Johnson & Johnson|Focusing on the Beauty of Health and Developing Innovation For the Future

On the first anniversary of his appointment, Wang Yi is leading Johnson & Johnson Consumer Products China to a new era of rapid growth while fierce competition during the post-pandemic market in China. What direction will Wang Yi guide the company?

Technology leads the future

Editor's Note：As the leader of global economic growth, China's beauty market is booming. The market breaking through trillions of dollars in volume will soon become the top in the world. Looking into the future, international beauty giants prepare for the competition while domestic enterprises are following. Whether the big ship proceeds smoothly without a hitch, the helmsman is responsible for an important mission. Qeyes holds a column "CEO on Trends" and we interview CEOs from well-known cosmetic companies at home and abroad to discuss the future increment and trends of the Chinese market.

In December 2020, Wang Yi became the helmsman of Johnson & Johnson Consumer Products China serving as the president of Johnson & Johnson Consumer Products China.

Throughout "the Beauty of Health"

"In recent years, Johnson & Johnson Consumer Products has made significant progress in various lines. As for this year, our brands ranked front in the respective category such as Dr.Ci:Labo, Neutrogena, Listerine and Aveeno on the promotion on June 18th and November 11th." At the starting of the interview, Wang Yi talked about in proud the development of Johnson & Johnson consumer brands in recent years.

Wang Yi said that the demand for health from consumers has rose a new level since the outbreak of the pandemic. Driven by the booming of a self-sufficient economy, Z-Generation also has an increasing demand for beauty. The brand growing against the dilemma of the economic recession as the duration of pandemic can't achieve without the philosophy "the Beauty of Health" that Johnson & Johnson Consumers Products adheres to.

In the fourth China International Import Expo held in November, Johnson & Johnson participated the expo in the theme of "Innovation Contributing to Building Healthy Future" and seven brands such as Dr.Ci:Labo, Neutrogena, Aveeno, Rogaine, Listerine of Johnson & Johnson has brought their innovative products to participate the Expo.

Brands from Johnson & Johnson's consumer brought a variety of products to meet the rapidly changing consumer trends in the Chinese market in terms of many segments such as targeted audience and consumer levels for providing solutions to consumers' needs of "beauty of health". For instance, Aveeno debuted Soothing Relief Oat Gel Water at the Expo designed for the babies' delicate skin during the summer for soothing and moisturizing and Listerine launched a mouthwash especially developed for smokers.

Supported by innovation, Johnson & Johnson consumer products inherit strong scientific genes and provide a full range of health solutions for consumers in addition to niche needs. Taking Listerine as an example, Wang Yi told Qeyes: "Johnson & Johnson is committed to developing solutions that prevent, intercept and treat lung cancer to stop its progression and make the disease of the past. We are committed to advancing smoking cessation education and developing digital solutions through a partnership with the Chinese Association for Tobacco Control (CATC) that promotes smoking cessation education. To advance early detection and diagnosis, we have established a multi-year collaboration with China-based Benchmark Medical (AnchorDx Medical). The collaboration aims to develop non-invasive molecular biomarkers to differentiate lung modules of malignant and benign. The goal is to identify patients in the latent stage of lung cancer and to treat the disease before it progresses. Now, at the forefront, our oral care launched a mouthwash developed specifically for smokers." This is the biggest core competency that sets Johnson & Johnson consumer products apart from other brands."

Therefore, the beauty of health is an inseparable part of Johnson & Johnson Consumer Products. Wang Yi emphasized: "In the future, Johnson & Johnson Consumer Products will firmly use its technology and products, distinctive brand features to meet consumer needs in a more comprehensive and multi-dimensional way."

Accelerating Brand's Construction

There is no doubt that the consumer recognition of Johnson & Johnson consumer brands comes from the huge and strong scientific research strength supported by Johnson & Johnson Group.

But on the other hand, Wang Yi admits that the brand volume of Johnson & Johnson consumer products in the whole group is not outstanding at present.

According to Johnson & Johnson's financial report in 2020, the company's global revenue in 2020 reached $82.6 billion (about 526 billion yuan), of which, the consumer goods segment revenue reached $14.1 billion (about 89.8 billion yuan), accounting for about 17 percent.

Under the premise of good product quality, branding is indispensable to strengthen the connection between brands and consumers and increase market share. Therefore, brand building is likewise one of the key points Wang Yi is most interested in capturing after taking the helm of Johnson & Johnson China Consumer Products.

"Branding is more than simple marketing. The core of the brand building is to gain consumers' recognition and preference. The core of the brand building is to gain consumers' recognition and preference. We should dig deeper into consumers' needs, convey product and brand concepts in the process of communication, and gain recognition by resonating with consumers, rather than attracting consumers by marketing means such as promotion and advertising alone." Wang Yi stressed.

