CRABTREE & EVELYN – LOCCITANEs direct competitor files for bankruptcy protection
American based CRABTREE & EVELYN has been enjoying a growing worldwide success since it was set up in 1975 in Massachusets. With the current economic crisis the company seems to have realized that its concentration on the U.S. market has been excessive and that is why, it is heavily affected by the exposure to the U.S. market. Its rival competitor, French based LOCCITANE have instead pursued an agressive international expansion, its most successful markets being Europe, Asia and the Middle East. LOCCITANE has also taken an agressive B2B strategy distributing its products with all major international luxury hotel chains. This served not only as an added revenue but has also created the visibility and the awareness. Many customers tried out LOCCITANE products in a Four Seasons, InterContinental or Shangri La Hotel.
However, CRABTREE & EVELYN has several competitive advantages such as a much larger product range and an improved packaging. The solution is that the American brand becomes more flexible in expanding through national franchisee distributors, especially in areas such as Central and Eastern Europe where they have no presence at all.