The Body Shop, Kolaps After Being A Young People's Idol

JAKARTA Bankruptcy experienced by cosmetic companies and body care products The Body Shop has attracted quite a lot of attention. This company which is claimed to be environmentally friendly is actually not selling well in today's era. In addition to the price which is considered too high, the claims of environmentally friendly products mentioned by this brand are considered commonplace in today's era.

Citing TheGuardian, The Body Shop said it went bankrupt in the UK just three months after it was taken over by private equity companies. This puts more than 2,200 jobs and more than 200 stores in the country at risk. The Body Shop has also closed all of its stores in the United States as of March 1, 2024. In addition, dozens of outlets in Canada are also permanently closed.

Meanwhile, The Body Shop Indonesia is confirmed to be still operating as usual, as emphasized by CEO Suzy Hutomo. In a letter published on Instagramran @thebodyshopindo, Suzy emphasized that The Body Shop stores in Indonesia will continue to open and develop their domestic businesses.

"With so much news circulating about business closures in the United States and Canada lately, I want to inform Beauty Lovers that The Body Shop Indonesia will remain and continue to grow in Indonesia," said Suzy.

Unlike The Body Shop International such as America or European countries, The Body Shop Indonesia is under the auspices of the Global Head Franchise, and operates independently.

Unable to face rising inflation is said to be one of the reasons this company has finally collapsed. But other opinions say The Body Shop is less innovating and only relies on environmentally friendly status is not enough.

The Body Shop was founded in Brighton, England by environmental activist Anita Roddick and her husband, Gordon, in 1976. With capital from loan proceeds worth 4 thousand pounds sterling, the products marketed carry natural labels, are sustainable, ethical, and free from cruelty. They also consistently insist that they do not test products on animals.

Anita Roddick led the rapid growth of this business for 30 years. The company also enjoyed success in the 1980s and 1990s UKs.

"In the 1980s, The Body Shop was a place for young buyers to try beauty products with a fresh aroma and with deep environmental awareness and focus on social justice and nature preservation," said Susannah Streeter, head of the finance and market section at Hargreaves Lansdown, confiscated from Charonicle Live.

The Body Shop has continued to grow for more than two decades, but Roddick and Gordon were criticized when they sold the company to French cosmetic giant LOreal in 2006. Rodddick later died a year later at the age of 64 from a brain hemorrhage.

After expanding internationally under LOreal, this business was purchased by Brazilian company Natura&Co in 2017. Then late last year The Body Shop was resold to asset management group Aurelius.

The Body Shop has smelled financial difficulties since it was bought by LOreal. Under the company, despite massive expansions, sales have slowed down. In recent years, the company's profits have been eroded following soaring production costs, pressure on consumer demand, and weak US markets. This caused a loss of 71 million pounds sterling in 2022 as its turnover fell by almost a fifth.

However, the problem with The Body Shop is not only about the difficulty of money due to high inflation. In terms of naming or branding, this brand is considered less innovating, being careless about competitors and too comfortable with the label 'environmental lecture' being carried.

GlobalData analyst, Tash van Boxel said the company The Body Shop had been'more advanced than its time' with their initial identity as an ethical company. However, The Body Shop has difficulty competing with new competitors.

While The Body Shop continues to maintain its ethical brand values and is free from atrocities, this claim has become industry standard now, thus weakening the differential side of The Body Shop, said Van Boxel, quoted byStandard.co.uk.

To be considered an ethical brand for five decades is not easy. The selling value that makes The Body Shop stand out in its heyday can lose traction if it does not develop in line with market conditions and consumer expectations.

The Body Shop cannot rely solely on environmentally friendly jargon as a mainstay of attracting buyers. As reported by Elle, the survey recently found that 79 percent of people cast doubt on the claim of'sustainability'. This shows that people's trust in the brand is at a low level.

The Body Shop also seems to be complacent and static after being loved by women in the 1990s to forget what was called innovation.

"Brandbaru not only offer their products with the same claims, but they also bring more products to attract buyers," added Van Boxel.

Especially at this time, the onslaught of beauty products and skin care is inevitable. The Body Shop not only competes with brands of new, they also have to elbow each other with celebrities who flock to participate in issuing skin care and beauty products.

Overseas we can see how Hailey Biber's Rhode brand, Kyle Jenner's Kylie Cosmetics or Kim Kardashian's SKKN continues to strive to be at the forefront of this world. Having millions of fans around the world is a distinct advantage for celebrities. According to research, last year the celebrity beauty brand collectively generated 58 percent more money than before.

In Indonesia itself, even though it is said that it is not affected by bankruptcy abroad, The Body Shop must also compete with a row of brands belonging to Indonesian celebrities. Call it the Madam Gie brand owned by Gisella Anastasia, Jeda Cosmetics (Jessica Iskandar), SADA (Cathy Sharon), or Scarlett (Felica Angelista). Meanwhile, regarding claims for environmentally friendly skincare, many domestic products have issued skincare with natural ingredients at a much more affordable price.