New research has revealed Amazon is now worth $316 billion, nearly doubling its value over the past year.
This is according to a new report issued by ad group WPP and its data analytics branch Kantar, which found that second place among the world’s most valuable retail companies now belongs to Alibaba, Chinese counterpart to Amazon. Its value rose 48 per cent, hitting $131 billion.
“Both Alibaba and Amazon are connecting with consumers across a wide variety of their needs,” said Graham Staplehurst, global strategy director for Kantar’s BrandZ ranking.
“They are growing more than others partly because of their activity outside retailing.”
Alibaba ‘stole’ the second place from global fast food chain McDonalds, despite the company’s best efforts to rise. It rose 18 per cent, according to the same report, hitting $130 billion.
“There has been a significant improvement in perceptions about how responsible they are,” Staplehurst said.
Zara fell 10 per cent to $23 billion, while H&M dropped 39 per cent, to $6.4 billion.
A month ago, it was announced that Amazon would be closing its Chinese store. The Chinese will no longer be able to use Amazon to buy from local sellers. International sellers, however, will be able to continue business as usual.
Sources familiar with the matter told the media at the time that the company was actually pushed out of the local Chinese market by domestic players, such as Alibaba and JD.com.
Image Credit: Amazon