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Changing ‘Business as Usual’: The Body Shop Becomes a Success

Article Overview: For the first three years of their marriage, Roddick and her husband were content running their restaurant and eight-room hotel. She dealt with the customers while he took care of the behind-the-scenes management. However, after three years, the pair found themselves overworked and separated from their children. They decided to sell their restaurant and embark on their own pursuits.

Changing ‘Business as Usual’: The Body Shop Becomes a Success

For the first three years of their marriage, Roddick and her husband were content running their restaurant and eight-room hotel. She dealt with the customers while he took care of the behind-the-scenes management. However, after three years, the pair found themselves overworked and separated from their children. They decided to sell their restaurant and embark on their own pursuits.

Roddick’s husband, an equally avid traveler, decided that he wanted to ride a horse from Buenos Aires, Argentina to New York City. Ever the supportive wife, Roddick agreed and stayed home to care for their two children. It was during her husband’s time away that 33-year-old Roddick decided to open up a cosmetics store. But, it wouldn’t be just any cosmetics store. Roddick wanted her operation to be natural and environmentally conscious.

In 1976, Roddick opened up her first Body Shop adjacent to a funeral home in Brighton, only ten minutes from her home, in order to be close to her children. She had used the hotel as collateral to obtain a $6,500 bank loan. Initially, Roddick limited her product line to 15 natural cosmetic products that she had manufactured in her own garage, all of which were packaged and sold in small, recyclable bottles in order to reduce costs.

The Body Shop proved so successful that soon Roddick wanted to open a second store. When she was rejected for a $8,000 loan from the bank, Roddick turned to a gas station owner named Ian McGlinn, who agreed to purchase half a share in the company. By the time her husband returned, Roddick’s chain had become so popular that more and more people had begun inquiring about franchise rights.

With little experience in franchising, Roddick decided not to charge startup or royalty fees. However, before someone could acquire the rights to open a Body Shop franchise, Roddick would personally interview all of the candidates, asking them such questions as “What is your favourite flower?” and “How would you like to die?” At the time, most of the franchises were, and continue to be operated by women.

The Body Shop franchise was based on a unique business philosophy; its goal would not be limited to profits, but would also try to encompass socially responsible principles. Roddick wanted her company to offer “a two-for-one sale no other cosmetic company could ever hope to match: buy a bottle of ‘natural’ lotion and get social justice for free.” The company also employed unique advertising techniques, such as lining the sidewalk leading into her store with Body Shop perfume and hanging potpourri.

From campaigning to save Brazilian rainforests to fighting for fairer trade rules, Roddick has dedicated her company to social activism both at home and abroad. By 2004, there were over 1,980 Body Shop stores in over 40 countries around the world. It was voted the second most trust brand in the United Kingdom and Roddick was knighted by the Queen. More recently, the Body Shop was bought out by L’Oreal. Roddick has since spent most of her time giving away the majority of her accumulated $104 million fortune.

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Article Tags: bank loan, body shop, buenos aires argentina, collateral, cosmetics, flower, franchise rights, gas station owner, marriage, natural cosmetic products, new york city, roddick, room hotel, royalty fees, shop franchise, supportive wife, traveler



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