CEO The Body Shop Indonesia Blak-blakan Soal Bangkrut di AS

Summary

The Body Shop, a renowned British brand, recently exited the US market due to challenges with positioning and market fit, especially amid high inflation and changing consumer preferences. However, it continues to thrive in other global markets, focusing on natural ingredients, vegan formulations, and sustainability. In Indonesia, The Body Shop has been a strong player since 1992, navigating competition from local brands and adapting to economic challenges like the cost of living crisis. With a loyal customer base and a commitment to enhancing its services, The Body Shop is focusing on strengthening its position in large cities and maintaining a key international presence.

Takeaways

• 😀 The Body Shop exited the U.S. market after struggling to find the right market positioning for over 10 years due to challenges like high inflation and misalignment with American consumer preferences.
• 😀 Despite exiting the U.S., The Body Shop remains operational in the UK and is in the process of repositioning itself with a stronger brand strategy, especially in response to inflation and the cost of living crisis in the UK.
• 😀 The Body Shop has been a beloved brand since 1976, known for its focus on activism, social justice, and natural beauty products.
• 😀 Over the past few years, The Body Shop has updated its formulas to include even more natural ingredients, with some products now made with 99% natural origin ingredients.
• 😀 The Body Shop became the first international brand to earn vegan certification for all its formulations, a significant achievement in promoting cruelty-free products.
• 😀 In Indonesia, The Body Shop has been present since 1992 and has grown significantly, now having 120 stores spread across major metropolitan cities.
• 😀 The COVID-19 pandemic posed a major challenge, leading to temporary store closures, but also allowed local competitors to thrive, offering more affordable beauty products for middle- and lower-income consumers.
• 😀 Despite increased competition, The Body Shop has refocused on its core market—the middle to upper-class demographic in large cities—and is working to strengthen its presence and customer service.
• 😀 The Body Shop Indonesia is a major contributor to the global market, ranking as one of the largest international franchises, alongside India, with a significant share of the brand's global sales.
• 😀 The cost of living is the biggest challenge in Indonesia, but unlike the U.S., it has not had as drastic an impact, thanks to loyal customers who appreciate the brand’s sustainable practices like recycling bottles and earning loyalty points.

Q & A

Why did The Body Shop exit the US market?

The Body Shop exited the US market due to the difficulty in finding the right positioning and segmentation. The brand's identity, centered around activism and natural products, did not resonate as strongly with the American market. Additionally, high inflation and a challenging economic environment played a role in their decision to leave.

What changes did The Body Shop make to its formulations in recent years?

In the last five years, The Body Shop has updated its product formulations to include more natural ingredients, with some products now containing up to 99% natural origin ingredients.

How does The Body Shop position itself in the beauty industry today?

The Body Shop focuses on being a leader in the natural beauty space. It emphasizes using vegan ingredients in all of its products, becoming the first international brand to earn vegan certification for its entire range.

What is The Body Shop's brand positioning in Indonesia?

In Indonesia, The Body Shop initially positioned itself in the middle-upper market segment, targeting customers who value social causes like equality and environmental activism. Over time, it has faced competition from local brands but continues to serve its core audience in metropolitan areas while also maintaining a presence in secondary cities.

How has The Body Shop performed in Indonesia since it launched?

The Body Shop has been in Indonesia since 1992 and has grown rapidly, reaching 150 stores across major cities. Despite challenges like COVID-19, the brand remains strong, with a loyal customer base and continued market expansion.

How has The Body Shop adapted to competition from local brands in Indonesia?

In response to the rise of local competitors, The Body Shop has refocused on its core market: the middle-upper segment in large metropolitan cities. The company aims to enhance its service offerings and maintain its position in the premium beauty market.

What were the biggest challenges The Body Shop faced in Indonesia recently?

The biggest challenge The Body Shop faced was the cost of living crisis, which impacted consumer purchasing power. However, compared to other markets, the impact in Indonesia was less severe, and the brand continued to offer value through loyalty programs and sustainable practices.

What is The Body Shop's strategy to maintain customer loyalty in Indonesia?

The Body Shop focuses on customer loyalty through a robust loyalty program that includes point systems and incentives like returns for used bottles. This helps to maintain a dedicated customer base despite economic challenges.

How does the performance of The Body Shop in Indonesia compare globally?

Indonesia is one of The Body Shop's largest international markets, ranking alongside India as one of the top two international markets in terms of franchise performance. The brand's success in Indonesia shows the significant demand for its products in the middle-upper market segment.

What role does sustainability play in The Body Shop's brand identity?

Sustainability is central to The Body Shop's brand identity. The company has been committed to natural ingredients, vegan formulations, and eco-friendly practices, including green store designs and efforts to reduce waste.