Lush SWOT analysis – SWOT analysis of Lush

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Lush SWOT analysis – SWOT analysis of Lush: Lush Cosmetics is a company that produces handmade, fresh cosmetics products, personal care, and cosmetics products. The company was established in 1994, and with its headquarters in London, the products produced by Lush Cosmetics include bath and beauty products including styling and shower gels, soaps, buttercreams, massage bars bath bombs, shampoos conditioners for the body and hand, creams and body butter jars products for feet such as deodorants and dusting powders.

The company was founded on an idea based on two individuals Mark Constantine a trichology and Elizabeth Weir a beauty specialist who was inspired by the stories about Anita Roddick and The Body Shop and decided to create an organization that made products safe for application to the skin.

The company is owned by a private family and owns a small number of shares on the market. The products are natural and are made from vegan ingredients. They are also not tested on animals which makes the products environmentally conscious and safe to use for all skin types. The company made earnings of 216million pounds in 2016 and is still an extremely sought-after product in the cosmetics industry.

Lush fun facts: Miss Selena Gomez is known to frequent the shop. She’s reportedly a fan of LUSH‘s Charity Pot Body Lotion and Ocean Salt Scrub. 

About Lush – SWOT analysis of Lush

SWOT analysis of Lush

Company: Lush Retail Ltd.

CEO: Mark Constantine

Founder: Mark Constantine | Rowena Bird | Helen Ambrosen | Mo Constantine | Liz Weir | Paul Greaves

Year founded: 1995, Poole, United Kingdom

Headquarters: Poole, United Kingdom

Annual Revenue: USD$578.52 million

Profit | Net income: USD$19.3 million

Number of employees: 13,652

Products & Services: Lush produces Creams, Soaps, Shampoos, Shower gels, Lotions, Moisturisers, Fragrances, Scrubs, Toothpaste Tablets, Masks, and Other Cosmetics for the Face, Hair, and Body using only Vegetarian or Vegan recipes.

Website: www.lush.com

Lush Competitors

Competitors: Avon Products | L’Oreal | Sephora | L Brands | Natura & Co. | The Body Shop | Origins Cosmetics | L’Occitane | Kiehl’s | BlueMercury | MAC Cosmetics | Oriflame

SWOT analysis of Lush – Lush SWOT analysis

SWOT analysis of Lush

SWOT Analysis Of Lush is brand-based. SWOT Analysis of Lush evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Lush’s SWOT Analysis. Below is the detailed SWOT Analysis of Lush.

Let’s talk about Lush’s SWOT assessment.

Strengths of Lush – Lush SWOT analysis

  • The Product: Lush Cosmetics Products are not only different, but they are also naturally fragrant and vibrant to be seen. With a variety of brightly colored products with packaging that highlights the shades and the brand is able to draw the attention of customers.
  • Components: The firm makes its cosmetics using organic and natural ingredients that are safe to use on all kinds of skin. The company only uses vegan or vegetarian recipes and is free of preservatives and chemicals in its products. There are also a variety of products that are unique and include, for instance, solid tubes of toothpaste, which include bath bombs, tablets, and so on.
  • Sustainable: Lush is an extremely sustainable company that ensures that everything they sell is 100% organic. Their packaging is also designed to ensure that the natural environment is not damaged since it is compostable. They source sustainably and responsibly and have a minimum waste policy, and do not conduct testing on animals.
  • Genuine handmade: Quite unlike other companies who claim their products are made by hand, not, the products of Lush Cosmetics are actually made by humans, not by machines. Lush has an incredibly diverse policy, and the employees represent a variety of different ethnicities, regions, cultures, and genders. Employees also differ in the hues of their skin and individuals of all kinds of skin tones and body types are employed.
  • The most well-known brands’ representatives: Lush Cosmetics has been riding the popularity of pop culture and has numerous brand ambassadors in these categories, including Jeffree Star Bunny and Kylie Jenner.

Weaknesses of Lush – SWOT Analysis Of Lush

  • The high cost of selling: The price of retailing is rising as retailers focus more on enhancing the shopping experience in stores. Factors like in-store lighting, product display shelves, in-store product demonstrations, etc. All of them are expensive for businesses.
  • Low volume: Most Lush Cosmetics stores are located in malls within their areas. Mall traffic has begun decreasing as well. The price of the business has been mostly catering to the high-end segment. The margins are not high and this in combination with lower sales volume has led to massive losses for the company.
  • In a position to not match: Lush Cosmetics was in an industry that did not have a lot of competition. However, as the demands for the makeup of customers grew, the company needed to develop various variations of their products or create new product categories. The challenge of catching up with changing needs can affect business.

Opportunities of Lush – Lush SWOT analysis

SWOT analysis of Lush

  • Growing fears of chemical exposure: The presence of chemical compounds in cosmetics, along with reports of the dangers of testing on rats and other animals have attracted the attention of the media. This presents a great opportunity for eco-friendly and natural products companies such as Lush Cosmetics to capitalize on.

Threats of Lush – SWOT analysis of Lush

  • Competitors: The main competitors of Lush Cosmetics are The Body Shop, Estee Lauder, Sephora, Shisheido, and Revlon.
  • It is difficult to draw consumers: Makeup and cosmetics are products that require an abundance of customer loyalty. Thus customers who purchase from different brands, including rival brands such as Body Shop are often apprehensive to switch to Lush. In the end, this could be an issue for businesses.

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Overview Template of Lush SWOT analysis

SWOT analysis of Lush

Conclusion

All in all, Lush has been maintaining a strong CSR profile and environmental sustainability. This has proven to be beneficial for the company as well as the environment. 

Additionally, Lush has excelled over all its competition in the United Kingdom, providing the best customer service. It has given a competitive advantage to Lush. On the other hand, Lush must consider developing unbeatable advertisement and digital marketing strategies to beat its competition. 

This case study concluded that Lush is weak in marketing, but with a huge position in the cosmetics industry. There is very high competition where marketing plays a crucial role, taking advantage of technology not merely in this industry in which every other company is focusing on digital marketing to rise ahead of each other.

This is the SWOT analysis of Lush. Please let us know if you have additional suggestions to add.


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