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Johnson & Johnson Looking Pretty with Top Cosmetics Brands

04 May 2018
This article is more than 2 years old.

· Johnson’s tops Brand Finance Cosmetics 50 ranking as sector’s most valuable brand

· Another Johnson & Johnson brand, Neutrogena, is sector’s strongest

· Chanel and Guerlain surge in brand value, entering top 10 as fastest-growing brands

· L’Oréal Paris and Gillette retain second and third rankings on steady growth

· Consumer brand preferences are polarising to global luxury or local artisanal

View the full list of the world’s 50 most valuable cosmetics brands here

Johnson's, the flagship of the Johnson & Johnson brand family, is the world’s most valuable cosmetics brand, according to the latest report by Brand Finance, the world’s leading independent brand valuation and strategy consultancy. Johnson’s brand value has grown by 5% over the last year to US$17.7 billion.

Despite the global cosmetics industry facing some challenges, Johnson’s baby and adult products performed well, especially as consumers are changing their shopping habits to take advantage of new, digital retail channels. Consequently, Johnson’s has been able to use the global scale of their parent company to address various specific customer needs in different parts of the world.

Neutrogena (up 7% to US$6.6 billion) is the fourth most valuable cosmetics brand in the world, jumping ahead of Nivea (down 3% to US$6.5 billion) which fell from 4th place to 5th. Neutrogena is also owned by Johnson & Johnson, and benefits from the global reach of their parent too as it seeks to spread its products to new jurisdictions in the coming years.

Neutrogena is world’s strongest cosmetics brand
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Along with the level of revenues, brand strength is a crucial driver of brand value.

According to these criteria, Neutrogena is the world’s strongest cosmetics brand, earning an elite AAA+ rating, one of just a handful of brands in the world across all industries to achieve such status. Interestingly, one other AAA+ brand is Johnson’s, making Johnson & Johnson one of only two companies in the world (alongside The Walt Disney Company) to own not one, but two brands with an AAA+ brand strength rating. Both Neutrogena and Johnson’s benefit from extraordinary levels of customer trust and respect.

Richard Haigh, Managing Director of Brand Finance, commented:

“The value of the biggest cosmetics brands does not come just from successful marketing campaigns, but rather, they each build upon a deep intimacy with their customers. If you are going to put a product on your skin – or your child’s skin – you want to trust that it will honour its brand commitment to you. In that context, Johnson & Johnson boasts a remarkable achievement to have built a pair of brands with AAA+ brand strength.”

Chanel and Guerlain surge in brand value, entering top ten as fastest growing brands
Chanel (up 36% to US$5.9 billion) and Guerlain (up 67% to US$5.3 billion) both achieved remarkable brand growth over the last year, entering the top 10 of the most valuable cosmetics brands in the world. Chanel jumped five places from 11th to 6th, and Guerlain improved by nine spots from 16th to 7th. Chanel benefits from an exceptionally large social media presence and is recognised as the “most social” luxury brand. It has built the largest following and is delivering on a well-planned content strategy.

L’Oréal Paris and Gillette retain second and third rankings on steady growth
L'Oréal Paris (up 2% to US$8.8 billion) retained its status as the world’s second most valuable cosmetics brand. It is also the strongest cosmetics brand in France, as it improved its perception amongst customers as a trusted luxury label. Shaving brand Gillette (up 6% to US$7.5 billion) retained third ranking, despite a modern trend of artisanal shaving brands marketing razors to a new generation of millennial consumers. These competitors have sought to differentiate themselves by selling razors on a subscription basis, undercutting Gillette’s long-established distribution channels and existing brand equity with customers.

Consumer brand preferences are polarising to global luxury or local artisanal
The big luxury brands are benefiting from changes in the global cosmetics industry which are leading to increasing polarisation amongst brands. While the majority of the premium brands have maintained or grown their brand value, large non-premium brands have fallen, such as Palmolive (down 25% to US$1.8 billion) and Avon (down 47% to US$1.2 billion).

Increasingly, customers are developing an affinity for either the biggest and most premium brands, or, alternatively, various smaller, organic, and local brands. These local brands are each too small to be recorded in a global ranking but are particularly attractive to consumers who are apprehensive of mass-manufactured chemical cosmetics.

View the full Brand Finance Cosmetics 50 2018 report here

ENDS

Note to Editors

Every year, leading valuation and strategy consultancy Brand Finance values the world’s biggest brands. The 50 most valuable cosmetics brands in the world are included in the Brand Finance Cosmetics 50 2018 league table.

Brand value is equal to a net economic benefit that a brand owner would achieve by licensing the brand. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand.

More information about the methodology as well as definitions of key terms are available in the Brand Finance Cosmetics 50 2018 report.

Data compiled for the Brand Finance league tables and reports are provided for the benefit of the media and are not to be used for any commercial or technical purpose without written permission from Brand Finance.

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Konrad Jagodzinski
Konrad Jagodzinski
Communications Director
Brand Finance
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Florina Cormack-Loyd
Florina Cormack-Loyd
Senior Communications Manager
Brand Finance
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