Tropic Skincare, the popular vegan skincare retailer founded by Susie Ma and supported by Lord Sugar, is bracing itself for a decline in sales this year. However, this comes after the company achieved remarkable trading results during the pandemic. Sales are projected to fall short by £20 million compared to the record-breaking £90.6 million recorded in 2021.

The main factor contributing to the dip in sales is the reduced number of ‘pamper’ parties organized by Tropic’s 20,000 self-employed salespeople. During the lockdown periods, these salespeople were able to supplement their incomes by earning commissions from Tropic, taking advantage of the spare time they had.

It is important to highlight that these ‘brand ambassadors’ play a crucial role, generating more than 90% of the company’s revenue and receiving a minimum 25% commission on each product sold. Despite this, Tropic’s operating profits (EBIT) for 2021 decreased by 23% to £12.2 million due to higher raw material and operating costs the company faced.

Susie Ma, the CEO of Tropic Skincare, established the company in 2003 and gained recognition for her entrepreneurial talents by appearing on the TV show The Apprentice in 2011. Lord Sugar saw the potential in her skincare brand and invested £200,000 in exchange for a 50% stake in the business. In 2020, Ma and Sugar enjoyed a £10 million dividend from the company, although no dividend was paid out last year.

To accommodate its expanding workforce, Tropic Skincare moved to a new £4 million, 48,000 sq ft headquarters in Croydon, London, in 2020. Despite the expected decline in sales this year, Tropic Skincare remains a prominent brand in the vegan skincare industry, thanks to its devoted customer base that continues to support the company.

Useful links:
1. Tropic Skincare Official Website
2. The Vegan Society