Word of Mouth

In Xue Shang’s blog post on January 27th, 2011, She talked about the price vs. value issue of Lush, an organic company of beauty products. Lush has had very recent, yet rapid expansion and success all over the world. their idea and and products are welcomed in almost every country and every culture. Even though, they are in no way the mainstream of hygiene products, they have still managed to find themselves a niche segment in every market. I agree with Xue Zhang, that they do offer a great value with their products, but I also think that there are other factors that the company has captured.

For instance, not only are their products organic and using fresh ingredients, they are all entirely made by hand, one at a time. This might seem odd, but it falls line in line with the social trend of anti-corporate. Lush has the size and the organization of a big corporation, but because all their products are still made by hand, ( they show consumers just exactly they made every single one of their products on a short video) people do not feel as distance and detached from the makers of the products. People not only expect to pay higher prices for better quality, but the idea that their money goes to a “small” shop with an innovative idea and a great cause (environment) also makes them feel better about spending that extra $3 bucks on shampoo.