A 200-Year-Old Brand’s Misadventure: The Rise and Fall of "abrdn"
In 2021, the 200-year-old asset manager Aberdeen made headlines with a bold rebranding move, dropping the vowels in its name to become "abrdn." The decision, led by then-CEO Stephen Bird, was part of an effort to position the company as "a modern, agile, digitally-enabled brand." However, the change was met with widespread mockery, particularly from the traditionally conservative financial community. The E-free name was seen as an attempt to appear trendy and youthful, a move that seemed out of place for a centuries-old institution. The jokes were relentless, with critics poking fun at the company’s efforts to sound hip.
Fast forward nearly four years, and Aberdeen has decided to revert to its original name, "aberdeen," restoring the three E’s that were so controversially dropped. While the capital "A" remains absent, the return to a more familiar spelling signals a pragmatic shift. CEO Jason Windsor framed the decision as a way to "remove distractions" and mark "a new phase for the organisation." The move comes as the company continues to navigate the complexities of its industry, including shifting investor sentiment and increasing competition.
The E-Free Trend: A Short-Lived Fad for Aberdeen
The idea of dropping vowels or letters to signal modernity and youthfulness is not new. Brands like Flickr, Tumblr, and even celebrities like The Weeknd have adopted similar strategies to appear edgy and forward-thinking. For Aberdeen, the decision to rebrand as "abrdn" was a clear attempt to align with this trend. However, the asset manager quickly learned that such a move doesn’t always resonate well with stakeholders, especially in the traditional finance sector.
The backlash against "abrdn" was immediate and vocal. Financial commentators and industry insiders mocked the name change, questioning its necessity and practicality. Peter Branner, the company’s chief investment officer, even described the criticism as "corporate bullying," calling out the "childish jokes" directed at the brand. The episode highlighted the risks of rebranding, particularly for established companies with long histories. While some saw the move as innovative, others viewed it as a misguided attempt to fit into a trend that didn’t suit the company’s image.
Despite the criticism, Aberdeen pressed on with its new identity, hoping the name change would enhance its digital appeal and attract a younger clientele. However, the distraction caused by the relentless mockery seemed to outweigh any potential benefits. By reverting to "aberdeen," the company appears to be acknowledging that sometimes, sticking to tradition is the safest path forward, especially when the core values of the brand remain unchanged.
Financial Performance: A Mixed Bag for Aberdeen
While the name change dominated headlines, Aberdeen’s financial performance told a more nuanced story. In the most recent annual report, the company revealed a 6% drop in adjusted net operating revenue, which equated to $1.68 billion in sterling terms. This decline underscores the ongoing challenges faced by asset managers in a volatile market environment. However, there were signs of resilience, as adjusted operating profit rose by 2%, driven by a 7% reduction in adjusted operating costs.
The company’s stock price also experienced a notable surge, jumping 9% in London following the announcement of the name change reversal. This brought the year-to-date gain to approximately 26%, offering a glimmer of hope for investors. Still, the stock remains about a third lower than its value when the company first changed its name in 2021. This discrepancy highlights the long-term impact of the rebranding mishap and the challenges Aberdeen faces in regaining investor confidence.
Rebranding in the Corporate World: Lessons from Aberdeen’s Experience
Aberdeen’s rebranding saga is far from unique. Many companies have attempted to reposition themselves through name changes, often with mixed results. For instance, Weight Watchers rebranded as WW in 2019 after more than 50 years, signaling a shift toward wellness rather than just weight loss. Similarly, Dunkin’ Donuts dropped "Donuts" from its name the same year, opting for a simpler, more modern identity. These changes are often designed to reflect a new strategic direction or to appeal to evolving consumer preferences.
Not all rebranding efforts succeed, however. In one infamous example, PricewaterhouseCoopers Consulting rebranded as "Monday" in 2002, only to be acquired by IBM shortly afterward. The name change was widely ridiculed and failed to achieve its intended purpose. Aberdeen’s experience serves as a reminder that rebranding is a high-stakes gamble, requiring careful consideration of both internal and external factors. While a new name can signal progress and innovation, it can also alienate long-standing customers and stakeholders if not executed thoughtfully.
The Future of Aberdeen: Learning from the Past
As Aberdeen looks to the future, the company must balance its desire for modernity with the enduring values that have sustained it for two centuries. The decision to revert to "aberdeen" suggests a return to stability and tradition, which may resonate better with its core clientele. At the same time, the company must continue to adapt to the evolving demands of the financial industry, where digital transformation and investor expectations are rapidly changing.
The rebranding misstep also offers valuable lessons for other companies considering similar moves. It underscores the importance of understanding the brand’s heritage and the perceptions of its stakeholders. While change can be necessary for growth, it must be approached with sensitivity and a deep understanding of how it will be received. For Aberdeen, the journey forward will likely focus on building on its strengths while avoiding unnecessary distractions.
In conclusion, Aberdeen’s rebranding saga is a cautionary tale about the perils of chasing trends in corporate identity. While the company’s decision to revert to "aberdeen" marks a pragmatic step forward, it also highlights the challenges of maintaining relevance in a rapidly changing world. As Aberdeen continues to navigate its next chapter, it must remain true to its roots while embracing the innovations necessary to stay competitive.
