Suncare in New Zealand: July 2014

A Progressive Digital Media business
MarketLine Industry Profile
Suncare in New
Zealand
July 2014
Reference Code: 0126-0259
Publication Date: July 2014
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
New Zealand - Suncare 0126 - 0259 - 2013
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EXECUTIVE SUMMARY
Market value
The New Zealand suncare market grew by 3.1% in 2013 to reach a value of $13.5 million.
Market value forecast

In 2018, the New Zealand suncare market is forecast to have a value of $16 million, an increase of 18.5% since 2013.
Market volume
The New Zealand suncare market grew by 1.2% in 2013 to reach a volume of 1.8 million units.
Market volume forecast

In 2018, the New Zealand suncare market is forecast to have a volume of 1.9 million units, an increase of 7.6% since
2013.
Category segmentation
Sun protection is the largest segment of the suncare market in New Zealand, accounting for 57% of the market's total
value.
Geography segmentation
New Zealand accounts for 0.5% of the Asia-Pacific suncare market value.
Market share
L'Oreal S.A. is the leading player in the New Zealand suncare market, generating a 30.7% share of the market's value.
Market rivalry
The suncare products market in New Zealand is dominated by leading multinational incumbents. However, rivalry is
eased by the fact that they often diversify operations into other markets.

TABLE OF CONTENTS
Executive Summary ....................................................................................................................................................... 2
Market value............................................................................................................................................................... 2
Market value forecast ................................................................................................................................................. 2
Market volume............................................................................................................................................................ 2
Market volume forecast .............................................................................................................................................. 2
Category segmentation .............................................................................................................................................. 2
Geography segmentation ........................................................................................................................................... 2
Market share .............................................................................................................................................................. 2
Market rivalry.............................................................................................................................................................. 2
Market Overview ............................................................................................................................................................ 7
Market definition ......................................................................................................................................................... 7
Market analysis .......................................................................................................................................................... 7
Market Data ................................................................................................................................................................... 8
Market value............................................................................................................................................................... 8
Market volume............................................................................................................................................................ 9
Market Segmentation ................................................................................................................................................... 10
Category segmentation ............................................................................................................................................ 10
Geography segmentation ......................................................................................................................................... 11
Market share ............................................................................................................................................................ 12
Market distribution .................................................................................................................................................... 13
Market Outlook ............................................................................................................................................................. 14
Market value forecast ............................................................................................................................................... 14
Market volume forecast ............................................................................................................................................ 15
Five Forces Analysis .................................................................................................................................................... 16
Summary .................................................................................................................................................................. 16
Buyer power ............................................................................................................................................................. 17
Supplier power ......................................................................................................................................................... 18
New entrants ............................................................................................................................................................ 19
Threat of substitutes................................................................................................................................................. 20
Degree of rivalry ....................................................................................................................................................... 21
Leading Companies ..................................................................................................................................................... 22

Clarins S.A. .............................................................................................................................................................. 22
Johnson & Johnson.................................................................................................................................................. 23
L'Oreal S.A. .............................................................................................................................................................. 26
Merck & Co., Inc....................................................................................................................................................... 29
Macroeconomic Indicators ........................................................................................................................................... 32
Country Data ............................................................................................................................................................ 32
Appendix ...................................................................................................................................................................... 34
Methodology............................................................................................................................................................. 34
Industry associations ................................................................................................................................................ 35
Related MarketLine research ................................................................................................................................... 35

LIST OF TABLES
Table 1: New Zealand suncare market value: $ million, 2009–13 .................................................................................. 8
Table 2: New Zealand suncare market volume: million units, 2009–13 ......................................................................... 9
Table 3: New Zealand suncare market category segmentation: $ million, 2013 .......................................................... 10
Table 4: New Zealand suncare market geography segmentation: $ million, 2013 ....................................................... 11
Table 5: New Zealand suncare market share: % share, by value, 2013 ...................................................................... 12
Table 6: New Zealand suncare market distribution: % share, by value, 2013 .............................................................. 13
Table 7: New Zealand suncare market value forecast: $ million, 2013–18 .................................................................. 14
Table 8: New Zealand suncare market volume forecast: million units, 2013–18 .......................................................... 15
Table 9: Clarins S.A.: key facts .................................................................................................................................... 22
Table 10: Johnson & Johnson: key facts ...................................................................................................................... 23
Table 11: Johnson & Johnson: key financials ($) ......................................................................................................... 24
Table 12: Johnson & Johnson: key financial ratios ...................................................................................................... 24
Table 13: L'Oreal S.A.: key facts .................................................................................................................................. 26
Table 14: L'Oreal S.A.: key financials ($) ..................................................................................................................... 27
Table 15: L'Oreal S.A.: key financials (€) ..................................................................................................................... 27
Table 16: L'Oreal S.A.: key financial ratios................................................................................................................... 27
Table 17: Merck & Co., Inc.: key facts .......................................................................................................................... 29
Table 18: Merck & Co., Inc.: key financials ($) ............................................................................................................. 30
Table 19: Merck & Co., Inc.: key financial ratios .......................................................................................................... 30
Table 20: New Zealand size of population (million), 2009–13 ...................................................................................... 32
Table 21: New Zealand gdp (constant 2005 prices, $ billion), 2009–13 ....................................................................... 32
Table 22: New Zealand gdp (current prices, $ billion), 2009–13 .................................................................................. 32
Table 23: New Zealand inflation, 2009–13 ................................................................................................................... 33
Table 24: New Zealand consumer price index (absolute), 2009–13 ............................................................................ 33
Table 25: New Zealand exchange rate, 2009–13 ........................................................................................................ 33

