THE GODIVA STORY

By Fred Reyes, President, Godiva Inc.

Budding entrepreneurs always dream of someday hitting it BIG. And a question that always comes to mind is this: "When is the right time to start a business? Or, should we even think of starting one considering the political and economic crisis our country is facing?" If that is also your question, let me answer you by citing our own experiences.

Before Godiva, our first venture was Chemworld. We started Chemworld in late1985 as a specialty chemical trading business. That was just a few months before the first EDSA revolution. It was a crazy time to start a business, especially an import-dependent one, when you source dollars not from banks but from the black market. You just imagine a business where mornings were devoted to calling on clients, and afternoons were spent marching on the streets. What a way to start a business! When Cory was installed as President in February 1986, Chemworld's client network was in place. We experienced exponential growth afterwards.

Godiva was born in late 1996, a time when things looked rosy - on the surface. Suddenly, in July 1997, we were jolted by the Asian currency crisis. The peso dived from 26 to 46 against the US dollar. All our ingredients were imported so the financial crisis really hurt us. Godiva not just survived the crisis. It even thrived in the aftermath. We confirmed the old belief that women would spend more to look good and feel good, especially during times of crisis. While most companies were laying off personnel, we continued to expand and hire more people.

The answer then is clear. There will always be opportunities even when there is blood on the streets. In good times and in bad, a true entrepreneur is always willing to take the risks.

Another important quality that could help entrepreneurs become successful is the ability to spot opportunities. The story of how Godiva started is a classic case of turning a problem into an opportunity.

In 1994, Chemworld was promoting licorice extract as the best whitening ingredient you can possibly source from nature. We even commissioned a group of independent dermatologists from UP-Philippine General Hospital (PGH) to prove our claims. The clinical study showed that licorice produced significant result in as early as 7 days! Amazing!

In 1994, Chemworld was promoting licorice extract as the best whitening ingredient you can possibly source from nature. We even commissioned a group of independent dermatologists from UP-Philippine General Hospital (PGH) to prove our claims. The clinical study showed that licorice produced significant result in as early as 7 days! Amazing!

By offering the best, we thought it would be easy to sell licorice extract to the industry. We were wrong. Chemworld experienced rejection one after another. Why? Because of the very expensive price of licorice extract. Think Php1 million/kilo vs. hydroquinone, a popular but controversial whitening ingredient at only Php 1,500/kg.

We knew deep in our hearts that licorice for whitening has a huge business potential, in spite of its atrocious cost. The only remaining way we can tap that huge potential was to launch our own consumer product. And Godiva was born in 1996.

Why the name Godiva? Godiva is an old English word which means Gift of God. Since our product positioning is natural skin care, we thought the name is appropriate for a product that derives its ingredients from nature. Nature is God's gift, of course. The added benefit of the brand name Godiva is that it creates the image of a beautiful goddess, an imported one at that, thanks to the legendary Lady Godiva who rode naked on a horse.

As time went on, Godiva increased its product lines. We are careful not to launch "me too" products. We want to be innovative, to be the first to come out with fresh product concepts. And we launch new products only if we are convinced that a natural ingredient is scientifically proven to be the best remedy for a specific skin care concern.

So from licorice skin whiteners, we came out with time-released fruit acid cream, green tea daily sunblock cream with zinc oxide, the anti-blemish line for acne-prone skin, and the face and neck firming cream. In 2004, we launched GODIVA Safe Sea, the world's only sunblock with proven protection against stings from jellyfish and sea lice. In 2005, we came out with a very unique product, the Godiva lightening lip-gloss and it became an international hit for making dark lips and nips pinkish. More exciting new products are in the pipeline that will surprise the market.

Ten years after, we feel gratification that our pioneering efforts have put the GODIVA brand among the leaders in the highly competitive skin care market. We hope our story will inspire more people to go into business. Our country needs more entrepreneurs.