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Published by:
Amity Research Centers (2017)
14 pages
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The Body Shop, founded in 1976 by the late Dame Anita Roddick (Roddick), a British environmental activist and campaigner for human rights, was one of the pioneers in using natural ingredients sourced sustainably for making personal care products and abstaining from animal testing. The Body Shop grew to become one of the most renowned 'High Street' brands and was popular among ethically conscious consumers who shared Roddick's principles of ethics and sustainability. In 2006, Roddick shocked her customers when she announced her decision to sell her company to L'Oreal, the French cosmetics major, which was allegedly linked to animal testing. Under L'Oreal's ownership, The Body Shop had lost its former glory and patronage among its customers. Some other factors such as increasing competition and lack of innovation were reasons cited for its downward trend. In June 2017, L'Oreal announced that it was selling The Body Shop brand to Brazil's leading cosmetic company, Natura Cosmeticos SA (Natura). How would The Body Shop brand fare under its new owner? Whether Natura would be able to revive the fortunes of The Body Shop remained to be seen.


Acquisition; Strategic fit; The Body Shop; Anita Roddick; L'Oreal; Brazil; Natura; Cosmetic industry; Niche brand; Ethical brand; Business ownership
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