Special interviews
Written by: Lin Leqian
2020-07-27 07:30
Last update date: 2020-07-27 07:30Drinking a cup of fragrant and rich coffee in the morning, the whole body cells seem to be awakened. Nestlé’s coffee brand Nespresso uses a small coffee powder capsule to concoct unique coffee with a simple brewing method, which has become a part of the lives of many Hong Kong people. Justin, the general manager of the company's Hong Kong and Macau region, said in an interview that during the epidemic, Hong Kong people's demand for coffee increased and the sales of e-commerce platforms increased sharply, hoping to bring better sales growth for the brand.
In recent years, specialty coffee shops have sprung up like bamboo shoots after the rain, making more people fall in love with coffee. Justin, who claims to be a "coffee maniac" and drinks seven cups of coffee a day, is one of them. "76% of Hong Kong consumers prefer to drink milk coffee. This taste is the most approachable. It can match milk, the rich flavor of Apechio coffee, and the fruity Colombian coffee. It is the favorite flavor of Hong Kong people."
Justin added: "Many people feel that coffee is very bitter at the beginning, but as Hong Kong people's tastes become more mature, their demand for coffee increases and their requirements for related equipment are getting higher and higher." Nespresso's Capsule coffee machines are famous for their convenience and lightness. At present, more than 10 coffee machines have been produced with 29 coffee varieties. Customers can choose coffees of different origins and flavors according to their personal preferences.
In recent years, Nespresso has actively expanded its coffee machine and capsule business. Currently, it has launched more than 10 types of its own capsule coffee machines, as well as 29 coffee flavors, classified by coffee strength. (Photo by Huang Shuhui)
E-commerce platform sales increase under the epidemic
The new crown pneumonia epidemic has swept the world and has dealt a major blow to the retail market. According to Nestlé’s financial report, group sales in the first quarter increased by 4.3% to 20.812 billion Swiss francs (approximately 174.52 billion Hong Kong dollars), of which sales in Asia fell by 4.6%. As for the sub-brand Nespresso recorded a single-digit increase, sales in Asia and North America increased. A double-digit increase was recorded.
The epidemic is unhindered. Workers work as usual, and their demand for coffee continues unabated. Justin said that compared with global markets, sales in Hong Kong are more optimistic, and the supply of goods has remained stable. Under the epidemic, sales of e-commerce platforms have increased. Although several physical stores have suspended coffee tastings, retail business has remained stable. Catering, hotels and airlines The business of other corporate customers has a greater impact.
Lin Zhiping, general manager of Nespresso Hong Kong and Macau, said that compared with other markets, sales in Hong Kong are more optimistic and the supply of goods is stable, while sales of e-commerce platforms have increased due to the epidemic. (Photo by Huang Shuhui)
Both online and physical stores
He noticed that during the epidemic, more people stayed at home to cook, and the brand launched a new multi-functional coffee machine with a variety of coffee recipes built in, so that customers can still taste a cup of Cappuccino at home that is comparable to a coffee shop. Milk coffee pods were also launched, including Caramel Latte and Mocha.
The epidemic has changed the consumption patterns of customers. Justin said that the group has also accelerated the development of online channels and added logistics staff to process delivery orders to ensure that it can deliver to customers in a short time. At the same time, it opened an online store in HKTVmall. Bring better sales growth.
However, he has not given up on offline store development. At present, Nespresso has 5 physical stores in Central, Tsim Sha Tsui, Kowloon Tong, Kwun Tong and Yuen Long. In the future, he plans to open branches or "Pop-up Stores" in more areas (for a limited time). Shop) to increase brand coverage. In addition, he plans to introduce Asian varieties of coffee, add more local coffee experience, and make the brand more "local" and younger.
Lin Zhiping said that Nespresso coffee pods are made of aluminum, and the brand has a reward program to encourage customers to recycle. The recycling rate in Hong Kong has reached 24%. (Photo by Huang Shuhui)
The recovery rate of local capsule coffee reaches 24%
Nespresso has been deeply cultivated in Hong Kong for more than ten years. The capsule coffee is often criticized for causing waste, which brings a lot of burden to the environment. He explained that the coffee powder capsules are made of aluminum, and the brand has established a reward program to encourage customers to recycle. The recycling rate in Hong Kong has reached 24%. The used powder capsules will be sent to the local recycling workshop to separate the aluminum shell and coffee grounds. In the program, the coffee grounds are processed and sent to the farm to become compost, and the aluminum material will be re-melted into reusable aluminum material, which can be made into pens, chopsticks, and even bicycles.
Justin described that it is not enough to win by coffee quality alone. It is more necessary to build a brand's coffee story and fulfill corporate social responsibility in order to retain customers who like freshness. Last year, the brand invested more than 10 million Swiss francs (about 83.72 million Hong Kong dollars) to launch the "Renaissance Source" project to assist coffee cultivation in areas threatened by the climate, political and economic environment, and cooperate with small farmers in Uganda, Zimbabwe and Colombia through local Agronomists and non-profit organizations provide materials and training to farmers to rebuild the local coffee industry.
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