Scaling & Growth

Why The Body Shop Thrives in India but Struggles in the US — Lessons for Startups

From driving social change to making luxury affordable — Lessons from The Body Shop India

Updated

January 16, 2026 12:00 PM

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.

The decline of The Body Shop in the US: Reasons behind the fall

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.

How The Body Shop got its game right in India  

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.  

Lessons for startup leaders from The Body Shop India  
  • A global playbook rarely works as-is. Brands grow faster when they understand local buying habits, price sensitivity and culture. The Body Shop India’s product customization, pricing moves and city expansion strategies have shown what that looks like in practice.  
  • Omnichannel strategy matters more than ever in today’s market. Combining retail stores with a strong digital presence makes a brand easier to find and easier to buy, even when shopping habits change.  
  • Tier 2 and Tier 3 cities often hold untapped potential. Competition is often lower, demand is rising and the brands that arrive early can build loyalty faster.  
  • Local supply chains can also help. They can cut costs, speed up delivery and fit the preference many shoppers have for locally relevant products.
  • Marketing needs to match the market. Campaigns that reflect local values and moments build stronger loyalty and help brands stand out in crowded categories like beauty and personal care.
Wrapping up  

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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Event Coverage

Cyberport Venture Capital Forum 2025

Cyberport Venture Capital Forum (CVCF) 2025 Returns Under the Theme "The Innovation–Venture Nexus: Igniting Transformative Success"

Updated

January 8, 2026 6:34 PM

As the venture capital world recalibrates amid global uncertainty, Cyberport Venture Capital Forum (CVCF) 2025 returns on November 6-7 under the theme “The Innovation–Venture Nexus: Igniting Transformative Success”. PHOTO: CYBERPORT

The two-day forum will once again bring together global and local leaders to explore how technology, capital and collaboration intersect to drive the next wave of growth. Entrepreneurs, investors and innovators will exchange insights on artificial intelligence, digital assets and Web 3.0—technologies that are reshaping industries and redefining both risk and opportunity.

As industries face challenges from geopolitical shifts, regulatory changes and market volatility, CVCF will serve as a platform to address a defining question: How can innovation remain bold and visionary in an ever-evolving funding landscape? Through keynotes, panel discussions and interactive sessions, the forum will spotlight the transformative potential of technologies like artificial intelligence (AI), Web 3.0 and digital assets while offering practical strategies to turn disruption into market advantage.

With investor matching, power pitches, start-up clinics and workshops, CVCF 2025 offers a front-row seat to emerging markets across Asia, the Middle East, the United States and Europe, connecting forward-thinking investors with visionary entrepreneurs. It is not just a conference—it’s a bridge between ideas and investment designed to ignite breakthroughs and foster growth in the global innovation ecosystem. It provides a unique platform for startups and investors to navigate the complexities of today’s economy while seizing new opportunities for collaboration and growth.

To preview the conversations ahead, three speakers share perspectives on trends shaping the future of innovation, investment and entrepreneurship, setting the stage for the discussions that will unfold at CVCF 2025.

Alvin Kwock

Co-founder and CEO, AIFT

Session: Riding the Middle East Momentum — Capitalizing Unique Innovation and Investment Strengths 

As the Middle East accelerates its shift from oil dependence toward digital diversification, the region is becoming a focal point for blockchain and AI investment. In his upcoming session, Alvin Kwock will explore the region’s innovation potential — and here, he shares some of his views on the opportunities shaping that transformation. 

Alvin Kwock, co-founder and CEO of AIFT, oversees operations across three verticals: AI and cybersecurity (Vulcan and Cymetrics), blockchain (OneInfinity and OneSavie) and pet and B2C (OneDegree). With local operations spanning Asia and the Middle East, AIFT is expanding rapidly. 

When asked about the Middle East’s rapid rise as a global innovation hub, Kwock said that the region is shifting from a petroleum-dependent economy to one increasingly diversified through technology and innovation, with markets advancing blockchain and AI technologies. AIFT is prioritizing expansion in the UAE and Saudi Arabia, where AI investment and regulatory openness create immense potential. Hong Kong’s expertise in financial risk management acts as a “confidence anchor” for international markets, allowing AIFT to deliver compliant solutions tailored for emerging markets while developing Sharia-compliant, regulation-aligned technologies. 

“Hong Kong’s storied expertise in financial risk management acts as a ‘confidence anchor’ for international markets.” 

