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The Body Shop: Plans to expand in the growing Indian cosmetics market
The Body Shop is a manufacturer and retailer of personal care and cosmetics products. The company classifies its offerings under seven product categories: face care, body care, hair care, make-up, fragrances and gifts. The Body Shop operations spread globally with a presence in over 65 countries and employs 22,000 people. Prior to being acquired by Natura, The Body shop’s sales were declining in the UK, reflecting the UK high street malaise. Results for 2016 show total sales were EUR920.8m ($1.1bn), down from EUR967.2m ($1.14bn) in 2015.
Moreover, competition from an ever increasing number of shops all muscling in on the same territory, from supermarkets to fashion chains has had an adverse effect on The Body Shop. Europe is struggling with debt crisis and the uncertainty surrounding Brexit has deterred many companies who are now looking for growth opportunities in markets such as India. Therefore, expanding to India is a strategic move and the ambition of The Body Shop to roll out new stores appears entirely logical, as a way to achieve critical mass and benefit the economies of scale enjoyed in this market. While The Body Shop brand heritage is strong, it needs to work on its brand perception. The company has embarked on a plethora of promotions and sales in order to keep consumers interested amid declining sales in India.