• Transform magazine
  • December 14, 2019

Top

When two brands merge

Dixons-Carphone.jpg

A merger is often the catalyst for a new brand positioning.

In the case of the Dixons Retail and Carphone Warehouse merger, it is a case of two quite different retailers coming together with shared goals, but with very separate brands.
A drop in shares for both companies reflects the scepticism that is already surrounding this merger and independent analyst, Louise Cooper, has said, “Two past-their-sell-by-date retailers merging does not an Amazon make.” This wariness places all the more importance on a well-thought out and successful brand implementation.
It has been announced that the merged companies will be named Dixons Carphone, but this is only the start of a difficult process. The unique challenge of a merger (as opposed to an acquisition) is that both companies will feel that their brand hasn’t failed, and that it therefore has a future. Combining the separate company cultures, brand associations and bottom-line performance of two brands as large as these will be a real challenge.
Perhaps the Dixons Carphone name is not the best place to start, it keeps the antiquated associations of the original brand rather than reinventing itself and communicating contemporariness.