Lush case study: operating as a successful, independent ethical retailer

Published by: Datamonitor

Published: Jun. 5, 2008 - 6 Pages

Table of Contents

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Lush maintains a defiant stance against takeover, determined to remain independent and maintain its original business strategies

Lush retains independence while its former business associate The Body Shop agrees to be taken over

Lush's unease at takeovers or stock market listing prompts it to plan a staff ownership scheme

Retaining its independence does not stifle growth, with the company aiming to double global store numbers

Lush undertakes a unique way of retailing to entice customers

Lush stores are inspired by delicatessens, attracting custom by their highly scented, unpackaged products

The company's premium cosmetic stores are selectively located and have a boutique, retro look

Lush's products are designed to look artisanal to create differentiation on the marketplace

Many of its products have to be kept in the fridge and have short lived use by dates, emphasizing their fresh and 'homemade' qualities

The producer's name is located on Lush products, helping consumers connect on a personal level

Its products contain ethically sourced ingredients but have fun-sounding names

Lush products are minimally packaged using recycled materials, showing its green focus

The company's limited marketing spend focuses on encouraging staff and customer participation

Customers have the opportunity to get discontinued products remade, allowing the company to interact with consumers on its product choices

The Lush Forum provides customers a way of interacting with the company, while proving valuable market research

Lush staff have promoted the company's stance on packaging by going 'naked' for a day

Instead of spending heavily promoting the business, the company has given money to a diverse range of grass-root level campaigns

APPENDIX

Case study series

Methodology

Secondary sources

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: Lush's policies focus on maintaining a focus on fresh and organically sourced products which are ethically produced

List of Figures

Figure 1: Lush stores are inspired by delis is their style of presentation

Figure 2: The B Never To Busy to Be Beautiful stores are consciously feminine in design

Figure 3: Retro Lush offers customers the chance to get a discontinued brand of their choice remade

Figure 4: Lush employees went semi-naked for the day to highlight excess packaging in personal care products

Abstract

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