 |
“Travel retail is the window to the world for us; this is where consumers get to first interact with us if we are not present in the domestic market.“ |
Mohamed Elsarky CEO Godiva |
INTRODUCTION: Godiva may have just celebrated 90 years in business, but CEO Mohamed Elsarky is looking to the future, not the past. Present in 110 countries, the Belgian chocolatier has built a substantial footprint worldwide – and travel retail will be at the forefront of maintaining that growth. Elsarky speaks to Helen Pawson about the company’s plans for the next chapter, ensuring the brand maximises its potential without losing sight of its core values.
Elsarky, who has held the position of CEO since June 2014, tells The Moodie Report: “We have lots of exciting plans to make the brand the best it can be. I know that I have a very supportive owner [Godiva was bought by Turkish company Yildiz Holding in 2007 -Ed] who is very keen to allow us to grow and travel retail is quite frankly at the front end of our strategic plan.
“Travel retail is the window to the world for us; this is where consumers get to first interact with us if we are not present in the domestic market. We learn more about where the potential markets are and we learn more about what consumers like. We tend to plan our growth through the window or the lens of travel retail.”
In terms of customer demographic, Elsarky notes that Chinese and Japanese customers engage most with the brand, with Brazilian and Russian travellers also among the brand’s top ten spending nationalities in travel retail. In terms of growth, Elsarky says the brand will continue to build in Asia, particularly China, both domestically and in travel retail, and will explore further the Latin America region.
While Godiva’s core travel retail business is largely based on gifting, Elsarky says the brand will introduce different product formats to the channel. “We are increasingly interested in some different product formats that we can bring to travel retail that will be relevant to consumers. Our souvenir packs that we introduced about two to three years ago have been highly successful and now we have about 40 different city representations in travel retail.
“We are now exploring different product formats and pack sizes that will be relevant to different need states of travellers. For example, if a consumer is travelling through an airport, he or she may want to enjoy something themselves rather than always buying a gift to give to someone, so these kind of formats could be interesting.”
When asked about the challenges that a premium brand such as Godiva faces in an often discount-driven confectionery market, Elsarky is keen to stress that heavy discounting does not fit in with Godiva’s strategy. “In the past year, we have seen heavier than usual activity in discounting, driven by the desire from many of the players in the confectionery category to grow. We have looked carefully at that and decided deliberately that we would not promote that to the level that other players are. One, because our brand is not about that and two, because long-term it is not a healthy strategy.”
Mohamed Elsarky unveils the new Rose & Raspberry flavour chocolate at last month’s 90th anniversary festivities in Brussels |
Elsarky adds that Godiva’s level of promotion will continue to be measured and carefully controlled to ensure it remains appropriate. “We see heavy discounting as a short-term event rather than a long-term phenomenon. Our brand is often one that is purchased because of the essence of the brand and not because of the price point, so it’s important for us to not get too over-excited about promotional and price reduction activity.”
Commenting on the treatment of Godiva and other brands in the confectionery category by airports and retailers, Elsarky says: “Generally speaking the airports and the retailers do a good job. They help us to understand the importance of the brand and we do get good exposure in many places.”
To enable brands to properly understand the passenger demographic and buying trends, Elsarky believes retailers and airports should allow brands to undertake more activations within key locations. “The trends of travellers change so we need to become more dynamic in terms of understanding the types of flights that are arriving and how to cater to that in real time,” he notes.
Godiva has established a solid presence in the Middle East, bolstered by the opening of the Chocology concept at Hamad International Airport in May 2014, one which Elsarky is clearly delighted with. “We are very proud of our association with Hamad Airport and Qatar Duty Free,” notes Elsarky. “It is a unique concept, it’s the world’s largest chocolate counter and we have a chef present constantly. It is a collaboration that has paid dividend for the brand but also for the airport. It will continue to be leading edge for some time.”
 |  |
The Gold Anniversary Collection comprises nine pieces, including the raspberry and rose flavoured Egérie Noir | |
Celebrating 90 years with a bang: inspiration for the colourful box, designed by Oli-B, came from fireworks |
While Godiva is looking to expand its exclusive partnership with Qatar Duty Free and Hamad Airport in other ways, Elsarky notes that the brand would be open to partnering with other retailers. “We are happy to consider other concepts when they are proposed, as long as they are consistent with our brand’s standard.”
On the quality of the confectionery offer at airports, Elsarky notes: “I see it [the confectionery offer] often and always look at it. I think the trend is very good and I think we’ll see a lot of innovation coming into the category. A lot of the players know that launching an innovation at an airport first and doing an activation in travel retail is a very positive way to get a global presence. Airports are a very important window for players to bring their newest innovations.”
As previously reported, Godiva partnered with Belgian artist Oli-B to create two special editions in honour of its 90th anniversary – Gold Anniversary Collection and Anniversary Collection Truffles – which were revealed last month at the brand’s party in Brussels. The 90th anniversary collections, says Elsarky, will be promoted throughout the year until autumn. “The collections will be promoted through product activations and events throughout domestic markets but also, importantly, through travel retail. The new Gold collection will be available in the channel in coming weeks and as we launch it we expect it to be something that consumers will react positively to.”
Pictured is the bespoke technicolour mural, created by Oli-B, which was on-display at Albert Hall in Brussels |
Godiva takes great pride in its talented Chef Chocolatiers, says Mohamed Elsarky |
Speaking about the collaboration with Oli-B, Elsarky describes the Belgian artist as “talented” and “quintessentially Belgian”. “The partnership with Oli-B has been great. We are really very proud and happy to be engaged with him. He brings a lot to the design and the vibrancy of the colours and his style will engage younger people into the brand which is important to us. His Belgian origin links in very strongly with our heritage and roots, and yet his appeal will be global, I’m sure.”
Having met Elsarky and Godiva’s only female Chef Chocolatier Ilse Wilmots in Brussels, one gets an insight into the role that Godiva plays in the lives of its employees. “I love the passion of our people,” explains Elsarky. “Godiva is something that is in our employees’ hearts. Our staff around the world are dedicated to this brand and that means that everything is done with a positive heart.
“We’re very proud of our chefs; Chef Ilse has been with Godiva for 25 years and when you see the passion that comes through her and the rest of our chef team, it tells you about the characteristics of all our associates.”
“Godiva is a unique place,” concludes Elsarky, “but we’ll never forget our roots or where we came from.”
