Brianne West
June 3, 2024
•
7 min read
The Body Shop was an absolute pioneer in the beauty world. What exactly went wrong?
I was sad, but totally unsurprised by the news the other week of The Body Shop entering administration.
When was the last time you thought about going shopping at The Body Shop? I remember being obsessed with the brand and have particularly fond memories of those little bath oil ball things which were weirdly tempting to eat, but much more enjoyable in the bath.
But I don't think I've bought a body shop product in twenty years. I don't even consider them when thinking about body care products. And yet, I must be their target consumer.
When I think of the brand, I think old-fashioned, nineties, plastic and corporate. I don't think ethical, or sustainable or fair trade - all things they do still champion. And that, in my mind at least, is the crux of the issue.
Whilst sad, especially for the staff who have worked so hard and who look to be losing their jobs, this is an interesting lesson for many of us out there starting and scaling ethical businesses. Because, The Body Shop was once an absolute pioneer in the beauty world, that achieved incredible things, and we can learn a lots from its downfall.
I believe one of the first business books I ever read was Dame Anita Roddick's - Business as Unusual. She founded The Body Shop in 1976 in Brighton, England because she wanted to “make a living for herself and her two daughters while her husband was away travelling”. Oh, but she also wanted to do that while revolutionising the beauty industry with a company that focused on cruelty-free products and ethical business practices, which was pretty unheard of back then.
That idea and the products turned out to be rather popular and at one point the brand was opening two new stores a week at its peak (through franchising). They went public in 1984 and over time the share value increase by 10,944%, which is a pretty breathtaking return.
Eventually, Anita sold the company to L’Oréal in 2006, which I think marks the beginning of the end. The Body Shop was first and foremost known for its commitment to its cruelty-free status, and L'Oreal, er, wasn't, so this ruffled some feathers. Anita (naively, perhaps) considered this a way to change one of the biggest corporates in the world, but it really just resulted in a revolt by many of her customers. One of the brands that seemingly benefited from this was Lush. Lush is another UK-founded beauty brand that is much louder about its values and activism, and much more in tune with its customers (particularly the younger ones) – and they scooped these irritated customers up.
In 2017, Natura & Co acquired The Body Shop, aiming to realign the brand with its founding values. That didn't last too long, because late last year “due to declining sales”, the brand was sold again to Private Equity (PE) fund Aurelius. And now, well it's entering administration. Not an uncommon story amongst brands that are sold to PE funds.
In an incredibly scientific poll, I asked all the Gen Z's and millennials I had access to on social media what words came to mind when they thought of The Body Shop. Out of the scores of responses, two were positive. Doesn't that speak volumes?
So here is where I think they went wrong, and what you can do to avoid making the same mistakes in your business.
Loss of brand identity
As the beauty industry evolved over the last twenty or so years, ethical and natural products have become the norm, making what once set The Body Shop apart, kind of the bare minimum. They didn't have any stand-out values that made their passionate customers continue to back them. They still championed fair trade and their products being free of animal testing, but with the influx of brands like Lush and Dr. Bronners who also championed these ethical practices it didn't really stand out.
If you are the market leader, you cannot rest on your laurels. Keep innovating and pushing for the better. Whether that be your products, your values and ethics, the way your products are available to buy – just keep innovating. In my previous business, this is exactly how we stayed at the forefront of ethical beauty. We started focused on plastic-free packaging, then evolved into everything from being the first hair care company to be certified palm oil free, then we tacked on becoming 'climate positive' (or carbon negative however you want to phrase it) and so on. As we learned more, we added more not only to continue to stand out, but to stand up for what we believed was right and to ensure that our values reflected what we knew our customers cared about. Innovation is key to remaining relevant, and you must evolve your offerings and messaging to maintain your position. The Body Shop never did this, and it shows.
Partnerships
The acquisition by L’Oréal seemingly conflicted with The Body Shop’s ethos. And that ethos was largely what set the company apart. L'Oreal also implemented other changes in operations and profitability, that were prioritised over mission which consumers became aware of with product changes and staff commentary.
The partnership wasn't one that sat well with what the Body Shop was supposed to stand for. Ultimately, that affected the brand, and seemingly wasn't something they could move on from.
Partnerships are an excellent way to grow, and get your brand seen by new audiences. They can also be catastrophic if you choose the wrong partner. In the case of the Body Shop of course I am talking acquisitions (or sales), but in your business, this could be anything from influencer partnerships to collabs or even those group giveaways on social media. Make sure your partners believe in what you believe in.
