UPS retains most valuable logistics brand in the world title
UPS has held on to the top spot as the most valuable logistics brand in the world with a brand value of USD38.5 billion, according to a new report from brand valuation consultancy, Brand Finance.
Despite disruptions to the global supply chain, the brand value of UPS jumped by a quarter over the year as demand for its services increased. Further, UPS has benefited from improved goodwill in many nations as it actively contributed to improving access to COVID-19 vaccination supplies for 110 countries.
The brand used their logistics supply chain network to deliver shipments and medical equipment as needed throughout the world.
Every year, leading brand valuation consultancy Brand Finance puts 5,000 of the world’s biggest brands to the test, and publishes around 100 reports, ranking brands across all sectors and countries. The world’s top 25 most valuable and strongest spirits brands are included in the annual Brand Finance Logistics 25 ranking.
The brand value of UPS has grown by 28% in part due to acquisitions. In 2021, UPS acquired Roadie, a new delivery platform that provides same day delivery in the United States. UPS also forays into digital transformation with an innovation centre in Singapore to serve as a research and development hub in the APAC region.
More broadly, the logistics sector is seeing a revival after pandemic induced restrictions with new technological innovations. Correlated with lockdown restrictions, many consumers shifted spending from services to goods – causing a surge in demand for various goods just as the ability to move products was restricted. With the world now looking towards a post-COVID future, online shopping has increased significantly, creating growth in the consumer-facing parcel delivery sector.
David Haigh, Chairman and CEO, Brand Finance commented: “The logistics industry has transformed during the pandemic to keep up with changing customer demands adeptly. With new partnerships and acquisitions across the board, the sector has achieved great performance and brand value growth.”
Delivery Hero and Just Eat Takeaway are the fastest growing brands since the beginning of the pandemic. Delivery Hero (brand value up 53% to USD5.8 billion) is making its mark around the globe with acquisitions and owning major stake in various promising businesses: Hugo (a Salvadorean fintech and delivery app), Hungry (a Danish food delivery app) and Glovo (a Spanish food delivery app).
The integration of each of these services has played a key role in global brand value, as the global brand is benefiting from local integration in diverse markets.
Similarly, Just Eat Takeaway.com (brand value up 53% to USD4.5 billion) signed various international strategic partnerships to increase the scale of the brand.
Following the merger of Just Eat and Takeaway.com, the brand has made significant investments to increase their position and has been able to increase their orders by 6 times. The brand also expects to further strengthen their position through their wider network post the merger.
BNSF (brand value down 9% to USD6.9 billion) and Canadian National Railway (brand value down 5% to USD3.9 billion) dropped in brand value this year. Due to travel restrictions across the globe, railway companies lost significant revenue on tickets. As restrictions ease, passengers are demonstrating a preference for private travel, reducing future brand value expectations.
Chinese supply chain and logistics provider JD Logistics is a new entrant into the Brand Finance Logistics 25 ranking, valued at USD4.1 billion, making it the 18th most valuable logistics brand. The brand recently acquired Deppon Express, a trucking and warehouse management service provider in the Chinese market to increase its logistical network and infrastructure.
Despite severe supply chain disruptions over the pandemic, JD Logistics announced its IPO in 2021. The brand invested in cutting-edge technology and research to roll out an automated delivery service offering in selected cities in China. JD Logistics carry out deliveries in rural areas using new technology such as self-driving trucks and aerial drones.
Additionally, the brand is also focussing on ESG projects such as establishing China’s first carbon-neutral logistics industrial park which aims to provide carbon-neutral operations by lowering energy consumption.
JD Logistics is also making the supply chain more sustainable by employing green warehousing, reusable packaging, and the usage of renewable energy. These factors are increasingly important as business customers demand greater control and management of carbon emissions across their entire supply chains.