From driving social change to making luxury affordable — Lessons from The Body Shop India
Updated
January 16, 2026 12:00 PM
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The Body Shop's storefront. PHOTO: ADOBE STOCK
The Body Shop, known worldwide for its ethical values and cruelty-free beauty products, has had very different results in two of its major markets. In the United States, challenges such as shifting retail trends and tougher competition led to the closure of most physical stores in early 2024. Meanwhile, in India, The Body Shop has risen to become one of its top five global markets. After reaching customers in more than 1,500 Indian cities through its omnichannel network, the company now plans to double its 200-store footprint over the next three to five years.
So what did The Body Shop do in India that proved harder to pull off in the U.S.? Below, we break down why The Body Shop struggled in the U.S., what’s driving The Body Shop India’s growth and what startup founders can learn from the contrast.
In March 2024, The Body Shop’s U.S. unit filed for Chapter 7 bankruptcy and stopped operating its roughly 50 stores. That move effectively ended its brick-and-mortar presence in the country.
A big part of the story is that the U.S. beauty market moved faster than The Body Shop did. Prestige beauty kept growing, and shoppers increasingly gravitated to retailers and brands that feel current and have a strong online presence. Paul Dodd, Chief Innovation Officer at e-commerce fulfilment partner Huboo, have pointed to The Body Shop’s slow approach to digital growth as a major factor behind its decline. With U.S. prestige beauty sales reaching about US$33.9 billion in 2024 and growing at 7% year over year, the demand is clearly there. The brands that stand out and get rewarded were the ones that matched how people now discover products and buy them.
The company also leaned too heavily on stores at a time when stores were getting harder to run. When foot traffic drops and rents rise, the pressure shows up quickly. Shoppers also had more places to go, including Sephora, Ulta, Amazon and direct-to-consumer sites. A similar pattern played out in Canada, where restructuring included store closures and halted e-commerce. It was another sign that North America had become an operational headache, not just a marketing challenge.
Then there’s the branding issue: its “ethical pioneer” position simply stopped being a moat in the U.S. market. Today, cruelty-free and vegan claims are now table stakes across many newer brands, and “clean beauty” messaging is everywhere. “Initially, the purpose-driven brand was revolutionary, so much so that competitors like Drunk Elephant have adopted a similar ethos,” says Dan Hocking, Chief Operating Officer at advertising agency TroubleMaker. “It was a concept that rightly earned success in the 80s and 90s, but The Body Shop didn’t adapt to changing consumer habits and preferences”. Meanwhile, competitors like Lush have kept people talking through stronger creator/influencer marketing, faster product cycles and more immersive in-store experiences.
Internal disruption likely made the turnaround even harder. Reporting on the U.S. bankruptcy points to instability, including the U.S. unit saying it did not have advance notice of decisions tied to the U.K. parent’s restructuring. When leadership decisions land without warning, it becomes harder to plan inventory, fund marketing and commit to a clear digital roadmap.
1. Expansion into tier 2 and 3 cities
For years, India’s beauty industry focused mainly on metropolitan cities. Today, however, increasing internet penetration, rising disposable incomes, exposure to global beauty trends and an appetite for ethical, sustainable brands have fuelled demand in smaller towns. That tailwind matters because India’s beauty and personal care market is expected to reach a gross merchandise value (GMV) of US$30 billion by 2027 and is projected to grow at roughly an 10% CAGR. There’s plenty of room for both premium and “affordable luxury” players that can meet consumer where they are.
The Body Shop has leaned into this shift. Harmeet Singh, Chief Brand Officer of The Body Shop Asia South, has said the brand is expanding into Tier 2 and Tier 3 cities with a focus on central and Northeast India. Reports also point to a clear advantage here: more than 200 stores across dozens of cities, plus online reach into over 1,500 cities. That foundation makes non-metro expansion feel like the next move, not a risky leap.
2. Omni-channel retail strategy for beauty shoppers
Unlike its U.S. front, The Body Shop India has put effort into digital and distribution. Besides its own online store, customers can find the brand on big beauty and retail platforms like Nykaa, Amazon, Flipkart, Tatacliq and Myntra. It has also built more direct routes to purchase through WhatsApp, social commerce, expert chats and live video consultations. For even faster access, it’s on quick-commerce apps like Blinkit and Swiggy.
This strategy is already showing up in the numbers. Nearly 30% of The Body Shop India’s business came from digital channels as of June 2025. Rahul Shanker, Chief Executive of The Body Shop India, has said the brand wants to lift online revenue to 45–50% of total sales by 2030.
This approach lines up with what’s happening in the market. NielsenIQ data found beauty e-commerce and quick-commerce sales in India rose 39% in value between June and November 2024, with offline growth over the same period being just 3%. The logic is simple: if the market is moving online, you want to be easy to buy online.
