M&A and rebrands, it's not as simple as a name and logo change
Hot on the heels of the not so well received rebrand of Pretty Little Thing, parent company Boohoo Group announced its own rebrand to the Debenhams Group. This comes amidst a major shake-up of the senior management, with Debenhams’ CEO taking control of the group in late 2024.
But what have they actually done? What’s it accomplishing? And frankly, who really cares about it - consumers or the stock market?
From one name, to another
When the headlines hit it was easy to jump to conclusions - Boohoo rebranding to Debenhams?! That just wouldn’t make sense, they’ve got completely different audiences. But despite some somewhat misleading headlines, the Boohoo brand has not adopted the Debenhams name, it's the holding group that has undergone the change.
The Boohoo brand, and others within the stable, will remain just underneath the new Debenhams framework, adopting some of its ‘lean’ practices whilst adopting a marketplace model - meaning each business will be selling multiple brands from their online storefronts.
From a design perspective, the group has introduced a new DG logo to its existing logo. Frankly, it's quite bizarre. The purpose is clear, they wanted to introduce a contemporary feel to the group and differentiate itself from the trading brand. It’s a nice thought, but it just adds a layer of confusion to the saga and undoes some of the impressive brand memorability and respectability the original logo possesses.
Replacing a bad reputation
Boohoo’s reputation, and it’s value, has been in decline ever since its end of covid peak. Questions over sustainability and quality have plagued the brand for some time. Whereas, Debenhams’ has been on the rise, plus its name holds great weight as an established, trusted and beloved brand. It's in part, despite its troubles, why Debenhams has stood the test of time.
For shareholders, Debenhams has the reputation of being a value generator at the forefront of global digital retail. It’s lean, it’s fast and technologically advanced. The portfolio of brands will now be borrowing that respectability and legacy.
Brand architecture and M&As
Having a well managed brand architecture, in which its sub-brands all build and buy into, is crucial. Not only for shareholders, but the trickle down of consistency and quality will be reflected in the brands consumers are buying from. Of course having a strong group name, like Debenhams, is important but its not everything.
A successful brand architecture creates:
Leverage - the brands become bigger assets externally
Synergy - brand teams support, enhance, optimise each other and their resources
Clarity and relevance - the customer knows exactly what you do and how you can help them, more importantly as brands continue on the acquisition journey the newly acquired brands
Energy - the brands become a platform for growth and dynamism
Differentiation - your brand should stand out better from the crowded market
What should Debenhams have been thinking about?
Prior to a rebrand of this scale, that has an impact across multiple trading brands, the decision makers need to be thinking about:
Aims and aspirations - question what you want to achieve for this group of brands. Within this, you should then be able to identify if there is a natural architecture
Brand strengths and roles - how strong are the individual brands and what role do they play in the portfolio? Assess each brand's strength through their value, awareness, equity and distinction. Here you also have the opportunity to identify duplication within the portfolio, this should be underpinned by both external and internal perspectives.
Customer needs - as with any brand, you need to be thinking about what makes sense to your audience, or in this case audiences
Best practices in architecture - whilst your competition are of course, your competition, it doesn’t mean you should break the mold needlessly. Identify what others are doing in this market and dive into what they’re doing well. Think about learning from other markets and industries too, there are lessons from everywhere if you look hard enough.
Constraints - get your internal stakeholders in a room and be honest about the obstacles and constraints facing your business.
Where should you end up then?
A clear audience-led architecture should be developed with clearly defined roles for each brand on a spectrum of master, endorser or sub-brand. This should mean any and all crossover or internal competition is squashed whilst also leaving the door open for slotting in some new acquisitions.
Most significantly, it should be future-proof. You can’t box yourself in, so don’t think about the short term, think of longevity.
Lastly, don’t forget to take your colleagues and customers on the journey with you, you’ll be needing their support now and long into the future.
