Beauty in mind with Amarjit Sahota: COSSMA

The demise of The Body Shop has come as a major surprise. The iconic brand was a trailblazer with its range of natural cosmetics and ethical endeavours. The business has gone into administration with 82 of its 197 UK stores closing. Parts of this international business have already been sold off. Others, like that in France, Belgium and the US have declared bankruptcy.
The Body Shop was one of the first brands to actively campaign against animal-testing methods. It was also one of the first to introduce refillable packaging, something that has become fashionable again recently. It was also one of the first companies to ethically source natural ingredients with its Community Trade (fair trade) initiative in 1987. More recently, it was the first beauty brand to use fairly traded plastics in its packaging. In January this year, it was the first major brand to have all its products certified by the Vegan Society. So what has been responsible for the demise of The Body Shop? Ecovia Intelligence believes it hasn’t been a case of the ethical brand losing its way, but it stood still. The Body Shop was indeed a trailblazer with many of its green initiatives in the 1980s and 1990s. However, the beauty industry has moved on since then. Sustainability is now an integral part of the industry, with cosmetic brands all undertaking some green / ethical initiatives. In short, being ethical was no longer anything special.

"Changing Competitive Landscape"

The competitive landscape has also changed. The Body Shop initially exposed shoppers to novel natural cosmetics, made from raw materials sourced from the far corners of the world. Natural cosmetics are now well-established, with major high street retailers also marketing these products under their private labels.

Competition has also come from rival brands. Lush, another cosmetics retail chain, has taken ethical cosmetics to new levels with its green campaigns and innovative natural products. The UK brand is a pioneer with packaging-free products, selling solid shampoos and naked mascara. About a third of its cosmetic productsare sold without packaging. It operates almost 900 Lush stores in 50 countries; some new store openings are ‘naked’ i.e. all cosmetic products have no packaging. One can argue that Lush took the ethical baton from The Body Shop shortly after its formation in 1995. Changing consumer preferences are another factor. The Body Shop initially offered consumers a unique shopping experience with its novel natural products, essential oils, and ethical gift packs. Natural cosmetics are now mainstream, whilst mass market brands are also communicating their green initiatives. To conclude, the demise of The Body Shop and other ethical brands show how the cosmetics industry has changed. Being green is no longer an exception, but is becoming the norm. Testament to this are large cosmetic firms which are investing heavily in sustainability programmes and embarking on green initiatives. Consumers are also demanding more from ethical brands; they do not just look for natural ingredients, but also consider packaging impacts, carbon footprint, social causes, and related green issues. As competitive stakes rise, ethical brands will need to ensure they stay ahead of the growing green herd.