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May 2, 2018

Lush uses trend-led products and innovation to broaden its appeal

Ethical beauty brand Lush has used product innovation, such as its charcoal collection, to attract a new demographic to its stores

By GlobalData Retail

Despite being a well-established retailer in its market, ethical beauty brand Lush has used product innovation, such as its charcoal collection, to attract a new demographic to its stores. In April, the ethical beauty brand announced UK sales had risen 13.0% for FY2016/17, outperforming the UK health & beauty market that grew 2.9% in 2017.

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by GlobalData
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While attracting new customers is essential to expand its reach, Lush has also been successful in retaining its core customer – females aged 16-24. Lush’s iconic bath bombs are its standout products that appeal to millennial shoppers, generating a cult following that has helped establish its reputation in the beauty market as a fun and unique retailer. This, alongside its extensive range of exclusive products, has allowed Lush to differentiate itself from market leaders such as Boots and Superdrug.

Source: GlobalData Retail’s How Britain shops survey of 10,000 respondents for 2017 & 2018

Customer loyalty has ensured that it has also retained its customers as they have grown up, with 25-34s accounting for 27% of Lush shoppers in 2018. Lush has also encouraged new consumers in this age group through its new cult products that are often featured in the press, highlighting that Lush is at the forefront of innovation and that it can adapt to the latest trends to widen its appeal to beauty-product enthusiasts.

In 2017, Lush’s Twilight body spray made headlines after insomniacs claimed it had sleep-inducing power. In addition, Lush recently expanded into charcoal products, a popular trend from 2017 that has continued into this year, offering tooth tabs and facemasks. Its own take on this trend will ensure that its creative and exclusive ranges drive revenue in 2018. Moreover, the retailer has recently expanded its instore spa proposition, merging leisure and retail in its stores. Lush’s spas offer a variety of services such as a ‘Validation facial’ and ensure the brand has greater appeal to shoppers looking for more than its traditional bath products.

Lush has also widened its reach to older consumers, with a larger proportion of 55+ shoppers purchasing from Lush. This comes as more of its products are perceived to have health benefits, attracting shoppers who would not normally consider shopping at Lush. For example, customers have claimed its Dream Cream alleviates skin conditions such as eczema, driving a surge in sales of the product this year and leaving the retailer with stock shortages across its store estate.

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Free Report
img

Spot leading innovative companies with GlobalData’s Innovation Scorecard

Innovation remains a necessity in a disruptive ecosystem, as continuous innovation allows companies to adapt, evolve, and grow through disruption. Using our in-house alternative datasets, we are excited to launch GlobalData’s Innovation Scorecard. This scorecard will allow clients to rank 3,500+ companies on their innovation activity, impact, and disruptive potential across geography, sector, and theme. The scorecard provides a data-driven framework to rank leading companies on the potential of their intellectual property (IP) portfolio. GlobalData’s Innovation Scorecard focuses not only on the activity of innovation in the organization but also on its impact and disruptive potential using the 3I framework: Intensity, Impact, and Ingenuity. The tool helps clients to identify the most innovative companies that are disruptive leaders and challengers and can create alpha for their portfolio using the insights driven by 19+ high-value KPIs. Download our report to find out more about this innovative tool. Key findings derived from this tool include:
  • Alphabet, Tencent, and Qualcomm are the top three innovative companies in the last 10 years
  • The scorecard finds Technology & Communications and Pharma & Healthcare as the two main sectors driving innovation
  • Loreal placed as ‘Disruptive Leader’ in the Consumer sector, while Revlon has been identified as a traditional laggard
  • Companies such as Etsy and H&M are challenging retail ‘Disruptive Leaders’ Amazon and Walmart
by GlobalData
Enter your details here to receive your free Report.