Why LUSH still works: modern marketing as connection, not conversion

Marketing has experienced a radical change throughout the last two decades, shifting from a traditional view of direct sales and static promotions to a more complex approach. Modern marketing is now centred around business-to-consumer relationships (brand), data-driven analytics (big data), innovative thinking and strategic planning (Kotler & Chernev, 2022).

This is mainly due to the development of modern technology. With the invention and development of mobile phones, laptops and tablets, consumers have prolonged exposure to electronic devices and further access to the internet (ITU, 2024). With the increase in daily advertisements across digital platforms — social media, websites and blogs — consumers have become desensitised to standard advertisements, making traditional marketing less effective (Mišić, 2021). Businesses now have instant advertising space in the palm of their targeted demographic's hand, creating digital and modern marketing (Kotler & Chernev, 2022; Mišić, 2021).

This shift has added complexity to marketing, requiring a more insightful approach. In today's market, consumers seek a deeper connection with brands to buy into their products or services. A successful brand instils trust, emotional connection and belief that their purchase will help a greater purpose (Binet and Field, 2013).

'In marketing, tapping into consumer emotions isn't simply a feel-good practice — it drives sales. Emotional marketing forges a potent connection between a brand and its audience, translating into increased loyalty and purchases.' (Sharma, 2024)

This has developed the role of a modern marketer into a storyteller, human behaviourist and empath, relying heavily on understanding their demographic customer base's emotional reactions and behaviours.

Kahneman, System 1 and System 2

Daniel Kahneman, a leading psychologist, vastly shaped this field within marketing through his insights and research into behavioural psychology. Introducing a revolutionary framework of System 1 and 2 (Thinking, Fast and Slow, 2011), Kahneman explored the balance of decision-making (Hollingworth & Barker, 2019).

System 1 'is the brain's fast, automatic, intuitive approach.' This is a much more emotional, instinctive decision-making that doesn't take any rational thought. System 2, however, is 'the mind's slower, analytical mode, where reason dominates' (Hollingworth & Barker, 2019). Further study within neuroscience suggested that System 1 is responsible for 95% of our daily cognitive activity, which is why many modern marketing strategies are based on System 1 responses. System 2 is more effective for large-cost products and services, such as purchasing a house or car (Braune, 2019).

This isn't a flawless framework. System 1 is fast, intuitive and emotional, but also prone to cognitive biases that may distort decision-making. These biases are automatic and often unconscious, meaning they can override rational thought (System 2) even when it might be more appropriate. For example, a customer finds a product too expensive, but seeing a 3-for-2 offer, they purchase three. The customer has now paid more than they intended. System 2 would have prevented this, but System 1 gave an emotional reaction to the deal (Braune, 2019).

Brand equity and the long-and-short

Peter Field and Les Binet (2013) explore marketing and branding, highlighting the importance of business-to-consumer emotional relationships. For long-term strategies, it's important to create 'brand equity' — building value, trust and emotional connection with consumers. This generates brand loyalty, reputation and long-term growth. LUSH is an example: their strong stance on ethical conduct and rights campaigning evokes the feeling of purpose and community, connecting a strong bond with consumers (Spearman et al., 2024). Short-term strategies are just as important to create revenue and often use the emotional, cognitive responses of Kahneman's System 1. LUSH's limited-edition products tied to annual events or collaborations increase customers' desire for exclusive products, build urgency and boost sales (Mintel Trends, 2025).

Big data and the modern toolkit

As brands continue to evolve how they engage with their audiences, advances in data and analytics — particularly Big Data — have complemented and enhanced how brands utilise their campaigns. Big Data equips marketers with information, enabling them to track demographic behaviours, identify trends and uncover patterns that lead to smarter, data-driven decisions (Lacka, 2024).

Within modern marketing, tools such as Google Analytics, SEO optimisation, social media, web link tags and website metrics enable companies to understand how consumers interact with their brand and products — providing a deeper understanding of decision-making, and even determining long-term customer value (Lacka, 2024).

