Porter's 5 Forces The Body Shop, organic sector, cosmetics, organic cosmetics market, The Body Shop company, organic cosmetics market
The organic sector has taken on great importance over the years. Indeed, more and more consumers want to eat properly and want to use better products for their health. In the space of ten years, food was no longer the only one affected by the organic trend. Household products and cosmetics have also become a priority form of consumption for a large number of customers. In addition, the health crisis which has shaken the world for more than a year now has also awakened greater ecological awareness among consumers and especially among the youngest.
Thus, the organic cosmetics market has grown by 40% in France, with sales now reaching 40 billion euros. A figure predicted to double by 2025. In 2020, the industry saw a large number of online orders that unsurprisingly surpassed physical sales due to the lockdown that forced consumers to stay at home.
[...] In each country, organic and natural products are also welcomed in a different way, with regulations that are not always the same. This sometimes represents an additional difficulty for new entrants. Finally, new players could be impacted by The Body Shop's brand image. Competing against brands with an excellent reputation is more complex and also takes more time. To establish competition it takes time, money, serious suppliers and knowing how to gain the trust of consumers. It is generally risky to develop a business in a very competitive environment. [...]
[...] Thus, there are many substitutes for the products offered by The Body Shop. They are indeed in the same category, and although they are not organic or natural, they meet the same need, namely to take care of yourself. Today, despite a strong upsurge in organic products on the market, the other products are in greater number, and the competition continues to be in full swing, even for this range of traditional products, which means that the demand is still present. [...]
[...] A presence on the net is essential in 2021, to maintain a permanent dialogue with Internet users and always keep in mind the importance of having a dynamic brand image that is close to its customers. In the case of a company like The Body Shop, which has been around for many years, it may be worthwhile to benchmark the competition to draw inspiration from the best strategies on the market. [...]
[...] Bargaining Power of Suppliers In the case of The Body Shop, the bargaining power of suppliers remains relatively moderate. Indeed, the brand develops more of a partnership relationship with its suppliers because customer satisfaction is as important for the brand as for the suppliers in question, who must enjoy a good reputation, especially in view of the competition. The organic market operates in an even different way from the traditional cosmetics market because it is still small. Suppliers must provide certified organic and/or natural products and thus ensure the quality of the products. [...]
[...] Porters 5 forces for The Body Shop A. New Entrants In the case of The Body Shop, the threat from new entrants remains moderate. Indeed, the organic cosmetics sector certainly attracts a large number of new players every year, nevertheless, the barriers to entry are increasingly strict and it is difficult for new ones to position themselves in the segment in a sustainable manner. What poses a danger to The Body Shop is that these potential new entrants may if they manage to integrate, grab a share of the market. [...]
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