Johnson’s is still the world’s most valuable cosmetics brand ‒ even though its brand value dropped 20 percent to US$14.1 billion in the last year ‒ according to Brand Finance’s latest report.
In the consultancy’s 2019 listing of the world’s most valuable cosmetics brands, Johnson’s is followed by Chanel, whose brand value increased by 95 percent in the last year to reach $11.4 billion and L’Oreal, whose brand value decreased by around 10 percent to total $10.7 billion.
Releasing the report, Brand Finance CEO David Haigh said “growth in the cosmetics market is dependent on a brand fully grasping and meeting the demands of its discerning customer, something which, with the rise of social media and the explosion of vloggers and influencers, is constantly evolving”.
“Whilst pricing, variety, packaging and brand loyalty remain central to repeat business, cosmetics brands which capitalise on their marketing and digital presence, are the ones most likely to prosper.”
Other key findings in Brand Finance’s 2019 report include:
Johnson’s under the microscope
“As cosmetics giant Johnson’s defends its first-place spot and title as the world’s most valuable cosmetics brand, its ongoing talcum powder and asbestos litigation cannot be ignored. While the baby powder is only a small share of the company revenues, the link to the brand image is 100 percent. The share of group revenues fell and Johnsons recognised in early 2018 that they needed to relaunch the brand to appeal to millennial mothers. Overall the group’s revenue outlook is shaky because of the ongoing litigation but the burgeoning group of brands under the Johnson’s umbrella will perhaps reignite the brand value.”
Challenger vs luxury brands
“Across the cosmetics industry, it is now the challenger brands which seem to be grabbing the most attention through their consumer-focus, inclusive mindset and digital marketing campaigns. However, a lot of these smaller brands fit into the e-commerce-only arena as the established cosmetics brands use their weight to keep them smaller challengers out of department stores. However, it seems logical to think that in-store experiences, such as sampling and makeovers, will continue to be important in the customer journey for a while. For mid- to high-end brands to remain relevant and agile, it is important to build an omni-channel presence.”
“Johnson & Johnson owned Neutrogena is the “strongest cosmetics brand” and has therefore been awarded a AAA brand rating. With brand strength and trust becoming inescapably crucial to the success of a cosmetics brand, Neutrogena has over the years managed to retain a very loyal customer base and become known as a trusted skin care brand. Having launched a steady stream of high-quality cleansers, creams and masks, accompanied by targeted campaigns and strategic placement of celebrities or beauty vloggers and influencers in their global marketing activities.”
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