Kushikatsu Tanaka Becomes Unisia—Why Major Companies Are Rebranding Familiar Names and the Risks Behind It

Corporate name changes: Three major trends

“Pentel” has become “Astrum,” “Maruha Nichiro” has become “Umios,” and “Torikizoku Tanaka Holdings” has become “Unisia Holdings”

Since the start of this year, well-known companies changing their corporate names have been increasing.

The new name of major stationery manufacturer Pentel, “Astrum,” comes from the Latin word meaning “celestial body,” and is said to better match its stationery business that aims to support intellect and sensibility.

The new corporate name of seafood processing giant Maruha Nichiro, “Umios,” is a combination of “umi” (sea), “one,” and “solutions.”

The new corporate name of the izakaya chain Torikizoku Tanaka, “Unisia,” is a coined word combining “uni” (one) and “sea.”

Why are so many companies changing their long-familiar names? According to economic journalist Takashi Matsuzaki, there are three main patterns behind such corporate name changes.

The three patterns he outlines are as follows:

１：Changing from a founder’s name to a consumer-recognized brand name. A typical example is “Matsushita Electric Industrial,” founded by Konosuke Matsushita, becoming “Panasonic.”

２：Simplifying overly long names created through mergers and integrations. This became common during the major bank consolidations of the 1990s and 2000s. A representative case is “Mizuho Financial Group,” formed from the integration of Dai-Ichi Kangyo Bank, Fuji Bank, and Industrial Bank of Japan.

３：Shortening Japanese names written in kanji into more familiar abbreviations. “Nippon Telegraph and Telephone” streamlined its name into “NTT” as it consolidated multiple businesses.

Corporate lifespan theory: The 30-year rule

Matsuzaki continues (comments below are from Matsuzaki):

“Recently, corporate name changes have another reason beyond the three patterns mentioned earlier: globalization and shifts in core business. For example, the former ‘Kushikatsu Tanaka’ has diversified its operations, acquired an Italian chain, and expanded into the U.S. with katsu sandwich stores. They likely want a company name that is more familiar to overseas consumers and to break away from the image of being only about kushikatsu.

Changing a company name also gives consumers a fresh impression and sends the message that we are being reborn. There is a theory known as the 30-year corporate lifespan. It is the idea that the limit for a company’s growth period is about 30 years. Since the mid-1990s, when Japan began a new chapter after the collapse of the bubble economy, roughly 30 years have passed. The recent wave of corporate renaming is evidence that, due to changes in social conditions, companies are being forced to make major shifts in their business models.”

On the other hand, Matsuzaki points out that corporate renaming also comes with pitfalls.

“Changing a familiar company name involves risk. It requires significant advertising spending to make the new name known to consumers. Many people may have noticed companies like ‘Nidec’ (formerly Nippon Densan) or ‘Dai-ichi Life Group’ repeatedly running commercials to promote their new names.

In addition, when a new name is in a foreign language, consumers may not immediately understand what the company does. For example, ‘Concordia Financial Group,’ created through the integration of Yokohama Bank and Higashi-Nippon Bank, failed to gain recognition and was eventually changed to ‘Yokohama Financial Group.’ Depending on how the renaming is done, a company risks losing the familiarity it has built over time, causing its recognition to drop sharply.”

Whether this wave of corporate rebranding proves successful remains to be seen. In the end, it is the consumers who will decide.