By utilising these insights, businesses can develop more effective marketing strategies, using data to initiate future growth (Lacka, 2024; The Marketer's Toolkit, 2023). This doesn't mean traditional frameworks are outdated. Marketers still use AIDA (Attention, Interest, Desire, Action) to improve emotional storytelling campaigns aligned with long- and short-term goals (Binet and Field, 2013). The 4P framework (Product, Price, Place, Promotion) has been adapted for digital platforms, emphasising personalisation within customer journeys (The Marketer's Toolkit, 2023).

Ultimately, modern marketing is about connection — carefully curating relationships between a brand and its audience and deepening that connection by combining behavioural insights (big data), creative storytelling (creativity) and innovative strategies (blue-sky thinking). LUSH serves as an excellent case study. By staying true to its ethos, values and authenticity, while balancing short-term and long-term strategies, the brand consistently delivers value and cultivates lasting consumer loyalty (Spearman et al., 2024).

Why LUSH

As a LUSH customer and marketing professional, their purpose-driven values and carefully crafted consumer experiences resonate with me. Outside of their vivid in-store displays and sensory experiences, LUSH has developed a business that pushes the boundaries beyond cosmetic retail. They stand out as an ethical company that pushes boundaries on sustainability, social responsibility and transparency. Their approach has inspired me to reflect more critically on my responsibilities as a consumer and modern marketer (LUSH, 2023).

LUSH was founded in 1995, during a time of growing awareness of ethical issues concerning animal rights within the cosmetics industry. In 1980, Revlon, a future competitor in the market, was banned from using the Draize test on animals after it was found to cause 'extensive animal suffering' when testing chemicals on their skin. Through advocacy by figures such as Henry Spira, who led a successful campaign against Revlon, the UK banned animal testing for cosmetics in 1998. This built a societal shift toward better ethical practices (Timeline, 2025).

Determined to drive change, LUSH took a bold stance against the industry and made a strong commitment they still hold 30 years later: their products would be entirely animal cruelty-free. LUSH has remained steadfast, stating, 'Lush do not test on animals, do not use materials that contain animal derivatives unsuitable for vegetarians, and only buy raw materials from companies that are not involved in the use of, or commission the use of animals for testing' (LUSH, 2021). This focus on ethical branding became a key part of LUSH's success, showing how powerful it can be to align brand values with what consumers want — a greater sense of purpose (Spearman et al., 2024; Whiteside, 2023).

LUSH's commitment to ethos and sustainability has not stopped there. As society evolved, LUSH has stepped up to address social injustices, fight for environmental conservation and champion human rights. They've embraced innovation to lead a 'Cosmetic Revolution' — offering naked cosmetics, promoting circular packaging, creating fresh and self-preserving products, supporting regenerative supply chains, paying fair wages and sticking to digital ethics (LUSH, 2021; McDougall, 2024). These efforts show a clear strategy to connect the brand with current consumer concerns, create a stronger sense of purpose and stay relevant in a constantly changing market.

Market position and competitors

Today, LUSH remains a leader in the beauty and personal care industry, particularly within the natural and ethical cosmetics segment. Its 2023 turnover exceeded £816 million, with loyal customers accounting for over 80% of repeat users. LUSH faces competitors like The Body Shop and L'Occitane. However, while competitors also leverage sustainability and ethical practices in messaging, none achieve the same level of storytelling or innovation as LUSH — evidenced by initiatives like its 'naked' packaging products to reduce waste (Spearman et al., 2024; Statista, 2024).

The success of LUSH's branding can be understood through Peter Field's long-term marketing principles and Daniel Kahneman's System 1 and System 2 thinking. By dedicating themselves to cruelty-free practices, sustainability and social causes, LUSH creates a sense of community, emotional connection and loyalty. In recent Statista reports in the UK, the average brand awareness for beauty and health online shops is 51%. LUSH, however, has a brand awareness of 70% — proof that long-term brand building by maintaining consistency in its values has worked (Spearman et al., 2024).

