Johnson & Johnson has retained its position as the most valuable cosmetics brand despite dropping value by 20 percent over the past year, according to a Brand Finance report.
Despite the company’s value dropping to US$10.1 billion in 2018, J&J retained the top position in the Brand Finance Cosmetics 50 2019 report, followed by Chanel, which having grown 95 percent, has moved up to second place from its previous position at number 6.
David Haigh, CEO of Brand Finance, commented, “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.”
Despite its success, the report stated that Johnson & Johnson’s ongoing talc litigation cannot be ignored, and despite the personal care giant rebranding to target millennial mothers, the group’s outlook is shaky because of the controversy. It gave hope that J&J’s umbrella brands may ‘reignite’ brand value in the following year.
In other report news, SKII, Chanel and Christian Dior were outlined as star performers, all delivering solid performances, while Neutrogena was classed as the world’s strongest brand.
According to the report, “Aside from calculating overall brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Along with the level of revenues, brand strength is a crucial driver of brand value. According to these criteria, Neutrogena is the strongest brand in the Brand Finance Cosmetics 50 2019 ranking, with a Brand rating of AAA.”