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Lush Case Study: Operating as a Successful, Independent Ethical Retailer Product Image

Lush Case Study: Operating as a Successful, Independent Ethical Retailer

  • Published: June 2008
  • Region: Global
  • 11 pages
  • Datamonitor

This report on Lush forms part of the case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the personal care retailer has managed to retain its independence while other similar outfits are being taken over by larger operations.

Key reasons to read this report

- Gain insight into the methods used by important industry players to give them a competitive edge
- Identify specific areas for operational improvements
- Capitalize on the knowledge of experienced companies when entering a new niche or market

CATALYST 1
SUMMARY 1
ANALYSIS 2
Lush maintains a defiant stance against takeover, determined to remain independent and maintain its original business strategies 2
Lush retains independence while its former business associate The Body Shop agrees to be taken over 2
Lushs unease at takeovers or stock market listing prompts it to plan a staff ownership scheme 3
Retaining its independence does not stifle growth, with the company aiming to double global store numbers 3
Lush undertakes a unique way of retailing to entice customers 3
Lush stores are inspired by delicatessens, attracting custom by their highly scented, unpackaged products 3
The companys premium cosmetic stores are selectively located and have a boutique, retro look 4
Lushs products are designed to look artisanal to create differentiation on the marketplace 5
Many of its products have to be kept in the fridge and have short lived use by dates, emphasizing their fresh and homemade qualities 5
The producers name is located on Lush products, helping consumers connect on a personal level 6
Its products contain ethically sourced ingredients but have fun-sounding names 6
Lush products are minimally packaged using recycled materials, showing its green focus 6
The companys limited marketing spend focuses on encouraging staff and customer participation 6
Customers have the opportunity to get discontinued products remade, allowing the company to interact with consumers on its product choices 6
The Lush Forum provides customers a way of interacting with the company, while proving valuable market research 8
Lush staff have promoted the companys stance on packaging by going naked for a day 8
Instead of spending heavily promoting the business, the company has given money to a diverse range of grass-root level campaigns 9
APPENDIX 10
Case study series 10
Methodology 10
Secondary sources 10
Further reading 10
Ask the analyst 10
Disclaimer 11
List of Tables
Table 1: Lushs policies focus on maintaining a focus on fresh and organically sourced products which are ethically produced 2
List of Figures
Figure 1: Lush stores are inspired by delis is their style of presentation 4
Figure 2: The B Never To Busy to Be Beautiful stores are consciously feminine in design 5
Figure 3: Retro Lush offers customers the chance to get a discontinued brand of their choice remade 7
Figure 4: Lush employees went semi-naked for the day to highlight excess packaging in personal care products 8

Note: Product cover images may vary from those shown

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