How is Nespresso doing in Japan?
We’ve been here for 23 years, but it was only about five years ago that the business really took off, upon the opening of our first department store boutique. Today we have some 18 boutiques in department stores in Japan and our growth has been in line with that of the business globally, with revenues up 20 percent to 30 percent per year. 2. How do you account for Nespresso’s recent success? I don’t believe we sell a product as much as we do an experience. Japanese love good coffee and are always looking for an even better coffee experience. Our primary consumer is generally urban, well-traveled, and has a love of great food and coffee; they typically are middle-upper or upper income and in their 40s. That said, we really don’t define our consumers on demographics but rather on lifestyle. Recent changes in the macro environment and in Japanese consumer behavior have helped us more than hurt us. For example, the sugimori or “staying home” trend in Japan is getting stronger and people ar
