The Body Shop: A masterclass in strategic failure

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INTRODUCTION

This week we are going to do something I have never done before. We are going to focus on failure instead of success. Specifically, we are going to focus on how and why the Body Shop went from hero to zero, and the lessons we can learn from it. Ready? Ok, let’s dive right in. Ok, let’s dive in…

#1 START A MOVEMENT

One of the many tools we teach in the STRATLABS course is ‘starting a movement’, in culture. What does this mean and why is it important? Let me explain in a little detail below.

Many are quite happy to follow the status quo, focus only on short-term sales, and never rock the boat. The Body Shop once was not one of those brands. They took a long-term view to brand building and looked to start a movement. A movement that would move their category and the world forward, to a better place.

When the Body Shop opened in 1976 the beauty category was toxic. Beauty brands cared for one thing above all else, profit. They cared little about the damage their products did to the planet, people, or the animals they tested on. And that’s not to mention the long-standing toxic beauty standards they pushed in their communications.  

Anita Roddick, The Body Shop founder, spotted this pattern and realized there was an opportunity to build something better. There was an opportunity to start a movement, that could redefine beauty. One that would build a beauty brand that is better for people, the planet & animals.

#2 ACTIONS, NOT WORDS

Brand purpose gets a bad name these days. Why? Well too often we have seen brands claim to better the world when in reality it is nothing more than purpose washing. These brands love to communicate how they are good for the world but ultimately fail to back it up, with meaningful action. Bud Light’s Dylan Mulvaey & Pepsi’s Kendall Jenner debacle are two great examples of brands talking a big purpose game, but failing to deliver on their promises.

The Body Shop was so successful because it truly delivered on its brand purpose of “We exist to fight for a fairer, more beautiful world”.  It pioneered new, and more ethical, trading standards with suppliers. It ensured those people, often in third-world countries, who supplied the ingredients were treated humanely & compensated fairly. They also constantly innovated, creating a new range of products that were cruelty-free and toxic-free. In short, The Body Shop is an example of how powerful purpose can be, when you back up your words with meaningful action across the whole business.

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#3 LOSING YOUR WAY

The problem with starting a cultural movement is that it takes decades to build and only days to fall apart. This is the very reason we see The Body Shop faces failure today. 

When L’Oreal acquired The Body Shop in 2006, it was in many ways the beginning of the end. The brand began to lose sight of its purpose and increasingly stocked a variety of non-natural and unethical products in the store. All the meaningful action it had once taken away, was slipping away. At the same time, newer brands such as Lush & Sephora had taken over and won the hearts of minds of new consumers. In short, the the movement The Body Shop had started, had moved on. 

In recent years The Body Shop has turned a bit of a corner. When Natura acquired the brand in 2017 they helped the brand to find focus again. They pivoted the brand back to stocking only ethical products, fixed supply chains and even introduced ‘refillables’ to help combat the plastic pollution crisis. However, in truth, it was too little & too late.  You see the problem with cultural movements is once you’ve lost momentum, It can be very hard to recapture it. 

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CONCLUSION

This week we showed how powerful starting a cultural movement can be, but also gave you a warning. If you promise a big purpose but fail to deliver on it, it will very likely fall and the business will fail.

Thanks as always for reading

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Expect big thinking & small typ0s because i'm #MadeByDyslexia 

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Will Poskett

Co-Founder Defiant