Decoding The Body Shop’s India plans amid global change of guards

In March this year, UK-based The Body Shop announced that it was shutting down several of its global businesses. This included its subsidiary operations in the US, nearly half of its stores in the UK and 33 stores in Canada.

The development came after the cosmetics major's buy-out by former Molten Brown chief Charles Denton. He led a consortium, which included French venture capital firm Aurea Group, to rescue the brand from insolvency.

Interestingly, while the company might be battling declining sales in several global markets, its Indian business offers it a glimmer of hope. It has been operating in India since 2006, managed by Delhi-based cosmetic manufacturing firm Quest Retail. The latter also manages other premium beauty brand, including Kiehl’s and direct-to-consumer brand Avon in the country.

With a presence across 1500 cities through its omni-channel network, which includes 200-odd physical stores, The Body Shop is bullish about expanding this footprint further by adding 100 more touchpoints by the coming year. It will also build on its ethical practices, support recycling and commission sustainability, which have always been the brand’s calling card.

In a freewheeling chat with Campaign, Harmeet Singh, chief brand officer, The Body Shop, Asia South and Vishal Chaturvedi, group chief revenue officer, Quest Retail, discuss the global developments, the brand’s current standing in India, omni-channel marketing mix and expansion plans.

Here are edited excerpts from the interview:

How important is the Indian market for The Body Shop in terms of business potential?

Chaturvedi: Our present standing in India reflects a growing business that is key to The Body Shop globally. Since the Indian market is a goldmine of great potential and significant annual growth, we want to grow this business to the best potential in the coming year as there’s a burgeoning demand for ethical, sustainable, and high-quality beauty products.

We have over 200 stores and a delivery presence across numerous pin codes, and are committed to expanding our footprint further and deepening our presence across all the touchpoints. With a reach spanning over 1,500 cities through our robust online presence, Activist Workshop stores, and a remarkable growth in quick commerce, The Body Shop India is strategically positioned for continued growth.  

How does the new acquisition align with Indian operations? What are the changes set to take place post change of guards?

Chaturvedi: With new ownership at the helm, we are looking forward to the energisation of the brand and to reimagining, and recommitting to being the pioneer of ethical beauty the world needs.

The Body Shop in India is a head franchise market and we are immensely excited to work with the new owner to carry on our mission to delight and excite our customers. The Body Shop India welcomes this exciting news. With new ownership at the helm, we are looking forward to tremendous brand energisation and accelerated growth.

Our new owners are a consortium who recognise that The Body Shop’s values-driven, independent spirit isn’t just what makes it beloved by customers, it’s how we became recognised world-wide as a pioneer of ethical beauty. They’re working to help us breathe new life into the aspects of the brand that mean the most to customers, so we can continue to delight and excite people the world over for decades to come.

How are you ensuring that the brand thrives in the country?

Chaturvedi: The Body Shop India is implementing a comprehensive strategy for this, which includes expanding our strong omni-channel presence across touch-points. Localised marketing campaigns that resonate with regional audiences are being executed, highlighting our commitment to ethical and sustainable practices.

Our goal is to educate and engage customers on the importance of sustainability, ethical practices, and responsible consumption through initiatives like full workshop stores, community events, and partnerships with local artisans and organisations. Hence, we engage with local communities through events and partnerships to build strong relationships and foster brand loyalty.

We are enhancing our online shopping experience by implementing quick commerce platforms like Blinkit and Swiggy to ensure faster delivery times. Our improved home delivery services are designed to meet the growing demand for convenience and provide a seamless shopping experience.

Our commitment to environmental sustainability and social responsibility is at the core of our brand. We emphasise ethical sourcing, eco-friendly packaging, and support for various social causes. Our initiatives include reducing our carbon footprint, supporting fair trade practices, and promoting biodiversity. Partnering with organisations like Plastics for Change (PFC) entails over 2,000 waste collectors currently being engaged in our community fair trade partnership.

Doesn’t being available on quick-commerce platforms devalue your brand, which is largely positioned premium?

Chaturvedi: As a brand, we want to touch our consumer across touch-points, and quick-commerce helps make our brand more accessible and convenient. These collaborations are designed to reach customers who appreciate both the convenience of rapid delivery and the quality of our products.

