What Green (or Any) Brands Can Learn from the Tale of The Body Shop

I've never stepped inside The Body Shop , nor have I ever experienced its products (as far as I know anyway).

But it hurts to see the fall of such an iconic, green and ethical brand.

Nonetheless, as Matthew Syed has proposed in his book Blackbox Thinking (2015), we can always learn from the mistakes of others to ensure our success.

There are many reasons why The Body Shop has been in the downfall, here, we will group them into two key lessons for those brands that are, or may be considering becoming, green - using green attributes (sustainable, ethical & responsible) as a part of their positioning or identity.

1. 'Green' attribute is secondary

According to their website, "The Body Shop was founded in 1976 by Dame Anita Roddick in Brighton, England, It all started as a small shop providing quality skincare products in refilled bottles and with the belief that business could be a force for good and the world".

Back then, the purpose-driven, or responsible, business concept was still new, giving the brand a spotlight to stand out in the 'business-as-usual' crowd.

Rachel Carson's famous book Silent Spring only came out in 1962 to point out the harms of pesticide usage on the environment and our health, warning us to become aware of other consequences of operating a business in a capitalist society.

Back then, Patagonia, another famous environmentally conscious brand that inspired the movement for responsible consumption and production, particularly in the retail clothing industry, was only three years old.

Fast forward to 2024, at the time of writing, more brands have adopted this practice, and more will continue to do so as they will either be forced through regulations or pressures from other stakeholders, as we find our way to a net-zero world.

The green attribute, while important, is becoming less effective in differentiating the brand.

In addition, there's still a wide gap between customer's intent and their actual behaviour. Kantar's Sustainability Sector Index 2023 found that while 97% of people said that they are prepared to live more sustainably, only 13% are following through.

So when the green attribute has become more common, along with the weak effect on buying decisions, currently, brand needs to get back to getting the basics right.

Fundamentally, I find that there are two main ways to build a strong and sustainable business, commercially, environmentally and socially.

1.1 Innovation

Here is about differentiating by the functional benefits of your product.

The Body Shop had an early start in becoming sustainability-driven, but as it got passed on from owner to owner, which we will discuss more later, it failed to use that as a driver to innovate and respond to new competitors.

Other than being green, the brand could have looked at other attributes that also influence buying decision, such as price, convenience or personalisation.

The Body Shop started off selling just 25 products – now there are more than 2,500 stores worldwide.

Now, let me tell you another similar story.

Before Steve Jobs returned to Apple in 1997, Apple was making a bunch of different products for a bunch of different people, and none of it made any sense to him.

So he shouted "Stop!" in the middle of the product meeting, went up to the whiteboard and drew up the grid below.

The grid is claimed to have saved Apple and begun its comeback. It gave Apple focus.

Like focus, strategy is about choice. It's about choosing where to play, and where not to play (credit to Roger Martin ).

With the internet, influencers, celebrities or even normal people can now sell beauty products. And unlike big brands, those 'people' are closer to their customers emotionally.

While the market may have grown, its competitiveness has increased even more. Focus, the ability to double down on something and be really good at it, is more important than ever, to differentiate the product or brand in the noisy market.

The Body Shop didn't find theirs, and we'll talk more about that later.

1.2 Brand Management

Here is about differentiating by the emotional benefits of your brand.

As Mark Ritson has repeatedly said, brand needs both differentiation and distinctiveness.

Product gives differentiation, brand gives distinctiveness.

The Cambridge Dictionary has defined distinctiveness as "the quality of being easy to recognise because of being different from other things.".

We, as a consumer, have a million things on our minds. Distinctiveness, when used physically, helps customers recognise the brand. When used emotionally through familiarity and feelings that people have towards the brand, can foster loyalty and increase the likelihood of buying.

As research from the Ehrenberg-Bass Institute has shown in How Brands Grow, with many choices to make daily, customers no longer search for the 'best' option in most scenarios, they just want the ones that are 'good enough', that ones that they're familiar with.

Especially in FMCG where products have a lower level of differentiation, brand becomes crucial.

Just look at Who Gives A Crap or Liquid Death .

Helen Edwards has warned, The Body Shop needed to become exciting as well as ethical.

2. The point of purpose is purpose, not profit

As mentioned previously, The Body Shop didn't find its focus, where it stands, while it was moving from owner to owner.

While I wasn't personally involved in and have limited information on the acquisition, I would hope that the brand had nailed down its brand guide that got passed on to the brand managers.

A brand guide contains information about brand heritage, brand DNAs, who the customers are, and all the information required that would help the next brand manager diagnose and manage the brand consistently over time. Hence, it's why the guide needs to be simple, clear and tight. Less is more.

