The Promoters/Founders would always want their names to be remembered with the Companies / Brands they founded. Indeed! But that was possible back then in the Conservative Era, wherein only the names mattered! From a boutique Tailor, to Bakery, to a Mechanic etc. all ran on the Goodwill & Reputation Capital of any Surname or Name back then. But today, that runs on the Reputation Capital created by the Name of any Company or Brand!
NOW:
This is true that not all Brands excel! But once they pass a certain litmus test, then their names play an important role for Future M&As; especially in the case, wherein the Company’s Promoters/Founders at some point, have entangled themselves with some serious legal troubles!
I’ll give you some examples of brand names like Nirav Modi, Purdue Pharma etc. For instance, brand name Nirav Modi, once being considered as one of the most famous & reputed brand names in India, further that opened diamond & jewellery stores across World, erecting maybe billions of dollars’ worth business empire! But once, the Promoter / Founder under whose name the brand name itself was created, landed into legal troubles, then, that Brand itself declined, which created more issues, as now, no one even wants to carry forward the Brand Name ahead via Merger or Acquisition, even if some deal is struck! Or until, that brand name only is changed / re-branded altogether!Contrary to this, take another hypothetical example of Kingfisher brand! Now imagine, if the said brand name, when it was Re-launched, had been replaced & renamed like in the above case i.e. now was re-named as Vijay in India, in the late 1970s! And as its Promoter, decades after, landed into legal troubles; YET, the brand name Kingfisher survived, because it didn’t hold its Promoter’s / Founder’s name, which gave an edge to the Brand Name itself to continue its journey!
Dolce & Gabbana, albeit the ruling against them was later overturned by the Higher Court, YET, back then, the brand name slightly suffered a dent, as the brand name itself carried the name of its Founders / Promoters! Same thing happened with the Purdue Pharma.
One would now question me, that most of the companies selling, lets’ say, High End products, they either carry a name, or, surname in their brand! So, my answer to that would be, it worked back then in the Conservative Era wherein the name mattered, BUT, in today’s era and henceforth, if your afresh, then, it won’t work!
The Brands like Gucci, Tata, Hermes, Armani, Louis Vuitton, Godrej etc. already created Family Legacies for Decades or maybe for more than a Century! And further took steps, whatever possible, to maintain the reputation capital of the brand name! Thus, it continued to work since that Conservative era! But if you look further closely on another side, even the Ambanis’ mostly marketed their Brand Name as Reliance, and Not by their Name or Surname.
Even the valuation of TESLA wouldn’t be of a Trillion Dollar, had its name been changed to Elon Musk; AS, a decade back, the Conservatives would’ve avoided buying now rebranded Tesla & its related Products; and after 2022, Liberals and Leftists would’ve avoided owning anything that held the name Elon Musk! Hence, this is the reason, you don’t know when, where, how, and in which direction, the Promoters or Founders or Subsequent Proprietors of any brand, or of any Company, will sail; thence, the name of any new Company or Brand in Today’s World should Not be associated to any name or surname! BTW, in any case, it is difficult to get a trademark or a company’s registration, that carries a name or surname; the reasons, which I’ve already explained in one of my earlier blogs.
Thus, if in case you’re a Startup or landing into a new Venture, then, I would suggest and request, never to start that with your own name or surname, if you’re the Promoter / Founder / Subsequent Proprietors; at least in the Today’s world. Take this example: The Brand Name TRUMP thrives, irrespective of the allegations, for the reasons as I explained above, as the Legacy had already been created, long back!
That’s why every Company carries a different identity, and is considered altogether as a different entity, distinguishing itself from the Proprietorship, Partnerships VS Private / Pubic Limited or LLPs!
And this is also true that more than name, how any company or brand evolves, that matters! Names are secondary!😊
© Pranav Chaturvedi
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