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In November 2006, Anita Roddick (Roddick), the founder of The Body Shop International Plc. (Body Shop), was in India to officially launch the chain of stores under 'The Body Shop' brand.
Body Shop is a producer and marketer of ethically-sourced and natural-based beauty products. Body Shop's stores in India would be launched in partnership with Planet Retail Pvt. Ltd, the master franchisee for Body Shop in India.
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Body Shop had actually started its Indian retail operations in June 2006 with the help of another Indian franchise, Quest Retail Private Ltd. (Quest).
As of November 2006, Body Shop had five shops in India - two in Delhi and one each in Gurgaon, Jaipur, and Mumbai.
Body Shop had over 2,000 retail outlets in 55 countries and planned to launch 45 more stores in India by 2009.
Even though Body Shop began its Indian retail operations in 2006, the company's association with India could traced back to 1986, when Body Shop sourced a 'footsie roller' that was supplied by a small local community in South India.
This was part of Body Shop's community trade program (CTP), wherein the company sourced products from marginalized communities for a fair price in a sustainable way.
At the launch, Roddick said, "The Body Shop has enjoyed a good relationship with India for nearly 20 years since we launched our community trade programme in 1987 with Teddy Exports in Tamil Nadu.
I am ecstatic that after nearly 20 years of trading relationships and community involvement in India, we have finally opened The Body Shop stores here."1
Roddick and her husband Gordon Roddick established Body Shop in 1976. Body Shop's core brand identity was its "profits-with-a-principle" philosophy and the brand was closely associated with the social justice agenda.
This was a revolutionary idea at the time, and Body Shop developed a loyal customer base. During the 1970s and 1980s, the company grew through the franchisee route both in the UK and other international markets.
However, by the early 1990s, Body Shop faced problems as many "me too" retailers entered the UK market, running businesses on a similar 'green' and 'natural' plank.
Even established business entities such as The Boots Group Plc,2 launched their natural beauty products range that directly competed with Body Shop's product portfolio.
Body Shop's international expansion strategy had not achieved much success. In the US, it faced major reverses as new competitors emerged and when its new products failed to take off.
Though the company continued to grow in size, its market value was on the decline. The board had also got tired of Roddick's radicalism, her combative stance on globalization, and vocal criticism of anti-wrinkle creams.
In 1998, Roddick was forced to step down as the CEO and Patrick Gournay (Gournay) replaced her. Her critics felt that her radicalism had done more harm to the company than good and were happy that she had stepped down.
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1] Preeti Mehra, "Going to the grassroots," www.thehindubusinessline.com, November 30, 2006.
2] Boots Group Plc is a leading pharmacy chain in the UK. It was founded in 1849.
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