Dubai: When coffee company Nespresso was founded in 1986, the firm sold its machines — and the capsules — out of a call centre for the next 15 years. It wasn’t until 2000 that Nespresso opened its first shop in Paris.
Now, the call centres make up less than 20 per cent of Nespresso’s sales, while online accounts for 50 per cent and brick-and-mortar stores contribute a further 30 per cent, according to Manuel Sancho, Business Development Manager, Middle East and Africa. “We used to only sell coffee through call centres, but we gradually evolved,” Sancho said in an interview with Gulf News. “In the UAE, the majority of our sales come from our stores, as people like to shop physically, see and taste them.”
In July, the single-serve coffee company opened the doors to a newly renovated shop in Mall of the Emirates, having undergone a facelift to bring it in line with other Nespresso stores globally. “This concept is part of the evolution of the company. Every six years, we release a new design for our stores and we update them all.”
He added that it was important to renovate design on a regular basis, because “the consumer changes with time too”. Describing Nespresso’s position as luxury, Sancho noted that in the past, the company struggled to communicate its message.
“Before, we communicated a lot about the machines [rather than the coffee itself], and it wasn’t necessarily very clear,” he said. “We put the tasting machine closer to the door in the new [store] design.”
Nespresso became famous for providing ground coffee sealed in aluminium pods for freshness, which could slide in to a machine and produce an espresso. As part of the makeover, space was freed up behind the windows to show more clearly into the store, while accessories, such as espresso cups and saucers, have been given greater prominence at the centre of the store. This led to an increase in the sale of accessories, according to Sancho.
The executive believes that making the shop as attractive as possible directly contributes to the success of the brand. “This store is not a selling tool, it’s an advertising tool. This store makes a statement, that this is a luxury brand with luxury coffee,” Sancho said.
Alongside the recently refurbished shop in Mall of the Emirates, Nespresso has also revamped its Abu Dhabi Mall branch, while looking at opportunities for expansion across the region. To confirm his confidence in the store being an extension of the brand, as much as a point-of-sale, Sancho says that to him, it doesn’t matter where customers buy Nespresso’s products.
“We want to deliver an experience, both online and offline. If [the customer] wants to order online, that’s fine with us. It’s all the same company,” he said.
In this sense, Sancho adds, the store, or boutique as he calls it, can act as a place to go and try Nespresso coffee, understand how to use the machines, and absorb the culture, speaking to the shop’s coffee specialists. Following that, customers can go home and order online, should they wish. Despite the vast cost of renting retail space within Mall of the Emirates, for Sancho it doesn’t matter.
“We are truly omnichannel. We let the consumer decide to use whatever channel they like. This is perfectly fine,” he added.
