30
d'Octubre
de
2015
The famous line "Don't worry, be happy" could easily refer to the chain of sweet shopsHappy Pills, which has revolutionised the sector with small containers full of coloured sweets that not only appeal to little ones, but have also become a sort of magic solution for the everyday problems of adults. It is a solution that, far from being content with bringing optimism only to the Spanish State, will now cast its effect further afield with an expansion of the business model to some 30 new shops abroad.
The fact that the sweets are referred to as pills is not an accident. "A sweet is like chocolate, it contains phenethylamine, and provides a boost of vitality and energy, of happiness," says founder, Domingo Ojeda, "it is like you have eaten something extraordinary when in fact you have not eaten anything." It is an effect that, accompanied by the chemist aesthetic of the shop design, turns the product into a medicine for the emotions.
In eight years, what began as a little shop near Barcelona cathedral –to take advantage of the bustle of tourists- is now a chain of seven shops. Five of them are located in the Catalan capital, turning it into territory conquered by the brand, while the other two shops are looking to do the same in Bilbao and Zaragoza. With the crisis overcome and a process of international expansion underway, Happy Pills hopes to finish 2015 surpassing the 1.5-million euro turnover of last year.
Not just for kids
The relationship of Domingo Ojeda and his wife Gloria Dueñas with business goes back a long way. "We have spent 25 years doing things: selling children's products, accessories, gifts, music... Sometimes things work out and at other times not so much, but we always put in the same energy," says the founder. And so, far from giving up, they turned their previous business selling hair accessories into the Happy Pills we know.
The other person who has experienced this change is the founders' niece, Imma Dueñas, who is currently the creative director. "On the one hand, we had premises that were very small, and on the other, Domingo thought that the typical local sweetshop looks ugly," she says, explaining the process, "so we went to a design studio, we told them that we wanted something different in the world of sweets and they gave us a variety of options, among which was Happy Pills".
With a clear idea and the premises available, all that was needed was to overcome one handicap: the shop was in an area where there was not much else. How, then, to attract an adult public? "The way was to transform the traditional way of selling sweets by putting them in different containers and formats, presenting the sweets as a help to overcome small everyday problems," says Ojeda. That is why the phrases we use have become an element that identifies the brand, turning the phrases into "brief and positive messages that put a smile on your face," adds Dueñas.
All the details are important
If there is one thing that Happy Pills can boast is that it stands on its own. Both the design of the containers and the shops and their decor come from the firm's management. They want to be the ones who choose the combination of colours and how the products are laid out, as it is a brand that they have created themselves and that they know down to the last detail. "When you take on someone from outside, you become less demanding and the things you implement do not work. With this system we are slow but more efficient," points out Ojeda proudly.
However, putting so much attention into presentation does not mean forgetting about the contents. They work with numerous national and international sweet manufacturers, so they buy the classic pink strawberries from one place and the teddy bears from another. "We try to make the product that we believe the customer will value most and the same manufacturer does not always have the right product," says Ojeda, ading: "As we have sufficient margin to support greater cost, we prefer to sell the best product." Nevertheless, before making their selection, they carry out a pilot trial in two of the shops. If the new sweet is well-received, it is expanded to the rest of the chain, if not, they choose a different manufacturer.
Overcoming the crisis by lowering prices
The final price is another element in the success of Happy Pills. The most expensive product in the shop is around 25 euros, but the creative director stresses that you can find a lovely and original gift for 10 euros. "With only a little money you can find what you need. I think that it is this that has kept us in the game," she adds.
The fact that the project began in 2007 means its growth took place during the economic crisis. It is a recession that Ojeda says took a while to make itself felt and it was not until 2010 that they felt the need to make changes: "We reoriented the model towards offering more economical products, lowering the average cash register receipt from seven or eight euros to five euros, but trying not to reduce the customer turnover." Moreover, the founder adds that the fact of not discriminating between types of sweets and having everything at the same price adds value that distinguishes them from traditional sweetshops.