LIST OF FIGURES
Figure 1: New Zealand suncare market value: $ million, 2009–13 ................................................................................. 8
Figure 2: New Zealand suncare market volume: million units, 2009–13 ........................................................................ 9
Figure 3: New Zealand suncare market category segmentation: % share, by value, 2013 .......................................... 10
Figure 4: New Zealand suncare market geography segmentation: % share, by value, 2013 ....................................... 11
Figure 5: New Zealand suncare market share: % share, by value, 2013 ..................................................................... 12
Figure 6: New Zealand suncare market distribution: % share, by value, 2013 ............................................................. 13
Figure 7: New Zealand suncare market value forecast: $ million, 2013–18 ................................................................. 14
Figure 8: New Zealand suncare market volume forecast: million units, 2013–18 ........................................................ 15
Figure 9: Forces driving competition in the suncare market in New Zealand, 2013 ..................................................... 16
Figure 10: Drivers of buyer power in the suncare market in New Zealand, 2013 ......................................................... 17
Figure 11: Drivers of supplier power in the suncare market in New Zealand, 2013 ..................................................... 18
Figure 12: Factors influencing the likelihood of new entrants in the suncare market in New Zealand, 2013 ................ 19
Figure 13: Factors influencing the threat of substitutes in the suncare market in New Zealand, 2013 ......................... 20
Figure 14: Drivers of degree of rivalry in the suncare market in New Zealand, 2013 ................................................... 21
Figure 15: Johnson & Johnson: revenues & profitability .............................................................................................. 24
Figure 16: Johnson & Johnson: assets & liabilities ...................................................................................................... 25
Figure 17: L'Oreal S.A.: revenues & profitability ........................................................................................................... 28
Figure 18: L'Oreal S.A.: assets & liabilities................................................................................................................... 28
Figure 19: Merck & Co., Inc.: revenues & profitability .................................................................................................. 30
Figure 20: Merck & Co., Inc.: assets & liabilities .......................................................................................................... 31

MARKET OVERVIEW
Market definition
The suncare market consists of the retail sale of sun protection, after-sun and self-tan products. The market is valued
according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation
of this report have been calculated using constant 2013 annual average exchange rates.
For the purposes of this report, Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia,
New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Market analysis
New Zealand’s suncare market has been growing at a moderate pace over the historical period. This is expected to
continue at a similar rate over the forecast period to 2018.
New Zealand has one of the world's highest rates of skin cancer and UV radiation reaches extreme levels in the summer
months.
The New Zealand suncare market had total revenues of $13.5m in 2013, representing a compound annual growth rate
(CAGR) of 3.4% between 2009 and 2013. In comparison, the Japanese and Chinese markets grew with CAGRs of 2.4%
and 10.2% respectively, over the same period, to reach respective values of $442.5m and $1,169.6m in 2013.
Market consumption volume increased with a CAGR of 2.1% between 2009 and 2013, to reach a total of 1.8 million units
in 2013. The market's volume is expected to rise to 1.9 million units by the end of 2018, representing a CAGR of 1.5% for
the 2013-2018 period.
The sun protection segment was the market's most lucrative in 2013, with total revenues of $7.7m, equivalent to 57% of
the market's overall value. The self-tan segment contributed revenues of $5.3m in 2013, equating to 39.3% of the
market's aggregate value.
The performance of the market is forecast to follow a similar pattern with an anticipated CAGR of 3.5% for the five-year
period 2013 - 2018, which is expected to drive the market to a value of $16.0m by the end of 2018. Comparatively, the
Japanese and Chinese markets will grow with CAGRs of 2.1% and 11% respectively, over the same period, to reach
respective values of $490.0m and $1,969.4m in 2018.

