Lush 5cu50

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þ 1. Company overview u u u

History and location The LUSH Business LUSH Positioning

2. Presentation of Lush 3. Conclusions |



Ñ History ² 1978 : Supplier of The Body Shop ² 1994 : Creation of Lush in Poole (UK) ² 2005 : Still a small team but increasing sales : 120 M pounds

Ñ A worldwide company D D UK : 83 shops Japan : 80 shops Canada : D! UK, Japan, Italy, Canada



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Œ | Ñ Strong Values ² Handmade and fresh ingredients ² No test on animals ² No or simple packaging

Ñ Products: A complete range of cosmetics ² More than 600 different products ² Skincare, Hair care, Bath products «

Ñ Customer relationship ² Quality customer relations / Advice / Customization



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Company Overview

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3. Conclusions

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' ( Ñ reputation:

the spiritual home of cosmetics »

Ñ Paris = second worldwide cosmetics market Ñ Constant new products: 300 launches yearly French Cosmetics Market

Ñ No direct competitor in Ñ A great opportunity for Lush Ñ 2005 skin care sales in : ½3.3 billion Ñ 2010 forecast: ½4.2 billion Ñ Retail Sales of Skin Care by Subsector* Subsector*



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' Œ ) * Ñ Booming natural cosmetics market in ² 40% increase from 2004 to 2005 ((Organic Organic Monitor Study) ² The French market for natural cosmetics is the fastest growing in Europe »

Ñ Increasing awareness of the dangers of cosmetics ² March 2005, 2005, Television documentary : possible dangers of substances used in cosmetics ² Best seller in : La vrit sur les cosmtiques » from Rita Stiens

Ñ A comer market ² 23 23% % of adults would pay more for environmentally environmentally--friendly products and never buy toiletries and cosmetics tested on animals animals..



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Ñ History of Lush ² Creation in 2004 ² Only 2 shops : Ñ Paris (65th shop worldwide) = 6 800K ½ Ñ Lille = 450K ½

Ñ Lack of a specific company strategy ² No plan for the future ² Little knowledge about the french market ² No target clients, no marketing



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ï þ ! Ñ Simple Strategy Implemented ² Educating the market Ñ Free samples, word of mouth marketing, customers resturned

Ñ Established strong customer base ² Strong Revenues (Paris = 6 800K euros) ² Customer satisfaction Ñ Moisturizing Cream Buvard (Cream day/night) ² ´I («) realized its effectiveness and I do not drop it any more, I'm sure I will buy it again!!µ

Ñ Raz Raz--dede-mare ² ´I like this rubbing rubbing--out very much because I really think it is efficient. («) a real effectiveness on my skin («)µ

Ñ French forum : « Lush addicts blog »



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!! ! + IFFICULTIES

COSTS

Finding the right location Ñ Paris Store: 1.5 years Ñ Lille Store: ´the right price at the right timeµ

Ñ Location search costs Ñ elay costs

Customers· specificities Ñ Paris Market: exigent customers » Ñ Customers are well educated

Ñ Training costs

Legal constraints Ñ Key money Ñ Seasonal employees Ñ Hiring process Ñ Franchise

Ñ Legal fees for hiring seasonnal employees Ñ Employee releasement costs Ñ Franchises legal fees Ñ Franchises delayed process opportunity costs

Cutural differences Ñ Finding the right lawyer

Ñ Search for a new lawyer cost

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Ñ Few adaptations has been made : ² No specific strategy has been implemented ² Stores and Internet Ñ 2 stores and a french website

² The products are very similar to the english ones: Ñ Same products for all stores Ñ Few adaptations on names and packaging

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þ 1. Company Overview 2. Lush in 3. Conclusions u u

The LUSH Future Advice from LUSH

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Œ Ñ Future Plans for LUSH in ² Franchise Expansion Ñ

30 to 40 new stores »

Ñ Risks identified for LUSH Ñ More and more competitors Ñ Increasing costs Ñ Some products may be inadequate in the french market



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Ñ et information about the business ² istribution network ² Market

Ñ Flexiblility is key Ñ The need for strategy - Have a set idea of where you are going



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Œ(+

Ñ Thanks to Emilie (Communication irector of Lush ) Ñ Bibliography ² ² ² ² ² ²

http://www.beaute http://www.beaute--test.com http://www.lush.com ata Monitor www.icongrouponline.coma Organic Monitor Study Euromonitor International

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