L U S H
Cosmetics
…an English company
in France
Best in France Case Study
Research by:
Regina Cordova
Maria Isabel Le Meur
Giusep Derleth
Presentation Outline
1. Company overview

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History and location
The LUSH Business
LUSH Positioning
2. Presentation of Lush France
3. Conclusions
Best In France: LUSH Cosmetics
2
LUSH History and Location
 History
– 1978 : Supplier of The Body Shop
– 1994 : Creation of Lush in Poole (UK)
– 2005 : Still a small team but increasing sales : 120 M pounds
 A worldwide company
410 shops in more than
40 countries :
UK : 83 shops
Japan : 80 shops
Canada :
4 factories:
UK, Japan, Italy, Canada
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
3
The LUSH Business
 Strong Values
– Handmade and fresh ingredients
– No test on animals
– No or simple packaging
 Products: A complete range of cosmetics
– More than 600 different products
– Skincare, Hair care, Bath products …
 Customer relationship
– Quality customer relations / Advice / Customization
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
4
LUSH Positionning
Sabby’s
Ethical
Values
Lush
HANDMADE
Cosmetics
Yves Rocher
L’Occitane
Essentials
Fresh Line
NATURAL
Cosmetics
Bodyshop
Garnier
Dior
RETAIL
Vichy
Chanel
LUXURY
L’Oréal
Paris
Givenchy
History
LUSH in France
Best In France: LUSH Cosmetics
Guerlain
Conclusions
Customer
relationship
quality
5
Presentation Overview
1.
Company Overview
2. Lush In France

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
Why France ?
Paris history and performance
Difficulties Faced
Adaptations Implemented
3. Conclusions
Best In France: LUSH Cosmetics
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Why France ?
A strategic market
 France reputation: « the spiritual home of cosmetics »
 Paris = second worldwide cosmetics market
 Constant new products: 300 launches yearly French Cosmetics
Market
 No direct competitor in France
 A great opportunity for Lush
 2005 skin care sales in France: €3.3 billion
 2010 forecast: €4.2 billion
 Retail Sales of Skin Care by Subsector*
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
7
France Cosmetic Market
Retail Sales and forecast of Skin Care by Subsector: Value 2000-2005
EUR million
2003
2004
2005
2006
2007
2008
Facial care
2,118.5
2,277.0
2,427.9
2,520.7
2,618.4
2,735.2
Body care
576.8
660.1
740.2
810.9
887.4
968.9
Hand care
87.5
93.7
98.3
100.8
103.4
106.2
2,782.8
3,030.8
3,266.4
3,432.5
3,609.2
3,810.3
Skin care
Source: Trade associations (FIP, PLMA), trade press (Cosmétique Magazine, FaireSavoirFaire, LSA, Linéaires, Points
de Vente), company research, store checks, trade interviews, Euromonitor International estimates
Cosmetics (US $ mln): France 2001 – 2011
Year
France
2003
2004
2005
2006
2007
2008
654.22
667.52
683.92
717.82
756.32
796.87
% of Region
11.52%
11.57%
11.60%
11.57%
11.53%
11.49%
% of Globe
3.44%
3.43%
3.40%
3.37%
3.33%
3.30%
Source: Philip M. Parker, INSEAD, copyright 2005, www.icongrouponline.coma moment when
Best In France: LUSH Cosmetics
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Why France ?
The « natural » trend
 Booming natural cosmetics market in France
– 40% increase from 2004 to 2005 (Organic Monitor Study)
– « The French market for natural cosmetics is the fastest growing in Europe »
 Increasing awareness of the dangers of cosmetics
– March 2005, Television documentary : possible dangers of substances used in
cosmetics
– Best seller in France : « La vérité sur les cosmétiques » from Rita Stiens
 A comer market
– 23% of adults would pay more for environmentally-friendly products and
never buy toiletries and cosmetics tested on animals.
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
9
French Stores
 History of Lush France
– Creation in 2004
– Only 2 shops :
 Paris (65th shop worldwide) = 6 800K €
 Lille = 450K €
 Lack of a specific company strategy
– No plan for the future
– Little knowledge about the french market
– No target clients, no marketing
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
10
Great Performance
 Simple Strategy Implemented
– Educating the market
 Free samples, word of mouth marketing, customers resturned
 Established strong customer base
– Strong Revenues (Paris = 6 800K euros)
– Customer satisfaction
 Moisturizing Cream Buvard (Cream day/night)
– “I (…) realized its effectiveness and I do not drop it any more, I'm sure I will
buy it again!!”
 Raz-de-marée
– “I like this rubbing-out very much because I really think it is efficient. (…) a real
effectiveness on my skin (…)”
 French forum : « Lush addicts blog »
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
11
Difficulties faced
& relative costs
DIFFICULTIES
COSTS
Finding the right location
 Paris Store: 1.5 years
 Lille Store: “the right price at the right time”
 Location search costs
 Delay costs
 Paris Market: « exigent customers »
 Customers are well educated
 Training costs
Customers’ specificities
 Key money
 Seasonal employees
 Hiring process
 Franchise
Legal constraints
 Legal fees for hiring seasonnal employees
 Employee releasement costs
 Franchises legal fees
 Franchises delayed process opportunity
costs
Cutural differences
 Finding the right lawyer
 Search for a new lawyer cost
Best In France: LUSH Cosmetics
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Adaptations implemented
 Few adaptations has been made :
– No specific strategy has been implemented
– Stores and Internet
 2 stores and a french website
– The products are very similar to the english ones:
 Same products for all stores
 Few adaptations on names and packaging
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
13
Presentation Outline
1. Company Overview
2. Lush in France
3. Conclusions


The LUSH Future
Advice from LUSH France
Best In France: LUSH Cosmetics
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The LUSH Future
 Future Plans for LUSH in France
– Franchise Expansion
 « 30 to 40 new stores »
 Risks identified for LUSH
 More and more competitors
 Increasing costs
 Some products may be inadequate in the french market
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
15
Advice From LUSH France
 Get information about the business
– Distribution network
– Market
 Flexiblility is key
 The need for strategy
- Have a set idea of where you are going
History
LUSH in France
Best In France: LUSH Cosmetics
Conclusions
16
Thanks & bibliography
 Thanks to Emilie (Communication Director of Lush France)
 Bibliography
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http://www.beaute-test.com
http://www.lush.com
Data Monitor
www.icongrouponline.coma
Organic Monitor Study
Euromonitor International
Best In France: LUSH Cosmetics
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