MARKET DATA
Market value
The New Zealand suncare market grew by 3.1% in 2013 to reach a value of $13.5 million.
The compound annual growth rate of the market in the period 2009–13 was 3.4%.
Table 1: New Zealand suncare market value: $ million, 2009–13
Year $ million NZ$ million € million % Growth

2009 11.8 14.4 8.9
2010 12.2 14.9 9.2 3.4%
2011 12.8 15.6 9.6 4.9%
2012 13.1 16.0 9.9 2.3%
2013 13.5 16.5 10.2 3.1%
CAGR: 2009–13 3.4%
SOURCE: MARKETLINE MARKETLINE
Figure 1: New Zealand suncare market value: $ million, 2009–13

Market volume
The New Zealand suncare market grew by 1.2% in 2013 to reach a volume of 1.8 million units.
The compound annual growth rate of the market in the period 2009–13 was 2.1%.
Table 2: New Zealand suncare market volume: million units, 2009–13
Year million units % Growth

2009 1.6
2010 1.7 3.1%
2011 1.7 1.2%
2012 1.8 3.0%
2013 1.8 1.2%
CAGR: 2009–13 2.1%
Figure 2: New Zealand suncare market volume: million units, 2009–13

MARKET SEGMENTATION
Category segmentation
Sun protection is the largest segment of the suncare market in New Zealand, accounting for 57% of the market's total
value.
The Self-tan segment accounts for a further 39.3% of the market.
Table 3: New Zealand suncare market category segmentation: $ million, 2013
Category 2013 %
Sun protection 7.7 57.0%
Self-tan 5.3 39.3%
After-sun 0.5 3.7%
Total 13.5 100%
Figure 3: New Zealand suncare market category segmentation: % share, by value, 2013

Geography segmentation
New Zealand accounts for 0.5% of the Asia-Pacific suncare market value.
China accounts for a further 39.7% of the Asia-Pacific market.
Table 4: New Zealand suncare market geography segmentation: $ million, 2013
Geography 2013 %
China 1,169.6 39.7
Japan 442.5 15.0
Australia 204.9 7.0
New Zealand 13.5 0.5
Rest of Asia-Pacific 1,114.1 37.8
Total 2,944.6 100%
Figure 4: New Zealand suncare market geography segmentation: % share, by value, 2013

Market share
L'Oreal S.A. is the leading player in the New Zealand suncare market, generating a 30.7% share of the market's value.
Johnson & Johnson accounts for a further 17.2% of the market.
Table 5: New Zealand suncare market share: % share, by value, 2013
Company % Share
L'Oreal S.A. 30.7%
Johnson & Johnson 17.2%
Merck & Co., Inc. 16.3%
Clarins S.A. 10.0%
Other 25.9%
Total 100%
Figure 5: New Zealand suncare market share: % share, by value, 2013

Market distribution
Supermarkets / hypermarkets form the leading distribution channel in the New Zealand suncare market, accounting for a
57.1% share of the total market's value.
Pharmacies / drugstores accounts for a further 14.5% of the market.
Table 6: New Zealand suncare market distribution: % share, by value, 2013
Channel % Share
Supermarkets / hypermarkets 57.1%
Pharmacies / drugstores 14.5%
Specialist Retailers 13.2%
Convenience Stores 7.5%
Other 7.7%
Total 100%
Figure 6: New Zealand suncare market distribution: % share, by value, 2013

MARKET OUTLOOK
Market value forecast
In 2018, the New Zealand suncare market is forecast to have a value of $16 million, an increase of 18.5% since 2013.
The compound annual growth rate of the market in the period 2013–18 is predicted to be 3.5%.
Table 7: New Zealand suncare market value forecast: $ million, 2013–18
Year $ million NZ$ million € million % Growth

2013 13.5 16.5 10.2 3.1%
2014 14.0 17.1 10.5 3.7%
2015 14.4 17.6 10.8 2.9%
2016 14.8 18.1 11.1 2.8%
2017 15.4 18.8 11.6 4.1%
2018 16.0 19.5 12.1 3.9%
CAGR: 2013–18 3.5%
Figure 7: New Zealand suncare market value forecast: $ million, 2013–18

Market volume forecast
In 2018, the New Zealand suncare market is forecast to have a volume of 1.9 million units, an increase of 7.6% since
2013.
The compound annual growth rate of the market in the period 2013–18 is predicted to be 1.5%.
Table 8: New Zealand suncare market volume forecast: million units, 2013–18
Year million units % Growth

2013 1.8 1.2%
2014 1.8 1.7%
2015 1.9 1.6%
2016 1.9 1.4%
2017 1.9 1.5%
2018 1.9 1.2%
CAGR: 2013–18 1.5%
Figure 8: New Zealand suncare market volume forecast: million units, 2013–18

FIVE FORCES ANALYSIS
The suncare market will be analyzed taking manufacturers of suncare products as players. The key buyers will be taken
as retailers, and chemical, e.g. avobenzone, manufacturers as the key suppliers.
Summary
Figure 9: Forces driving competition in the suncare market in New Zealand, 2013
The suncare products market in New Zealand is dominated by leading multinational incumbents. However, rivalry is
eased by the fact that they often diversify operations into other markets.
The market includes the presence of international incumbents, such as L'Oreal, Merck, Clarins and Johnson & Johnson.
Together they hold more than 74% of the market by value. These players have a broad portfolio of brands, catering to
different consumer groups and price points.
Larger retailers, such as supermarkets, can negotiate on price with manufacturers, boosting buyer power. Moreover,
switching costs for buyers in the suncare products market are low. However, major market players have established
strong brands that retailers must stock in order to meet customer demand.
Suppliers are mainly chemical manufacturers who must provide high-quality raw materials. Some of them are large
international companies and can exert strong bargaining power.
Some market players have attempted backward integration, establishing their own chemical plants.
The threat of substitutes in this market is rather weak.
Rivalry is intensified by high fixed costs and exit barriers.

