The Body Shop shouldn’t have failed in an age when consumers want activism from their brands. What happened?

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The Body Shop shouldn’t have ******* in an age when consumers want activism from their brands. What happened?

Credit: Unsplash/CC0 Public Domain

We are in an era of brand activism and conscious consumerism. More than

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expect brands to publicly stand for sociopolitical issues.

And more than

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consider sustainability an important purchasing criterion. Experts also predict a

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in consumer attitudes with sustainability evolving from a “nice-to-have” to a baseline requirement.

In this climate, The Body Shop—promoted as a global beacon of ethical retailing—shouldn’t have *******. However, in February, it entered administration in the

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. The following month, The Body Shop in the

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filed for bankruptcy.

The *********** subsidiary ******** profitable, boasting about 100 stores. But it is

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a “cash flow crisis” with “unsustainable levels of debt” following the collapse of its *** parent company last month.

The Body Shop was once a ground-breaker

Founded by *** businesswoman and human rights activist Anita Roddick in 1976, The Body Shop was a trailblazer of cruelty-free products, fair trade and environmental sustainability.

It was as well known for its advocacy and ethics as its flagship products, including White Musk scent, Dewberry oil and peppermint foot scrub.

The brand helped

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by mobilizing customers to campaign against animal testing in cosmetics.

However, The Body Shop’s trajectory over the last two decades diverges sharply from its founding ethos.

First sold in 2006 for

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to cosmetics and personal care company L’Oreal, the brand was abandoned by many customers because of perceived betrayal of its core values.

In 2017, The Body Shop was bought by Brazilian cosmetics giant Natura for

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, which its CEO Ian Bickley promised would start “a new chapter.” Natura then sold the brand to asset management company Aurelius in 2023, just three months before its *** collapse, for

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.

This signaled significant value decline and raised questions about the viability of the brand worldwide.

Activism fatigue

Countless brands are vying for marketplace positioning based on social and environmental justice. This saturation of ethical messaging leaves consumers

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and they’re likely to tune out.

The most recent

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shows consumer interest in brands engaging in sociopolitical issues is waning.

What was once an extraordinary point-of-difference for The Body Shop is now seen as standard.

The Body Shop has also faced extreme competition. Brands including Aesop, LUSH and Neal’s Yard Remedies emerged as worthy rivals, leveraging credible ethical branding to attract eco-conscious shoppers.

The Body Shop had the advantage of being the first in its field but the ***** to L’Oreal

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. It struggled to recover its founding values and was crowded out by competitors.

Dwindling brand bravery

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shows activism must be backed by

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to be credible in the eyes of consumers. In the past, consumers supported

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with corporate values. We found alignment on its own was not enough.

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considers the greater good, sticks to its core values, defies dominant norms, takes risks to be unconventional and even controversial as a brand and shows resilience to setbacks such as consumer backlash.

When

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, cruelty-free products and ethical business practices were unheard of. It is now challenged by competitors with more ******** claims.

LUSH boldly

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, citing concerning impacts on young consumers’ mental health. Considering potential revenue loss, as social media is the primary way to reach Gen Z, this was a brave move.

Falling short of true transformation

Recent research shows how important it is for brands to be

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. Brands must practice what they preach. The Body Shop originally did this well but consumer skepticism arose after L’Oreal’s acquisition.

L’Oreal has

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but

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rubbed off on The Body Shop.

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must also lead by example on both business and social fronts. The Body Shop did both in the beginning but neither by the end.

Under Roddick’s leadership, The Body Shop transcended mere profit-making and

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. However, it later became part of faceless global conglomerates and private equity firms. While the brand initially served as a catalyst for change to industry and consumption standards, cruelty-free products eventually became

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in the saturated beauty market.

As a commercial business, The Body Shop became

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and ******* to meaningfully engage with a younger demographic.

It missed the mark on evidence-based skincare products, which rely on scientific research and formulations—

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. Consumers have also

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to cheaper options, amidst a cost-of-living crisis, as they must prioritize price over ethical claims made by brands like The Body Shop.

Reclaiming an activist brand heritage

What should The Body Shop and other ethical brands do? The *** business is trading in administration but

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“fully focused on exploring all options to take the business forward.”

Our research offers several possible pathways. The Body Shop needs re-energizing as a brand leader on product innovation, customer connection and social change. For ethical brands, a shared

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is essential to be transformative.

The Body Shop must seek to not only reclaim its position as a leader in sustainability but adapt to survive the struggling retail sector. They could start by rebuilding customer relationships.

The Body Shop has a history of

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. This can continue and it can be more effective in achieving change if it stays relevant and delivers on the brand’s vision long-term.

This means taking risks by adopting innovative and unconventional promotional strategies and updating its messaging to ensure it can attract the next generation of shoppers.

Provided by
The Conversation

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Citation:
The Body Shop shouldn’t have ******* in an age when consumers want activism from their brands. What happened? (2024, March 26)
retrieved 26 March 2024
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