No brand starts out hoping to “blend in with the crowd”. But as more and more competitors enter the market, online and in-store, and trends become easier to emulate, differentiation and positioning have never been more important. This is even more critical when you’re scaling a start-up: brands that can differentiate successfully experience improved brand loyalty, higher prices, and better emotional connections. 

What is brand differentiation (and why does Lush do it so well?)

Simply put, brand differentiation is whatever  helps brands stand out from their competitors. Whether this applies to the products they sell, the number of consumers they reach or what they want to be associated with, brand differentiation strategies are all about being different.

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And Lush does this brilliantly. They’ve owned the handmade cosmetics space since their launch in 1995, positioning themselves as a ‘unique solution for health and beauty products’. As Fabrik states, Lush reaches out to customers with a familiar, ‘warm, welcoming verbal identity that comes across in everything from their packaging, to their messaging’.

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Their growth was rapid and dramatic: the first store opened in Dorset in 1995, and their first store outside of the UK opened just a year later. Today, there are 104 shops in the United Kingdom, and nearly 900 worldwide in 52 countries, and Lush competitors struggle to emulate their success.

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Here are some of the ways Lush has achieved their unique competitive positioning over the past three decades:

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Solving Lush customers’ unique problems

One of the most important elements needed when it comes to being a successful company is looking out for your customers and meeting their individual needs as much as possible. Lush does this in a way that isn’t all obvious at first, but when delving deeper it is clear they have achieved this. Bath bombs, soap, hair care, skin care and makeup are all within their impressive range of products and are all there for different purposes, such as hydrating the skin or simply helping people drift off to sleep. As Lush co-founder Rowena Bird says, “People can be allergic to anything - you can't find something that works for everybody, so the more products that are out there, the better.”

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Selling products that stand out

Even with the gradual decaying of high streets and more companies moving online, you can still smell the iconic Lush stores from a fair distance away when out shopping - yes, this is the case with all of their impressive 106 UK stores! The products on the shelves have an iconic, loveable smell everyone instantly recognises and this alone is a great sign of both brand awareness and brand differentiation, comparing it to the likes of their high-street competitors The Body Shop. It is not just the smell of such items, though, it is also their appealing, photogenic appearance. From the products themselves to the packaging, they are beautifully presented. With 1000s of online blogs & YouTube channels sharing Lush hauls, their favourite Lush products & product reviews which reach millions of people across the internet. No other brand creates handmade cosmetics like Lush and this helps them to stand out in a highly-competitive market.

Keep inventing…and reinventing

Lush has a unique way of keeping customers coming back for more. As Lush says on their website, they “probably invent and create new products faster than any other cosmetics brand.” In fact, the very first bath bomb was invented by co-founder Mo Constantine in her garden shed, and it’s kept changing. Thirty new bath bombs were launched for the company’s 30th anniversary and another 30 for World Bath Bomb Day.  There have also been collabs with Netflix, a limited edition Wicked Bath Bomb, and a Sanrio series, among other limited editions. 

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But they don’t just slap a brand name on their products. They’re always well-thought-out collaborations. For example, within the Mario Brothers movie line, each question-block bath bomb contained one of six different soaps like collectables like gold coins, mushrooms or star power-ups. This follows the theme of the Mario franchise & the element of surprise really nicely for the Lush target audience. 

Maintaining a physical and online presence

The Lush marketing mix includes a strong online presence (including influencer marketing and brand collaborations), alongside an impressive three-digit number of UK stores. Despite many other companies facing store closures throughout the COVID-19 pandemic, Lush still stands strong within the UK high street scene. Annual turnover in 2024 was reported as £674.5 million. The company received 4 million organic visits in 2025, and visitors spend more than five minutes browsing the site. They also have 1.75 app users and 3 million opted-in subscribers , with the app accounting for 29% of their online sales. In 2025, they added the Lush Club to the Lush marketing strategy, a rewards-based programme with exclusive products and community content. 

