Lumen Skincare was founded in Leeds in 2016 by Priya Shah, a former chemist, to sell vegan, refillable skincare products online. It now employs 85 people and sells through its own website, two flagship stores and one large department-store chain.
The UK skincare market was worth £2.4 billion in 2024 and £2.6 billion in 2025. Lumen's sales in 2025 were £18 million. Its customers are mainly women aged 18–34 who care about ethical sourcing. Most of its marketing is through Instagram and TikTok influencers.
In 2025 Lumen raised the price of its best-selling serum by 5%. Sales volume fell by 2%.
Staff surveys show high satisfaction with Lumen's purpose but frustration about pay and a lack of promotion opportunities. Labour turnover in the warehouse reached 32%. Priya makes nearly all major decisions herself and is reluctant to appoint a managing director, although investors have suggested it.
Section B — Extract B: Harlow Bikes plc
Harlow Bikes designs premium electric bicycles in Bristol. Frames are made in Taiwan and assembled in the UK. Sales outside Europe have grown quickly, especially in the USA, where a typical bike costing £800 to make and ship is priced at £1600.
Over the last year the pound rose from £1 = $1.25 to £1 = $1.35.
Harlow is considering entering India, where cycling is growing in cities and the government offers incentives for electric vehicles. Import tariffs on finished bikes are high. Two options are being considered: a joint venture with an Indian bicycle manufacturer, or building its own assembly plant near Pune.
A recent newspaper investigation reported poor working conditions at a battery supplier used by several bike brands, including Harlow. Harlow says it audits its first-tier suppliers but not the companies that supply them.
Section A — Extract A: Lumen Skincare Ltd
Lumen Skincare was founded in Leeds in 2016 by Priya Shah, a former chemist, to sell vegan, refillable skincare products online. It now employs 85 people and sells through its own website, two flagship stores and one large department-store chain.
The UK skincare market was worth £2.4 billion in 2024 and £2.6 billion in 2025. Lumen's sales in 2025 were £18 million. Its customers are mainly women aged 18–34 who care about ethical sourcing. Most of its marketing is through Instagram and TikTok influencers.
In 2025 Lumen raised the price of its best-selling serum by 5%. Sales volume fell by 2%.
Staff surveys show high satisfaction with Lumen's purpose but frustration about pay and a lack of promotion opportunities. Labour turnover in the warehouse reached 32%. Priya makes nearly all major decisions herself and is reluctant to appoint a managing director, although investors have suggested it.
1(a)4 marks
Using Extract A, calculate (i) the percentage growth of the UK skincare market from 2024 to 2025 and (ii) Lumen's market share in 2025. Show your working.
1(b)6 marks
Explain how the price elasticity of demand for Lumen's serum might affect its pricing decisions.
1(c)8 marks
Analyse two benefits to Lumen of using social-media influencers to promote its products.
1(d)12 marks
Assess the importance of financial and non-financial methods of motivation in reducing labour turnover at Lumen.
1(e)20 marks
Evaluate whether Priya Shah should appoint a managing director and adopt a less autocratic leadership style.
Section B — Extract B: Harlow Bikes plc
Harlow Bikes designs premium electric bicycles in Bristol. Frames are made in Taiwan and assembled in the UK. Sales outside Europe have grown quickly, especially in the USA, where a typical bike costing £800 to make and ship is priced at £1600.
Over the last year the pound rose from £1 = $1.25 to £1 = $1.35.
Harlow is considering entering India, where cycling is growing in cities and the government offers incentives for electric vehicles. Import tariffs on finished bikes are high. Two options are being considered: a joint venture with an Indian bicycle manufacturer, or building its own assembly plant near Pune.
A recent newspaper investigation reported poor working conditions at a battery supplier used by several bike brands, including Harlow. Harlow says it audits its first-tier suppliers but not the companies that supply them.
2(a)4 marks
Using Extract B, calculate the US dollar price of a bike priced at £1600 at each exchange rate, and the percentage change in the dollar price.
2(b)6 marks
Explain one reason why Harlow makes its frames in Taiwan rather than in the UK.
2(c)8 marks
Analyse how Harlow might adapt its marketing mix to sell in India.
2(d)12 marks
Assess the extent to which Harlow should be held responsible for working conditions at its battery supplier's factory.
2(e)20 marks
Evaluate whether Harlow should enter the Indian market through a joint venture or by building its own assembly plant.
Finished?
Answer every question to finish (10 left), or finish when the time’s up.
Score 0 / 100 · 0 of 10 marked
This paper is written by Plasmo in the style of the Edexcel A-Level Business exam. It is not a past paper and is not produced or endorsed by the exam board.
Edexcel A-Level Business Mock Exam: Paper 1: Marketing, people and global businesses | Plasmo