Buyer power
Figure 10: Drivers of buyer power in the suncare market in New Zealand, 2013
In the New Zealand suncare market, the main distribution channels are supermarkets and hypermarkets, which have a
57.1% share of the overall sales value.
Large retailers, such as supermarkets, can negotiate on price with manufacturers, boosting buyer power. Retailers often
occupy a position of power in the supply chain, which allows them to negotiate favorable contracts with manufacturers,
thus enhancing buyer power.
The products manufactured by players in the suncare market can be differentiated. For example, products can be
differentiated by protection factor (SPF), after-sun, and self-tan functions. Market players have attempted to differentiate
products further, through such features as spray bottles, built-in insect repellent, and ancillary functions such as
'moisturizing protection', 'firming lotion' and 'tan extender'. Many players also offer children’s ranges. However, overall,
suncare products essentially have very similar functions.
In New Zealand, the largest player in the suncare market is L'Oreal, which is a major international company that has
well-established and popular brands. This weakens buyer power, as retailers must stock popular brands in order to meet
customer demand. To counteract this, many major retailers backwards integrate and stock their own brand of suncare
products.
Overall, buyer power is assessed as moderate.

Supplier power
Figure 11: Drivers of supplier power in the suncare market in New Zealand, 2013
Suppliers to the suncare products market include manufacturers of chemicals, mainly para-aminobenzoic acid,
avobenzone and titanium dioxide. Packaging, such as plastic, is a further input for the suncare manufacturing industry.
The quality of many of the raw materials is highly important. Chemicals used in these products must be of a standard
suitable for manufacturing consumer products. This makes the cost of switching between suppliers relatively high and
increases supplier power.
The production of chemicals used in the manufacture of suncare products is, by nature, a large-scale operation and few
companies are able to supply each specific chemical. Furthermore, some chemicals cannot be substituted, which
increases supplier power.
Additionally, suppliers gain revenues from a wide variety of sources, reducing their dependence on market players.
However, a number of suncare product manufacturers have integrated backwards into producing raw materials required
for the production of suncare products. For example, Kao Corporation and Procter & Gamble have separate business
units which manufacture chemicals.
Overall, supplier power is assessed as moderate.

New entrants
Figure 12: Factors influencing the likelihood of new entrants in the suncare market in New
Zealand, 2013
The growth in the awareness of skin cancer amongst consumers has led to growth in the suncare products market,
making entry attractive to new companies. However, moderate growth in the value of the New Zealand suncare products
market is less enticing than in other countries.
The production of suncare products is, to a large extent, a complex chemical process. This suggests that small-scale
market entry is restricted, as significant capital is required to build large-scale production plants.
Products must be effective and of a high quality in order to meet sun protection standards. In New Zealand, the
Environmental Protection Authority regulates ingredients used in sunscreens. High levels of regulation result in high
upfront costs due to the need to invest in strong research and development capabilities.
Market players are, essentially, offering very similar products, which makes it easier for new entrants to entice buyers
away from incumbents. However, existing companies have established strong brands and often develop chemical
patents, making advanced intellectual property a difficult asset to obtain for new entrants.
Access to distribution channels, such as supermarkets and hypermarkets, can be difficult to achieve. As these retailers
have finite shelf space, new market players must invest in brand building to compete with well-established names.
Overall, the threat of new entrants is moderate.

Threat of substitutes
Figure 13: Factors influencing the threat of substitutes in the suncare market in New Zealand, 2013
Although substitutes, as such, do not ostensibly exist for suncare products, buyers could opt for low quality products, as
opposed to premium suncare products. These products are usually cheaper and the costs of switching are low.
However, it has been found that a number of low quality sun creams offer hardly any protection from UVA and UVB rays.
UV exposure is said to be the most important environmental factor in the development of skin cancer and a primary
factor in the development of lip cancer. Consequently, low quality sun creams are not effective in blocking UV rays,
which means that they offer little protection.
A further substitute may be organic or natural suncare products. The rising awareness of environmental issues, along
with the media and advertising industry's focus on the beneficial effects of natural products, have led to a growth in the
use of organic and natural suncare products. However, these can often be more expensive than regular suncare
products.
Furthermore, whilst natural products do have sun protection value, it is often not as good as that offered by chemical
products. For this reason, organic sun cream is usually of low value, offering less protection from the sun.
Overall, the threat of substitutes is assessed as weak.

