Brand Building: The LUSH Way
How often do you come across a company making $700 million in sales revenue in a year without spending any money on Advertising?
LUSH North America’s revenue more than tripled to $692 million in 2017 compared to four years ago (Source: Biv.com). How did they do it? The answer is simple, by building a brand that stands out by leveraging the strength of Social Media and user-generated content to create awareness about their several CSR campaigns and the company’s use of natural products.
Check out this short video that captures, in a nutshell, what makes LUSH unique compared to any other brand:
https://www.youtube.com/watch?v=F9puQ6YgX_A
Unique Brand Positioning
In an industry (cosmetics) marred with issues such as Animal Cruelty, lack of transparency, use of preservatives, packaging waste and many other (Source: http://www.onegreenplanet.org/animalsandnature/shocking-ways-your-cosmetics-might-be-harming-animals/), Lush has created its point of distinction by producing hand-made products free of animal testing, 100% vegetarian, and limiting their footprint by selling their products unpackaged or in bio-degradable form while fulfilling consumers’ need for colour, innovation, freshness, natural ingredients and so on. To further develop its initiatives, products are made and created in- house. Each product has a sticker showcasing who made the product along with an expiration date. Each product is made to order relaying the fact that consumers are getting the freshest product possible. Products are tailored specifically to the consumer’s interests.
LUSH has made a unique brand image among millions of fans by appealing to members of the society through the various campaigns It has initiated and supported over the years like Fighting Animal testing, trophy campaigns, cleaning up plastic waste from the ocean and many other. Check out one of the recent campaigns by LUSH for Trans Rights:
https://www.youtube.com/watch?v=9yYRoDh7Gaw
“A brand is no longer what we tell consumers it is, it is what consumers tell each other”
– Scott Cook, Co-founder of Intuit
With over 4 million Instagram followers and about 1.2 million followers on Facebook along with a strong presence on other social media platforms, LUSH has adopted an electronic personality online, spending nothing on Advertising, and instead using social media, content marketing, user-generated content and a strong brand purpose to build buzz around its products. LUSH’s Instagram page is full of tagged posts, photos and videos of happy and delightful consumers expressing a sense of love and belongingness to the LUSH Community is something that traditional advertising can never buy. The brand has developed a consistent style and personality while encouraging user-generated content to allow others to share as well as examine other consumers’ reactions to the products.
Market Segmentation
According to the State of Fashion 2018 report by BoF & McKinsey (link to report in reference), 66% of global millennials are willing to spend more on brands that are sustainable. LUSH, with its Sustainability efforts of Fighting against Animal Testing, supporting grass-root charities, reducing packaging and waste, promoting ethical buying, supporting permaculture and many others (Source: https://www.cosmopolitan.com.au/beauty/lush-cosmetics-charity-initatives-26710) has helped LUSH appeal to like-minded consumers interested in Environmental and Ecological issues.
Check the below videos out to see a couple of many initiatives taken by LUSH along with other charities to make the world a better place:
https://www.youtube.com/watch?v=0KDQgTZmNUU
https://www.youtube.com/watch?v=hhsiTcCUVe4
Comments similar to the above on the videos show how more and more consumers appreciate sustainability efforts by companies today and why LUSH has been successfully targeting a market segment that is continuously growing.
Brick and Mortar Stores — Defying the Odds
In a world seemingly-obsessed with instant purchases and extreme convenience, it’s becoming increasingly difficult for bricks-and-mortar stores to keep up with eCommerce giants like Amazon (Gibbons, 2018).
With some of the biggest and loved retailers like Sears and Toys “R” Us closing their stores in the recent past, it is fascinating to see LUSH expanding its existing stores and opening new ones in a time when the footfall in the malls is at an all-time low. What LUSH has done well is to use its big social media following to constantly seek and understand more about consumers’ preferences regarding their cosmetic products and incorporating these preferences in their handmade products (Source: https://fashionista.com/2017/08/lush-cosmetics-business-strategy)
To experience first hand what is different about the store experience, I went to the LUSH store at Eaton Centre. The store was full of colour with many products sold without any packaging (in keeping up with the company’s naked policy). The staff was very knowledgeable and helped customers feel like they are buying into the company’s expertise as well as good quality and healthy produce. The store was setup in a way where you can touch, smell and try (in some cases eat — not recommended, tastes horrible!) their products. Face masks and some other products were displayed in bowls like a deli counter which customers can dip in and out of to try. Through product interaction, customers are buying into the theatre that Lush stores promise and falling in love with their products. There is the promise of surprise and magic with Lush products that your average bottle of bubble bath does not have and this customer experience along with a strong digital presence has made LUSH a successful brand today.
What the future holds?
It is evident how LUSH has turned retail on its head with the unique in-store experience and how leveraging the power of Social Media and user-generated content for marketing has helped LUSH become a name to reckon with in the cosmetic industry. With more and more spotlight on the sustainability efforts of the companies today, LUSH has managed to create a strong reputation for itself with the many campaigns and charities it supports. It is too soon, however, to tell whether their business strategy to increase traffic to their retail locations will work or not and if LUSH will be able to manage its Point of Distinction when other cosmetic companies catch up with it. Whatever the future holds, with its many CSR initiatives, LUSH has had a significant impact on people and planet already and it seems like the management’s heart is at the right place and the company deserves an applaud for its green efforts.
Links to some more interesting videos and articles are below:
Interview by Chief Digital Officer of Lush (Jack Constantine):
https://www.youtube.com/watch?v=CkRUtr4zR70
CMO Podcast — Natasha Ritz (Brand Communication Manager at Lush):
Article on one of the ad released on Twitter along with some reactions:
http://uk.businessinsider.com/lush-releases-valentines-day-ads-featuring-same-sex-couples-2017-1
Another great read:
https://metro.co.uk/2018/04/29/went-lush-factory-yes-company-really-pure-hope-7506283/
REFERENCES:
https://www.businessoffashion.com/articles/news-analysis/the-state-of-fashion-2018
https://www.marketingweek.com/2017/10/19/ben-davis-lush-ecommerce-lesson-marketers/
https://fashionista.com/2017/08/lush-cosmetics-business-strategy