3. Inclusivity, accessibility and social impact
The Body Shop’s people-first approach shows up not just in its marketing, but in how it runs the business day to day. Inside the company, it has pushed gender sensitivity across teams. Out of 600 employees, it has 10 staff members who are part of the LGBTQA+ spectrum.
In stores, the brand has worked on improving accessibility. In 2024, The Body Shop India launched a Braille initiative for visually impaired customers. The programme introduced Braille category callouts in select locations so shoppers can navigate more independently.
On the sustainability side, the brand ties its message to its supply chain. An example is its long-term partnership with Plastics for Change, a Bengaluru-based social enterprise, to source “Community Fair Trade” recycled plastic for packaging. The collaboration has resulted in more predictable income, safer work and better access to social services and housing and education projects for the waste picker communities, which often include marginalized groups and women.
The same intent can also be seen in its physical retail. The Body Shop India has been converting stores into its “Activist Workshop” format, where everything is made from recycled materials, including store fixtures and interiors. By mid-2024, it had around 20 Activist Workshop stores in India.
4. Pricing that fits the Indian beauty market
In April 2025, The Body Shop India launched its “More Love for Less” campaign to make products more accessible. Through the campaign, the company lowered the prices of more than 60 best-sellers by 28–30%. The goal was to remove a clear barrier for many shoppers while maintaining the same quality.
The company has also positioned this as a pricing reset, not a short-term discount push. It’s meant to widen the funnel, especially among younger consumers aged 18–25, where price has been a major hurdle. That matters even more as the brand expands deeper into Tier 2 and Tier 3 cities, where value is often front and centre.
5. Local marketing that feels made for India
The Body Shop India has leaned into localized marketing in a way that feels specific, not generic. In late 2024, it launched “The India Edit”, a collection inspired by native ingredients like lotus, hibiscus, pomegranate and black grape. The tagline, “Only in India, for You,” makes the intent clear: India is not a copy-paste market. This approach matters because India is one of the most competitive beauty battlegrounds right now, with ongoing entry from global beauty brands. When everyone is fighting for attention, local storytelling helps The Body Shop stand out and feel closer to the customer.
The Body Shop’s story in the U.S. and India shows how differently a global beauty brand can perform depending on local strategy. In the U.S., it ran into a tough mix of fast-changing consumer habits, heavy competition and a liquidation process that left little room to rebuild. In India, the brand is riding big tailwinds in beauty retail growth, plus the shift to e-commerce and quick commerce. It has also put real effort into localization, pricing and omnichannel distribution.
If you’re trying to scale a consumer brand, there’s a clear takeaway here. Understand how your market shops, build strong digital distribution and make the brand feel local. The Body Shop India’s playbook is a useful example of how to do it.
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The new workplace literacy is here, and it’s digital.
Updated
January 8, 2026 6:36 PM
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A group of office worker attending a presentation in a meeting room. PHOTO: UNSPLASH
The modern workplace is powered by technology, and success increasingly depends on how well employees can use it. Digital fluency—the ability to confidently and effectively use digital tools to achieve goals—is no longer a bonus skill; it’s a necessity. It goes beyond basic technical know-how, encompassing the ability to adapt to new technologies, integrate them into workflows, and use them to solve problems and drive innovation.
Yet, despite its importance, many organizations struggle to build digital fluency across their teams. Barriers such as limited access to technology, outdated training programs, resistance to change, and gaps in leadership support often stand in the way. These challenges can leave businesses lagging behind competitors who are better prepared to leverage the potential of the digital age.
Understanding and addressing these barriers is critical for creating a workforce that thrives in today’s fast-changing world. Below, we explore the key obstacles to digital fluency and provide actionable strategies to overcome them.
One of the challenges to digital fluency is the gap between the technology available and employees’ ability to use it effectively. Technology evolves rapidly, but many organizations lag behind in providing relevant, up-to-date training. Employees may receive a one-time introduction to new tools but lack ongoing opportunities to build confidence or master advanced features.
This issue is compounded by the fact that training often takes a one-size-fits-all approach, failing to address the diverse skill levels within a workforce. For example, while some employees may only need a basic overview of a tool, others may require in-depth knowledge to integrate it into their roles effectively. Without tailored and continuous training, even the most advanced tools can go under utilized, leading to frustration and resistance.
Even with proper training, employees may hesitate to adopt new technologies. Resistance to change is a deeply rooted challenge that goes beyond technical skills—it’s tied to fear of failure, skepticism about the value of new tools, or discomfort with disrupting existing workflows.
For example, employees who have been using the same systems for years may feel overwhelmed by the idea of learning something new. They may worry that new technologies will complicate their work rather than simplify it. In some cases, they may even feel their jobs are threatened by automation or digital tools.