Degree of rivalry
Figure 14: Drivers of degree of rivalry in the suncare market in New Zealand, 2013
The New Zealand suncare products market is tending towards concentration, with the top four players accounting for
more than 74% of the total market value. Market players are often large companies with international presence, and
have the ability to compete intensely on price. Furthermore, buyers can usually switch from one player to another without
incurring many costs, increasing the degree of rivalry.
Rivalry is also intensified by the fact that a significant proportion of market players produce mass-market goods, which
implies high fixed costs along with high exit barriers. However, a number of companies in this market, such as L'Oreal
and Johnson & Johnson, also manufacture other personal care items such as haircare products, bath and shower
products and anti-perspirant deodorant products, making them less reliant on sales of suncare products.
Moderate market growth in recent years alleviates rivalry to an extent. Overall, the degree of rivalry in the New Zealand
suncare market is assessed as moderate.

LEADING COMPANIES
Clarins S.A.
Table 9: Clarins S.A.: key facts
Head office: 4 rue Berteaux Dumas, Neuilly-sur-Seine, 92200, FRA

Telephone: 33 1 47 38 12 12
Fax: 33 1 47 38 16 87
Website: www.groupeclarins.com
SOURCE: COMPANY WEBSITE MARKETLINE
Clarins S.A. is engaged in the development, production, and distribution of cosmetic, skincare, makeup, and perfume
products. The company offers face care, makeup and sun protection products. In terms of further suncare, Clarins also
offers after sun and self-tanning products. The company markets its products through spas and authorized retailers in
France and internationally, as well as through its online store.
The Beauty Division includes the Clarins and My Blend brands, as well as the Spa business. All fragrance brands
(Thierry Mugler, Azzaro Parfums) and those that are sub-licensed (Swarovski and Zadig & Voltaire) are grouped under
the Clarins Fragrance Group entity. In certain areas, the group also manages the distribution of other brands. The group
produces its skincare products and perfumes exclusively in France, of which it exports 87% worldwide.
Key Metrics
As a private entity, Clarins is not obliged to release financial statements.

Johnson & Johnson
Table 10: Johnson & Johnson: key facts
One Johnson & Johnson Plaza, New Brunswick, New Jersey 08933,
Head office:
USA
Telephone: 1 732 524 0400
Website: www.jnj.com
Financial year-end: December
Ticker: JNJ
Stock exchange: New York
Johnson & Johnson (J&J or 'the company') is a global provider of diverse health products. It is engaged in the research,
development, manufacture and sale of consumer health care products, pharmaceuticals, medical devices and
diagnostics. The company has more than 275 operating companies. It operates in the Americas (including Canada),
Europe, Asia Pacific (including New Zealand) and Africa.
The company operates through three segments: medical devices and diagnostics, pharmaceuticals, and consumer.
J&J's medical devices and diagnostics segment manufactures and markets products used by physicians, nurses,
therapists, hospitals, diagnostic laboratories and clinics. These include products to treat cardiovascular diseases;
orthopedic and neurological products; blood glucose monitoring and insulin delivery products; general surgery,
biosurgical, and energy products; professional diagnostic products; infection prevention products; and disposable contact
lenses. The company's products are distributed to wholesalers, hospitals and retailers.
The pharmaceutical segment produces and markets products in the following therapeutic areas: anti-infective,
antipsychotic, contraceptive, gastrointestinal, hematology, immunology, infectious diseases, neurology, oncology, pain
management, thrombosis and vaccines. J&J's products are distributed directly to retailers, wholesalers and health care
professionals.
J&J's consumer segment develops, manufactures and markets products for baby care, skincare (including suncare), oral
care, wound care and women's health care. It also offers nutritional and over-the-counter (OTC) pharmaceutical
products. Its major brands include: Aveeno (skincare products); Band-Aid (adhesive bandages); Carefree (panty liners);
Clean & Clear (skincare products for teens); Johnson's baby and adult lines of products; Motrin IB (ibuprofen products);
Johnson's Suncare; Neutrogena (skin and haircare products); RoC (skincare products); Pepcid AC (acid controller);
Listerine and Reach (oral care products); Dabao (moisturizers); Zyrtec (allergy products); Splenda (sweetener); Stayfree
(sanitary protection products); and Tylenol (acetaminophen products). The company sells its products to wholesalers and
directly to independent and chain retail outlets on a global scale.
In November 2013, the company reached a $2.5bn settlement for lawsuits in respect of flawed artificial hip implants, and
was fined $2.2bn for the false marketing of Risperdal, Invega and Natrecor drugs.
Key Metrics
The company recorded revenues of $71,312m in the fiscal year ending December 2013, an increase of 6.1% compared
to fiscal 2012. Its net income was $13,831m in fiscal 2013, compared to a net income of $10,510m in the preceding year.

