In this article, we will analyze the group via the PESTEL matrix. To this end, we will talk about the political, economic and social fields, before turning to the study of the technological, ecological and legal sectors.
The Body Shop is a company specializing in natural cosmetics. It was founded in 1976 in Great Britain, and has today a presence in more than 80 countries.
In 2023, the number of stores accounts to more than 3,000, with a turnover of 910 million euros worldwide and 32 million in France.
The brand also has 32 million customers worldwide, with 22,000 employees.
France saw its first store opening in 1982. The Body Shop, which was owned by L'Oréal, was resold in 2017. The company now belongs to the Natura Cosmeticos group, sold 1 billion euros.
For several months, Natura Cosmeticos has been in the red in terms of its results worldwide, despite a turnover that continues to rise.
Political factors
The Body Shop is a company with an international presence, and with this in mind, it is necessary that stability at this level is present and ensured, in order to reassure customers around the world. whole and to continue the exchanges.
In England, there are a large number of companies that have been affected by Brexit in particular, and this has been the case with The Body Shop. The brand wanted to transfer some of its activities to Germany, because the political climate is better, which has given rise to planned layoffs within the group.
Finally, the war in Ukraine also significantly affected The Body Shop's commercial activities since the brand stopped all commercial relations with Russia. A shortfall followed almost immediately in his European results.
Economical factors
At the economic level, there are various criteria that can be taken into account in the analysis of The Body Shop brand. The brand and its performance are influenced in particular by inflation rates, taxation but also by unemployment, since this reduces the purchase power of consumers. All these data are different depending on the country, and the group must take them into account before expanding internationally. This also influences the rates charged by the group, which may not be the same depending on the economic and/or political situation of the territories, the two areas being intrinsically linked.Overall, the beauty and cosmetics company shows a decline in sales, however, The Body Shop maintains more than satisfactory results thanks to an excellent e-reputation, which is influenced by the ethical values supported by the company.
Sociological factors
This involves taking into account the expectations and needs of consumers, their expectations and the link with The Body Shop brand.As we said above, the group focuses its marketing strategy both on customer satisfaction but also on a set of values which are very close to those shared by a group of consumers.
Thus, The Body Shop refuses to carry out experiments on animals, and for customers, this is a favorable choice.
Customer relations are at the heart of the brand's concerns with constant support from the beginning to the end of the order.
Finally, it should be noted that the company's field of activity is very trendy, organic and vegan products are among those that have evolved the most in recent years. Consumers feel more and more concerned by the protection of animals or even by the protection of the planet. The products are intended for an ever wider audience, which allows the company to generate additional market share.
Technological factors
Technology is losing an important place in the life of the brand, especially in the current context, where the vast majority of consumers are ultra-connected.Social marketing, and more generally the impact of social media, greatly favors the group's activity. On the networks, Internet users exchange their opinions, create communities whose objective is to talk about a brand and therefore is a means of making it known. For The Body Shop, as for all companies in general, e-reputation is therefore essential.
In addition, the fact of generating an online store allows an increase in sales, and therefore to obtain a larger market in the long term.
Business operations are more efficient because they are more extensive. Thanks to the net, a company can make itself known more quickly.
Ecological factors
The Body Shop is very present from an ecological point of view, with concrete actions carried out in favor of environmental protection. The brand particularly wishes to reduce its greenhouse gas emissions to make them non-existent by 2030 and is working to protect tropical forests.Furthermore, the products manufactured and sold to consumers are all environmentally friendly, which is very appreciated by customers, who are increasingly sensitive to ecological issues, in all countries of the world.
Finally, let us note that the regulations and various laws concerning the protection of the planet are more and more numerous and, above all, much stricter, whether at the global or European level.
Legal factors
Laws and regulations are constantly changing, and The Body Shop must take care to respect the laws in force in all the countries in which it operates. Indeed, there can be a certain number of differences concerning the authorized or prohibited ingredients as well as on the legislations.The legal field also concerns the protection of company employees, in particular the duration of working hours or the fight against harassment. Customers are also protected, as well as their personal data or their right of withdrawal / refund conditions.