The Body Shop International PLC
Table of Contents
The Body Shop International PLC- Financial and Strategic Analysis Review..............2
Company Overview....................................................................................................2
The Body Shop International PLC- Key Facts...........................................................2
The Body Shop International PLC- Business Description.........................................2
The Body Shop International PLC- Major Products and Services.............................3
The Body Shop International PLC- History...............................................................3
The Body Shop International PLC- SWOT Analysis ................................................6
The Body Shop International PLC- Strengths............................................................6
Strengths-Product Portfolio....................................................................................6
Strengths-Geographically Diversified Operations .................................................7
The Body Shop International PLC- Weaknesses .......................................................7
Weaknesses-Lack of Research and Development Facilities ..................................7
The Body Shop International PLC- Opportunities.....................................................7
Opportunities-Global Fragrances Market...............................................................7
Opportunities-Global Skin Care Market ................................................................8
Opportunities-Positive Outlook for E-Retail in UK...............................................8
The Body Shop International PLC- Threats...............................................................8
Threats-Changing Consumer Preferences ..............................................................8
Threats-Counterfeit Products .................................................................................9
Threats-Foreign Exchange Risks............................................................................9
The Body Shop International PLC- Key Competitors ...............................................9
The Body Shop International PLC- Key Employees .................................................9
The Body Shop International PLC- Locations & Subsidiaries ................................10
Head office ...........................................................................................................10
Other Locations & Subsidiaries ...............................................................................10
The Body Shop International PLC, Other locations.............................................10
The Body Shop International PLC, Subsidiaries......................................................10
Adidem Pty. Limited ............................................................................................10
The Body Shop France SARL..............................................................................10
The Body Shop Germany GmbH .........................................................................10
Dareen International SARL..................................................................................10
National Marketing & Trading Co LLC...............................................................10
Dibel SA ...............................................................................................................11
GINKGO ROMANIA SA ....................................................................................11
Kamal Osman Jamjoom Est .................................................................................11
The Body Shop (Singapore) Pte Ltd ....................................................................11
Cosmenatura SA...................................................................................................11
The Body Shop Svenska AB ................................................................................11
The Body Shop Levy AG.....................................................................................11
Shaya Magazacilik A.S ........................................................................................11
Alshaya trading company.....................................................................................11
The Body Shop (Cosmetics Trading LLC) ..........................................................11
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The Body Shop International PLC
The Body Shop International PLC- Financial and
Strategic Analysis Review
Company Overview
The Body Shop International Plc (The Body Shop), a subsidiary of Natura (Brasil)
International BV is a manufacturer and retailer of personal care products. The
company’s product portfolio comprises soaps, shower gels, body scrups, body butter
and hand creams. It also offers cleansers, toners moisturizer, serums and eye creams,
powders, mineral make-up, brushes, bronzers, mascaras, eyeliners and eyeshadows. It
also offers deodorants, shampoos, conditioner and hair styling products for all types
of hairs. The company sells its products through owned-stores, franchise stores and
online. It operates innovation lab for developing advanced products in East Croydon,
and a global support center in West Sussex, the UK. The Body Shop is headquartered
in London, England, the UK.
The Body Shop International PLC- Key Facts
The Body Shop International PLC- Key Facts
Corporate Ticker Symbol,
155 Tooley Street N/A
Address Exchange
No. of
Telephone 44 1724 929090 22000
Employees
Fax N/A Fiscal Year End December
Revenue (in
URL www.thebodyshop.com N/A
US$ Million)
Source : GlobalData Research analysis / © GlobalData Research
The Body Shop International PLC- Business Description
The Body Shop International Plc (The Body Shop) is a manufacturer and retailer of
personal care and cosmetics products.
The company classifies its offerings under six product categories: Face Care, Body
care, Hair Care, Make-Up, Fragrances, and Gifts.
The Body Shop’s Face care category offers facial products, such as face masks,
moisturizers, cleansers, toners, eye care, scrubs and exfoliators. It offers products for
every types of skin, such as oily, sensitive, combination and normal skin.
The company’s Body Care category provides beautifying oil, body moisturizer, body
cleaners, body scrub, hands and feet care products, spa and treatments, washes and
gels, and bath treatment.
