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Johnson & Johnson’s Growth Strategy: Expand Emerging Channels

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JNJ’s omnichannel presence strategy

Amid the increasing presence of digital technology, Johnson & Johnson (JNJ) has recognized the need to expand its channel presence for new emerging online sales. It has a sizable presence in the brick-and-mortar channel and is also gaining significant strength in the online sales channel. In 2017, it registered an online sales growth of 50%, which was ahead of the market that had a 30% growth. JNJ is gradually gaining online market share and aims to increase its online business sixfold over the next three years.

Johnson & Johnson has stated that even if consumers shop in brick-and-mortar stores, they often look online first to decide which brands to buy. JNJ is seeing more of its brands being purchased online and is evolving to meet shopper trends.

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Focus on sales fundamentals: Key to online market share gain

Johnson & Johnson is increasingly focused on strengthening its e-commerce business in the changing consumer marketplace. It’s implementing a model called scanner that is focused on excellence in online sales fundamentals, search optimization, and content management.

In China, for example, Johnson & Johnson is gaining significant market share through its online channel. In 2017, 20% of its sales in China were generated online. For its beauty business, China’s online sales were 30% of the country’s total sales and are expected to grow to 35% in 2018.

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