The financial impact of brand clarity (and the cost of confusion)
Brand clarity isn’t another buzzword. When organisations actuate a clear and compelling brand value proposition and reflective identity, they foster deeper connections with stakeholders, enhancing loyalty and engagement. Loyalty translates into advocacy and repeat business, allowing companies and brands to command premium pricing strategies. But what happens when brand clarity is lacking—how much does confusion really cost a business?
A consistent visual and verbal narrative with a constantly substantiated experience mitigates risk by establishing a strong market positioning and differentiating a proposition from competitors. It cultivates trust, which is fundamental for retention. On the other hand, a lack of clarity or inconsistencies can cause significant challenges—stakeholders may feel misguided and disengaged. This hinders sales and can inflate operational expenses as brands struggle to realign or re-establish their messaging.
To harness the full potential of brand strategy, businesses must prioritise clarity and coherence in their communication, ensuring that every touchpoint reflects their core values and mission. By doing so, they will secure increased revenue and build a resilient brand poised for long-term impact in the marketplace.
Why brand clarity matters for the bottom line
Research has shown that consistently presenting a brand across all channels can boost revenue by as much as 23% on average. Organisations with muddled or inconsistent branding leave significant potential revenue on the table.
When customers aren’t sure what a company stands for or confuse it with others, brand perception uncertainty carries real financial risks. People tend to align with brands that reflect their values and deliver an explicit promise, and 75% of shoppers have stopped buying from a brand over conflicting values or messaging, demonstrating how misaligned or unclear brand identity directly translates into lost sales.
The global cost of unclear messaging
Poor communication and unclear messaging cost businesses billions annually. This isn’t just anecdotal—data backs it up:
A widely cited analysis by Holmes Report found that employee misunderstanding and miscommunication cost an estimated $37 billion annually among 400 large companies in the US and UK, averaging $62.4 million per company per year in lost productivity and mistakes.
More recent research by The Harris Poll and Grammarly found an even more significant impact: roughly $1.2 trillion in annual losses among US businesses due to poor communication—equating to about $12,500 per employee.
According to a study of over 200 organisations by Lucidpress, companies with brand consistency issues could increase revenue by an average of 23% simply by presenting a unified, clear brand. Other analyses have pegged this potential revenue upside even higher—up to 33% in some cases.
Unclear brand messaging isn’t just a communication problem—it’s a quantifiable business cost. Whether through inefficient marketing spend, lost sales opportunities, or diminished loyalty, brand confusion creates a financial drag on companies across industries.
Notable insights from across industries and geographies
Every industry that relies on trust and understanding—that is, every industry—can suffer financially from brand perception issues. Below, we examine case studies across various sectors, highlighting the events and their impacts on brand perception and financial performance.
Consumer goods and retail
Almarai’s packaging redesign backlash (2019)
Almarai, one of the Middle East’s largest dairy brands, faced criticism when its packaging redesign drew unintended comparisons to Durex, a condom brand. The similarity led to consumer confusion and negative feedback, prompting discussions about the importance of distinctive packaging in maintaining brand identity. 
Mitsubishi Pajero discontinuation confusion (2021)
Mitsubishi announced the discontinuation of its iconic Pajero SUV in 2021 due to declining demand and financial challenges. The decision led to consumer uncertainty and speculation about the brand’s future offerings in the SUV segment, highlighting the need for clear communication during product phase-outs. 
Technology and media
Huawei’s geopolitical brand perception challenge (2018–present)
Huawei’s global expansion has been hindered by allegations of security risks associated with its telecom infrastructure. A lack of clear messaging and inconsistent responses from leadership led to confusion, bans in multiple countries, and a decline in international sales despite its strong product offerings.
WeChat’s global branding struggle (2010s–present)
While WeChat dominates China’s social and payment ecosystem, its unclear positioning in international markets has hindered adoption. Without a well-defined message for Western audiences, it failed to gain traction beyond its home market.
Automotive
Jaguar’s radical rebranding backlash (2024)
In late 2024, Jaguar unveiled a bold rebranding campaign featuring vibrant colours and avant-garde imagery, notably omitting the cars. This departure from the brand’s traditional image led to public confusion and criticism, with some accusing the brand of abandoning its heritage. The campaign’s focus on fashion over automobiles alienated loyal customers, highlighting the risks of straying too far from core brand identity.
Nissan’s leadership crisis and brand trust (2018)
The arrest of former CEO Carlos Ghosn for financial misconduct led to a leadership vacuum, unclear messaging, and trust erosion in key markets. As consumers feared its stability, Nissan’s sales dipped globally, particularly in the Middle East and Asia.
Toyota’s unintended acceleration crisis (2009–2011)
Toyota’s delayed response to widespread reports of unintended acceleration led to customer distrust and billions in recall-related expenses. The lack of immediate clarity in communication amplified the financial and reputational damage.