It has also helped having a clientèle of different profiles. They are young women, grandmothers buying bags of sweets for their grandchildren, men in ties and suits who have nipped out of the office, tourists from all over and companies that order pots of Happy Pills as corporate gifts. "At the beginning it was mostly women, but we have continued to widen our customer base. The only thing pending is to convince men to lose all of their fear about going into a pink shop," says Dueñas, smiling.
The corporate channel is perhaps the least well-known part of the business. Nevertheless, it is a line of work that began with the birth of the business. Thus, Happy Pills are to be found in companies and at events, as part of image strategy.
Franchising, answering the imitators
"We have imitators all over the place. There is already a legal process against two Spanish companies because it got to an intolerable point." With a mix of indignation and disbelief, Ojeda explains the situation the company is experiencing both within Spain and abroad.
The latest legal proceedings began in February, against Fnac and Fresh & Food, the company that has opened different retail outlets to sell sweets under the brand, MolaGominola. There will be a court case this November and they hope that it will help to provide a solution for what Dueñas considers an injustice: "The law protects the idiots. The clever ones create and the idiots earn a living from copying." He explains that registering a single phrase costs 300 euros, so to protect each of them with copyright is "not feasible".
Despite his concerns, Dueñas keeps his calm when he sees that most of the Happy Pills imitators have closed down. "Our business model is not an easy one, everything is carefully studied and they do not have the same philosophy, origins, and nor do they understand that the labelling and references are carefully worked out," he says.
At the same time, they have begun a process of international expansion through franchising and as a way of fighting the imitators. "We are a family company and growing so suddenly is very difficult," says the creative director, who believes that the franchising option is good for "expanding the business, making it better known and helping the customer to detect imitators."
This 2015 they have already opened two shops in South Korea. It might seem crazy to have picked this country, says Dueñas, "as it is the most difficult place in the world as far as labelling is concerned, because they demand confidential information about the manufacturers." Nevertheless, he insists that they have "overcome" the test, and that has encouraged them to include Japan, the UK and the United States in their future plans.
The fact that the sweets are referred to as pills is not an accident. "A sweet is like chocolate, it contains phenethylamine, and provides a boost of vitality and energy, of happiness," says founder, Domingo Ojeda, "it is like you have eaten something extraordinary when in fact you have not eaten anything." It is an effect that, accompanied by the chemist aesthetic of the shop design, turns the product into a medicine for the emotions.
In eight years, what began as a little shop near Barcelona cathedral –to take advantage of the bustle of tourists- is now a chain of seven shops. Five of them are located in the Catalan capital, turning it into territory conquered by the brand, while the other two shops are looking to do the same in Bilbao and Zaragoza. With the crisis overcome and a process of international expansion underway, Happy Pills hopes to finish 2015 surpassing the 1.5-million euro turnover of last year.
Not just for kids
The relationship of Domingo Ojeda and his wife Gloria Dueñas with business goes back a long way. "We have spent 25 years doing things: selling children's products, accessories, gifts, music... Sometimes things work out and at other times not so much, but we always put in the same energy," says the founder. And so, far from giving up, they turned their previous business selling hair accessories into the Happy Pills we know.
The other person who has experienced this change is the founders' niece, Imma Dueñas, who is currently the creative director. "On the one hand, we had premises that were very small, and on the other, Domingo thought that the typical local sweetshop looks ugly," she says, explaining the process, "so we went to a design studio, we told them that we wanted something different in the world of sweets and they gave us a variety of options, among which was Happy Pills".
 |
| Domingo Ojeda, Gloria Dueñas and Imma Dueñas, the Happy Pills management team. AC |
With a clear idea and the premises available, all that was needed was to overcome one handicap: the shop was in an area where there was not much else. How, then, to attract an adult public? "The way was to transform the traditional way of selling sweets by putting them in different containers and formats, presenting the sweets as a help to overcome small everyday problems," says Ojeda. That is why the phrases we use have become an element that identifies the brand, turning the phrases into "brief and positive messages that put a smile on your face," adds Dueñas.
