Godiva, the sweet new rival of Starbucks, will open 2000 coffee shops around the world.

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Is a coffee shop a good business? In recent years, various brands have "cross the border", boutique agnes b., Gucci, care products Kiehl's, famous car brand Mercedes-Benz have set up coffee shops. Recently, the well-known chocolate brand Godiva also joined the war, by the media as "Starbucks sweet new rival."

The former head of Starbucks marketing called out 2000 stores in five years.

Godiva, which started with chocolate gift boxes, mostly set counters in department stores, and its elegant and high-end brand image has become a common choice for consumers when giving gifts. However, Godiva Chief Executive Yang Anli (Annie Young-Scrivner) said, "We keep thinking about how to further expand the brand beyond chocolate." How to have more contact with customers on different occasions? " She hopes that consumers will no longer just think of Godiva when giving gifts on Valentine's Day and Christmas, but also integrate into their daily consumption.

But why the coffee shop?

Looking back on her resume, Anli Yang was the marketing chief of Starbucks and executive vice president in charge of global digital and customer loyalty before becoming CEO of Godiva. It seems reasonable to continue past work experience and open coffee shops across the border to create new features, new experiences and more customers for old brands over the age of 90.

In fact, in the past five years, Godiva has opened about 50 similar coffee shops in Asia, the Middle East and Europe, such as the establishment of the first life image store in the Asia-Pacific region in 2017, which provides afternoon tea service. Yang Anli said that the company studied consumption in various places and found that there were huge business opportunities in Asia and the Middle East, where consumers were more willing to sit down and enjoy their meals than to take out.

This gives Godiva confidence to take a step forward, officially opening the first Godiva Caf é in the United States in April this year, and is expected to expand 2000 coffee outlets worldwide within six years. Among them, North America and Asia are the key markets, each occupying 1 / 3 of the market.

Unlike in the past, Godiva Cafe is an independent street store, covering an area of 1200 square feet, creating a complete space for consumers to enjoy their meals. In the future, it will not completely follow the location of the chocolate store and the product items will be different. Product development focuses on home chocolate, designing signature coffee, drinks and desserts, such as black tea with cocoa beans, Godiva dark chocolate lava cakes, and even muffin-shaped Kosong to increase consumers' experience of chocolate.

The concept store in New York is a lead base for testing new products and service experiences. After finding a business model that satisfies customers, it will be replicated in large numbers to global stores, with the goal of a fivefold increase in revenue for the entire brand by 2025.

Godiva is not listed on the stock market and does not disclose detailed financial statements and profits, but it is estimated that sales in 2017 will be about $1 billion and 40 per cent of revenue over the next five years will come from the coffee industry.

Challenge Starbucks? It's a difficult task.

So many brands want to carve up the coffee market, but Starbucks is still standing, is it possible for Godiva to be promoted to a major challenger? Detailed analysis shows that Starbucks' business layout is extremely stable.

First of all, Starbucks has more than 27000 stores around the world. in addition to its existing advantages of scale, new features and new products that emerge with the season have also boosted revenue. Second, its customer loyalty program has 16 million active members who frequently use App pre-order products to pay, accumulate points to earn free drinks, and have a high degree of adhesion.

In this way, even if Godiva reaches the size of 2000 stores, it will be difficult to shake Starbucks. However, compared with other brands, Godiva can differentiate by launching unique products based on the core product chocolate, which is expected to improve the chances of killing the bloodshed in this Red Sea.

Source / Forbes, The Motley Fool, Business Insider

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