ECO BUSINESS MODEL/TRANSITION

The Company

A small-medium sized cosmetics retail and wholesale company

Background

This company had been in operation for 4 years. They source and supply make-up cosmetics for black skin tones from America to sell in the UK to the retailers (in bulk) and to individuals (retail) The founder of this company came to us for advice on a business strategy as they sales were slowing down due to the competitive market and Brexit which made import costs increase.

We established that the founder was active in environmental awareness in their private life but not really doing anything to reduce carbon footprint in their business.

How We Helped

We carried out a business review of their operations and conducted a SWOT analysis. Based on our environmental scan of the cosmetics industry we recognized the increasing consumer demand for environmentally sustainable practices and products. We suggested the company change its business model to a focus on environmental sustainability and this way target a different segment of the market and gain competitive advantage. The founder agreed to trial this strategy and we set about transforming its operations to minimize its ecological footprint, enhance brand loyalty, and contribute positively to the environment.

Objectives

To gain competitive advantage and target environmentally conscious consumers

To reduce waste and resource consumption.

To shift towards sustainable sourcing of ingredients and packaging.

To educate consumers on the importance of sustainability in cosmetics.

To enhance corporate social responsibility (CSR) through community involvement.

How we implemented the Strategy

1-Sustainable Sourcing

EcoBeauty partnered with local farmers and sustainable ingredient suppliers to source organic materials for their products.

The company emphasized transparency by providing information on the sourcing of each ingredient on its website and product labels.

2-Eco-friendly Packaging

Transitioned to biodegradable and recyclable packaging materials, such as glass, metal, and compostable plastics.

Implemented a refill program, encouraging customers to return empty containers for a discount on future purchases.

2-Waste Reduction Initiatives

Introduced in-store recycling bins for plastic containers and education about proper recycling methods.

Implemented a zero-waste policy for internal operations, reducing unnecessary packaging materials and minimizing food waste in the employee break room.

Results

Increased Sales: Year-on-year, EcoBeauty saw a 30% increase in sales following the introduction of eco-friendly products.

Brand Loyalty: Customer feedback indicated a higher trust and loyalty towards EcoBeauty, as 65% of surveyed customers reported they preferred shopping at stores with sustainable practices.

Awards and Recognition: The retailer received recognition from local business awards for its commitment to sustainability, enhancing its brand reputation.

Community Impact: Over 1,000 local participants attended EcoBeauty’s educational workshops, leading to increased awareness of sustainable practices in the community.

The transition to environmental sustainability proved advantageous for EcoBeauty, effectively aligning its business practices with the values of modern consumers. By focusing on sustainable sourcing, waste reduction, and community engagement, the retailer was not only able to reduce its environmental impact but also to strengthen its market position. This case study exemplifies the potential for SMEs in the cosmetics sector to adopt sustainable practices as a key component of their business strategy.