Table 11: Johnson & Johnson: key financials ($)
$ million 2009 2010 2011 2012 2013

Revenues 61,897.0 61,587.0 65,030.0 67,200.0 71,312.0
Net income (loss) 12,266.0 13,334.0 9,672.0 10,510.3 13,831.0
Total assets 94,682.0 102,908.0 113,644.0 121,347.0 132,683.0
Total liabilities 44,094.0 46,329.0 56,564.0 56,521.0 58,630.0
Employees 115,500 114,000 117,000 127,600 128,100
SOURCE: COMPANY FILINGS MARKETLINE
Table 12: Johnson & Johnson: key financial ratios
Ratio 2009 2010 2011 2012 2013

Profit margin 19.8% 21.7% 14.9% 15.6% 19.4%
Revenue growth (2.9%) (0.5%) 5.6% 3.3% 6.1%
Asset growth 11.5% 8.7% 10.4% 6.8% 9.3%
Liabilities growth 4.0% 5.1% 22.1% (0.1%) 3.7%
Debt/asset ratio 46.6% 45.0% 49.8% 46.6% 44.2%
Return on assets 13.7% 13.5% 8.9% 8.9% 10.9%
Revenue per employee $535,905 $540,237 $555,812 $526,646 $556,690
Profit per employee $106,199 $116,965 $82,667 $82,369 $107,970
Figure 15: Johnson & Johnson: revenues & profitability

Figure 16: Johnson & Johnson: assets & liabilities

L'Oreal S.A.
Table 13: L'Oreal S.A.: key facts
Head office: 41 rue Martre, 92117 Clichy, FRA

Telephone: 33 1 47 56 70 00
Fax: 33 1 47 56 86 42
Local office: 65 Hugo Johnston Drive, Po Box 112-143, Penrose, Auckland, NZL
Website: www.loreal.com
Ticker: OR.PA
Stock exchange: NYSE
L'Oreal is engaged in the production and marketing of a range of perfumes, make-up, hair and skin care products. The
company's products are sold under well-known brands such as L'Oreal Paris, Garnier, Maybelline NewYork,
Softsheen.Carson, Vichy, L'Oreal Professionnel, Kerastase, Redken, Matrix, Inneov, Lancome, Biotherm, Helena
Rubinstein, Kiehl's, Shu Uemura, Giorgio Armani Beauty, Diesel and SkinCeuticals among others. L'Oreal operates in
130 countries worldwide.
The company operates through three business branches: cosmetics, the Body Shop and dermatology.
The cosmetics branch of L'Oreal functions through four operating divisions: professional products, consumer products,
luxury products and active cosmetics.
The professional products division markets hair care products to professional hairdressers, who use or sell these
products in their hair salons. The division comprises various brands including L'Oreal Professionnel, Kerastase, Redken,
Matrix, Pureology, Mizani and Shu Uemura Art of Hair. The company, through its wide range of brands, caters to needs
of different hair care salons, for color, shape and styling, shampoos and common hair care needs.
The consumer products division sells products through mass-market retailing channels (hypermarkets, supermarkets,
drugstores and traditional stores). The consumer products range includes hair care, skin care (including suncare) and
make-up products. Key brands offered by the division include L'Oreal Solar and Sublime suncare, L'Oreal Paris, Garnier,
Maybelline New York, Essie and Softsheen Carson.
The L'Oreal Luxe products division markets skin care, make-up and perfume products through department stores,
cosmetic stores, travel retail outlets, the company's own boutiques, and through e-commerce websites. Major brands in
this division include Lancome, Giorgio Armani, Yves Saint Laurent, Biotherm, Kiehl's, Ralph Lauren, Shu Uemura,
Cacharel, Helena Rubinstein, Diesel, Clarisonic, Urban Decay and Viktor & Rolf.
The active cosmetics division sells dermo-cosmetic skin care products through health channels such as beauty and
health retailers, drugstores and medi-spas, and, in some countries, dermatologists. The brands in this division include
Vichy, La Roche-Posay, Inneov, Roger & Gallet and SkinCeuticals.
The Body Shop branch operates a chain of 2,800 stores in 66 countries, specializing in skin and hair care products made
from natural ingredients. It also distributes its products through a network of exclusive stores, as well as complementary
distribution channels including internet sales and airport shops.
The dermatology branch includes the company's dermatological and pharmaceutical activities. This branch consists of
Galderma Laboratories (a joint venture between L'Oreal and Nestle), which operates in three segments such as
prescription drugs, self-medication products, and aesthetic and corrective solutions.

Key Metrics
The company recorded revenues of $30,500m in the fiscal year ending December 2013, an increase of 2.3% compared
Table 14: L'Oreal S.A.: key financials ($)
$ million 2009 2010 2011 2012 2013

Revenues 23,194.1 25,879.8 27,004.6 29,818.3 30,500.5
Net income (loss) 2,379.1 2,973.1 3,236.9 3,806.7 3,926.9
Total assets 30,918.5 31,918.0 35,660.1 39,201.0 41,547.2
Employees 64,643 66,619 68,886 72,600 77,500
Table 15: L'Oreal S.A.: key financials (€)
€ million 2009 2010 2011 2012 2013

Revenues 17,472.6 19,495.8 20,343.1 22,462.7 22,976.6
Net income (loss) 1,792.2 2,239.7 2,438.4 2,867.7 2,958.2
Total assets 23,291.5 24,044.5 26,863.5 29,530.9 31,298.3
Total liabilities 9,693.2 9,178. 9,236.6 8,605.5 8,655.5
Table 16: L'Oreal S.A.: key financial ratios
Ratio 2009 2010 2011 2012 2013

