Lush Cosmetics: Detailed PEST and SWOT Market Analysis

This report provides a market analysis of Lush Cosmetics, a cosmetic retail firm known for its handmade and natural products. The analysis employs PEST (Political, Economical, Social, and Technological) and SWOT (Strengths, Weaknesses, Opportunities, and Threats) frameworks to evaluate the company's external and internal environments. The PEST analysis highlights factors such as low trade barriers in the UK, increasing inflation impacting raw material costs, growing consumer preference for natural products, and the use of digital channels for online purchasing. The SWOT analysis identifies Lush's unique, natural, and handmade products as strengths, while high retailing costs are considered a weakness. Opportunities include capitalizing on the fear of chemicals in competing products, and threats include competition from other cosmetic companies. The report concludes that market analysis is essential for firms to understand their environment and successfully grow their business.

Market Analysis
Introduction
Market analysis is considered as process in which a
company management conduct evaluation of internal
and external environment. For this management may
adopt different analysis method or strategies such as
PEST, SWOT and so on. Organization selected for
respective report is Lush which is cosmetic retail firm
which is founded by Mark and Mo Constantine, Liz
Jensen, Helen Ambrosen, Rowena Bird and Paul
Greaves in year 1995. The head office of respective
company is located at Poole, Dorest , United Kingdom.
The aim of conducting this report is to evaluate internal
as well as external environment of a company. In
respect of this PEST analysis and SWOT analysis are
conducted.
PEST Analysis
• Goodell, J. W., McGee, R. J. and McGroarty, F.,
2020. Election uncertainty, economic policy
uncertainty and financial market uncertainty: A
prediction market analysis. Journal of Banking
& Finance. 110. p.105684.
• Babarinde, S.A. and et.al., 2020. Composition
and toxicity of rough lemon (Citrus jambhiri
Lush.) rind essential oil against red flour
beetle. Acta Ecologica Sinica.
• Gassama, M., 2020. International Marketing
Research: A Marketing Strategy Case Study with
Inari Arctic Cosmetics.
Conclusion
By conducting analysis of above mentioned
topic it can be summarised that for every firm it is
essential to conduct market analysis as that will help in
understanding internal as well as external environment.
For this a company may adopt different models or
strategies such as PEST and SWOT. PEST will help in
understanding external environment whereas SWOT
analysis aid in evaluating internal environment
successfully.
References
• Political factor – In United Kingdom there is low
trade barriers which provide opportunity to Lush to
conduct and grow their business. According to
European commission it is illegal to sell animal
tested products but this firm already make
handmade and nature products which is opportunity
for them.
• Economical factor – Due to increase in inflation
the price of raw materials get increase which impact
on the respective company production process.
• Social factor – In UK every people want to use
natural and home-made products which provide
opportunity to respective company. Moreover
currently men are also getting aware toward their
skin care which also leads to growth of market.
• Technological factor – Lush attract more and more
customers by offering online purchasing through
using different digital channels. This will also help
in promoting product at huge market in less time.
SWOT Analysis
Strengths – Products – The products of respective
company are unique along with that it is also naturally
colourful and scented. Respective company also offer
wide range of products such as bath bombs, tablets
toothpaste and many other cosmetics products.
Real handmade – The products of respective company
are totally made up of human beings not machine.
Company strictly follow diversity policy as well as
their staffs are from different regions, genders, culture
and so on.
Weaknesses – High cost of retailing – Cost of
respective company is enhancing as they are more
focus toward improving in store experiences. For
which they are improving lights, product display and so
on.
Opportunities – Develop fear of chemical – It is
opportunity for Lush to capitalize their brand as the
environment and skin friendly products. In respect of
this they can compare their products to other firm who
use chemical and conduct animal testing.
Threats – Competition – It is one of the main threat for
respective company as there are numbers of other
cosmetic company such as The Body Shop, Sephora
etc.