In today’s era, the significance of a brand far surpasses the inherent qualities of its products. Regardless of how outstanding a product may be, people tend to choose brands they are familiar with and trust. Even with high product quality, lacking brand value may hinder success in a competitive market, as people often lack the time to delve into the details of every product.
However, Elon Musk made a disruptive decision by renaming the beloved Twitter to a completely new name, “X,” and changing its logo to a black design, relegating the iconic blue bird logo to history. In contrast to traditional practices that drive brand growth in the market, this decision led to a significant decrease in Twitter’s market value. This article delves into the reasons behind this phenomenon and assesses whether the rebranding will enhance its brand assets.
Risky Reshaping
Brand name and logo serve as the starting point for building brand differentiation. An excellent logo can quickly make consumers remember, accept, and form a positive connection. When changing a brand logo, it’s usually advisable not to completely overhaul it to ensure consumers can still identify the brand’s purpose.
Most brand upgrades are done on the existing foundation, consciously retaining some original elements while injecting new content into the new brand. This approach avoids customer loss, reduces costs associated with new market promotion and education, and strives to make the upgrade process a smooth transition. However, Elon Musk chose a different path, completely overhauling everything from the brand name to the logo, color, visuals, and even the brand’s symbolism. At the same time, there have been no significant changes in software functionality.
This thorough brand transformation may disrupt users’ familiarity and emotional connection to Twitter. Musk’s approach means abandoning existing brand assets, and in this process, the Twitter platform may face risks such as user loss, increased competition, and market uncertainty. This decision may require careful balancing to ensure the brand transformation doesn’t negatively impact the business.
Interweaving Challenges and Risks
In fact, since Elon Musk acquired Twitter for $44 billion in October last year, the platform’s market value has seen a significant decline. Predictions suggest that Twitter’s market value might continue to decrease in the future. Meanwhile, as Twitter is busy reshaping its brand and updating features, Meta launched the Twitter competitor “Threads” and successfully attracted users’ attention ahead of time.
Musk changed his Twitter profile picture to an “X,” attempting to closely intertwine his personal brand with Twitter to enhance brand value. While associating a founder’s personal charm tightly with a brand may work in the initial entrepreneurial stages, for a matured enterprise like Twitter, Musk’s decision not only brought about a transformation in brand image but also faces potential legal and financial risks, which could be the root cause of Twitter’s declining market value.
Conclusion: The Power of Brand Image
For a company and its products, a good brand image undoubtedly aids in marketing, but it’s not solely decisive for a company’s fate. Conversely, a bad brand image might not immediately ruin a business.
Musk’s decision for Twitter’s “transformation” indeed brought about some side effects. This reminds us that brand building shouldn’t solely be dictated by marketing personnel; consumer opinions and experiences should also be prioritized. Musk might have overlooked this aspect in the process, resulting in an unstable brand image.
Perhaps, if Musk can steadfastly face external pressures, create a completely new platform, and mold the brand image into the super app he dreams of, the current situation might undergo a revolutionary change. In the brand-building process, always placing consumer opinions and experiences at the forefront is crucial for ensuring brand success. The evaluation of rebranding needs to consider multiple aspects, including market feedback. This process is crucial for achieving long-term business success, as the value of brand assets is closely linked to the brand image.