THIS WEEK: Outlets play on Orange appeal

Hutchison Telecommunications is to rename itself and open new Orange- branded shops in the run up to the March market flotation, which it announced this week.

Hutchison Telecommunications is to rename itself and open new Orange-

branded shops in the run up to the March market flotation, which it

announced this week.



The move is a recognition that the brand name has now become more

powerful than the company behind it.



As exclusively reported by Marketing (November 23), the two-year-old

telecoms firm is renaming itself after the mobile phone brand. It has

created a holding company called Orange plc, and will use the name

Orange for its stock market flotation.



The Orange name may also be expanded to encompass parent company

Hutchison Whampoa in Hong Kong. The firm is in talks with Wolff Olins,

the UK design firm that created the Orange brand, but has not yet

decided whether to rebrand operations or use the Orange identity.



‘Hutchison is known in the UK and Europe but the Orange brand has proven

really powerful,’ said group managing director Hans Snook.



Snook said Orange would be opening two new shops branded as Orange,

rather than Hutchison. Its retail outlets currently carry a range of

products but the new shops will carry just Orange goods.



It has not yet been decided if the rebranding will stretch to renaming

operations such as its Hutchison Paging business.



‘Orange has terribly high awareness and quite positive perceptions. We

would be silly not to use it,’ commented Hutchison’s group director of

marketing Lisa Gernon.



The move is not expected to affect advertising. Orange will not be

carrying out a branding campaign before its float and has no plans to

change its distinctive Orange square logo.



Analysts welcomed the move. ‘Orange is one of the best brand

developments so far in the 90s,’ said Dewe Rogerson, telecoms analyst

with Nomura.



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