Profit margin 10.3% 11.5% 12.0% 12.8% 12.9%
Revenue growth (0.4%) 11.6% 4.3% 10.4% 2.3%
Asset growth 6.5% 3.2% 11.7% 9.9% 6.0%
Liabilities growth (3.6%) (5.3%) 0.6% (6.8%) 0.6%
Debt/asset ratio 41.6% 38.2% 34.4% 29.1% 27.7%
Return on assets 7.9% 9.5% 9.6% 10.2% 9.7%

Figure 17: L'Oreal S.A.: revenues & profitability
Figure 18: L'Oreal S.A.: assets & liabilities

Merck & Co., Inc.
Table 17: Merck & Co., Inc.: key facts
Head office: One Merck Drive, Whitehouse Station, New Jersey 08889-0100, USA
Telephone: 1 908 423 1000
Level 3, 109 Carlton Gore Road, Newmarket, Auckland 1023, PO Box
Local office:
99851, 1149, NZL
Telephone: 64 9 523 6000
Website: www.merck.com
Ticker: MRK
Stock exchange: NYSE
Merck & Co. (or 'the company') is a global healthcare company engaged in the research, manufacture and marketing of
pharmaceutical, animal health, consumer health and OTC products and vaccines. The company is known as Merck
Sharp & Dohme (MSD) outside the US and Canada. The company sells its products in more than 140 countries
spanning across the Americas, Asia, Europe and Africa.
In June 2014, Merck and Idenix Pharmaceuticals entered into a definitive agreement under which Merck will acquire
Idenix for $24.50 per share in cash.
The company manages its operations principally on a products basis under one reportable segment: pharmaceutical.
However, the segment is sub divided into four operating segments: pharmaceutical, animal health, consumer care and
alliances.
The pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by
the company or through joint ventures.
The company's human health pharmaceutical products consist of prescription therapeutic and preventive agents for the
treatment of human disorders. Merck & Co.'s vaccine product portfolio comprises preventive pediatric, adolescent and
adult vaccines, primarily administered at physician offices.
The company's clinical pipeline includes candidates in multiple disease areas, including anemia, atherosclerosis, cancer,
diabetes, heart disease, hypertension, infectious diseases, inflammatory/autoimmune diseases, migraine,
neurodegenerative diseases, ophthalmics, osteoporosis, psychiatric diseases, respiratory disease and women's health.
The company's animal health segment is engaged in the discovery, development, manufacture and marketing of animal
health products, including vaccines.
Merck & Co. has consumer health care operations that develop, manufacture and market OTC, foot care and suncare
products in the US and Canada. In May 2014, Merck & Co. entered into a definitive agreement to sell its Merck
Consumer Care (MCC) business to Bayer for $14.2 billion. Under the terms of the agreement, Bayer AG will acquire
Merck's existing OTC business, including the global trademark and prescription rights for Claritin and Afrin.
Key Metrics
The company recorded revenues of $44,033m in the fiscal year ending December 2013, a decrease of 6.8% compared

Table 18: Merck & Co., Inc.: key financials ($)
$ million 2009 2010 2011 2012 2013

Revenues 27,428.3 45,987.0 48,047.0 47,267.0 44,033.0
Net income (loss) 12,899.2 861.0 6,392.0 6,299.0 4,404.0
Total assets 112,089.7 105,781.0 105,128.0 106,132.0 105,645.0
Employees 100,000 100,000 94,000 83,000 76,000
Table 19: Merck & Co., Inc.: key financial ratios
Ratio 2009 2010 2011 2012 2013

Profit margin 47.0% 1.9% 13.3% 13.3% 10.0%
Revenue growth 15.0% 67.7% 4.5% (1.6%) (6.8%)
Asset growth 137.5% (5.6%) (0.6%) 1.0% (0.5%)
Liabilities growth 77.9% (3.2%) (1.6%) 5.2% 5.2%
Debt/asset ratio 45.1% 46.3% 45.8% 47.7% 50.5%
Return on assets 16.2% 0.8% 6.1% 6.0% 4.2%
Figure 19: Merck & Co., Inc.: revenues & profitability

Figure 20: Merck & Co., Inc.: assets & liabilities

MACROECONOMIC INDICATORS
Country Data
Table 20: New Zealand size of population (million), 2009–13
Year Population (million) % Growth

2009 4.3 1.1%
2010 4.4 1.2%
2011 4.4 0.9%
2012 4.4 0.6%
2013 4.5 0.9%
Table 21: New Zealand gdp (constant 2005 prices, $ billion), 2009–13
Year Constant 2005 Prices, $ billion % Growth

2009 116.0 (1.6%)
2010 118.0 1.7%
2011 120.2 1.8%
2012 123.2 2.5%
2013 126.1 2.3%
Table 22: New Zealand gdp (current prices, $ billion), 2009–13
Year Current Prices, $ billion % Growth

