With more young clients coming into the fold, there is a lot of awareness about social and environmental issues, says Malhotra
Beauty brand The Body Shop has spent 15 years in India. As e-commerce has emerged as an important retail channel, offline expansion will remain essential for the business, says Shriti Malhotra. She talks to Venkata Susmita Biswas about the brand’s retail channel experiences, product categories that drive sales, and the influx of D2C players in the beauty industry.
Before Wave 2, how well had The Body Shop business recovered? Were sales mainly made in online marketplaces?
Last year, during the lockdown, we thought we would get out of it in a few months and we expected a V-shaped recovery. But it didn’t. Consumer sentiment was strong during the holiday season – we saw a 70-80% recovery in business. After that, demand leveled off and fell recently following the second wave. Categories like skin care and body care have been in demand everywhere, while the demand for makeup and perfumes has been impacted. The recovery follows a cyclical pattern and is now in jeopardy.
We have tripled our e-commerce sales. Revenue from online marketplaces and our own website increased from 15-18% before Covid to 40-50% in 2021.
Besides e-commerce, what digital interventions are you leveraging to reach consumers?
Convenience has been the most important cornerstone over the past year. Customers want help and our assisted sales approach has been a growth driver. We offer video consultations, WhatsApp purchases, same day delivery and three hour delivery through partnerships with local logistics providers. There is no fixed solution; it’s a smooth multi-channel approach to interacting with consumers where they are most comfortable. WhatsApp shopping started as a test, and we plan to expand it. We also adopt an omnichannel view of the consumer.
What types of products are seeing increased adoption?
We meet the demands of consumers and provide them with the products they need. We approach it from a ‘care over commerce’ point of view. The essentials category has been an important anchor for us throughout the pandemic. We’ve also seen that specific performance products – those that deliver a salon-like experience at home – have also performed well.
People are looking to invest in products that improve health and safety. For example, our tea tree antibacterial line has grown tremendously. Consumers also want products that help them calm down and improve their mental health. To remedy this, we will launch a wellness range next year.
The personal care industry has seen an influx of D2C brands online. How do you maintain your advantage in this competitive market?
The Body Shop is a brand that offers natural ingredients and buys them from local communities. As a result, the emotional connection that consumers have with the brand is very strong. Our business philosophy has been our differentiator. The phenomenon of the D2C brand is global in nature. Most of these brands take a targeted approach, making 10-20 products. We take a holistic approach and meet all of a consumer’s needs, from skin care to makeup.
Will you be adding more offline retail stores in 2021?
We are convinced that the market will rebound. We plan to open 15 new stores this year. Since January, we have opened stores in Srinagar, Gangtok and Dimapur. We have around 200 stores in 65 cities in India. We are going beyond metropolises and approaching micro-markets. Shopping centers and shopping streets will remain a key part of our expansion strategy. We plan to be present in more local markets, because proximity to the consumer is important to us.
The Body Shop is taking several sustainability initiatives. How to ensure that consumers are full stakeholders in your projects?
The customer has changed in recent years. With more young clients entering the fold, there is a lot of awareness of social good and environmental issues. However, it takes a bigger effort to find ways to engage people beyond the store and “talk about the walk” by creating greater awareness. This is a huge task and this is why, for the next few years, working on activism around waste management, recycling and pollution will be a top priority.
Follow us on Twitter, Instagram, LinkedIn, Facebook
Get live stock quotes from BSE, NSE, US market and latest NAV, mutual fund portfolio, see the latest IPO news, top IPOs, calculate your tax using income tax calculator, know the best winners, the best losers and the best equity funds. Like us on Facebook and follow us on Twitter.
BrandWagon is now on Telegram. Click here to join our channel and stay up to date with the latest brand news and updates.
–
