The article discusses the significant risks and potential for ridicule associated with corporate rebrands, using the example of UK asset manager Aberdeen Group's widely criticized decision to rename itself Abrdn. This rebrand, which removed most vowels from the name to appear "modern, agile, digitally enabled," was met with derision. The company's current chief executive, Jason Windsor, subsequently reversed the decision made by his predecessor, Stephen Bird, to remove these "distractions." Experts like Michael Ruby of Park & Battery noted a "cognitive dissonance," as an established organization tried to mimic an innovative fintech, appearing inauthentic and based on a fad.
Philip Davies, Emea president at Siegel+Gale, likened Aberdeen's failed rebrand to an "embarrassing uncle dancing inappropriately at a wedding," emphasizing that the fatal error is when a brand tries to be something it's not. The article stresses the importance for older companies to develop a brand that acknowledges their heritage while confidently stepping into the future, rather than attempting to appear like a "teenager" when they are centuries old. Many marketing experts underline that rebranding should not be taken lightly and requires solid justification, such as a change in company focus, innovation beyond its core offering, or growth through mergers and acquisitions.
Crucially, companies should involve customers in the rebranding process to understand what is important to them, rather than relying solely on the vision of executive leadership. Nick Sherrard of Label Sessions highlighted that rebranding decisions are often confined to a small group due to potential share price impact, yet accessing customer opinions is vital. The timing of a rebrand is also critical, with a typical 12-week window demanding clear objectives and internal alignment. The article notes that while many attempts to create a fresh image fail, leveraging heritage can be positive, as seen with Nike's confident embrace of its 50-year story.
The article also points out that preserving brand heritage, especially for financial services, can build trust. Standard Life, for instance, has a long-established history dating back to 1825, and its name is now being considered for revival by Phoenix, which acquired it in 2021. This demonstrates the enduring value of a known and trusted name. Conversely, other unsuccessful rebrands include Royal Mail's brief switch to Consignia in 2001. The core lesson is that successful rebranding requires authenticity, a strong rationale for change, and a deep understanding of customer perceptions.
