“Consumer lifestyle is reshaping in the country and to be more relevant to the new generation, we need to have local relevance. We believe that coffee culture is fast catching up in urban India and there is an opportunity for us,” Philips India, President Consumer Lifestyle (Indian Subcontinent) A.D.A. Ratnam told a media agency.
The Dutch multinational identified creation of new categories to supplement consumer lifestyle as one of its growth paths and is banking on products from the portfolio of Saeco International Group that was acquired by its parent Royal Philips Electronics in 2009.
“Our coffee machines are not going to be mass distribution products. These are primarily targeted at those niche customers who have a taste for fine coffee,” he said. To start with, Philips India has introduced three products priced at Rs 13,995, Rs 54,995 and Rs 74,994. ($280, $1,100, and $1,500). Upscale (very upscale) consumers in Delhi, Mumbai and Bangalore across 18 retail points can now savor their Cappuccino, Espressos, Lattes and Macchiatos in style.
What this means:
We don’t know how successful this product line might be, but we can be sure that five years ago, at attempt to sell a $1,500 coffeemaker would not have been taken seriously in India. The times, they are a-changing.
