On 5 April 2023, LO’réal announced the acquisition of the Australian cosmetic brand Aēsop at $2.5 billion Australian dollar, which is the highest acquisition amount in LO’réal’s history.
Founded in 1987, Aēsop attracted countless customers with its minimalist packaging, indulgent scents and luxurious feeling of its products, helping the company to reach a year-on-year 30-40% growth.
The strategy and operation of Aēsop have key learnings for businesses:
- Product development
- In-store experience
- Promotion
- Staff management
Table of Contents
Limited product releases and customer-centric product development
Aēsop is a brand that places paramount importance on developing products that genuinely cater to the needs of its discerning customers. Rather than pursuing rapid expansion of its product line, the company focuses its attention on the meticulous development of its offerings. Although Aēsop incorporates a range of plant-based ingredients, it does not position itself as exclusively “natural,” as it also incorporates man-made components into its formulations.
One of Aēsop’s strategic approaches to product development is its deliberate decision to introduce only four new products annually. This strategic choice underscores the brand’s unwavering commitment to prioritizing quality over quantity. By limiting the number of new products introduced each year, Aēsop ensures that every item is carefully selected and meticulously crafted to meet specific customer needs and preferences.
At the heart of Aēsop’s limited product releases lies a deep commitment to addressing the genuine needs of its customer base. Rather than chasing fleeting trends or expanding its product line haphazardly, the company conducts thorough market research and actively listens to customer feedback. This process allows Aēsop to identify areas where its products can provide real value and practical solutions.
Aēsop’s restrained approach to product development also serves to uphold the luxurious image associated with its brand. By refraining from inundating the market with an overwhelming array of choices, the company can channel its resources into perfecting the formulation, packaging, and presentation of each product. This dedication reinforces the premium image that Aēsop strives to maintain.
One notable aspect of Aēsop’s product philosophy is its balanced use of both natural and man-made ingredients. While the brand incorporates numerous plant-based elements, it refrains from exclusively branding itself as “natural.” This approach allows Aēsop to harness the benefits of both natural and scientifically derived ingredients, showcasing a commitment to efficacy while still appealing to consumers seeking a harmonious blend of nature and science.
Aēsop’s commitment to limiting new product releases also plays a pivotal role in maintaining stringent quality control. Each product undergoes extensive testing and refinement to ensure it consistently meets the brand’s exacting standards. This dedication to quality fosters trust among consumers, who can rely on the consistent performance of Aēsop products.
In a skincare and cosmetics industry often characterized by constant product launches and marketing gimmicks, Aēsop stands out through its measured and deliberate approach to product development. This approach underscores the brand’s dedication to substance over hype, appealing to discerning consumers seeking authenticity and practical solutions.
Moreover, Aēsop’s limited product range aligns with its sustainability goals. This approach allows the company to take a more considered approach to sourcing and packaging, thereby reducing waste and environmental impact. This sustainability angle resonates with eco-conscious consumers and further enhances the brand’s reputation as a responsible and conscientious player in the industry.
Innovative In-Store Experience at Aēsop
Aēsop’s approach to store design is a testament to its commitment to creating unique and immersive retail experiences. Unlike many brands that adopt a one-size-fits-all approach, Aēsop takes great care to tailor the design of each store to its specific location, incorporating local characteristics and history. This meticulous attention to detail not only adds a layer of authenticity to each store but also creates a sense of connection between the brand and the community it serves.
For instance, the Bondi store artfully repurposes timber from wharves to fashion wave-like walls, seamlessly blending the natural surroundings with the store’s interior. Meanwhile, the Singapore store boasts an “upside-down” forest ceiling, adding a whimsical touch that pays homage to the city’s lush greenery. These design choices go beyond aesthetics; they tell a story and convey the brand’s narrative, reinforcing its commitment to cultural appreciation and community engagement.
Aēsop’s stores are not merely places to shop; they are immersive environments that engage the senses. Natural materials, subtle lighting, and carefully curated scents create a sensory experience that aligns perfectly with the brand’s values of quality and luxury. The result is an atmosphere that invites customers to explore, ask questions, and interact with staff, fostering meaningful connections and a deeper understanding of the brand’s products and ethos.
In a competitive cosmetics and skincare industry where products can often appear indistinguishable, Aēsop’s innovative in-store experiences serve as a crucial point of differentiation. Customers are more likely to remember and return to stores that offer a memorable and unique encounter. These positive encounters not only contribute to customer loyalty but also lead to customers becoming brand advocates, sharing their experiences with friends and family and bolstering the brand’s reputation.
