THG Business Model Canvas

THG uses a network of 25,000+ influencers and 60,000 affiliate partners to funnel traffic to its beauty and nutrition sites, driving an estimated 28% of direct e-commerce sales in 2024; these partners are central to brand building and customer acquisition in a crowded lifestyle market. THG ties performance to data-driven tracking and attribution, keeping average customer acquisition cost down to ~£18 and improving ROI by 22% year-over-year.

THG leverages global couriers (FedEx, DHL, Royal Mail) to serve 230+ markets; Ingenuity generated £360m in FY2024 and handled ~40% of platform orders; 25,000+ influencers and 60,000 affiliates drove ~28% of e-commerce sales in 2024; supplier contracts supported 43% H2 2024 gross margin and cut stockouts ~12% YoY; Adyen/Klarna/PayPal reduced fraud and raised checkout conversion ~20%.

THG runs a global network of automated warehouses and DCs handling inventory management, order picking, packing, and cross‑border shipping; in 2024 THG Fulfilment processed ~85m orders and cut logistics cost per order by ~12% vs 2021 through automation and route optimisation. End‑to‑end supply‑chain control lets THG shorten average delivery times to 2–5 days in key markets and improve gross margin contribution from fulfilment services.

THG scales Ingenuity platform (£1.2bn client GMV 2024; £360m Ingenuity revenue FY2024) while running owned brands (Myprotein 120 new SKUs 2024; nutrition +18%), global fulfilment (~85m orders 2024; logistics cost/order -12% vs 2021), data-driven marketing (10–15% media spend; 4x+ ROAS; CAC -20% YoY) and personalization (10m+ active customers; pricing +1–1.5pp).

Owned brands Myprotein, Lookfantastic and Cult Beauty are major intangible and tangible assets—Myprotein alone generated ~£1.0bn gross sales in FY2024, while Lookfantastic reported multi-channel revenue near £350m—delivering high consumer awareness and loyalty that underpin THG’s DTC revenue base.

These brands validate Ingenuity (THG’s e-commerce platform): used across 200+ global markets by 2025, they show the platform can scale niche brands into global market leaders and drive recurring net revenue.

Key resources: Ingenuity platform (powered ~£1.1bn GTV in 2024; 200m sessions peak week), 15 fulfillment centres processing ~70% of e‑commerce throughput (~£1.2bn GMV FY2024), owned brands (Myprotein ~£1.0bn sales FY2024; Lookfantastic ~£350m), ~20m first‑party profiles (2025) and 6,000+ specialists.

Lookfantastic and THG Beauty curate thousands of SKUs from 1,800+ global brands, driving gross merchandise value of ~£1.2bn in 2024; customers choose the platform for expert content, exclusive launches and one-stop convenience, boosting repeat purchase rates to ~35% and AOV near £45; localized sites in 15+ markets offer language, local currency and country-specific assortments, improving conversion by ~20%.

THG combines Ingenuity tech, end-to-end logistics and owned brands to cut time-to-market, lower costs and boost ROI—Ingenuity £222m, Myprotein ~£500m, logistics £230m (FY2024); platform drives ~35% repeat rate, AOV £45, sells across 190+ countries with ~25% faster delivery.

THG deepens retention via THG Rewards and brand communities, offering points, exclusive content, and early product access; in 2024 THG reported a 12% increase in repeat purchase rate in nutrition and beauty cohorts, with loyalty members accounting for ~38% of UK beauty sales in FY24.

THG combines AI-personalized e-commerce and Ingenuity account management to drive retention—2024 group revenue £1.17bn, Ingenuity clients averaged 32% YoY digital growth and 4.2-year contracts, loyalty members drove ~38% of UK beauty sales; CX metrics: sub-2 min live chat, 68% FCR, +6 NPS, returns cost -4.2% vs 2023.

THG uses dedicated B2B sales and consulting teams to grow Ingenuity, targeting large enterprises with high-touch negotiations and platform demos; these teams helped secure enterprise deals that contributed an estimated £120–150m in services revenue in FY2024, underpinning multi-year contracts and higher gross margins.

THG’s main channels are proprietary DTC sites (c.68% gross order value FY2024), mobile apps (c.28% UK sales; 35% higher repeat rate), B2B Ingenuity services (£120–150m services revenue FY2024), plus marketplaces (~15% retail revenue 2024) and social commerce (social conversion 2.8%; live AOV +9% 2024).

Enterprise brands seeking digital transformation engage THG Ingenuity for scalable, end-to-end e-commerce stacks that combine platform, tech, and global logistics; these B2B clients—typically FMCG, retail, or luxury firms—value solutions that can drive revenue growth and margin improvement across 30+ international markets. In 2024 THG reported Ingenuity gross transaction value rising to ~£600m, showing demand from large brands for outsourced digital commerce and fulfilment at scale.

Consumers: Myprotein (c.£600m revenue FY2024, 20m customers, 35% DTC GP, 45% aged 25–44, ~40% repeat); Beauty shoppers: Lookfantastic group £503m FY2024; Enterprise: Ingenuity GTV ~£600m 2024, revenue +12% YoY; Retail/wholesale helped reach £1.07bn consumer H1 2024 sales.

THG’s global distribution centers incur heavy costs: in 2024 fulfilment and logistics capex and opex drove ~35% of group operating costs, with labour, automation upkeep, and shipping fees major drivers; THG reported logistics-related capital expenditures of £120m in FY2024. Managing fuel price swings, duties, and last-mile fees creates variable cost volatility—fuel spiked 18% in 2022–23—and THG is increasing automation to lower per-order costs long term.

THG’s cost base is heavy on tech R&D (£120–160m FY2024), marketing (~12% revenue, ~£150m digital) and logistics (≈35% operating costs; £120m logistics capex FY2024), plus staff costs £349m FY2024 and ~£400m capex 2020–2023 for vertical manufacturing; commodity shocks (whey +18% 2023) add input volatility.

THG charges Ingenuity partners per unit and per-order for warehousing, pick-and-pack, and international shipping, with fees tiered by volume and fulfillment complexity; in FY 2024 THG reported Ingenuity revenue of £213m, highlighting logistics as a material margin driver. By using its 27 global fulfillment centres to serve third parties, THG raises asset utilization and cuts per-unit costs, boosting gross margin on physical operations.

THG’s revenue mixes DTC-owned brands (£1.3bn Beauty & Nutrition, FY2024) with high-margin Ingenuity platform ARR (~£220m H2 2024) plus fulfillment fees (Ingenuity revenue £213m FY2024) and B2B wholesale (~£1.1bn, 18% of group revenue).