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Issue
27 — October 2001 |
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US company Johnson & Johnson was
established in 1886 when Robert Wood Johnson joined forces with his two brothers,
James Wood and Edward Mead Johnson, who had formed a partnership in the previous
year. The company started out in surgical dressings but today its worldwide business
spans three segments: Consumer, Pharmaceutical and Professional. The Consumer
segment's principal products are personal care and hygienic products, including
non-prescription drugs, adult skin and hair care, baby care products, oral care,
first aid products and sanitary protection. Major cosmetic and toiletry brands
include Aveeno skin care, Clean & Clear teen skin care products, Bebe skin
care, Johnson's Baby, Johnson's pH 5.5 skin and hair care products, Neutrogena
skin and hair care, RoC skin care, Penaten and Natusan baby care products, Piz
Buin and Sundown sun care, Reach toothbrushes, and Shower To Shower personal care
products. Johnson & Johnson also produces some prescriptions drugs in the
dermatology field. At the end of the 1999 financial year, Johnson & Johnson
had operations in 51 countries around the world, selling products in more than
175 countries.
Within the cosmetics and toiletries market, Johnson & Johnson's key strength
lies in the baby care, body care and facial skin care categories. In 1999, the
company achieved worldwide sales of $27.5bn, up 14.5% over the previous year.
Consolidated net earnings rose 13.8% year-on-year to reach $4.2bn. Sales through
the company's consumer products division rose 5.2% to $6.9bn and this growth was
attributed to continued strength in its skin care franchise.
According to European Cosmetic Markets data from industry sources, in 1999 Johnson
& Johnson was ranked fourth in the UK mass hand and body care market with
a value share of 5.5%. In Spain the company's Johnson's brand takes a 4% value
share of the mass body lotion/oil category, placing it fourth, and in Italy, its
Neutrogena brand is ranked fourth in the mass hand care market with a 6.5% value
share. In Germany, J&J has three successful brands in the mass hand and body
care market - its Bebe line is ranked second, according to industry sources, with
a 5.5% value share; Penaten takes 2.5% and Fenjal claims 1%. These figures only
track the company's mass market brands. This is slightly misleading too because
there is a great deal of adult usage of Johnson's Baby products, which is not
reflected in these figures as sales of these would automatically be tracked within
the baby care products market. Although the baby care market is not tracked by
European Cosmetic Markets, it is clear that J&J is a dominant force in this
category across Europe.
In US trade magazine Happi's 2000 Top 50 ranking of US manufacturers of household
and personal products and industrial and institutional goods, Johnson & Johnson
was ranked 16th with sales of $1.36bn in those categories.
The Johnson's brand is synonymous with baby care. But it's not just babies and
young children that benefit from the company's gentle formulations. Adult usage
of this range of products is also thought to be extremely high. The Johnson's
Baby range includes wash and bath products, including moisturising variants, moisturising
lotions, oils and creams and even lotions for babies with sensitive skin and with
added UV protection. The line also includes other baby products, including talcum
powder, feeding apparatus and nappy rash treatments.
Johnson & Johnson's Clean & Clear range is aimed at consumers with oily
skin. Johnson & Johnson purchased the line from Revlon in 1991. Cleansing
products in the range include facial washes, cream cleanser and body wash. There
are three astringent products and a moisturiser. Additionally, there are two oil
and shine control items: oil absorbing sheets and shine-control powder. The range
also features some acne treatments, including overnight acne patches and Maximum
Strength Persa-Gel 10 which is formulated with 10% benzoyl peroxide.
In Germany, Johnson & Johnson markets the bebe Young Care line of skin care
products, aimed at young users who want to maintain their skin's good condition.
Products in the range include gentle cleansers, refreshing toners, and a whole
host of moisturising creams and lotions. The bebe Young Care range includes cleansers,
including cleansing wipes, toners, moisturising creams and gels, lip care and
shower and body products.
Johnson & Johnson acquired French
company, RoC from LVMH in 1993. RoC started life as Cosmetique Medicale SA in
1957 when it was founded by Jean-Charles Lissarague. He worked in close collaboration
with dermatologists to create a range of hypo-allergenic skin care formulas which
he sold first through his own pharmacy and then in wider pharmacy distribution.
