
Almost half of households (49%) mentioned that the Covid-19 pandemic has made sustainability much more vital to them, in accordance to a report by Kantar. As extra manufacturers take the sustainability route to join with customers at this time, cosmetics firm The Body Shop, one of the early entrants in the house, seems to be to guess huge on sustainability-focussed retailer codecs. It plans to open three new stores every month for the next one year together with new activist workshop retailer format in addition to common stores. In dialog with BrandWagon Online, Antara Kundu, common supervisor, advertising and marketing, model and buyer acquisition, The Body Shop – Asia South, talks about the significance of being sustainability-driven, enlargement plans of The Body Shop, and extra. (Edited Excerpts)
Currently, sustainability is a giant factor inside the market. As one of the early entrants, how do you make sure that you keep away from the chaff?
The model began in 1976. And it was one of the earliest pioneers of what we now name company social duty (CSR). It has been over 45 years of the model being in existence and over 17 years in India. Sustainability is sustainable if it is sensible for the model, the enterprise and the client collectively. Within our class, The Body Shop is one of the few manufacturers which has actually been in a position to reside that. If you take a look at our key drivers of sustainability, the Community Fair Trade is the largest truthful commerce sourcing program inside the beauty trade. Apart from that, when you take a look at the historical past of campaigns from The Body Shop, since the ’80s, Greenpeace, saving the whales, stopping the burning of the Amazon, amongst others are from us and India is a superb instance of once more domestically pushed campaigns. Due to The Body Shop India cease intercourse trafficking of girls and younger kids marketing campaign, the UN India ratified the UN Convention on intercourse trafficking. For us, sustainability can be our causes which we assist, which is environmental and social causes.
While sustainability has grow to be a bandwagon to sort of leap on, the distinction is because it at all times might be in how do you try this persistently.
How vital is India as a market? How a lot of the enterprise comes from smaller cities and cities?
From a worldwide perspective, India is one of the prime seven Body Shop markets in the world and when you particularly take a look at India, inside the Asia Pacific, it’s a progress driver for the model. We don’t promote in China. It’s one of the most enjoyable magnificence markets in the world as nicely. We have a demographic on our facet, and there’s a lot of untapped potential from a client utilization level of view.
Coming to markets, we’re at present at about 200 stores in the nation already. We are unfold fairly nicely in non metros. For instance, Mysore has three stores of The Body Shop and Jaipur has seven. Over the final couple of months, we now have launched stores in cities corresponding to Darjeeling and Imphal.
The model has at all times believed in being accessible to the prospects wherever they’re, and that features omni channel and e-commerce. Between our personal e-commerce and third celebration gamers, we service about 30,000 pincodes in the nation. In phrases of enterprise, retail accounts for about 65% of the enterprise, whereas on-line quantities for 15%. In phrases of scaling up, we’re increasing the omni channel footprint. Over the next one year, we’ll add three stores per month.
Within on-line, our personal e-commerce channel accounts for about over 60% of the income, adopted by different marketplaces corresponding to Nykaa, Myntra, Amazon.
Where is The Body Shop positioned amongst its rivals in India?
From a pricing perspective, we’re at the proper house for a market like India as a result of we’re a premium participant, however we’re not a distinct segment participant. India is a really worth acutely aware market and we’ve made strategic calls. From a enterprise and an affordability level of view, our tub and physique phase is a buyer acquisition led class. Our bathe gels begin at Rs 345. If you take a look at our prime promoting product in India in phrases of quantity, it’s the British Rose bathe gel, that’s priced at Rs 345. We even have lip balms, facial washes that are at reasonably priced worth factors, however once you go to larger efficiency or loyalty driving classes corresponding to skincare, you’ll have extra premium priced merchandise.
There’s lots of belief in the model in the market as a result of we had been one of the first worldwide magnificence gamers to come. We even have a worth benefit, in reality, earlier this year, we checked out an reasonably priced worth play in sure codecs. For the important codecs, corresponding to face washes, shampoos, conditioners that are the common replenishable for any buyer, we now have saved a flat pricing of Rs 795. This will be sure that our loyal customers will at all times give you the option to afford the model. And past that, we now have launches corresponding to Edelweiss, that are larger performing and area of interest merchandise, which can be priced on the larger finish.
Which is the hero class and why?
Our prime class is skincare. India on skincare efficiency is over listed as in contrast to the Body Shop globally. This is adopted by tub and physique and hair care. The benefit of being robust in these three classes is that its combine of tub and physique which is a simple to recruit class, which individuals purchase extra steadily and replenish extra steadily. Skincare and hair care are loyalty pushed classes, so as soon as a client finds a product that actually works for his or her skincare issues, or haircare issues, they’re not possible to change. Bath and physique on the different hand is sensorial, it’s indulgent. And then we now have make-up, fragrances, gifting.
Typically customers have a tendency to enter the model by means of tub and physique, which drive good volumes for us. As the measurement of pockets expands they usually take a look at extra codecs or extra classes to attempt, they then come into skincare and hair care.
So whereas the idea of sustainability has began selecting up in metros and every part and other people relate to it slightly bit extra, how tough is it when it comes to tier two tier three markets?
We will open at the very least three new stores every month for the next one year. Most of these might be in smaller cities and cities. Earlier this year, we launched the sustainability-focussed activist workshops retailer format, which is a giant guess for us.
That’s a really sustainable retailer design idea. We have additionally launched our in retailer recycling scheme, which is named ‘return repeat recycle’ by means of the stores. We have in retailer recycling bins in all our stores. Customers can carry their plastic empties, simply drop it off to our stores. So that’s one thing we’re pushing to inform customers. We are working with native recycling companions on a nationwide stage. To take that again to recycle it and to repurpose it. We’re additionally how can we repurpose it and convey it again to our stores as nicely.
The retailer enlargement that I talked about, will embody new activist format stores as nicely. We imagine activist workshops stores should not only for metro customers, however throughout cities. From an training level of view, thanks to this digital growth, customers in the smaller cities and cities, are very aspirational and discerning.
What might be the advertising and marketing methods?
Rather a lot of the advertising and marketing selections that we make are dependent on our accessibility. Our sort of model requires storytelling so we want to discover the proper advertising and marketing channels which lend themselves nicely to this type of storytelling. Online is a big guess for us and has been for a very long time as a result of digital platforms corresponding to YouTube, social media, enable for storytelling, and likewise enable us to goal the client that responds greatest to this type of storytelling which is younger, ethically engaged customers. This doesn’t imply that we haven’t carried out ATL earlier than. For instance, in 2019, the first tv marketing campaign The Body Shop has ever carried out globally was carried out in India. So throughout particular tactical intervals, we do make investments in visibility, which is out of residence, however on a constant foundation, in phrases of huge bets and advertising and marketing, it’s at all times digital.
Above-the-line (ATL) is on the desk and so is below-the-line (BTL), however it finally wants to make sense from a tactical level of view. So even for the upcoming quarter, we stay very bullish on digital for Edelweiss particularly as a result of there’s a lot to discuss on this vary. We are investing fairly closely in digital, and in retailer training as nicely as a result of all customers should not sitting on-line.
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https://www.financialexpress.com/brandwagon/antara-kundu-of-the-body-shop-on-its-plans-to-open-three-new-stores-every-month-in-the-next-one-year/2632259/