Lush Cosmetics is a cosmetic retail chain British multinational company. Paul Greeves, Helen Ambrose, Rowena Bird, Liz Weir, Andrew Gerrie, Mo, and Mark Constantine founded the cosmetic company in 1995. The company has established a network of approximately 886 stores in various countries across the globe. Today, we’ll discuss the PESTLE analysis of Lush Cosmetics; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Lush Cosmetics
Some of the main political factors in the Lush Cosmetics PESTLE analysis are as follows;
I-Government Regulations
The health and safety government regulations for cosmetic products are very strict. For instance, some countries don’t allow cosmetic companies to test their products on animals. Luckily, Lush Cosmetics engages in ethical practices, doesn’t test and experiment with its products on animals, and complies with government health and safety standards and regulations.
II-Trade Policies
The trade policies of different countries are dependent on the political power, the country’s foreign policy, and international relations. Lush Cosmetics sources material and supplies from different countries; if the importing and exporting countries have a conflicted relationship with the brand’s country. They would impose various types of trade tariffs, restrictions, and bans to run their business.
III-Political Unrest
The political environment of the country plays a key role in the growth of businesses and companies. Lush Cosmetics is operating and running its business worldwide. In case of riots, processions, roadblocks, and other conflicts; they would disrupt the supply chain and distribution issues of the cosmetic brand.
Economical Factors Affecting Lush Cosmetics
Some of the main economic factors in the Lush Cosmetics PESTLE analysis are as follows;
I-Buying Power
Consumer buying power is a very important economic indicator for the growth of businesses and companies in a particular country. For instance, if the buying power of people in a particular country is low due to a tight economy, higher unemployment rate, and higher inflation; then it would negatively impact the sale and revenue of the company.
II-Expensive Raw Material
Lush Cosmetics procures raw materials, supplies, packaging, and other parts and components from various countries across the globe. The raw material cost has increased significantly for the past few years due to increasing fuel prices, currency exchange rates, and other legal requirements. Collectively, all of these factors increase the raw material, and it negatively impacts the profit margin and sales.
Social Factors Impacting Lush Cosmetics
Some of the main social factors in the Lush Cosmetics PESTEL analysis are as follows;
I-Ethical Consumption
The consumer market has become highly careful and cautious about the production and consumption of products and goods. They pay heed and analyze the company’s involvement in the ethical sourcing of material, production, and sustainable practices. In order to keep up with the growing market trends, Lush Cosmetics implements a transparent strategy and engages in ethical practices.
II-Natural Beauty Trend
Speaking of trends, the consumer market and the young audience prefer natural beauty. They buy and prefer organic and natural makeup and cosmetic products over plastic and superficial products. However, natural and organic products give them natural beauty looks and appurtenance. Lush Cosmetics follows and develops natural beauty products to keep up with customer needs and demands.
III-Cultural Attitude and Fitness Trend
People from different cultures have a variant attitude and behavior towards different products. For instance, it is acceptable to use beauty products in some cultures and it is not in other cultures. The consumer market has become highly cautious about their health and fitness, and they care about how they look and their appearance to the public.
Technological Factors Affecting Lush Cosmetics
Some of the main technological factors in the Lush Cosmetics PESTEL analysis are as follows;
I-Advanced Technology
Lush Cosmetics invests a significant amount of capital resources in the latest and most advanced technology like AI, ML, AR, and VR. It allows them to develop customized and efficient products for customers, and improve the customer shopping experience by providing them relevant products. The data analytics technology would help the cosmetic brand to accurately predict the demand and produce the products in the right quantity.
II-Digital Marketing
Lush Cosmetics runs smart and digital marketing and advertisement for the promotion of its cosmetics and makeup beauty products and goods. It allows the retail chain cosmetic store brand to amplify its customer market reach, network, and sales. However, the company employs the latest digital media channels like TikTok, YouTube, and others to connect and engage with digital users.
III-E-commerce Platform
Lush Cosmetics has developed an e-commerce platform to connect and engage with the target audience directly by removing all the middlemen. The objective of the company is to provide a seamless shopping experience to the web users, and timely delivery of products to their doorstep.
Legal Factors Impacting Lush Cosmetics
Some of the main legal factors in the Lush Cosmetics PESTEL analysis are as follows;
Regulatory Compliance
Lush Cosmetics needs to comply with the government regulations of different countries. It comprises of animal testing regulations, labor laws, trade policy, import and export regulations, product and material sourcing regulations, environmental sustainability laws, and others. The regulatory requirements would help the cosmetics brand to smoothly perform its operations without any delays and disruption.
Environmental Factors Affecting Lush Cosmetics
Some of the main environmental factors in the Lush Cosmetics PESTEL analysis are as follows;
Sustainability Initiative
Lush Cosmetics has made a strong commitment to environmental sustainability. The cosmetics brand has taken various sustainability initiatives like no animal testing, ethical sourcing of raw materials, sustainable biodegradable packaging, and natural ingredients. It allows the brand to decrease the carbon emission rate and limit the carbon impact.
Conclusion: Lush Cosmetics PESTLE Analysis |PESTEL Analysis of Lush Cosmetics |External Environmental Analysis of Lush Cosmetics | Strategic Analysis of Lush Cosmetics
After an in-depth study of the pestle analysis of Lush Cosmetics; we have realized that Lush Cosmetics is the world’s leading beauty products manufacturing brand. If you are learning about the Lush Cosmetics PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
