 bln.
Samsung has its name in the global manufacturers of consumer electronics.
In 1938, the firm was founded in South Korea but later merged with Sanyo in 1969, which gave birth to the Samsung Group and altered the marketing strategy and mission of the company.
The first models of Samsung air conditioners were released in the market in 1980. This was the beginning of the successful production of the climatic equipment in the European and Asian markets.
The brand initiated development of personal computers in 1983. The development of the first product line for cell phones was completed in 1991-1992. And in 1999, in the consumer electronics manufacturing division, Samsung Electronics received the Forbes Global award.
Samsung Group today has multiple lines for different kinds of goods.
The business has its headquarters in Suwon, the provincial capital of the Republic of South Korea’s Gyeonggi-do.
How is the worth of the brand estimated?
Below are some common techniques and approaches to brand value estimation:
The value is calculated based on the amount of all costs incurred since the time when the brand was formed. This can include promotional expenses, purchasing costs for assets, wages for workers, etc. Upon adjustment of the annual inflation values, the amount issued shall be the real value of the brand.
This is the simplest estimation method. We simply calculate by their current market price of the number of issued securities.
The essence of the approach is that potential net income is measured to predict the value of the company at the moment, which is directly linked to the brand.
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