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J&J enters consumer commerce

Consumer Commerce is the term used for all retail operations which are independent of location-based marketing techniques. This involves the expansion of its market area to cover niche customer segments as well as expand its range of products on offer.

These involve several techniques. For example, it can consist of platform-based models of business for B2C engagement, but it might also consist of multinational products or using their existing networks or brand value to reach out to specific consumer segments dealing with specific products, etc. like for local retail chains turning towards online in the post-pandemic world.

No matter how these techniques span out, consumer commerce is the most interesting turn that marketing strategy has been taking recently. As a result of this growth and attractiveness of the segment, all the major players want to get a share of this cake.

The recent entrant into consumer commerce from a traditional retail-based approach has been the medical products giant Johnson and Johnson. They are attempting to do this by splitting the company into two publicly traded companies. One part will be dealing with medical equipment, while the other will be dealing specifically with consumer medical goods.

The consumer brands of the company brought in about 17% of the company’s total revenue, amounting to about 14.1 billion dollars. The new company (yet unnamed) will be tied to 35% over-the-counter drugs and self-care products, 32% beauty products, and 31 % essential health products. These are all segments that are expected to mark high growth.

In that respect, this is a great opportunity for investors to get their hands on this cash cow, given its high potential revenues. Like many other brands which are taking the direct consumer sales or platform root, this new J&J subsidiary shows how consumer commerce is becoming increasingly indispensable in the times to come. With the post-pandemic shocks subsiding, it is expected that online sales will be leveraging the top-line growth. Given this context, this decision may turn out to be a game-changer for the company and, of course, the investors looking to take advantage of this opportunity.


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