Therefore, in the future, Johnson & Johnson Consumer Products will further focus on the brand building under the advantage of ensuring product power, combining technology, health and beauty to provide consumers with more deep value.

Online Leads Development of Consumer Products

The epidemic has led to a change in the criteria of consumers to choose the product, as well as an unprecedented change in consumer channels.

In Wang Yi's view, going online is the choice of Chinese consumers. "Over the past five years Johnson & Johnson's consumer goods online business has boomed and our entire online presence today is seven times larger than it was five years ago."

Wang Yi said that today's online business has long been less focused on just the Taobao or Jingdong platform as it was a few years ago, but has been entered through new social platforms such as Kwai and TikTok to help consumers more easily learn about products and lead them through the entire consumption process.

"Johnson & Johnson Consumer Products has always focused most on consumer needs. Therefore, my core philosophy since coming to Johnson & Johnson is that building a professional team to understand and meet consumers' needs and proactively forming a deeper connection with them." Wang Yi said, "In the future, the development of Johnson & Johnson's consumer products online will continue to lead the development of the entire business."

With this as a principle, Johnson & Johnson Consumer Products led by Dr.Ci:Labo and guide by its brands such as Neutrogena, Listerine, and Aveeno, has made a "replica" layout on TikTok, Kwai, and Pin Duo Duo. It also became the first batch of foreign companies to layout content e-commerce in this year.

This year, Wang Yi and Johnson & Johnson China consumer products have experienced two important campaigns on June 18th and November 11st and the company has made a great performance in both campaigns. Wang Yi revealed that the overall business of Johnson & Johnson Consumer Products online this year has grown by nearly 45% compared to last year, which will be further expanded and the ratio of Johnson & Johnson Consumer Products online to offline will reach 5:5 next year.

Online is an important engine to accelerate the growth of Johnson & Johnson Consumer Products. But at the same time, the offline segment is still the foundation for Johnson & Johnson Consumer Products' well-being.

"It is an indisputable fact that consumers' offline shopping habits have fundamentally changed after the pandemic." When talking about Johnson & Johnson Consumer Products' offline channel, Wang Yi confessed, "But the development of Johnson & Johnson Consumer Products online has not come at the cost of offline shrinking."

Wang Yi said that consumers today seek a convenient and diversified shopping experience. Thus Johnson & Johnson Consumer Products should put how to use more new ways to serve consumers as a key consideration." For example, many offline partners and customers of Johnson & Johnson have developed their offline business through E Le Ma and Meituan. This year, Johnson & Johnson Consumer Products is also working on a deep digital partnership with Watson's."

In the future, Johnson & Johnson will help offline development by creating differentiated categories, brands, services, and user experiences. It will combine digital technology to facilitate the integration of online and offline further pulling in the relationship between brands and consumers to better meet consumer needs.

China is a pioneer in the digitalization of Johnson & Johnson consumer products

When it comes to the integration of online and offline development, Johnson & Johnson Consumer Products is a pioneer in the field of digitalization.

Wang Yi, who graduated from Sun Yat-sen University in 2001 with a degree in mathematics, has spent nearly 20 years in the consumer products industry and has honed a strong mindset of digital innovation.

"It is undeniable that the development of the entire digital ecology is far ahead of the world in the current environment in China." That's why Wang Yi likens China's digital innovation to a "lighthouse". Johnson & Johnson's digital business model for consumer goods in China provides a standard and model for the entire business of consumer products. "From China to the Asia Pacific to the rest of the world, Johnson & Johnson Consumer Products has made 'digital first' as its core philosophy. Next year, Johnson & Johnson will continue to develop the digital transformation of the entire consumer products business."

Wang Yi introduced that Johnson & Johnson Consumer Products has established a virtuous cycle model centered on consumer needs and empowered business development with data as the core by applying a digital platform. With this model, Johnson & Johnson Consumer Products can better satisfy consumers with personalized products.

In the case of Listerine, for instance, consumer demand for products and services has evolved from large and original in the past to a more segmented and higher quality direction. Johnson & Johnson consumer products customized products reversely relied on the advantages of big data insights and small sample research capabilities for consumer insights. The company cooperated with Tmall Innovation Center in 2018 to accurately control the real oral care needs of Chinese consumers and quickly develop the world's first customized mouthwash for Chinese female consumer groups - "Sakura & Peach Zest". The company also released the first mouthwash Huanlang Mouthwash, especially for smokers. All of this success is created by Johnson & Johnson Consumer Products' effort.

"The Chinese market has always been the most important market for Johnson & Johnson Consumer Products globally. In the future, Johnson & Johnson Consumer Products will bring more innovative technologies and products to China with consumers as the core, digitalization as the bridge, and innovation as the grip. It will also promote China's local innovative technology achievements to the world." Wang Yi said firmly.