The Body Shop’s Hair category offers shampoos, conditioners, hair styling, hair
treatment, combs and brushes.
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The Body Shop International PLC
The company’s Make-Up category includes foundations, powders, bb cream,
blushers, bronzers, mascaras, lip sticks, nail polishes, eyeliners and eyeshadows. The
company also provides make-up brushes and tools.
The Body Shop’s Fragrance category offers scents for men and women, body and
room fragrances, home fragrance oils, and scented candles.
The company’s Gift category provides several gifts for occasions from GBP10 to
GBP30. It also offers various gifts and boxes. It offers gift cards and e-gift cards.
The Body Shop also offers men’s grooming products, including products for body
care, body wash, skincare, fragrance, hair care, deodorant, and other accessories.
In general, the company sells its products through direct-selling channel and e-
commerce sites. The Body Shop under its group portfolio owns several domestic and
international subsidiaries.
The Body Shop International PLC- Major Products and
Services
The Body Shop International PLC- Major Products and Services
Products: Brands:
Skin Care Products The Body Shop
Body Products love your body
Hair Care Products
Men’s Toiletries
Make Up
Fragrance
Home Fragrance
Gifts Items
Accessories
Source : GlobalData Research analysis / © GlobalData Research
The Body Shop International PLC- History
The Body Shop International PLC- History
Year Event Description
2020 Corporate Changes/Expansions In March, the company opened a new concept
store in Vancouver, Canada.
2019 Corporate Changes/Expansions In August, the company opened a Renovated,
Heritage-Inspired Eaton Centre Flagship in
Toronto, Ontario, Canada.
2018 Corporate Awards In March, the company won Marie Claire’s
Prix D’Excellence award.
2017 Plans/Strategy In June, L'Oreal SA plans to sell The Body
Shop to Natura Cosmeticos SA.
2017 Corporate Changes/Expansions In February, the company opened its first new
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The Body Shop International PLC
Beauty Innovation Lab in East Croydon,
London, for the product development.
2017 Corporate Changes/Expansions In September, L'Oreal SA sold The Body
Shop to Natura Cosmeticos SA.
2016 New Products/Services The company launched new service in three
London stores, Covent Garden, Oxford Street
and Regent Street with Alipay App provided
by Wirecard.
2016 Corporate Changes/Expansions In December, the company opened a beauty
innovation hub in East Croydon, London.
2016 Corporate Changes/Expansions In December, the company announced the
launch of a new store at Doncaster’s Lakeside
Village, Doncaster, England.
2016 Corporate Changes/Expansions In 2016, the company opened three new stores
in Chile.
2015 Acquisitions/Mergers/Takeovers The company acquired its Australia Franchise
Business Adidem Pty Limited.
2015 New Products/Services The company introduced a limited edition
Virgin Mojito product range for skin.
2015 New Products/Services The company launched a new limited edition
body care and fragrance range drawing
inspiration from flowers and hot spices in
Kuwait.
2015 Plans/Strategy The company announced launched Italian
Summer Fig, a new addition to the Voyage
collection.
2015 New Products/Services The company launched Drops of Youth
Bouncing Sleeping Mask, an innovative night
time skin care mask.
2014 New Products/Services The company launched Fijian Water Lotus
line, a summer fragrance available in the form
of six products.
2013 Acquisitions/Mergers/Takeovers The company acquired 51% stake in Brazil's
Emporio Body Store.
2011 Corporate Changes/Expansions The company opened 143 new stores.
2011 New Products/Services The company launched ‘Brush with Fashion’,
a makeup collection for young consumers;
Earth lovers, a range of eco-designed, 100%-
biodegradable shower gels; White Musk
Libertine, a fragrance based on animal
friendly musk and Community Fair Trade
organic alcohol.
2010 New Products/Services The company introduced three new e-
commerce sites in Germany, France and the
Netherlands.
2010 Corporate Changes/Expansions The company opened 55 new franchised
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The Body Shop International PLC
stores in the new markets and closed one
company-owned store.
2010 New Products/Services The company launched The Hemp Collection
- iconic range for people with dry skin, with
Community Fair Trade hemp seed oil.
2009 Corporate Awards The company received ‘Lifetime Achievement
Award’ from the world-renowned British
organization, the Royal Society For The
Prevention of Cruelty To Animals (RSPCA).