The directions that we undertake prior to onboarding quick-commerce partner are largely around brand alignment and strategic partnerships and ensuring they align with our values and target demographics.

Globally, The Body Shop received lukewarm response to its direct-to-consumer (D2C) initiatives. How is it working for the brand in India?

Chaturvedi: Absolutely! Our D2C offers exclusive offerings with a unique roadmap. Our strategy for the Indian market is multifaceted and focused on sustainable growth, maintaining high ethical standards, and deepening our connection with local communities.

By staying true to our core values and adapting to the evolving needs of our customers, we aim to strengthen our position as a leading ethical and sustainable beauty brand in India.  We plan to expand to 100 more brand touch-points by 2025, concentrating on high-traffic areas like travel retail and beauty specialty segments. We are also prioritising expansion through SIS, as consumers are increasingly seeking multi-brand formats and department stores for a comprehensive shopping experience.

Since sustainability is the company’s core ethos, what initiatives are you undertaking to reiterate this?

Singh: The Body Shop has a strong commitment to sustainability, and over the years, we have implemented a variety of initiatives to advance our environmental and ethical goals.

We prioritise sourcing ingredients from suppliers who adhere to ethical and sustainable practices. Our community trade program supports fair trade and provides fair wages to farmers and artisans. We are also committed to reducing plastic waste by using recycled and recyclable packaging materials. Our goal includes increasing the use of post-consumer recycled plastics and reducing single-use plastic packaging. Our focus is on minimising waste through various initiatives, including packaging redesigns to reduce material usage and implementing recycling programs in our facilities and stores.

The Body Shop has also been a pioneer in the fight against animal testing, advocating for cruelty-free practices and leading campaigns to end animal testing in the beauty industry. We reformulate our products to ensure they are free from harmful chemicals and incorporate more natural, ethically sourced ingredients.

While striving to make a difference through sustainability and using it as your brand USP, how do you combat cut-throat competition in the beauty category?

Chaturvedi: The Body Shop sets itself apart through its long-standing commitment to ethical and sustainable practices, deeply rooted in its brand DNA since its inception in 1976. We are concentrating on unique product offerings using formulations that are now 100% vegan, reflecting our dedication to cruelty-free beauty. Our focus has also been on strategic retail locations and strategic channels that align with consumer needs and preferences. For us, the focus is on the consumer first.

Our unwavering dedication to creating positive change for society and the environment, reflected in initiatives like ‘Return Recycle Return’ (RRR) and the CFT partnerships such as ‘Plastics for Change’, Teddy Exports (a fair-trade export company in Thirumangalam, southern India), etc, has earned the brand a reputation as a pioneer in the industry.

By consistently advocating for sustainable practices, ethical sourcing, and environmental stewardship, we have built trust and credibility with consumers who value authenticity and transparency.

How do you determine the factors that need to be intrinsic to your marketing mix?  

Singh: Our marketing mix is meticulously crafted to blend various channels and strategies, ensuring a seamless and engaging brand experience.  We adopt an omni-channel approach that harmonises physical retail, quick commerce, and digital marketing. This comprehensive strategy allows us to connect with our customers on multiple levels, enhancing both visibility and accessibility while staying true to our core values of sustainability and inclusivity.

Before finalising our marketing mix, we consider several critical factors. First, understanding consumer preferences is paramount. We analyse behaviours and preferences to tailor our strategies effectively, adapting our store designs and marketing campaigns to reflect local tastes and values. For example, our stores are designed to resonate with their local environments—New Delhi's T1D Airport store showcases iconic landmarks, while our Ahmedabad locations feature traditional crafts.

Accessibility and inclusivity are also integral to our strategy. Initiatives like the Braille signage in Mumbai and our commitment to creating safe spaces for marginalised communities highlight our dedication to making shopping experiences accessible for all.

Additionally, our digital and social media presence is crucial. We engage with our audience through interactive posts, influencer partnerships, and innovative campaigns that keep us connected and enhance our online visibility. Finally, sustainability is at the heart of our marketing efforts. We prioritise eco-friendly practices in our packaging and campaigns, reflecting our commitment to ethical and environmental values.