Views on Jaguar’s rebrand have obsessed over the brand issue and not the two other fundamentals, the product and the business. Both are in desperate need of a pivot, with a brand to follow suit.
Jaguar had built a strong legacy of the classic, British luxury car, and the brand and the product range developed iconic status over time. Over the past decade, as both the market and consumers evolved, it quickly became clear that it had relied too heavily on its legacy without enough regard for the future. Despite seeing success with the E-Pace, stiffer competition came in the form of younger, sleeker brands like Tesla which captured the imagination of the next generation of wannabe luxury car owners. Jaguar had an ageing audience and a brand that no matter how great its past, was increasingly struggling for relevance among younger demographics.
There has never been a stronger case for a full pivot in strategy—hence its decision to commit its future to electric vehicles (EVs). Rebranding a business in the same sector is one thing, but a shift to EVs marks a departure from a century-old business model into an entirely new sector. This movement recognises not only the necessity of sustainability as the industry transitions away from fossil fuel usage, but also follows social trends as more and more individuals see EVs not only as a suitable alternative, but as a luxury alternative.
Jaguar is not the first major manufacturer to go through such a drastic rebrand. Skoda’s decision in the early 1990s to keep its brand after Volkswagen’s purchase was also controversial at the time. The industry narrative was that by latching onto the industry behemoth that was VW, Skoda should become another cog in the machine. The difference is that Skoda was still in the same business—it merely changed its brand, not its business modl—and as such it remains a recognisable and competitive player in the European automotive market.
The classic British car brands—the Aston Martins, Land Rovers, and Bentleys of the world—can’t afford to rely on their history to guarantee their future, and the same is true for Jaguar. The modern market is not kind to complacency and while Jaguar’s rebrand may have generated some animated responses initially, the true result won’t be known until the dust has fully settled.
Jaguar is building a new brand, in a new category, in a new era. Today it’s fully electric, tomorrow it will be fully autonomous. In a world where category boundaries will dissolve, its competitive set won’t be just automotive, it will be hospitality, entertainment and financial services. No wonder it’s hardly recognisable—Jaguar is creating a brand ready for a new generation.
Jaguar has shown what it takes to rebuild a brand. It’s been brave enough to ditch its heritage, but it will need to use imagination if it’s to get back on the right path.
The opinions expressed here are those of the author and do not necessarily reflect the positions of Automotive World Ltd
Chris Allinson is a Partner at Yonder Consulting
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