2008 New Products/Services The company launched new make-up range
including a long-lasting foundation with
SPF25.
2007 Corporate Changes/Expansions The company established its The Body Shop
stores in the Czech Republic, Poland and
Namibia.
2007 Acquisitions/Mergers/Takeovers The company acquired franchise in Sweden
and Portugal.
2007 New Products/Services The company introduced body care products
under the brand of Body Focus.
2007 Contracts/Agreements The company entered into a partnership with
MTV to raise funds and awareness about HIV
and AIDS in young people.
2006 Contracts/Agreements The company signed an agreement with MH
Alshaya Company, a leading retailer in the
Middle East to expand its franchise
operations.
2006 Stock Listings/IPO The company was delisted from the London
Stock Exchange.
2006 Ownership Changes The company was acquired by L'Oreal SA.
2006 Corporate Awards The company received a PETA's Proggy
award for its ongoing commitment to avoid
animal testing.
2005 Acquisitions/Mergers/Takeovers The company acquired its franchised stores in
the Netherlands, Belgium and Luxembourg.
2004 Acquisitions/Mergers/Takeovers The company's subsidiaries, The Body Shop
Canada and Buth-Na-Bodhaige in the US
acquired the operations of its head franchisee
in Canada.
2003 Corporate Changes/Expansions The company entered into the Estonia and
Turkey markets.
2001 Corporate Changes/Expansions The company opened its stores in Cape Town
and Johannesburg in South Africa
2001 Acquisitions/Mergers/Takeovers The company repurchased its US operations
from Bellamy Retail Group.
2001 Corporate Changes/Expansions The company established a direct franchisee
New Clicks Holdings in South Africa.
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The Body Shop International PLC
2000 Asset Disposal The company sold its Little Hampton based
manufacturing business to Creative
Outsourcing Solutions International.
1999 Corporate Changes/Expansions The company established The Body Shop
Direct, a home sales service.
1999 Asset Disposal The company sold its US operations to
Bellamy Retail Group.
1994 Corporate Changes/Expansions The company established a number of
community trade suppliers in India.
1990 Corporate Changes/Expansions The company established The Body Shop
Foundation.
1990 New Products/Services The company's At Home, a direct-selling
brand was launched in the UK, Canada and
Australia.
1983 Corporate Changes/Expansions The company established franchise in
Australia.
1982 Corporate Changes/Expansions The company established franchise in Canada.
1978 Corporate Changes/Expansions The company established the first
international franchise in a kiosk in Brussels.
1976 Incorporation/Establishment The Body Shop International plc was founded
by Dame Anita Roddick.
The Body Shop International PLC- SWOT Analysis
The Body Shop International Plc (The Body Shop) is a manufacturer and retailer of
beauty and cosmetics products. Product portfolio, and geographically diversified
operations are the company's major strengths, even as lack of research and
development facilities remains a cause for concern. Global skin care market, positive
outlook for e-retail in UK and positive outlook for the global fragrances market are
likely to offer growth opportunities to the company. However, counterfeit products,
foreign exchange risks and changing consumer preferences could affect its business
operations.
The Body Shop International PLC- Strengths
Strengths-Product Portfolio
The wide range of products offered by the company helps it to realize revenues from
diverse customer types. The Body Shop is specialized in offering skin and hair care
products made from natural ingredients. Its product portfolio includes bath and body
products, skincare, hair, grooming products for men, make up and home fragrance
products. the company’s face care product category offers cleansers, toners, serums,
moisturizers, eye care, lip care, exfoliators and masks and other accessories. It
provides beautifying oil, body moisturizer, body cleaners, body scrub, hands and feet,
spa and treatments, aromatherapy and massage, deodorants, and accessories. It also
provides shampoos, conditioner, treatment, brushes and combs. It offers, body scents
for male and female, red musk, perfume oils, body mists, body and room fragrances,
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The Body Shop International PLC
burners, diffusers, and candles. The Body Shop primarily sources for ingredients and
accessories from suppliers.
