The Body Shop once revolutionised the cosmetics industry with sustainable, cruelty-free products. Anita Roddick founded the company in 1976 with a clear vision: social responsibility, fair trade and environmental awareness. But with its IPO in 1984, a gradual shift away from these values began.
Loss of value and brand dilution
The biggest break came in 2006 with the takeover by L’Oréal, a company that had itself been criticised for animal testing. Many loyal customers saw this as a contradiction to the original principles. Even after the subsequent sale to the natural cosmetics company Natura, the company failed to live up to its ideals.
Instead of bold innovation, The Body Shop lost clarity: not enough sustainability for true environmental activists, not enough premium for luxury customers. The brand got stuck between expectations, while competitors such as Lush (consistent sustainability) and Rituals (premium wellness) positioned themselves clearly.
The final crash
In 2023, financial investor Aurelius took over, but the restructuring failed. At the beginning of 2024, the company filed for bankruptcy in several countries – a sad end for the former pioneer of sustainable cosmetics.
Conclusion: Values as the foundation of sustainable success
The Body Shop impressively demonstrates that economic success can only be secured in the long term with a strong corporate culture. Sustainability must not be a mere marketing argument – it must be lived from within.
What could have been done better?
With targeted holistic mentoring programmes, The Body Shop could have preserved its values:
- Value-based leadership would have made management decisions more long-term.
- Awareness development would have created a genuine connection between managers, employees and the brand.
- Holistic coaching would have strengthened the corporate culture instead of adapting it to the market.
Sustainability does not begin with products, but with leadership culture. The Body Shop lost its soul – and with it, its future. Companies that take values seriously can remain successful in the long term with the right strategy.
Every manager should go to the periphery and use their developed questioning skills to expand the range of decision-making options and, through observation, create more clarity for a self-determined approach.
