Hikoki, Hikoki. Sayonara Hitachi.

[Noel]

“hai‐koh‐key"
No more Hitachi branded tools from this month onwards, brave move:

https://hitachi-powertools.co.uk/media/ ... 20Koki.pdf

 

[large red]

You put your left leg in your left leg out you do the........

 

[Eric The Viking]

So, you spend what's probably tens of millions, over decades, building a brand, and then mess with it, dramatically.

It's a strategy about which, in business school years ago, our tutors just said "DON'T DO IT!". The reasons are pretty obvious, and it usually only happens in big companies, with execs spending other people's money. The generally poor results never seem to put people off doing it though:

(Tool shop counter in two years time)
"Morning mate, I'm after a new router as my trusty old Hitachi has finally died."
"Well, we've got these new Hikoki ones - they're just as good."
"Dunno, never heard of 'em mate. But I see you also have Makita, show me those..."

Final score: Makita 1 : Hikoki 0

I wonder, too, if they've thought about the way the name will be received in various non-Japaneese cultures. For example, it's too easy for it to become "Hickey" in America, where that has connotations of "country bumpkin".

Marketing, in this case brand management, is definitely not rocket science, but evidently too hard for many marketers.

E.

 

[ED65]

I don't know what went through the mind(s) that decided on this, just seems plain stupid to me as Eric's post expresses better than I could.

I agree also that the new name is more subject to possible jokes, but they'll be saved from ridicule in the US as in North America they'll be using the name Metabo HPT . To add an extra layer of "WTF?" though, the original Metabo brand remains so there'll be two lines of Metabo power tools concurrently in the US market :? That's not going cause any confusion, no siree bob .

https://www.businesswire.com/news/home/ ... -HPT-North

The original blah blah blah marketing speak announcement on one of the other global Hitachi sites:

An exciting announcement from the President of Hitachi Koki, Japan:

2017 has ushered an exciting, fresh start for our company. We have committed to accelerate growth alongside a dynamic new partner as we pursue our goal to become a global leader in power tools and life-science instruments. As part of this new chapter, I'm proud to announce that we will change our company name to Koki Holdings in June 2018. And, with great excitement, I'm thrilled to announce that effective October 2018, our current brand "HITACHI" will become a new brand known as "HiKOKI".

Our advance into this new stage of development is, for me, an occasion to reflect upon our prestigious 70-year history. During my tenure, I have grown in my conviction that our company's success rests upon three core pillars: highly innovative technology, high reliability, and strong business growth.

The first of these pillars - highly innovative technology - is the foundation which inspires us in everything we create and deliver for our customers. Our industry-leading technological prowess has been cultivated over the decades thanks to the tireless day-to-day efforts of our predecessors and continues today through all of our current employees. We currently hold over 2,500 patented technologies, many of which have earned prestigious awards around the world. That's why the "Hi" in the "HiKOKI" brand name refers to our "highly innovative technologies."

High reliability is our company's second pillar. Over the past 70 years, we have delivered products which consistently meet the needs of our customers and partners at the point of purchase and over time. We have achieved this by providing globally recognized "Japanese-quality" as well as earnest service, all in pursuit of customer satisfaction and convenience. Our new "HiKOKI" brand name also embodies this commitment to high reliability.

The third pillar supporting our company is strong business growth. We have gained a robust partner in KKR, one of the world's preeminent private equity firms. Partnering with KKR has enabled us to become more aggressive than ever, not only in Japan but also in the global market. We are deepening our organizational and business diversity, as well as expanding our operations through Merger and Aquisition activities. This is all a fundamental driver of our ongoing drive to generate solid growth.

During the 70 years since our establishment in 1948, nine presidents before me have helmed this company. Each of these remarkable leaders have played an important, strategic role in helping us reach our current position. As we embark on this new voyage, and emerge as a global company with its roots in Japan, I am making a heartfelt resolution. I intend to ensure that everyone who works, partners and purchases from Koki Holdings feels fortunate for having done so. I want people to have a deep sense of pride in every interaction with our company - whether as an employee, business partner or end customer. Our employees around the world will welcome change, we will embrace different cultures, and we will all adopt perspectives different from those of the past. And through it all, we will come together as one to bring about future change. This is the promise I am making to myself.

Koki Holdings originated in Japan and has conscientiously pursued the path of manufacturing. Age-old Japanese wisdom has it that to accomplish something important, we must apply heart, technique and physical ability. We will now engage these essential elements of Japan's cultural DNA as we pursue reliability, technology and growth in building a global organization, developing our businesses, and continuing to grow into a truly global company.

November, 2017
Hitachi Koki Co., Ltd.
President & Representative Executive Officer
Osami Maehara

 

[AES]

Thoroughly agree with EtV and ED65. What "tosh"! Clearly the announcement from the Hitachi CEO was NOT written by him but by some Marketing flower arranger.