Strengths-Geographically Diversified Operations
The Body Shop’s geographical diversified operations enable it to serve a large
customer base, driving the top line performance. A diversified global footprint
enables the group to focus on large assets that will continue producing over many
decades at low cost. An asset base, diversified by commodity and geography, reduces
exposure to downturns in any particular commodity or region. The company, together
with its subsidiaries and affiliates, produces and markets beauty and cosmetics
products. The Body Shop operations spread globally with a presence in over 65
countries. Its operations are spread across the US, Europe, Asia-Pacific, Australia and
the Middle East. This ensures profitability of the group through the inevitable
economic cycles.
The Body Shop International PLC- Weaknesses
Weaknesses-Lack of Research and Development Facilities
Lack of research and development facilities compared to competitors could be a
concern for the company. R&D facilities of The Body Shop are limited compared to
its competitors. Companies such as Revlon, Inc. (Revlon), and Kao Corporation (Kao)
have wide research and development facilities compared to The Body Shop. With
competitors having diversified research and development facilities, the company is at
a major disadvantage. Kao operates its R&D facilities in Tochigi, Tokyo, Wakayama,
Germany, China, Spain and the US. Revlon operates its research facilities in Edison,
New Jersey, the US (in California and Florida), Spain and Mexico. But, the company
operates only through single innovation lab in East Croydon, the UK. Therefore,
limited facilities compared to its competitors may put competitive pressure on the
company’s operations.
The Body Shop International PLC- Opportunities
Opportunities-Global Fragrances Market
Changing global trends and increasing brand consciousness among youth are leading
to growth in the market for companies offering fragrances. Increased travel and
growing concerns about social status and meetings are resulting in market growth.
Economic stability in majority of the countries is also aiding the market. The rapidly
growing middle class and increasing income are expected to be the major factors
behind the market growth in the future. The Body Shop is a manufacturer and supplier
of fragrances in the world. According to an in-house research report, the global
fragrances market was valued at US$41,043.6 million in 2018 and is projected to
grow at a CAGR of 3.8% during 2018-23 to reach US$49,428 million by the end of
2023. In terms of volume, the market grew 2.2% in 2018 to reach 1,197.9 million
units and is projected to grow at a CAGR of 1.9% during 2018-23 to reach 1,319
million units by the end of 2023. Female fragrances accounted for 58.3%, followed by
male fragrances (34.5%) and unisex fragrances (7.3%) in 2018. Approximately 27.1%
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The Body Shop International PLC
of these products are sold through health and beauty stores, followed by hyper
markets and supermarkets (24.6%), direct sellers (15.3%), department stores (11.7%),
and other (21.3%) in 2018. Europe reported considerable growth in sales. In Europe,
fragrances accounted for 39.7% of the market share, followed by the US (16.7%),
Asia-Pacific (9.7%), the Middle East (7.6%) and Rest of the World (26.3%).
Opportunities-Global Skin Care Market
The Body Shop could benefit from growing demand for skin care products as it
provides skin care products as a part of its products portfolio, it could leverage strong
market position and broad product and brand portfolio to capitalize on this rising
demand for skin care products. Major factors driving the global skin care products
include consumers’ inclination towards maintaining a youthful and healthy skin
appearance and increasing emphasis on preventive skin care. According to an in-
house research, the global skin care market was valued at US$127,716.1 million in
2018 and is expected to grow at a CAGR of 5% during 2018-2023 to reach
US$162,976.5 million in 2023. In terms of volume, the global skin care grew by 2.6
% to 17,817.8 million in 2018 and is expected to grow by at a CAGR of 2.4% during
2018-2023 to reach 20,049.7 million in 2023. Among the skincare market, facial care
is the largest segment, which accounted for 81.1% of the total skin care market value,
followed by body care (12.6%), hand care (2.5%), make-up care remover (18.%), and
depilatories (1.8%).
Opportunities-Positive Outlook for E-Retail in UK
The company stands to benefit from growing trend of e-commerce, which provides
consumers convenience of shopping from home. With increase in interactive methods
and limitless content, retail e-commerce is growing at a faster rate. According to an
in-house report, e-retail market is expected to grow at a CAGR of 37.9% to reach the
value of US$ 81,791.7 million by the end of 2022. The company provides a wide
range of products in the store such as body care, make up and fragrance among others.