All the details are important
If there is one thing that Happy Pills can boast is that it stands on its own. Both the design of the containers and the shops and their decor come from the firm's management. They want to be the ones who choose the combination of colours and how the products are laid out, as it is a brand that they have created themselves and that they know down to the last detail. "When you take on someone from outside, you become less demanding and the things you implement do not work. With this system we are slow but more efficient," points out Ojeda proudly.
However, putting so much attention into presentation does not mean forgetting about the contents. They work with numerous national and international sweet manufacturers, so they buy the classic pink strawberries from one place and the teddy bears from another. "We try to make the product that we believe the customer will value most and the same manufacturer does not always have the right product," says Ojeda, ading: "As we have sufficient margin to support greater cost, we prefer to sell the best product." Nevertheless, before making their selection, they carry out a pilot trial in two of the shops. If the new sweet is well-received, it is expanded to the rest of the chain, if not, they choose a different manufacturer.
Overcoming the crisis by lowering prices
The final price is another element in the success of Happy Pills. The most expensive product in the shop is around 25 euros, but the creative director stresses that you can find a lovely and original gift for 10 euros. "With only a little money you can find what you need. I think that it is this that has kept us in the game," she adds.
The fact that the project began in 2007 means its growth took place during the economic crisis. It is a recession that Ojeda says took a while to make itself felt and it was not until 2010 that they felt the need to make changes: "We reoriented the model towards offering more economical products, lowering the average cash register receipt from seven or eight euros to five euros, but trying not to reduce the customer turnover." Moreover, the founder adds that the fact of not discriminating between types of sweets and having everything at the same price adds value that distinguishes them from traditional sweetshops.
 |
| They try to keep hold of their clientèle with reasonable prices. AC |
It has also helped having a clientèle of different profiles. They are young women, grandmothers buying bags of sweets for their grandchildren, men in ties and suits who have nipped out of the office, tourists from all over and companies that order pots of Happy Pills as corporate gifts. "At the beginning it was mostly women, but we have continued to widen our customer base. The only thing pending is to convince men to lose all of their fear about going into a pink shop," says Dueñas, smiling.
The corporate channel is perhaps the least well-known part of the business. Nevertheless, it is a line of work that began with the birth of the business. Thus, Happy Pills are to be found in companies and at events, as part of image strategy.
Franchising, answering the imitators
"We have imitators all over the place. There is already a legal process against two Spanish companies because it got to an intolerable point." With a mix of indignation and disbelief, Ojeda explains the situation the company is experiencing both within Spain and abroad.
The latest legal proceedings began in February, against Fnac and Fresh & Food, the company that has opened different retail outlets to sell sweets under the brand, MolaGominola. There will be a court case this November and they hope that it will help to provide a solution for what Dueñas considers an injustice: "The law protects the idiots. The clever ones create and the idiots earn a living from copying." He explains that registering a single phrase costs 300 euros, so to protect each of them with copyright is "not feasible".
Despite his concerns, Dueñas keeps his calm when he sees that most of the Happy Pills imitators have closed down. "Our business model is not an easy one, everything is carefully studied and they do not have the same philosophy, origins, and nor do they understand that the labelling and references are carefully worked out," he says.
 |
| The structure of the shop and the lay-out of the sweets are arranged in detail. AC |
At the same time, they have begun a process of international expansion through franchising and as a way of fighting the imitators. "We are a family company and growing so suddenly is very difficult," says the creative director, who believes that the franchising option is good for "expanding the business, making it better known and helping the customer to detect imitators."
This 2015 they have already opened two shops in South Korea. It might seem crazy to have picked this country, says Dueñas, "as it is the most difficult place in the world as far as labelling is concerned, because they demand confidential information about the manufacturers." Nevertheless, he insists that they have "overcome" the test, and that has encouraged them to include Japan, the UK and the United States in their future plans.