Kushikatsu Tanaka” is now “Unisia”… Reasons and pitfalls of “famous companies” changing their names one after another from familiar ones

Company name changes “three trends

Pentel” is now “Astrum,” “Maruha Nichiro” is now “Umios,” and “Kushikatsu Tanaka Holdings” is now “Unisia Holdings.” ……

A number of well-known companies have changed their company names this year.

Major stationery manufacturer Pentel’s new name “Astrum” means “celestial body” in Latin and matches its stationery business that caters to the intellect and sensibility.

The new company name “Umios” of Maruha Nichiro, a major seafood processing company, is a combination of three words: “umi (sea),” “one (together),” and “solutions. The new corporate name “Unisia” of the restaurant chain “Kushikatsu Tanaka” is a coined word combining “uni” (one) and “sea.

Why do so many companies change their familiar corporate names? According to economic journalist Takashi Matsuzaki, “There have been three main trends among companies changing their company names.

The “three trends” described by Mr. Matsuzaki are as follows

1: Changing from a name that bears the founder’s name to a brand name that is familiar to consumers. A good example of this would be “Matsushita Electric Industrial,” which was started by Konosuke Matsushita and became “Panasonic.

2: Simplification of company names that had become long due to the integration of multiple companies, etc. ‘. The mergers of city banks that were in full swing in the 1990s and ’00s are typical. Mizuho Financial Group,” a reorganization of Dai-Ichi Kangyo Bank, Fuji Bank, and Industrial Bank of Japan, is an easy example.

3: Japanese names in Chinese characters are abbreviated to create familiarity. Nippon Telegraph and Telephone” consolidated many businesses and became “NTT.

The “30-year theory” of corporate life span

Mr. Matsuzaki continues (comments below by Mr. Matsuzaki)

Apart from the above three characteristics, there is a fourth reason for the recent corporate name change. These are globalization and changes in major businesses. For example, the former ‘Kushikatsu Tanaka’ diversified its business and acquired an Italian chain. It has also expanded into the U.S., opening pork cutlet sandwich restaurants. The company may want to change its name to one that is more familiar to the ears of overseas consumers and to revamp its image as a kushikatsu-only restaurant.

Changing the company name gives consumers a fresh impression and sends the message that our company is being reborn. There is a “30-year life expectancy theory” for companies. The idea is that 30 years is the maximum time a company can grow. This year marks 30 years since the mid-1990s, when the bubble economy burst and Japan made a fresh start. The number of company name changes is proof that companies are being asked to make major changes in their businesses due to changing social conditions.

On the other hand, there are also “pitfalls” in changing company names.

Changing a familiar company name entails risk,” he said. To make the new name familiar to consumers, you have to advertise it, which costs a lot of money. Many of you may know that “Nidec” (formerly “Nidec Corporation”) and “Dai-ichi Life Group” (formerly “Dai-ichi Life Holdings”) frequently run commercials announcing their new company names over and over.

In some cases, when the new company name is in a foreign language, consumers may not understand what the company wants to do. Concordia Financial Group,” which was created as a result of the business merger between The Bank of Yokohama and The Bank of East Japan, was renamed “Yokohama Financial Group” because the company name did not catch on. Depending on how the name change is carried out, there is a danger that the ‘familiarity’ of the company name that has been built up until now will simply be discarded, and recognition of the company will drop dramatically.”

Will the successive name changes of prominent companies prove to be a good thing? Consumers will decide the outcome.