Financial services
Abrdn’s vowel-less rebranding (2021–2025)
In 2021, Standard Life Aberdeen rebranded to ‘Abrdn’, a move intended to modernise the brand. However, omitting vowels led to widespread public ridicule and confusion, with many struggling to pronounce or recognise the new name. This misstep necessitated a reversal in 2025, reverting to ‘Aberdeen’ to restore brand clarity and credibility.
HSBC’s restructuring (2024–present)
In October 2024, HSBC initiated a significant restructuring, simplifying its global operations by consolidating five regions into two: “eastern markets” and “western markets”. This change aimed to streamline governance and enhance efficiency. However, these broad labels led to unintended interpretations, including speculation about a potential east-west split and internal concerns over appropriateness amidst geopolitical tensions. Consequently, HSBC renamed the divisions “Asia and the Middle East” and “Europe and Americas” to provide more unambiguous regional designations.
Brooks Macdonald’s colour palette misstep (2024)
Wealth management firm Brooks Macdonald introduced a new colour scheme of coral, lavender, and mint green in a 2024 rebranding effort. Clients and internal stakeholders found the new colours hard to read and not print-friendly, leading to negative feedback. The firm quickly reverted to its traditional blue and grey palette to maintain brand clarity and client trust.
Goldfish’s puzzling name change (2024)
After 66 years, the popular snack brand Goldfish changed its name to ‘Chilean Sea Bass Crackers’ in 2024, aiming to appeal to a more mature audience. The rebrand was met with confusion and scepticism, with many consumers questioning the necessity and logic behind the change. The backlash underscored the importance of aligning rebranding efforts with consumer expectations and brand heritage.
Wirecard’s financial fraud scandal (2020)
Wirecard, a fintech leader with operations in the UAE and Asia, collapsed after revelations of massive accounting fraud. The company’s misleading statements about its financial health resulted in a €20 billion market value loss, serving as a warning about the cost of brand deception.
The bottom line: clarity pays, confusion costs
These cases underscore the critical importance of maintaining brand clarity. Misguided or poorly executed branding efforts can lead to public ridicule, customer alienation, and financial losses. To avoid such pitfalls, it is essential to ensure that any brand evolution aligns with core values and meets customer expectations.
The evidence from consumer goods to tech to finance is overwhelming: brand confusion and unclear messaging lead to significant financial losses. These losses may take the form of immediate hits to sales, wasted marketing expenditures, or long-term erosion of brand equity, dragging on future profits.
Conversely, investing in brand clarity and consistency can yield measurable financial rewards. Companies with clearly defined philosophy, brand positioning, and messaging tend to outperform, enjoying higher sales growth and superior stock returns. In practical terms, this means that investments in brand consistency return multiples in revenue—whereas neglecting brand clarity taxes a business’s performance year after year.
The imperative of brand clarity
Brand clarity is not just a strategic advantage; it’s essential for sustainable success. A clear and consistent brand ensures that your audience understands your purpose, values, and offerings, fostering trust and loyalty. Conversely, ambiguity can lead to confusion, eroding credibility and impacting the bottom line.
At Firstwater, we specialise in aligning your brand with your core values and strategic goals. Our Brand Clarity Assessment (BCA) leverages AI-powered, expert-led insights to uncover hidden gaps, align teams, and empower you to make informed decisions swiftly. By evaluating six key indicators, the BCA provides a comprehensive understanding of your brand’s current position and areas for enhancement.
Embark on a journey towards brand excellence with Firstwater’s Brand Clarity Assessment, and ensure your business stands out by resonating with all stakeholders.
Sources (verified)
Lucidpress/Demand Metric “Impact of Brand Consistency” study – cited via Rebrandly blog (23% revenue boost from consistent branding) and ASI (Promogram) news (23% average, up to 33% potential revenue increase) https://www.lucidpress.com/pages/resources/report/the-impact-of-brand-consistency;
Forbes (via Litmus Branding) on brand consistency and recognition https://www.forbes.com/sites/gabrielshaoolian/2018/08/10/10-marketing-web-design-branding-statistics-to-help-you-prioritize-business-growth-initiatives;
Harris Poll (Google Cloud) on consumer values alignment – Consumer Goods Technology report (82% want aligned values; 75% parted ways over conflict) https://consumergoods.com/new-research-shows-consumers-more-interested-brands-values-ever;