Aēsop’s approach to in-store design is more than just a visual aesthetic; it is an integral part of its brand identity. The physical spaces themselves become an extension of the brand, consistently reinforcing its values and aesthetics across different locations. This consistency makes it easier for customers to recognize and connect with Aēsop, regardless of where they encounter the brand.
Furthermore, Aēsop’s incorporation of local characteristics in its store designs fosters a sense of community connection. Customers are more likely to feel a sense of loyalty and pride when they perceive that a brand respects and appreciates their local culture. This community connection strengthens the bond between Aēsop and its customers, creating a mutually beneficial relationship that extends beyond the products themselves. In essence, Aēsop’s approach to in-store design is a testament to its commitment to creating meaningful, authentic, and lasting connections with its customers and the communities it serves.
Never discounts
Aēsop’s approach to pricing and brand promotion underscores its unwavering confidence in the quality and value of its products. One notable aspect of this confidence is the brand’s decision to abstain from offering discounts. By maintaining price integrity, Aēsop communicates a clear message to its customers: its products consistently merit their original price, a testament to their enduring quality and worth.
Rather than relying on discounts to attract customers, Aēsop invests in creating exceptional in-store experiences. Each of their stores is meticulously designed to provide a sensory and immersive environment that perfectly aligns with the brand’s core values of luxury and quality. Here, customers are not mere shoppers; they are active participants in a memorable brand experience that goes beyond the transaction.
A strategic distribution strategy also plays a pivotal role in Aēsop’s brand positioning. The brand carefully selects the locations of its stores, aiming to maintain an aura of exclusivity and sophistication. This deliberate choice enhances the perceived value of Aēsop’s products, ensuring they remain associated with high-end and desirable destinations, further strengthening the brand’s allure.
Aēsop’s partnerships with luxury hotels and restaurants are another facet of its brand strategy. These collaborations are not arbitrary; they are part of a well-thought-out strategy to align the brand with upscale, quality-oriented establishments. This association serves to reinforce Aēsop’s core values and resonates with consumers who appreciate and seek out such refined experiences. It also provides Aēsop with access to a relevant and discerning audience.
Beyond business partnerships, Aēsop demonstrates its commitment to cultural appreciation through its support for arts and design events. This investment in creative initiatives not only enriches the communities the brand serves but also reinforces its identity as a patron of culture and sophistication. By actively participating in these cultural endeavours, Aēsop not only strengthens its connection with customers but also communicates its dedication to the broader values of art, design, and creativity.
Employees are brand ambassadors
Aēsop’s remarkable success can be largely attributed to its meticulous approach to employee training and brand alignment, which plays a pivotal role in shaping the company’s identity and customer relationships.
Central to this approach is the systematic training programs that Aēsop invests in for all its employees, irrespective of their specific roles within the organization. These programs are thoughtfully crafted to immerse employees in the company’s core values, mission, and extensive product line. This comprehensive training ensures that each staff member possesses a profound understanding of what the brand signifies and the exceptional experience it aspires to offer customers. This educational journey covers various facets, ranging from in-depth product knowledge to honing exceptional customer service techniques.
Through this rigorous training regimen, Aēsop cultivates a workforce that not only comprehends the brand but is genuinely passionate about it, along with an encyclopedic knowledge of its products. This passion and expertise translate into employees who are not just salespeople but also trusted advisors. They can provide unparalleled customer service, address inquiries with precision, and offer product recommendations that align seamlessly with individual customer needs.
Furthermore, well-trained employees serve as the bedrock for consistent brand messaging. They become the voice of the brand, ensuring that every customer interaction echoes the brand’s image and values consistently. This uniformity fosters trust and loyalty among customers who appreciate the reliability and authenticity of their interactions.
Aēsop doesn’t merely view its employees as staff members but as brand ambassadors. This perspective profoundly influences how these employees engage with customers. When employees perceive themselves as representatives of the brand, they take ownership and immense pride in their role. This sense of commitment prompts them to go the extra mile in creating positive and memorable experiences for customers. Whether it’s offering personalized recommendations, dispensing valuable skincare advice, or simply engaging in friendly conversations, these ambassadors contribute significantly to nurturing customer relationships.
In line with Aēsop’s customer-centric philosophy, employees who are aligned with the brand’s values are naturally inclined to adopt a customer-first approach. Their focus extends beyond immediate sales to prioritize long-term customer satisfaction and the cultivation of enduring relationships. This approach often results in repeat business and the powerful impact of word-of-mouth referrals, further solidifying the brand’s reputation.
Finally, Aēsop’s commitment to employee training extends to creating a feedback loop within the organization. Employees are encouraged to share insights and feedback gathered during their interactions with customers. This invaluable information serves as a wellspring of knowledge for refining products, enhancing customer experiences, and making strategic business decisions that consistently elevate the brand.
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