Interview: New Body Shop boss talks for first time on brand revamp

When The Body Shop was founded in 1976 it had one mission: to bring ethically sourced beauty products to the masses. Now, under its new boss, it is embarking on another – to better communicate that heritage in an increasingly competitive marketplace.

‘Look good, feel good, do good’ is the mantra The Body Shop is driving, appealing to the consumer with a conscience through its ethical-first agenda.

To better communicate this stance to consumers The Body Shop is embarking on an ambitious store revamp programme, launching its ‘pulse’ model across the entire global estate, including its 300 stores in the UK, to re-engage customers and communities. 

The Body Shop general manager for the UK Simon Coble – who joined at the beginning of this year from Japanese fashion retailer Uniqlo where he was UK chief executive – is clearly enthused by the challenge to reconnect shoppers with its distinctive ethos.

In his first big interview since taking the top job Coble outlines his plan. “It’s very important that we clearly state what we stand for and that the message is not confusing,” he explains, describing the new strategy as “very clear, very directional and very relevant to the consumer now”.

Brimming with excitement, Coble sets out the significance of the revamps while walking around the newly refreshed Oxford Street store, which was the first to be given the makeover treatment three weeks ago.

The shop is lighter and brighter than before, with stations in the middle of the store to encourage shoppers to test products, driving its traditional ‘try before you buy’ message even harder. Staff are also trained to “tell the story” behind each product, and the benefits to those communities – from Nepal to Ghana – where ingredients are sourced.

The store refurb came after piloting the model at its Westfield Stratford store last year. Coble says the new store refit aims to reflect a community feel. “What’s very much central to the new format of these stores is how we engage the community,” he says.

Community spirit

The approach chimes with recommendations made by the Portas Review, to which the Government issued its response last week. Coble says the sense of community in store that the Portas Review encouraged has long been found in The Body Shop. “We’ve been doing that for a very long time,” Coble says.

In the new-look stores a community wall allows locals to post notices regarding events and activities. The whole effect, Coble hopes, will “re-engage” consumers with the brand.

“It’s very much about taking the customer around the store on a journey,” he says. They can talk to staff and then experience the product. They then understand the innovation we’ve brought to the product, which means they spend longer in store.

The Body Shop is going back to the ethos created by campaigning entrepreneurs Anita and Gordon Roddick opened a health and beauty store 36 years ago. It’s a return to the message that the beauty retailer cares.

As the business grew, so too did its supply chain. Its ethically sourced goods supported communities in developing countries as well as making products competitive with market-leading beauty retailers. In the 1980s, it pioneered make-up that had not been tested on animals and Anita Roddick, who died in 2007, was a strong human rights campaigner, using the business to support her causes.

The retailer’s brand identity was entrenched in this unique selling point. But in recent years it has struggled with that message as competition intensified and rivals introduced more ethically sourced beauty products and retailers, such as Lush, launching with a similar, fresher offer.

The Body Shop UK brand and values director Sam Thomson says: “I’m delighted we have so many competitors playing in the ethical and natural space because it’s great The Body Shop pioneered that.

“We have always believed in business as a force for good. Competition in that area is wonderful for business and more broadly for the communities they serve and we serve.

“What’s important is that we restate and reignite what makes us unique. It’s that combination of look good, feel good, do good and the fact that it’s not an afterthought; that’s our DNA. There are many beauty companies who do the look-good piece very well, and maybe a bit of feel-good also, and they think ‘Oh dear, we better do some CSR, or sponsor somebody’.

“The fundamental difference with us is that it’s embedded right from the seed of any product idea.”

To help better communicate its ethical credentials, The Body Shop has hired its first brand advocate, supermodel Lily Cole. She will lead a new marketing campaign that will launch “shortly” according to the retailer.

The perils of success

The Body Shop is not just a success in the UK. It has grown internationally as its ethos struck a chord with consumers the world over. Today it has 2,700 stores across 63 countries. Despite its size the retailer had successfully stuck to its ethical stance, but when Body Shop was controversially acquired by French beauty giant L’Oréal in 2006 many loyal customers were alarmed at what influence the French cosmetics giant would have over its strategy.

Coble insists the two operate as “completely separate companies”.  “There’s no merging within the structure,” he maintains.

He says The Body Shop’s ethical foundation has not been compromised as a result of the acquisition. “L’Oréal recognised the importance of this when it acquired Body Shop and it continues to ensure that our role as part of the L’Oréal group is to embody what we believe in as a company, and we continue to talk and influence the board at L’Oréal.”

Under L’Oréal, The Body Shop International has continued to grow. It reported 4.2% like-for-like growth in 2011 and retail sales increased 3.8% to £6.4m after what it called a “militant” approach to innovation. Across the year it introduced Brush with Fashion, a make-up collection created for young consumers, as well as Earth Lovers, a range of eco-designed, 100% biodegradable shower gels.

It has also continued to appeal to shoppers with a conscience, and the retailer believes its campaigns, such as last year’s Stop Sex Trafficking of Children, which changed the law in 15 countries, has helped drive sales.

The retailer does not break down the sales figures by individual markets, so it is not known how the UK business is performing exactly, but it is clear the country where The Body Shop story began is high up the agenda – the traditionally media-shy company kick-started its new strategy with a global media launch in London last month.

Conscience costs

The Body Shop has historically sold its products at mid-range price points, but at a time when consumers may be worrying more about money than their ethical conscience, many other health and beauty retailers are focusing on lower price points or deals to appeal to the cash-strapped.

Superdrug recently launched a Superprices campaign, price matching branded products against high street rivals in a bid to win more price-conscious customers. And Boots also consistently promotes products through three-for-two deals.

But Coble stands by The Body Shop’s price stance. “There is the perception you can get products cheaper elsewhere, but there are very clear reasons why we are where we are in terms of pricing,” says Coble. He points to the quality and provenance of its ingredients, as well as “what good those ingredients do in the communities they come from and the good those products do to you and your skin”.

He says all that needs to be better communicated to customers, “through the stores, through online and through the conversations in-store”.

While Coble’s focus on revamping shops will keep his hands full for the time being, he will continue looking for new store opportunities as well as re-evaluating the portfolio. “Like any other retailer with 300-plus stores you’re going to continue to evolve and develop the portfolio,” he says. The Body Shop opened 15 new stores in the UK last year.

With customer re-engagement driving the retailer’s strategy, multichannel must be a big focus going forward. The Body Shop aims to build group ecommerce sales up to be 20% of the business in the “medium term”, as internet sales surge 40% annually. Currently, online sales make up 12% of revenue in the US and just below that in the UK.

In November, the retailer launched a mobile site, which is “a clear area for growth” according to Thompson, and last year it tried iPads in pilot shops.

The new stores also make use of QR codes to help inform customers about the products and their origins.

“We will continue to develop our multichannel presence. We have a successful ecommerce business and will look to further develop that and the Body Shop at Home.

“Online is not a separate channel, it’s just another way for us to engage with our consumers wherever they want to.

“I don’t want to pin [the technology strategy] down to a specific device or a specific mechanic, it’s about anything that helps bring that whole experience and the service we provide to life,” says Thomson.

Coble adds: “We’re lucky that we have a number of different fronts that we can fight on. It’s very much about making sure in stores and across multichannel we can explain the stories behind these products and get staff and at home consultants fully engaged in the history of the business and where we’re going.”