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Selling their own range of products

As Tom Freeman shares in this article, there are multiple benefits for brands when it comes to selling their own products. In terms of brand differentiation, this decision primarily helps boost the products being sold and brand awareness, one of the most important things any brand can gain. This is something Lush has achieved, for example, as when you type into Google ‘bath bombs handmade cosmetics’’, Lush appears near the top of page one in the unpaid ads section. 

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The Google search alone shows strong links between the search engine keywords and Lush, helping people access the page most commonly associated with the Google search - in this case, being Lush. Another positive point for any company selling their own products is creative freedom. They have creative control as a brand over how to market their products, how to make them visually appealing and what the overall brand will go on to do. Many of their products, including their annual Advent calendar and holiday range, have become Christmas staples. This freedom is a huge advantage, especially when it comes to standing out from the crowd.

Pushing the ethical side

Lush was one of the first brands to start pushing ethical, sustainably-made and cruelty-free products as a positioning strategy. None of their products undergo animal testing and the branding and packaging they use clearly shows what they stand for, with the famous famous ‘fight animal testing’ slogan appearing on the bags they sell. 

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Through Charity Pot, Lush donates 100% of proceeds (minus tax) to grassroots groups focused on human rights, environmental protection, and animal welfare. Ingredients like fair trade shea butter from Ghana and other oils and butters in Charity Pot are sourced via direct relationships with producers. Lush’s Sustainable Lush (SLush) Fund supports permaculture-based projects that protect ecosystems, increase food security, and help communities build long-term, independent livelihoods. Packaging is designed for circularity, with an internal recycling scheme where customers return black pots, which are then recycled into new packaging or store materials.

Lush regularly runs campaigns on inclusion, criminal justice, and human rights (e.g. “All Are Welcome,” “Death Does Not Equal Justice”), providing upfront funding to partner organisations that meet strict non-violence, non-government, and non-religious criteria. This shows they have been moving with the times throughout the company’s existence and when it comes to what their customers want, they know exactly how to deliver. 

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Selling products that are fun to use

Above all else, when it comes to brand differentiation, the most important thing is that customers will actually enjoy the product. Not only does this make them feel as though they’ve made a worthwhile purchase, it will also leave them wanting more. 

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Websites such as Cosmopolitan have even gone on to rank the most popular Lush bath bombs for people to try, turning a business product into something people deem as being fun.

Final thoughts: Lush Differentiation Strategy

It is no secret that brand differentiation has played a huge part in the success of Lush, if not being the primary success factor. Many areas contributing to their differentiation and positioning strategy help them achieve this level of uniqueness. Having been the leading company in the handmade cosmetics industry for some time, they are clearly doing something right and it will be interesting to see whether this continues another 30 years from now!

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For more expert advice on how to build your own brand awareness and positioning, check out: How to create content like a CMO and Why most positioning fails and how to fix it. 

Frequently asked questions: Differentiation and competitive positioning

Which brands have successfully used storytelling to differentiate themselves?

Plenty of brands use storytelling as a strategic differentiator. Think of outdoor brands that build narratives around adventure and environmental protection, or direct-to-consumer companies that centre their story on founder struggles, community, or craftsmanship. The common thread is clarity: the story explains why the brand exists, who it’s for, and what makes it different…and every touchpoint reinforces that narrative.

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How do I measure the effectiveness of my brand differentiation efforts?

Start by tracking a mix of quantitative and qualitative signals. On the numbers side, look at branded search volume, direct traffic, repeat purchase rate, and price resilience (are people still buying when you’re not the cheapest option?). On the qualitative side, listen to how customers describe you in reviews, sales calls, and social mentions. If they’re repeating your positioning back to you in their own words, your differentiation is landing.

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What impact does brand differentiation have on customer loyalty?

Strong differentiation makes you harder to replace. When customers feel aligned with your values, enjoy your experience, and believe they can’t get the same mix of benefits elsewhere, they’re more likely to stay, recommend you, and forgive the occasional mistake. In practical terms, that means higher retention, more word-of-mouth, and a customer base that chooses you for more than just discounts or convenience.

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