The British asset management firm Abrdn (ABDN.L), formerly known as Aberdeen Standard Life, recently reversed its 2021 decision to drop the vowels from its name. This move follows a trend of high-profile companies reverting to their original names after facing public backlash and ridicule for ill-advised rebranding efforts. This article examines the motivations behind such rebranding exercises and the reasons for their ultimate failure, using Abrdn as a prime example.
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The History of Rebranding Reversals
Abrdn’s decision echoes similar instances in corporate history where companies abandoned established brand identities only to reinstate them later. Notable examples include Royal Mail’s short-lived transformation into Consignia in 2001 and Coca-Cola’s disastrous “New Coke” experiment in 1985. Even accounting giant PwC experienced a rebranding flop with its consultancy arm, Monday, which was quickly abandoned. These cases highlight the risks associated with radical rebranding strategies.
Why Companies Rebrand and Why it Fails
According to branding experts, the impetus for rebranding often stems from a desire to modernize, appeal to younger demographics, or differentiate from competitors. Companies may perceive their existing brands as outdated or stale, seeking a fresh image to revitalize their market presence. However, these efforts can backfire when companies underestimate the emotional connection consumers have with established brands. Tampering with familiar names and logos can alienate loyal customers and generate negative publicity, outweighing any perceived benefits of the rebrand.
The Abrdn Case: A “Clarity of Focus” or a Confusing Conundrum?
In 2021, Abrdn’s then-CEO Stephen Bird justified the name change as a reflection of a “modern, agile, digitally enabled brand.” However, the rebrand was met with widespread criticism, with many finding the name unpronounceable and confusing. The omission of vowels was seen as a misguided attempt to appear trendy, drawing comparisons to internet personalities rather than establishing a credible financial institution. The decision to revert to a more traditional spelling acknowledges the failure of the initial rebranding strategy.
Conclusion: The Importance of Brand Heritage
The Abrdn case underscores the importance of carefully considering brand heritage and customer sentiment when undertaking rebranding initiatives. While modernization is essential, it shouldn’t come at the expense of brand recognition and customer loyalty. Companies should prioritize clarity, pronounceability, and meaning when crafting new brand identities, ensuring that any changes resonate positively with their target audience. The reinstatement of the vowels in Abrdn signifies a return to common sense and a recognition of the enduring value of a well-established brand. This case serves as a valuable lesson for other companies contemplating similar rebranding exercises.