This resistance isn’t limited to employees—it can also exist at the leadership level. If leaders themselves are hesitant to adopt new approaches, it creates a top-down culture that stifles innovation.
The lack of organizational alignment is another significant barrier. Digital tools often roll out unevenly across departments, leading to fragmented adoption. For instance, one team might embrace a new project management tool, while another continues to rely on spreadsheets. This inconsistency creates silos, disrupts collaboration, and makes it harder for organizations to achieve the full benefits of digital transformation.
Generational differences can further exacerbate this issue. Younger employees, who are often more comfortable with technology, may adopt new tools quickly, while older employees may struggle to keep up. This divide can lead to frustration on both sides and uneven levels of digital proficiency across the organization.
Leadership plays a critical role in driving digital transformation, but in many organizations, this support is inconsistent or absent. Some leaders fail to prioritize digital fluency as a strategic initiative, while others may not fully understand the tools themselves, making it difficult to set an example for their teams.
Without clear direction from leadership, employees may not see digital fluency as a priority. This lack of alignment can lead to half-hearted adoption, where technology is seen as an optional add-on rather than a fundamental part of the organization’s success.
These barriers don’t exist in isolation—they are deeply interconnected. For example, outdated training practices can fuel resistance to change, while fragmented adoption across teams is often a symptom of weak leadership support. Together, they create a cycle that limits an organization’s ability to adapt, innovate, and thrive in a fast-changing world.
Addressing these challenges is critical for building a workforce that is confident, capable, and ready to embrace the future. By breaking down these barriers, organizations can unlock the full potential of their teams and position themselves for long-term success.
Training should not be an afterthought or a one-time event—it must be a continuous and personalized process. Employees come with diverse skill levels, and a one-size-fits-all training program often fails to address these differences. Organizations should adopt a multi-pronged approach to training, offering workshops for hands-on learners, e-learning modules for self-paced learning, and one-on-one coaching for employees who need more targeted support.
For example, companies like AT&T have invested heavily in workforce retraining initiatives, providing employees with a structured path to build digital skills overtime. These programs not only improve employee confidence but also help organizations fully leverage their digital tools.
Moreover, training programs should evolve to keep up with technological advancements. Employees need regular refreshers to stay current, as even the most advanced tools can become obsolete or under utilized without proper guidance. By making training a core part of the organizational culture, companies can empower employees to adapt to new tools with ease and confidence.
Resistance to change is a major barrier to digital fluency, often fueled by employees’ fear of failure or inefficiency when using new tools. To address this, organizations should foster a culture where employees feel safe experimenting with technologies in low-stakes environments, such as “sandbox environments” that allow for practice without affecting real workflows. When employees are encouraged to test new tools and processes in a low-stakes environment, they become more comfortable with technology over time.
Recognizing and rewarding employees who embrace new tools or suggest innovative ways to use them reinforces this mindset. Early adopters can serve as champions for digital fluency, encouraging others to engage with and explore new technologies.
By normalizing experimentation, organizations can shift employees from resisting change to confidently adopting digital tools as opportunities for growth.
To avoid fragmented adoption, organizations must ensure that digital tools are implemented consistently across teams. This requires clear communication, cross-departmental collaboration, and alignment on how tools will be used to achieve shared goals.
Mentorship programs can help bridge generational divides, pairing younger employees with older colleagues to share knowledge and skills.
Leaders play a pivotal role in overcoming barriers to digital fluency. They don’t just drive the adoption of digital tools—they shape how employees perceive and engage with them. When leaders actively embrace technology, they demonstrate its value and set a standard for others to follow.
Leadership involvement must go beyond symbolic gestures. Employees are far more likely to adopt new tools or processes when they see their leaders using them effectively in day-to-day work. For example, a manager who uses a team collaboration platform to streamline communications or leverages data visualization tools in meetings signals the practical benefits of these technologies. This hands-on engagement builds trust and encourages others to follow suit.
Equally important is leaders’ ability to connect digital tools to broader organizational goals. Employees need to understand how these tools contribute to solving real problems, improving workflows, or driving innovation. When leaders clearly communicate the "why" behind digital initiatives, it helps employees see digital fluency as a shared mission rather than an abstract directive.
Digital fluency isn’t just about mastering tools—it’s about creating a workplace where adaptability, curiosity, and collaboration thrive. It’s about empowering employees to see technology not as a hurdle but as an opportunity to innovate, grow, and solve problems in new ways.
At its heart, digital fluency is a shared effort, requiring leaders who inspire, teams that align, and cultures that embrace experimentation and learning. When organizations commit to breaking down barriers—whether through better training, stronger leadership, or fostering collaboration—they unlock the full potential of their people and their tools.
The future belongs to organizations that don’t just adopt technology but embed it into their culture, enabling their teams to thrive in an ever-changing digital landscape. The question now is not whether we can keep up with change, but how far we can go when we embrace it fully.