LUSH also engages emotional (System 1) and rational (System 2) decision-making. Its bold ethical messages — such as 'fighting animal testing' — and visually engaging stores trigger immediate, emotional connections. The sensory experiences in-store, including the vibrant colours, scents and textures of products, appeal to System 1 thinking, creating a lasting instinctive bond with the brand (Braune, 2019). In addition, LUSH provides full transparency about its supply chains, investments in sustainability methods and commitments to fair wages and taxes. This level of detail speaks to System 2 thinking, appealing to consumers' logical purchasing decisions (LUSH, 2024).

By addressing emotional and rational consumer needs, LUSH strengthens trust and loyalty. Its marketing strategy ensures that short-term campaigns drive immediate sales while strengthening long-term brand equity through consistent ethical messaging (Binet and Field, 2013).

This dual approach broadens the brand's appeal to LUSH's main demographic — Millennials (43%) and Gen Z (27%), most of whom prioritise eco-consciousness and social responsibility. The general consumer profile is socially conscious, female-dominated (66%) and middle to high income. Over time, the consumer base has become more diverse, reflecting the growing inclusivity of ethical branding, and solidifying LUSH's position as a leader in purpose-driven marketing (Spearman et al., 2024).

The anti-social-media stance

Interestingly, although LUSH's key demographic primarily uses social media, in November 2021 they took the active step to remove themselves from Facebook, Instagram, Snapchat and TikTok until these platforms can provide a 'safer environment' for consumers. With ethical dilemmas being raised about the use of consumer data, and growing concerns about whether Meta's social media algorithms were safe, LUSH announced an anti-social-media policy (Whiteside, 2023).

Instead, they focused on Pinterest and YouTube, which they felt aligned with their values, and reinvested in retail stores, experiences, promotions and their website/app.

The impact? LUSH experienced a significant decline in profit in their most recent audits released for 2023, with EBITDA dropping by £30.8m (or £53.5m on an underlying basis). LUSH claims this is due to rising costs for materials, staff and operations, and the absence of prior COVID-related benefits. Operating losses also worsened, driven by these factors and declining digital sales, particularly in North America (Companies House, 2024).

LUSH acknowledged the decision had an impact on revenue, stating: 'At the time we estimated that this might be £10m in turnover but it could well have been £10m in profit or 10% of our £800m brand turnover (£80m). We simply don't know' (LUSH, 2024).

However, they remain strong in their cause, reaffirming that they are proud of their stance and will continue to advocate for a more human, meaningful and community-centred approach to their marketing (LUSH, 2023).

This stance has reinforced their branding and ethos, showing they aren't a company focused purely on profit, but on 'leaving the world Lusher than we found it.' By advocating for a safer digital and physical environment, they build on their brand value by speaking about key social and ethical topics troubling their targeted demographic (Whiteside, 2023).

Where next: bridging digital and in-store

How can LUSH reverse its current decline and implement strategies that secure its future while driving impactful change? One key challenge is bridging the gap between their online and in-store experiences. With digital sales declining, LUSH needs a strategy that boosts website traffic while encouraging customers to visit retail stores and fully immerse themselves in the signature LUSH experience (Spearman et al., 2024).

One innovative solution would be introducing 'Zero-Waste Refill Stations.' These stations would enable customers to pre-order refills of their favourite products through an online booking system, which they can conveniently collect in-store. This approach minimises packaging waste and seamlessly integrates digital convenience with in-store shopping, enhancing the overall customer experience (McDougall, 2024).

The concept could be developed into a subscription service, offering customers a mystery monthly subscription bundle full of refillable sustainable products like shampoo bars or body lotions. The first box would be delivered to the doorstep, while subsequent refills would require in-store visits, encouraging foot traffic and reducing waste. Customers could preview upcoming subscription products online, then visit their local store to refill — making sustainable shopping engaging and practical (LUSH, 2021; McDougall, 2024).

Conclusion

LUSH is a prime example of how modern marketing succeeds when a brand prioritises genuine connections, a clear sense of purpose and a focus on meeting customer needs. By using key marketing frameworks to develop a strong unique selling point, consistent voice and purposeful strategies for short- and long-term goals, businesses can thrive in today's modern digital landscape — just as LUSH has (Binet and Field, 2013; Kotler & Chernev, 2022).