This is easier said than done of course as what people say and what they do can be two different things, but make sure you approach all partnerships with caution.
Its stores
The Body Shop stores used to be candy land. I drooled over the bath bead melt thingys (I have no idea what they were called), I enjoyed the pic n mix style of products which made me want to spend more time in the store, it was just a fun, colourful, exciting place to be.
Now it's plastic central and over scented corporate boredom.
Six years ago, when my business partner Tristan and I were talking with a big retailer (it rhymes with Fefora) in Singapore, I played with what they called “the never-ending aisle”. If you wanted something and they didn't have it in stock at that store, you could order it and it would be waiting for you when you got home.
The Body Shop’s stores lack personality, interactivity, fun... really any reason to go in there at all. Their stores are (were I suppose as they're closing the majority of them) a huge part of their positioning and brand, so they could really step it up here.
This one might be considered a bit niche, as most brands these days probably don't have their own stores, it's a bit of an outdated model. So, the lesson here is that whatever the key touchpoint for your customer is (probably your website) make sure it properly represents what you do, why you do it, and makes the whole thing compelling, yet simple.
I always wanted a flagship store to do exactly what I am talking about here. Offer touching, smelling, the opportunity to make your own bespoke product, or just hang out and chat sustainability. Okay, my store probably wouldn't have been commercially viable, but it sure would have been a great brand experience.
I am hoping we will one day have an Incrediballs store. Like a T2/Lush hybrid where everything is drinkable and magical. Or at least vending machines.
Antisocial social media
One of the biggest trends right now is nostalgia. The Body Shop is hugely nostalgic for millennials (or so says my unscientific poll). Why didn't they lean into that? Hello.... Barbie?! Now there is a masterclass in marketing and social media.
The Body Shop unfortunately just haven’t made social media click yet. They don't articulate their values well, people aren’t engaged, they haven't managed to build a community. And if you look at their Instagram or TikTok feeds, they are just talking about their products in a salesy way. This isn't their team's fault either – I have no doubt they have a great marketing team. The strategy they're having to work to is the problem.
Social media should be done with the first word in mind. It's about “being social”. Less than 20% of your posts should be about your brand. Or overtly so anyway. You need to build a relationship with your community. Talk to them, learn from them, excite them, make them curious. It's actually not tricky, but it is a more transparent way of marketing which is hard for some companies to get their head around.
Make sure you are being authentic and focused on community above all else. Engagement is what matters; number of followers is largely just an ego number. Authenticity and transparency in communication can build a strong, loyal community around your brand.
Money
It all comes down to money, right? At the end of the day, they ran out of money due to high operational costs and a pricing strategy that sometimes did not work for their customer, or with market trends.
For sure, ethical sourcing and sustainable practices often come with higher costs, so finding a balance between maintaining ethical commitments and competitive pricing can be complex, but it is possible. I do wonder if a much more aggressive focus on profitability caused the prices to be so much higher than what many customers wanted to pay. That, plus the increase in competition, and the fact they don't have an “entry level” range with a lower price point all cause issues when it comes to trying to recruit new customers.
Pricing is hard, but it's obviously rather important. So, if you are pricing a consumer product, ask your consumer! Obviously, you need to start with your costs and what you need to sell it for to ensure it's viable, but then go out and talk to people.
Look at the market, does it fit? Are your customers going to pay that, or is it too expensive? Or the other hand, is it too cheap (perceived value and all that). When you are thinking pricing, you need to think about things like your brand positioning, perception and so on. One of the best things you can do (after talking to your customers of course), is to walk around shops and see what's out there.
So, what would I do to save this brand? I'd close most of the stores and work in existing retailers, like Boots, Target, and Pharmacies. I'd knuckle down into the ethos of a brand trying to make the world a better place – what does that mean to the brand and then I'd hire a bunch of Gen Zer's and figure out how to communicate that to customers doing social media properly. And talking about the customers – I'd figure out who they were and what they wanted... because I'm not sure they do.
And finally, I'd make a really big deal out of an issue in the beauty world (pick one, there's many) and make that my crowning value to fight for. Like ridding the world of animal testing, or corporate greed, or plastic bottles.
Give it to me, I reckon I could give it a good go.
I'd bring back those bath beads too.