Exotel blog referencing Harris Poll (82% prefer brands aligning with values; 75% would stop buying if values conflict) https://exotel.com/blog/ways-to-create-a-consistent-cx-across-different-channels/;
Holmes Report / PRovoke Media on cost of employee misunderstanding ($37 billion across 400 companies) https://www.provokemedia.com/latest/article/the-cost-of-poor-communications;
SHRM article citing David Grossman’s “Cost of Poor Communications” (loss of $62.4M per company for 100K-employee firms) https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/cost-poor-communication.aspx;
Grammarly–Harris Poll “State of Business Communication” (estimated $1.2 trillion annual loss for US businesses from poor communication) https://www.businesswire.com/news/home/20220125005525/en/Grammarly-and-Harris-Poll-Research-Estimates-U.S.-Businesses-Lose-1.2-Trillion-Annually-to-Poor-Communication#:~:text=reaching%20impacts%20of%20poor%20workplace,businesses%20due%20to%20ineffective%20communication;
Brandsynario news on Almarai packaging controversy (social media uproar over redesign, 2022);
Reddit/Dubizzle summary on Mitsubishi Pajero discontinuation confusion (Pajero production ended by 2022) https://www.dubizzle.com/blog/cars/mitsubishi-pajero-discontinued/#:~:text=Mitsubishi%20Pajero%20Discontinued%3A%20Final%20Edition,longer%20be%20available%20after%202022;
CFR Backgrounder on Huawei (global 5G bans) and revenue drop (23% down from 2019 to 2021);
TechInAsia via LowyInstitute reference on WeChat’s failed global expansion (“global expansion has been a disaster… largely ignored outside China”);
Proxinvest report on Renault-Nissan governance crisis (Ghosn scandal impact on reputation and value);
Reuters/MIT Sloan (overview of Toyota 2009-2010 recall scale – 10 million+ vehicles, widespread publicity) https://www.ineak.com/toyotas-crisis-management-in-product-recalls/#:~:text=Toyota%27s%20Crisis%20Management%20in%20Product,floor%20mats%2C%20and%20braking%20systems / https://sloanreview.mit.edu/article/what-really-happened-to-toyota/#:~:text=What%20Really%20Happened%20to%20Toyota%3F,vehicles%20in%20the%20United%20States;
FinTech Futures on Wirecard (2020 fraud, Dubai’s Al Alam as key partner, liquidation) https://www.fintechfutures.com/2020/05/al-alam-enters-liquidation-following-kpmgs-wirecard-audit/#:~:text=Al%20Alam%20was%20a%20Dubai,to%20which%20Wirecard%20referred%20customers / https://www.fintechfutures.com/2020/05/al-alam-enters-liquidation-following-kpmgs-wirecard-audit/#:~:text=It%20dissolved%20itself%20on%202,to%20another%20unit%20in%20Dubai;
Academic case study (Academy of Strategic Management Journal) on Islamic bank rebranding (Noor Bank dropping “Islamic”, mentions of Dubai Islamic Bank and others) https://www.abacademies.org/articles/uae-islamic-banks-debranding--rebranding-a-case-study.pdf#:~:text=involving%20Noor%20bank%20was%20straightforward,but%20only%20for%20its;
Euromoney article on Dubai Islamic Bank (post-2010 strategy shift, retail vs wholesale mix, profit figures) https://www.euromoney.com/article/b12kjvffjf5j75/united-arab-emirates-dubai-islamic-bank-puts-the-past-behind-it#:~:text=The%20bank%20has%20increased%20its,he%20says / https://www.euromoney.com/article/b12kjvffjf5j75/united-arab-emirates-dubai-islamic-bank-puts-the-past-behind-it#:~:text=party%20structured%20products%20and%20takaful,Islamic%20insurance;
Xinhua/China Daily on Malaysia Airlines 2014 twin tragedies (unprecedented impact, financial losses reported) https://www.chinadaily.com.cn/world/2014-12/21/content_19136162_2.htm#:~:text=The%20two%20MAS%20disasters%20dealt,made%20a%20year%20ago / https://www.chinadaily.com.cn/world/2014-12/21/content_19136162_2.htm#:~:text=As%20an%20aviation%20analyst%20at,the%20slash%20of%20its%20workforce;
Ronn Torossian Update on Saudi tourism campaign (Vision 2030, 100 million visitors goal, new image campaign) https://ronntorossianupdate.com/saudi-arabias-publicity-tourism-campaign-transforming-a-nations-image-and-the-future-of-travel#:~:text=a%20welcoming%20attitude%20toward%20global,visitors / https://ronntorossianupdate.com/saudi-arabias-publicity-tourism-campaign-transforming-a-nations-image-and-the-future-of-travel#:~:text=traveler%20types;
PR Newswire/Moodie Davitt on Saudi Tourism Authority (“This Land is Calling” campaign launch) https://skift.com/2024/08/28/five-years-since-opening-for-tourism-saudi-says-it-is-a-destination-for-all-in-new-campaign/#:~:text=Five%20Years%20Since%20Opening%20for,%C2%B7%20The / https://moodiedavittreport.com/this-land-is-calling-saudi-tourism-launches-campaign-to-further-boost-visitor-numbers/#:~:text=%27This%20Land%20is%20Calling%27%20%E2%80%93,aimed%20at%20boosting%20tourist%20numbers;
HSBC renames ‘eastern’ and ‘western’ businesses months after creating them https://www.ft.com/content/42b83130-d94a-461a-a514-97df9f0b1bed;
UK asset manager Abrdn renames itself Aberdeen https://www.ft.com/content/06b01a4d-ffc2-4f08-bc43-eeffd94e4d18.
