Monday, July 18, 2011

Nespresso: The Apple Store of Coffee-Machine Boutiques

Nestle's Nespresso boutiques sell high-end espresso and coffee machines in 50 countries worldwide. The Nespresso store in downtown Copenhagen, left, is stylishly designed and has the feel of an Apple retail store, with products prominently yet tastefully displayed and highly knowledgeable experts on hand to demonstrate, educate, answer questions, and help customers buy.

The ambiance, the fixtures, the lighting, and all other visual clues reinforce the upscale positioning and create the expectation that customers are going to receive personalized, specialized service as they shop for a coffee machine or coffee capsules.

Browsing in the boutique, I took this photo of a George Clooney poster. Clooney has been the face of Nespresso for 9 months now, in TV commercials and in store signage. Clooney's sophisticated image only adds to Nespresso's coffee-maker cachet.

Consumers are adopting single-serving coffee-makers (for home or office) at a rapid rate, driving Nespresso's annual global sales to nearly $4 billion even as it defends against competition.

Is the coffee culture at its peak or can Nespresso extend its success by opening new boutiques in additional US and international markets?

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