The company changed its name to RoC in 1968. The new name was derived from Roge
Cavailles, the name of the dermatological dispensary where Lissarague first prepared
the products. RoC's product portfolio spans a wide range of advanced treatments.
In the anti-ageing sector the company offers Retinol Concentre Bi-Actif with alpha-hydroxy
acids and pure vitamin A to reduce the appearance of wrinkles and Chronoblock
Prevention Active to prevent skin ageing by blocking the major factors that contribute
to it. RoC also offers an anti-cellulite treatment, RoC Retinol Concentre Anti-cellulite
which is formulated with retinol, caffeine and ruscus to stimulate cell activity,
break down fatty deposits and stimulate microcirculation.
Neutrogena Corporation was bought by J&J in 1994. It dates back to 1930 when
Emanuel Stolaroff started a small cosmetics company called Natone. In the mid-1950's,
Stolaroff came across an unusual glycerine soap developed by Dr. Edmond Fromont,
a cosmetic chemist. Fromont's patented soap formula produced a particularly mild,
clear soap that rinsed off completely, leaving absolutely no residue. This was
an unusual attribute for a soap and quite unlike the harsh everyday bars that
most people were accustomed to. The soap was to become Neutrogena Facial Cleansing
Bar. By 1962, Neutrogena soap was so synonymous with Natone's image that the company
name was officially changed to the Neutrogena Corporation. Many Neutrogena product
ideas stem from relationships with the medical profession. The company's relationship
with expert dermatologists has helped Neutrogena to understand and respond to
consumers' needs in this field. Today, Neutrogena manufactures and markets a line
of premium products in the area of skin and hair care. Its products fall into
nine categories: facial cleansing, moisture and treatment, acne care, sun care,
hand and body, shower products, hair care and therapeutic hair care. One of Neutrogena's
most innovative products is Neutrogena Healthy Skin® Anti-Wrinkle Cream, which
is said to visibly reduce the signs of sun damage, such as wrinkles, fine lines,
and age spots. The formula contains retinol, the purest form of Vitamin A, to
work deep within the skin's surface where wrinkles develop. Additionally, multi-vitamins
and special moisturisers soften and smooth the skin.
Johnson & Johnson's prescription-only dermatological products include Renova
A (tretinoin cream), heralded as "the only prescription cream proven to reduce
certain clinical signs of photodamage associated with environmental exposure and
the natural ageing process". It is available in two formulations Renova 0.02%
Cream and Renova 0.05% Cream. Both are approved by US drugs administration body,
the FDA. The 0.02% formulation is said to reduce fine facial wrinkles while the
0.05% formulation is said to fade brown ageing spots and smooth roughness, as
well as reducing fine wrinkles. Both formulations contain the active ingredient
tretinoin, a vitamin A derivative identical to one occurring naturally in the
body. There are also two acne treatments, Retin-A (tretinoin) and Retin-A Micro.
Both contain tretinoin and both work by loosening and expelling acne plugs in
the skin and preventing new lesions from forming. However, Retin-A Micro uses
a technology called Microsponge® System, which is said to avoid the problem
of irritation sometimes suffered by users of Retin-A. The Microsponge system enables
the tretinoin in the formulation to be distributed to the skin over a longer period
of time.
| Johnson
& Johnson: Key facts |
Established:
1886
|
| 1999 Sales:
|
$
27.5 bn
|
| 1999 consolidated
net: |
$
4.2 bn
|
Although Johnson & Johnson comes in some way behind the giants like Beiersdorf
and L'Oreal in the European skin care market, its scientific expertise is enviable.
As consumers demand greater results from their skin care products, whether they
are available on prescription, through the pharmacy, in the selective channel
or in the mass market, this technical know-how is sure to be a strong weapon in
the pursuit of market share
Author
Julie Forster
With this company profile Julie Forster, previously editor of European Cosmetic
Markets, concludes her series of market reports for Skin Care Forum. European
Cosmetic Markets focuses on retail trends in the major European markets, providing
in-depth data on the main cosmetics and toiletries categories. Contact: Wilmington
Publishing; email: ecm@wilmington.co.uk.
