Last month, we took a look at the world’s biggest public companies and how they have moved up and down in the Top 10 listings. That being said, companies often rely on creating a brand that acts as a vehicle to offer their products to the world. For instance, while Alphabet may sound like an unknown company to most consumers, when you bring up Google as its brand, the name instantly draws recognition worldwide.
In comparison to last month’s article, do the standings of the Top 10 public companies in 2022 mirror the rankings of the most valuable brands from last year?
One reason to believe it does is because we can see Apple retaining its top spot in the ranking as the world’s most valuable brand, thanks to a 35% increase in brand value, bringing it to a total of $355.1 billion.
This isn’t particularly surprising, given the proliferation of smartphone technology in the modern world today and how Apple completely dominates that market, especially in the United States, where reportedly half of all consumers are running an iPhone for their daily use.
However, that’s where the similarities end, because following Apple in close pursuit is Amazon with a brand value of $350.3 billion, which falls nearly 5 billion short of the top spot. This, again, is unsurprising given that the tech giant’s offerings are considered pivotal in many Western nations. These offerings include its online store, home devices, web services, logistics, and entertainment services, which billions of people worldwide rely on day-to-day.
Interestingly, another brand that makes its way onto the list is Walmart, which is owned and controlled by the Walton family, the richest family in the United States. Founded by Sam Walton in 1962, his heirs currently own over 50 percent of Walmart through both their holding company, Walton Enterprises, and their individual holdings. This spells good news for individuals interested in operating an exclusive family business.
While the previous list of Top 10 public companies was dominated by United States companies, we see two brands from China, ICBC Bank and Huawei, breaking into the list of the most valuable brands of 2022. This clearly displays China’s prominence in the global economy. Adding to that, one brand that we can expect to see joining the ranks of ICBC Bank and Huawei is TikTok, a social media brand owned by the ByteDance company.
While the company is rife with controversy surrounding its user data policies, that hasn’t stopped the company’s user base from skyrocketing from 291.4 million to 655.9 million active users in just two years. This has led to a year-over-year increase in brand value of 215%, making it the fastest-growing brand on the entire list.
Based on the above information, what can savvy investors learn from all this?
For starters, it is pretty clear that being the biggest public company doesn’t necessarily equate to being the most valuable brand in the same year. However, what is also apparently obvious is that the dominance of the United States in the market is increasingly being challenged by China, with other regions like Saudi Arabia and Europe also taking large slices of the pie.
Another key takeaway is that the technology sector stands as the most lucrative sector to invest in, with a combined market value of $9.2 trillion shared by over 20 companies, second only to the consumer discretionary sector with a combined market value of $4.7 trillion.
In a rapidly evolving landscape, predicting the exact trajectory of the next few years becomes an exercise in uncertainty. Yet, this uncertainty underscores the crucial significance of diversification within one’s investment portfolio. Instead of limiting our focus solely to the United States, it is imperative to adopt a proactive approach by closely examining the burgeoning Asian markets. This strategic shift can unlock a wealth of opportunities and mitigate potential risks. At PEGH, we understand the vitality of this approach, actively engaging in comprehensive analyses and insightful strategies to capitalize on the dynamic growth and immense potential of the Asian markets.