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The Body Shop
The Body Shop is a global brand marketing naturally-inspired luxury toiletries, cosmetics, gifting and grooming. Operating in the “mass-tige” segment of the beauty market, The Body Shop serves mainly female consumers in the upper and middle income markets. Products are priced well below premium brands but the international status enables the brand to attract aspirational customers.
Review of the year
The Body Shop delivered credible sales growth of 8.7% in an environment of slower discretionary spending. The performance was driven by successful store openings and increasing product innovation in the second half of the year.
Product categories which gained market share were bath and body, fragrances, men’s grooming and well-being, largely attributable to exciting new product ranges. Slower growth was experienced in skincare, make-up and gifting, primarily due to limited product innovation.
The brand continues to enjoy a loyal following owing to its heritage as the original “green” brand with a social conscience. Natural, organic and eco-friendly beauty products are gaining popularity in South Africa and as the market leader in this area The Body Shop is well positioned to capitalise on this trend.
The “Love Your Body” loyalty programme was relaunched early in the year with an enhanced social responsibility component, in line with the brand’s key values.
During the year 24 000 new “Love Your Body” cards were sold and the programme now accounts for around 23% of sales. The database of members exceeds 80 000. The average basket size of loyalty cardholders continues to be more than 50% higher than non-cardholders. The membership base is highly responsive to promotional offers and the launch of a website during the year has enabled the business to communicate more effectively with loyal customers.
The store base was increased to 38 with the opening of new stores in Fourways, Bedfordview and The Grove. The store in Fourways has exceeded expectations and ranks in the top 10 stores after trading for less than a year.
Following the supply problems experienced in the previous financial year, stock availability levels were restored and improved to 96% in stores.
Focus for 2010
The Body Shop continues to be a destination for gifting, with increased ranges and more appropriate offerings for South Africa providing opportunities to expand this category in the year ahead.
Gifting will be featured throughout the year rather than at specific promotional periods to maximise all gifting occasions.
A pilot project has been launched to offer an edited range of The Body Shop products in selected Clicks stores.
Three new stores are planned for the 2010 financial year, with locations already secured in premium malls.