2024-02-15 00:22:51
Last year Yves Rocher had to close its branches, and now The Body Shop is in bad shape. But why do the well-known chains have such problems?
There are already scents on the sidewalk in front of the branches: rose, pomegranate, vanilla. The shops of the cosmetics chain The Body Shop are part of many German city centers.
The Body Shop isn’t the first cosmetics chain to struggle. Just last year, the Yves Rocher chain had to close its branches. Here you can read more about it. “The Body Shop and Yves Rocher have missed out on modernizing themselves. Just relying on natural ingredients is not enough, because that is no longer a unique selling point,” says Elmar Keldenich, managing director of the Federal Association of Perfumeries, in an interview with t- on-line.
Many owners in a short time
The Body Shop was founded in 1976 in the English city of Brighton. According to its own statements, the company sold “ethically justifiable and nature-based ingredients from all over the world, in packaging that had no frills.”
According to Keldenich, another problem for the company arises from the eventful ownership history. “The Body Shop has passed through many hands in recent years. As a result, there was hardly any question as to whether the concept was still viable.”
In 2006 the chain was taken over by the French company L’Oréal. In 2017, the company went to the Brazilian competitor Natura Cosméticos, and it was not until 2023 that the German investment fund Aurelius took over.
Little turnover from online business
The head of the association is not yet worried that the wave of bankruptcies could affect other well-known chains. “It’s not a crisis for perfumeries or drugstores. Even in direct sales with only their own products, there are still successful companies like Rituals and Lush,” he says.
In fact, perfumeries and drugstores remain very popular among Germans. Many customers like to take advantage of the opportunity to receive advice and test products without obligation. According to a projection by the Personal Care and Detergent Industry Association (IKW), only seven percent of sales in the beauty care sector will come from online purchases in 2023.
For comparison: In the book industry, almost a quarter of sales (24.5 percent) are now generated online. In the fashion and accessories sector, internet purchases were responsible for 46.5 percent of sales in 2021.
Customers are getting younger and younger
And the cosmetics market is growing. In 2023, sales in the beauty care sector in Germany were 15.85 billion euros, an increase of 10.6 percent compared to the previous year, according to the industry association IKW.
Children are an increasingly important customer group. “Children are being introduced to skin care at an increasingly early age through Instagrammers and TikTok stars,” says Keldenich. “In a certain way, a gamification of the use of cosmetics is taking place. In some cases, children therefore use products that were made for significantly older target groups. This can be seen critically. At the same time, the interest also ensures a much higher awareness, for example of the need for UV Protection.”
This trend is viewed critically, especially by dermatologists. “Despite their young age, they often place an unhealthy focus on anti-aging,” says Anjali Mahto, a dermatologist at Self London, to the British newspaper “Guardian”. Many children and young people therefore use products that do not suit their needs. Demand is high, especially at stores like Sephora, which are often mentioned by influencers. Drugstores are also popular.
In the future, the industry will increasingly have to adapt to the wishes of young customers, but also to the concerns of parents and dermatologists. It is uncertain to what extent companies like The Body Shop still have a chance of restarting.