It also offers spa products to the customers. With this the company improves its sales
as it already has a commanding presence in various malls.
The Body Shop International PLC- Threats
Threats-Changing Consumer Preferences
The Body Shop must constantly develop, produce and market new products in order
to maintain and enhance the recognition of its brands, and should strive to achieve a
favorable mix of products. The consumer spending patterns and preferences that
change rapidly cannot be predicted. The decrease in the market demand and change in
the consumer spending demands for the company’s products could result in
inventories that are too high or cannot be sold at anticipated prices or increased
product returns by its customers. The company’s business, financial condition and
results of operations would be adversely affected if it is unable to respond to trends in
the market for beauty and other consumer products and meet changing consumer
demands.
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The Body Shop International PLC
Threats-Counterfeit Products
The huge influx of counterfeit products could affect the company's business
operations. Penetration of counterfeit merchandise could lower the company's sales
and affect its profit margins. Customers could mistakenly purchase counterfeit
products bearing fake labels, low quality of the products affect consumer confidence
and spoils the brand image of the genuine company. According to the International
Chamber of Commerce (ICC), counterfeiting and piracy are estimated to cost G20
countries over US$125 billion every year. It is also estimated that more than 2.5
million jobs could be destroyed by counterfeiting and piracy. Through low price
offerings, the imitated goods affect the company's financial performance and brand
image. As the company deals with several national branded products, it is exposed to
such challenges. The Body Shop manufactures and distributes a broad range of
personal care products.
Threats-Foreign Exchange Risks
The Body Shop operates in many parts of the world and is exposed to fluctuations in
foreign exchange rates. The company reports financials in the British Pound and
therefore its revenue is exposed to volatility of the British Pound against other
functional currencies, as it conducts business operations worldwide. Significant part
of its revenue is also denominated in other currencies such as the US dollar, Brazilian
real, Chinese yuan, Taiwan dollar, Argentine peso, Polish zloty and Romanian leu,
among others. Major elements exposed to exchange rate risks include the company's
investments in overseas subsidiaries and affiliates and monetary assets and liabilities
arising from business transactions in foreign currencies. To minimize risks from
currency fluctuations, the company involves in foreign exchange hedging activities by
entering into foreign exchange forward contracts.
NOTE:The above strategic analysis is based on in-house research and reflects the
publishers opinion only
The Body Shop International PLC- Key Competitors
Avon Products Inc
Bath & Body Works Direct, Inc.
Henkel AG & Co KGaA
Kao Corp
Revlon Inc
The Estee Lauder Companies Inc
The Procter & Gamble Co
The Body Shop International PLC- Key Employees
The Body Shop International PLC- Key Employees
Name Job Title Board Level Since Age Biography
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The Body Shop International PLC
David Boynton Chief Executive Officer Senior Management
Source : GlobalData Research analysis / © GlobalData Research
The Body Shop International PLC- Locations & Subsidiaries
Head office
155 Tooley Street
London
United Kingdom
SE1 2JP
44 1724 929090
Other Locations & Subsidiaries
The Body Shop International PLC, Other locations
155 Tooley Street
London
United Kingdom
SE1 2JP
44 1724 929090
Source : GlobalData Research analysis / © GlobalData Research
The Body Shop International PLC, Subsidiaries
Adidem Pty. Limited
Australia
The Body Shop France SARL
Saint Ouen Cedex
France
The Body Shop Germany GmbH
Dsseldorf
Germany
Dareen International SARL
Beirut
Lebanon
National Marketing & Trading Co LLC
Oman
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The Body Shop International PLC
Dibel SA
Porto
Portugal
GINKGO ROMANIA SA
Bucharest
Romania
Kamal Osman Jamjoom Est
Jeddah
Saudi Arabia
The Body Shop (Singapore) Pte Ltd
Singapore
Singapore
Cosmenatura SA
Madrid
Spain
The Body Shop Svenska AB
Stockholm
Sweden
The Body Shop Levy AG
Uster
Switzerland
Shaya Magazacilik A.S
Istanbul
Turkey
Alshaya trading company
Dubai
United Arab Emirates
The Body Shop (Cosmetics Trading LLC)
Dubai
United Arab Emirates
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The Body Shop International PLC
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Published: 01 Jul 2021 Page 12
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