A good Brand Manager studies the brand, respects the brand as something bigger than themselves and doubles down on what the brand stands for.

This is important because we will now diagnose The Body Shop brand through its founder, Anita Roddick.

And if we get to know her via previous literature, we'll find that she's very purpose-driven, not profit-driven.

“The business of business should not just be about money, it should be about responsibility. It should be about public good, not private greed.” - Anita Roddick

This would have somehow shaped the foundation of The Body Shop and contributed to its rise before it was sold to L'Oreal in 2006.

Even before the acquisition, she also stated that she did not want to die rich and preferred to do something constructive with the money she had. Anita passed away in 2007.

While The Body Shop was a successful brand, valued at ï¿¡652m when it was sold to L'Oreal, it is clear that it was more of a purpose-driven brand, than a profit-making machine.

And as Mark Ritson has said, the point of purpose is that it will cost you.

So when L'Oreal bought the brand, their values didn't align.

“A key point was that L’Oreal did test their products on animals, a clear compromise to the longstanding ethical position of the Body Shop.” said Dan Pratt, solutions director at Wolfenden Agency.

And this extends beyond purpose-driven brands. I've personally witnessed this scenario where a corporation acquired a brand, hoping that it would become a cash cow, only to realise later that they did not have enough resources or capabilities to manage and make it work. Adidas’s sale of Reebok is another great example.

So when The Body Shop wasn't managed properly, the downfall began. It became a cash-sucking machine that got passed on from L'Oreal, to Natura, to Aurelius.

During these times, it still tried to be a purpose-driven brand, joining the B-Corp movement in 2019. But due to other factors we have discussed previously, that still wasn't enough.

Is Purpose to Be Blamed?

It led me to think about a recent healthy debate I had with Nick Asbury , is a for-profit company fit for purpose?

Nick didn't think so.

He quoted Yvon Chouinard's open letter below to make his case.

For-profit businesses, even with good intentions, are under too much pressure to create short-term gain (profit) at the expense of long-term responsibility (purpose) - Nick pointed out to me.

And I think he, and Yvon, are right in this case.

The first paragraph is exactly what is happening to The Body Shop now.

Adopting purpose is about balancing profits and impact, and the former always comes first. And this is where the grey area comes in. If you're making money from doing good, are you actually doing good?

As Phoebe from Friends (1994) has tried to show us, maybe there's no such thing as a selfless good deed?

In fact, The Body Shop didn't start off wanting to change the world, or to save the environment. "We recycled everything," Anita once said. "Not because we were environmentally friendly but because we didn't have enough bottles."

But like humans, brand also grows and evolves.

I didn't want to help other people or save the planet the day I was born. It took me through a few jobs, having earned enough income to keep myself safe, to start thinking about others.

Everyone is on a different journey. But once they've met their basic needs, not wants (which can be unlimited), they begin to move up Maslow's hierarchy of needs, closer to self-actualisation. And the way to become the best version of ourselves is to contribute to and be a part of something bigger than ourselves.

We need to put on our oxygen masks first, looking after ourselves first, before we can save others. And the same goes for businesses or brands.

“Profit for a company is like oxygen for a person. If you don’t have enough of it, you’re out of the game. But if you think your life is about breathing, you’re really missing something.” - Peter Drucker

When doing good, businesses should be judged by two things; intent and execution.

Intent

Businesses need to truly believe in their purpose rather than adopting it with commercial or other goals in mind.

It's like you don't do good deeds because you want to collect points, you do it because you know that it's your duty to do it, that it's the right thing to do, even if it gives you some satisfaction.

Execution

Action needs to follow the intent because it always speaks louder than words.

It's also important that we understand the consequences of our actions, even with good intentions, do not cause unintended harm. For instance, parents can care for their children. But too much care can also turn into over-protection or spoiling, which doesn't set them up for success long-term.

Communicating purpose is a whole other big topic. Peter Field has also shared four things to look for to execute effectively.

And for the debate between me and Nick, we currently came to the conclusion that 'responsible' company is a better word, as also used by Yvon. After all, this is more about businesses being more responsible for the harms and consequences they cause from their, or our, operations.

What's Next for The Body Shop?

While its stores are closing around the globe, some are expected to remain open.

People are urged to support the ethical brand before it disappears.

Personally, I don't think this is the end, or there will ever be one, for The Body Shop. Brand, any brand, has a special place in our head, and heart for some, and won't easily disappear.

It's the memory and meaning that we share together.

Brand, especially a strong brand, can't be killed.

So for The Body Shop, this is more like a time to pause and reflect, and to be ready to thrive again when spring comes.

With the right owner, brand manager, who can give it the right care and support, the brand can thrive again.

It has given back so much to the planet, and I believe the planet, will return the favour by allowing it to regenerate again.