illycaffe, the Innovative Italian Coffee Brand

Helen Dou 2013.10.7.

Illycaffe is an innovative coffee brand that specializes on espresso. Originated from Trieste, Italy in 1933, illy blend is now sold in over 140 countries worldwide. In China, illy is far behind Starbucks on physical store wise, but illy is enjoying the reputation of “high-end” coffee. As iFeng said, “Starbucks educated Chinese consumers [about coffee], and now illy is swooping in to evangelize.”

Illy adopts differentiating strategies than its competitors. Besides opening creative physical stores, illy is also the exclusive coffee provider in many five-star hotels, such as Portman Ritz-Carlton hotel, as well as in premium brand stores like Haagen Dazs. Illy’s premium strategy just the same as in Italy.

China is not a country prefers coffee drink traditionally, however, coffee brands have smartly penetrated in China market, and different brands play different roles in different phases. Nescafe is the coffee enlightener in China market; Starbucks is the educator; illy comes in as a strong uplifting alternative option for the Chinese coffee drinkers, who are seeking for higher coffee quality and unique coffee experience. We shall say, illycaffe is offering a different and premium coffee lifestyle to today’s Chinese consumers. The key words are “premium coffee lifestyle”.

The majority of illycaffe sales come from hotels and restaurants in China, which means a great opportunity to boost illy business in retail aspect. Illycaffe has identified their audience to be young people who consider drinking coffee is fashionable, and these people are more likely to appreciate arts, which is perfectly fit to illy’s culture and development direction. China has been becoming an increasingly important player in global economy and “young people” are rising, that is one of the main reasons Illy China general manager could confidently say to the public that it was not difficult for illy to make China market to comprise 10% of its global market.

Illy’s coffee & arts lifestyle has been introduced to China as well. After illy galleria opened in New York, Milan, Trieste, Istanbul, Berlin and London, the first Galleria Illy in China has been opened in Beijing in Oct. 26, 2012. The galleria is consist of international contemporary fine arts, performance of students from China Central Academy of Fine Arts, the art of gastronomy, etc. Throughout the galleria, illy is expressing its art, style and taste philosophy and values.

When Starbucks is the market leader and eye-catching brand in the crowded market, illy is a refreshing breeze to Chinese consumers.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of StartJG Hong Kong.