He also noted that the region’s accelerating digital adoption opens unique opportunities for AI, insurtech and fintech. The UAE and Bahrain’ embrace of virtual assets, combined with Hong Kong’s proven frameworks, provide a foundation for localized solutions. By integrating risk oversight and regulatory best practices, AIFT supports stable market growth and delivers specialized insurance to enhance resilience in emerging markets. 

On managing geopolitical risk, Kwock explained that AIFT mitigates exposure through local partnerships, regulatory alignment and cultural understanding. By hiring Arab employees and ensuring operations align with Islamic values, AIFT strengthens Hong Kong–Middle East collaboration. This approach, he said, offers a blueprint for startups: prioritize local engagement and flexibility to balance risk and growth. 

Kang Shen

Founder, Hash Global Advisory Company Ltd.

Session: From Hype to Holdings — Where Smart Money Goes in Digital Assets 2025–2027 

With institutional frameworks for Web 3.0 maturing, investors are increasingly focused on sustainable value creation. In his session, Kang Shen will discuss how smart capital is moving beyond speculation toward real-world utility—themes echoed in his reflections shared ahead of the forum. 

Kang Shen, founder of Hash Global Advisory, applies value-investing principles to the Web 3.0 sector. A graduate of Fudan University and the University of Chicago Booth School of Business and a Chartered Financial Analyst (CFA), Shen has more than 20 years of financial industry experience with roles at the Industrial Bank of Japan, PIMCO and Bosera Asset Management. 

On the tokenization of real-world assets, Shen observed that the RWA sector remains in its early phase of regulatory and infrastructure development. Over the next two years, as compliance systems mature, scalable projects with tangible value will emerge. For now, his approach remains cautious, focusing on fundamentals rather than inflated market narratives. 

He also shared his optimism for three areas with the most potential upside: Web 3.0 Culture and Entertainment—including projects like Meet48 and Offgrid; Web 3.0 E-Commerce and Payments—with ventures such as WSPN, RD Technologies and Bitgoods; and On-Chain Data and Data Assets—such as Chainbase and Data Dance Chain. These, he noted, represent meaningful real-world applications of Web 3.0 technologies. 

“Web 3.0 is currently undergoing a process of value realignment.”

Shen emphasized that Hash Global has always been committed to applying value-investing principles to the field of digital asset management. As early as 2019, the firm proposed using a monetary equation framework to evaluate ecosystem tokens and recently defined a new class—“Value-Functional Tokens”. He believes Web 3.0 is now undergoing a process of value realignment, where genuine utility will determine long-term worth. 

Eric Liu

Founder and CEO, Zhejiang Linctex Digital Technology Co., Ltd. (Style3D)

Session: Strategic Exits — IPO Paths for Expanding Rapid-Growth Companies 

The fashion and textile industry is undergoing rapid digital transformation. Against this backdrop, Eric Liu will join CVCF 2025 to discuss strategic growth and expansion paths for fast-scaling companies.

Eric Liu, founder and CEO of Zhejiang Linctex Digital Technology Co., Ltd. (Style3D), holds dual master’s degrees in applied computing and molecular biology from VUB University in Belgium and a PhD in Electronic Information Engineering from Zhejiang University. A serial entrepreneur in the textile industry, Liu founded Style3D to drive digital transformation through AI and 3D technology. 

He explained that Style3D’s fusion of AI and 3D technology builds a full-chain digital ecosystem. AI-driven design tools powered by large language models shorten design cycles from weeks to hours, while 3D simulation reduces prototyping costs by 30 percent. The company’s self-developed simulation engine supports virtual fashion shows and sustainability initiatives by optimizing fabric usage.

“Style3D’s fusion of AI and 3D technology builds a full-chain digital ecosystem.” 

On the company’s origins, Liu said that traditional fashion R&D cycles are slow and costly. By integrating AI for pattern generation and 3D for design-to-production links, Style3D overcomes these barriers. With over 200 core patents and an extensive database of 2.3 million fabric properties and 1.2 million garment templates, the company leads digital fashion innovation.

Looking ahead, Liu noted that Style3D reinvests 40 percent of annual revenue into R&D, develops AI-driven trend prediction tools and expands innovation hubs in Paris and Milan. By leading the standardization of “3D Digital Fashion Infrastructure”, Style3D is setting the industry benchmark for the next era of intelligent manufacturing. 

Building the Future Together

As global innovators prepare to gather at CVCF 2025, the forum promises to ignite ideas, discoveries and partnerships that will shape the future of technology and investment. From cutting-edge insights to practical strategies, the conversations starting here are just the beginning of a journey to redefine what’s possible in the global innovation ecosystem.  

Web3.0 Innovation Expo
Web3.0 Innovation Expo