Tech places RP firm on world skincare map
By Gerry Plaza
INQ7.net

IT was every Filipino entrepreneur's dream: create the best products and take on the world.

Now, the dream has taken shape and become real, thanks to the Internet.

It was not long ago when Fred Reyes, a chemist, made a daring plunge into a business he hardly knew - except that it would benefit most his wife, who already had a passion for it.

Skin care was definitely an unthinkable choice, but Fred, who established Godiva Skin Care in 1996, went on to face the giants in a tough billion-dollar-market. And, out of nowhere, Godiva had now captured a wide international client-base with the use of innovative technology, best-of-breed practices, efficient marketing, and an Internet presence that has made his brand a by-word in the Asian, American, and even European markets.

Godiva had lorded over the local market for natural skin care. It had pioneered the use of purified licorice, a herb used primarily for medicinal purposes and flavoring in candy, on skin products. Its use in Godiva's whitening products had been phenomenal, catching the worldwide market's attention and catapulted the brand to international success.

The company's Internet presence even pushed the phenomenon further, with worldwide inquiries on the product skyrocketing. Now, the Philippine-made product has leveraged on Internet and e-commerce technology to widen its reach and became a global beststeller, aside from reaping numerous awards for product excellence.

Because of this feat, the Philippine Internet Commerce Society recognized Godiva as its 2003 awardee for IT excellence among small and medium-sized enterprises in the recently-concluded National E-Commerce Congress and Exhibit at the Philippine Trade Training Center in Pasay City.

PICS noted Godiva's "strategic" use of information technology and e-commerce in the growth of its business. IT has been the crucial factor in its exponential growth, particularly in pushing e-commerce as a key tool in expanding its global business.

"In the demanding race to propel Godiva to the top of the local and global skin care market, the company must be ahead of the competition and be completely prepared to utilize the various IT tools available to boost its efforts," said Jonathan Cristobal, Godiva e-commerce and corporate communications manager.

Godiva's online store, which offers all of the company's products, from its flagship licorice-based whitening soaps, deodorants, and creams to anti-acne products, allows the company to compete head-on with multinational giants, such as Nivea, Avon, or Neutrogena.

At present, 70 percent of Godiva's total overseas market comes from the United States, with the remaining 30 percent spread across Asia Pacific, Europe, Latin America, and the Middle East, including Canada, Britain, Australia, and Japan.

The website first went live in 2001 and merely acted as an online brochure of Godiva products. At present, it now serves as a full e-commerce site, where visitors can post orders and make purchases aside from merely browsing through the product lines.

"With automation of online store operations and the added advantage that came with the advent of e-commerce, global as well as local sales have improved exponentially," Cristobal said. "Every month is a record-breaking month, with online store sales and profits continuously breaking record sales barriers, and geographical sales reach and domain."

This strategic move, Cristobal said, would position the company as a cutting edge global provider of world-class products, through the use of IT and e-commerce technology.

"We are serving an unsaturated market where efficient service and product delivery are crucial," Cristobal said. "This is the area where Godiva wishes to expand its presence."

According to Cristobal, the online store, which can be accessed through two websites - www.i-godiva.com and www.godivaskincare.com - has grown considerably through the years and now accounts for nearly one million pesos in revenue.

"I am very much proud of our performance," Cristobal said. "It shows that Filipinos can market world-class products against the giants in the industry."

What can differentiate the Godiva online store from others? Personalized service, Cristobal added.

"Despite the technology race, we are still founded on person-to-person customer relationships," Cristobal said. Godiva's site offers rewards programs to frequent buyers, including rebates, free shipping anywhere in the world, discounts, and free products on certain purchases.

"Our customers in the US appreciate this a lot," Cristobal said. "That's why we have a wide following there."

Godiva also offers a bulk sales scheme that provides opportunities for site visitors from anywhere in the world to become potential Godiva country distributors. Cristobal said site visitors from Indonesia, Pakistan, and the US have all benefited from this program and became official distributors.

For single orders, visitors can easily browse through the online store and make a purchase, with secure payment gateways available to complete transactions.

Shipments to customers would normally take three to four days, depending on the geographic location. Courier service providers, such as FedEx and DHL offer the firm real-time tracking and monitoring to assure products are handled and received in their best condition at the least time possible.

"Customer satisfaction and loyalty are earned with the type of service you offer and building worldwide consumer confidence is definitely a challenge," Cristobal said. "You have to assure that our products, and their delivery to the customer conforms to world standards of quality."

Will Godiva's success inspire more Filipino small or medium-sized enterprises to follow their lead? They should, Cristobal stressed.

"In order to survive, businesses must learn to innovate and to adapt," Cristobal said. "For its part, IT provides adequately to businesses the tools necessary to maintain their competitive edge in the market."

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