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Belgian praline brand Neuhaus saw its e-commerce turnover go through the roof during the Covid crisis, but that was not at the expense of the physical stores: “The online turnover comes largely on top of store sales. There is still room for growth in our niche.”
Five years ahead
As for many companies, the past year and a half has been a true roller coaster for Neuhaus, marketing director Tim Kamanayo and e-commerce manager Kelly Notterdam explain. “In 2019, we felt the need to rebrand: Neuhaus had lost some relevance, despite high brand awareness. We once again provided the brand with more content by working on all touch points: new packaging, new chocolates, a new shop concept, and also an important digital component. That led to a 15 % growth in a very mature market.”
2020 also started very well, with a double-digit growth, but then the pandemic broke out… “We had to move quickly and put every effort into e-commerce. Fortunately, we were able to do that, because we were ready: we had a platform, a team, the expertise… Covid immediately propelled us forward five years.”
Untapped market
Online food sales grew strongly during the lockdowns, but Neuhaus is of course not a supermarket or HelloFresh. “We sell chocolates: that is a niche and an untapped market for e-commerce. Rather, we compete with flowers and wine as gifts. People discovered that they could easily send a gift to friends or family, beautifully wrapped, with a personalised card. It was one of the few things they could do during the lockdowns.”
Pralines are delicate: Neuhaus worked hard on the right packaging, as well as controlling the temperature. “When the weather is too hot, we send our chocolates refrigerated. Consumers need that reassurance. They are often pleasantly surprised at how they receive the package: many people who placed an order for the first time had a positive experience and continued to order.”
Best of both worlds
Now, in an almost post-COVID world, Neuhaus has the best of both worlds: “Our local boutiques are back in growth mode compared to 2019, but on top of that, our online business has grown many times over. What we are still missing are the international tourists, from China and the United States among others. They accounted for about a third of our business.” The strong growth of e-commerce has partly offset that loss.
There is no question of cannibalisation: online sales largely come on top of store sales. “It is not either-or. You can buy something for yourself, you can go to the boutique, but you can also send something to grandma. And it is easy: you do not have to go to town for a gift. This increases the frequency.”
Invest further
Neuhaus continues to invest in the online business today. “We never cut the advertising budget, because the ROI was demonstrable. We recently switched our systems to Salesforce: we are now on the Commerce Cloud, Marketing Cloud and Service Cloud applications. That will help us to get a 360° overview of our consumer. We can plan targeted actions at the right time with the right message and the right product. There is still room for growth for us, in our niche. We still have many plans!”
Tim Kamanayo and Kelly Notterdam will tell more about these plans in the Gamechangers programme at the RetailDetail Night, on 25 November in Antwerp. The end-of-year event of the retail sector can boast a well-filled and very varied poster: via this link you will find all information about the program and you can order tickets.
