Johnson & Johnson is losing value because of ongoing asbestos litigation, a report from brand value and consulting agency Brand Finance found.
The agency routinely values the world’s biggest cosmetics brands. And this year’s findings show that Johnson’s, which remains in first place, saw a 20 percent drop in brand value, to $10.1 billion, because of ongoing talcum powder and asbestos litigation. “While the baby powder is only a small share of the company revenues, the link to the brand image is 100 percent,” writes Brand Finance in its report.
Other beauty brands, including SK-II, Chanel and Christian Dior have made their way up, the group said.
SK-II is moving up because of its sales growth, which owner Procter & Gamble has touted on several earnings calls. Chanel Beauty has increased 95 percent, to $11.4 billion, while Christian Dior is ahead 57 percent, to $6.3 billion, Brand Finance found.
Neutrogena is still the world’s “strongest cosmetics brand” the report found.
“The biggest challenge for new cosmetics brands is enticing consumers to trial. Beauty purchases are decisions based on experience, habit and trust. Some feel that this is why the uptake of e-commerce in beauty products has been much slower than in, for example, the apparel sector,” said Brand Finance ceo David Haigh in a statement.
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