Legacy Brands' Relevance: The Body Shop's Comeback

The Body Shop's chief executive officer, Mike Jatania, has outlined a blueprint for revitalizing the 50-year-old beauty brand, emphasizing the need to restore cultural relevance rather than relying solely on nostalgia. Jatania noted that the brand, founded on ethical sourcing and fair trade principles by Anita Roddick, had lost its "soul" and experienced increased costs through successive ownership changes, including L'Oreal and Natura & Co. This led to performance issues, with the company making losses and being placed into administration.

In the current competitive beauty landscape, Jatania identified "relevance" as the key challenge for legacy brands. Despite The Body Shop's significant global presence, with 80% awareness across 70 countries, this had not translated into growth. His strategy focuses on updating the brand without altering its core values, aligning with Gen Z and Gen Alpha consumers who expect transparency and quality. This includes strengthening digital channels and adopting quick commerce models to meet evolving shopping behaviors.

The company implemented a structured transformation over the past 16 months, involving cost reduction, rightsizing, and process improvements. These efforts have resulted in a return to profitability and cash generation, establishing a foundation for future expansion. Jatania stressed the importance of clear purpose and sharp amplification of brand values in navigating the changed rules of the modern market.