TikTok, the immensely popular social media app, has achieved a remarkable feat by being named the world’s fastest-growing brand in the Brand Finance Global 500 2022 report. With an astounding growth rate of 215% in just one year, TikTok has emerged as a standout in the global media landscape. What sets TikTok apart is its appeal to fashion brands, who have used the platform to launch products, and consumers, who have utilized it to explore new styles and labels.
In terms of brand value, TikTok’s worth has skyrocketed from $18.7 billion in 2021 to an impressive $59 billion this year. This growth has propelled TikTok to the 18th position among the top 500 most valuable brands worldwide. The ongoing Covid-19 restrictions have played a major role in the success of digital entertainment, social media, and streaming services. TikTok’s rise is a testament to the changing patterns of media consumption in this new era.
The appeal of TikTok lies in its ability to provide easily consumable and entertaining content to its users. During the lockdowns when people were confined to their homes, the app offered a creative outlet and a means of connection. Consequently, TikTok’s popularity spread rapidly, surpassing its original Gen Z user base and reaching a wide range of demographics. Strategic partnerships, such as sponsoring the UEFA Euro 2020 tournament and being the main partner for the BFC’s 2021 Fashion Awards, have further boosted TikTok’s visibility and reach.
Alongside TikTok, another app that has garnered attention in the fashion industry is WeChat. WeChat has been named the world’s strongest brand for the second year in a row. It boasts an impressive score of 93.3 out of 100 and holds an elite AAA+ rating. On the other hand, Apple has retained its position as the world’s most valuable brand, with a staggering valuation that exceeds $355 billion. Following closely behind are Amazon and Google.
The dominance of the United States and China in terms of brand value remains unchallenged, with these two countries accounting for two-thirds of the total brand value in the ranking. The United States holds a share of 49% ($3.9 trillion), while China claims 19% ($1.6 trillion). However, the United Kingdom has experienced remarkable growth among the top 10 countries. The combined value of British brands has surged by 47% to reach $257.1 billion, indicating that the uncertainties surrounding Brexit have largely been overcome. Notably, JD Sports and Burberry are the two new entrants from the fashion sector in this year’s ranking. JD Sports has been expanding globally by acquiring brands worldwide, while Burberry is making significant progress in its ultra-luxury transformation and recovering from the pandemic’s impact.
In terms of industry, the technology sector remains the most valuable, while the retail sector has crossed the $1 trillion mark due to a significant 46% growth in brand value during the Covid-19 pandemic. This demonstrates the resilience and adaptability of these industries in the face of unprecedented challenges.
Overall, TikTok’s exceptional growth and rise as the world’s fastest-growing brand highlight the increasing influence and impact of social media and digital platforms in shaping consumer behavior and brand success. As media consumption paradigms continue to evolve, it will be fascinating to witness how TikTok and other platforms continue to revolutionize the fashion and retail landscape.
Additional links:
1. Brand Finance Global 500 2022 Report
2. TikTok Official Website