Eric expressed it very well, but if you want one actual prime example, Douglas was the world leader in transport aircraft (think no further than the DC3, but there are many other very successful designs), and that at a time when Boeing was a small Johnny come lately in transport aircraft.

Purely to serve the power lust and greed of some individuals (Harry Stonecihper, etc), Douglas became McDonnel-Douglas and their designs became "MD X" instead of DC X". Then a few years later? No Douglas or McDonnel Douglas exists any more today, it all belongs to Boeing!!!

Daft, daft, daft!

 

[Sheffield Tony]

Does Hitachi have a good name for tools ? I've had consumer electronic items from them, and they have all been unreliable. A name on my "avoid" list.

 

[Eric The Viking]

You have to take account of these big companies operating separate divisions, which is the level usually at which design and QC are applied.

I will never, ever again buy Bosch white goods because of the quality, but I will consider them for power tools. Similarly, Hitachi make highly regarded construction equipment (excavators, etc.), and most people think their routers are excellent. I doubt the home entertainment divisions have much input into the power tools side.

I don't have any Hitachi kit by the way, but it's not because I dislike them, just never been exposed to the brand much.

 

[Phil Pascoe]

I had a 14.4v and an 18v drill that were brilliant for the price.

 

[Phil Pascoe]

Where I worked had a Bosch 'phone system - they were paying thousands for it long after it had been slung out as useless.

 

[will1983]

Does Hitachi have a good name for tools ? I've had consumer electronic items from them, and they have all been unreliable. A name on my "avoid" list.

I have a number of their cordless tools, drill driver, 16G nail gun, circular saw etc and they are all awesome. I wouldn't buy anything else!

I want to know does this mean all the "new-old" Hitachi branded stuff in stock at all the distributors is now going to be sold off nice and cheap?? If so my credit card better get ready for a hammering!

 

[Vann]

People will adapt.

Nissan cars were Datsun. Now few remember the old name. But Hikoki :shock: :roll: :roll: :roll: Is that Hik-oki or Hi-ko-ki?

I have an Hitachi SCMS - and love it. Bought it in 1994. Had the bearings replaced two months ago.

Cheers, Vann.

 

[Eric The Viking]

I agree, of course they will. But meanwhile Hitachi sees a quite unnecessary dip in revenues, and similarly unnecessary expense doing the rebrand. It remains a silly thing to do

 

[transatlantic]

I have an Hitachi SCMS - and love it. Bought it in 1994. Had the bearings replaced two months ago.

I see this kind of comment a lot, but with all due respect, it doesn't really mean anything. The quality is likely to have gone down hill, as with most other brands. Hell you can buy the same model of something built 5 years ago and there are noticeable cutbacks.

 

[Racers]

Where I work we have had 4 name changes and my department name has changed 3 times.

Pete

 

[John Brown]

You have to take account of these big companies operating separate divisions, which is the level usually at which design and QC are applied.

I will never, ever again buy Bosch white goods because of the quality, but I will consider them for power tools. Similarly, Hitachi make highly regarded construction equipment (excavators, etc.), and most people think their routers are excellent. I doubt the home entertainment divisions have much input into the power tools side.

I don't have any Hitachi kit by the way, but it's not because I dislike them, just never been exposed to the brand much.

Just curious about the white goods. We have a washing machine and a dishwasher by Bosch, and they've been really reliable. Mind you, they are both over tens years old, so maybe the new stuff is dodgy...

 

[Phil Pascoe]

Even Bosch have gone to a sealed drum on their washing machines, which means you dump the machine when the £10 bearing goes.

 

[large red]

Even Bosch have gone to a sealed drum on their washing machines, which means you dump the machine when the £10 bearing goes.

What's a washing machine?

 

[Phil Pascoe]

Ask your husband.

 

[Sideways]

As said above, Metabo and Hitachi powertools were both bought by a venture cap company. These guys aren't in it for our health, they will have a plan to sell these companies on for a profit, they'll already have a list of potential buyers. Playing marketing will be a part of this. So no doubt will be playing with the product range, supply and distribution chains, yada yada. The one thing they most likely won't do is put real money into anything that takes a long time to pay back.

 

[Tasky]

So, you spend what's probably tens of millions, over decades, building a brand, and then mess with it, dramatically.

Marathon, Snickers.
GPO, British Telecom, BT.
BSB, BSkyB, Sky TV.
Oil of Olay, Oil of Ulay.
Jif, Cif.
Charmin, Cushelle.
Dime bar, Daim bar.
Opal Fruits, Starburst.
The world hasn't ended yet....

Thing is, I've already been seeing HiKOKI branded tools in use by normal consumers on YouTube for a good while now, which suggests this is just another alignment of differing names in different markets, like most of my examples above.