2009 118.9 (10.3%)
2010 141.3 18.8%
2011 161.1 14.1%
2012 168.7 4.7%
2013 176.6 4.7%

Table 23: New Zealand inflation, 2009–13
Year Inflation Rate (%)

2009 2.1%
2010 2.3%
2011 4.4%
2012 1.3%
2013 1.0%
Table 24: New Zealand consumer price index (absolute), 2009–13
Year Consumer Price Index (2005 = 100)

2009 112.3
2010 114.9
2011 120.0
2012 121.6
2013 122.8
Table 25: New Zealand exchange rate, 2009–13
Year Exchange rate ($/NZ$) Exchange rate (€/NZ$)

2009 1.5989 2.2233
2010 1.3882 1.8418
2011 1.2645 1.7592
2012 .2352 1.5868
2013 1.2202 1.6205

APPENDIX
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
The Cosmetic, Toiletry, and Fragrance Association
1101 17th Street, NW, Suite 300, Washington D.C. 20036-4702, USA
Tel.: 1 202 3311 770
Fax: 1 202 3311 969
www.ctfa.org
Consumers International Asia Pacific
Lot 5-1 Wisma WIM, No.7 Jalan Abang Haji Openg, Taman Tun Dr Ismail, Kuala Lumpur, 60000, MYS
Tel.: 60 3 7726 1599
Fax: 60 3 7726 8599
www.consumersinternational.org
Cosmetic, Toiletry, and Fragrance Association New Zealand
Private Bag 92-066, Auckland 1030, NZL
Tel.: 64 9 367 0913
Fax: 64 9 367 0914
www.ctfa.org.nz
Related MarketLine research

Industry Profile
Global Suncare
Suncare in Europe
Suncare in Asia-Pacific
Suncare in the United States

MarketLine | John Carpenter House, John Carpenter Street |
London, United Kingdom, EC4Y 0AN
T: +44(0)203 377 3042, F: +44 (0) 870 134 4371
E: reachus@marketline.com

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MarketLine Industry Profile

Reference Code: 0126-0259

Publication Date: July 2014

New Zealand - Suncare 0126 - 0259 - 2013

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

Market volume forecast

New Zealand - Suncare 0126 - 0259 - 2013

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value forecast ................................................................................................................................................. 2

Market volume forecast .............................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market share .............................................................................................................................................................. 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 8

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market share ............................................................................................................................................................ 12

Market distribution .................................................................................................................................................... 13

Market Outlook ............................................................................................................................................................. 14

Market value forecast ............................................................................................................................................... 14

Market volume forecast ............................................................................................................................................ 15

Five Forces Analysis .................................................................................................................................................... 16

Buyer power ............................................................................................................................................................. 17

Supplier power ......................................................................................................................................................... 18

New entrants ............................................................................................................................................................ 19

Degree of rivalry ....................................................................................................................................................... 21

Leading Companies ..................................................................................................................................................... 22

New Zealand - Suncare 0126 - 0259 - 2013

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Johnson & Johnson.................................................................................................................................................. 23

L'Oreal S.A. .............................................................................................................................................................. 26

Merck & Co., Inc....................................................................................................................................................... 29

Macroeconomic Indicators ........................................................................................................................................... 32

Country Data ............................................................................................................................................................ 32

Industry associations ................................................................................................................................................ 35

Related MarketLine research ................................................................................................................................... 35

New Zealand - Suncare 0126 - 0259 - 2013

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Table 9: Clarins S.A.: key facts .................................................................................................................................... 22

Table 10: Johnson & Johnson: key facts ...................................................................................................................... 23

Table 11: Johnson & Johnson: key financials ($) ......................................................................................................... 24

Table 12: Johnson & Johnson: key financial ratios ...................................................................................................... 24

Table 13: L'Oreal S.A.: key facts .................................................................................................................................. 26

Table 14: L'Oreal S.A.: key financials ($) ..................................................................................................................... 27

Table 15: L'Oreal S.A.: key financials (€) ..................................................................................................................... 27

Table 16: L'Oreal S.A.: key financial ratios................................................................................................................... 27

Table 17: Merck & Co., Inc.: key facts .......................................................................................................................... 29

Table 20: New Zealand size of population (million), 2009–13 ...................................................................................... 32

Table 23: New Zealand inflation, 2009–13 ................................................................................................................... 33

Table 25: New Zealand exchange rate, 2009–13 ........................................................................................................ 33

New Zealand - Suncare 0126 - 0259 - 2013

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Figure 15: Johnson & Johnson: revenues & profitability .............................................................................................. 24

Figure 16: Johnson & Johnson: assets & liabilities ...................................................................................................... 25

Figure 17: L'Oreal S.A.: revenues & profitability ........................................................................................................... 28

Figure 18: L'Oreal S.A.: assets & liabilities................................................................................................................... 28

New Zealand - Suncare 0126 - 0259 - 2013