Costa Coffee, run by Devyani International in India, is exploring multiple ways to attract millennial and Gen Z customers as competition in the country's coffee chain market intensifies. The company is upgrading its stores and launching a 360-degree campaign to drive business. Costa Coffee plans to open new stores in India's top eight to ten cities and also tap into premium office spaces, airports, and highways. The uplift store designs include individual workspaces, community tables, and warm, bright interiors, among other features. Costa Coffee aims to capitalize on evolving consumer preferences for experimentation and specialty brews in India's crowded cafe market.
Costa Coffee, operated by Devyani International Ltd. in India, is exploring diverse approaches to attract millennial and Gen Z customers and boost its business as competition in the country’s coffee chain market heats up. In 2018, Coca-Cola acquired Costa Limited from Whitbread PLC for $4.9 billion, expanding its presence in the coffee market.
Vinay Nair, general manager, India & Emerging Markets, Costa Coffee, highlighted India as a “focus” market for the coffee chain, citing the demographics and consumption trends. Costa aims to stay relevant to the current and new generation of coffee consumers in India by exploring specialty coffee and its origins. As part of its refreshed positioning, Costa is upgrading its stores and launching a 360-degree campaign encompassing out-of-home, print ads, digital, social media, and in-store consumer experiences.
Costa Coffee Overhauls Its Strategy To Tackle Heightened Competition In The Indian Market
To expand its presence, Costa plans to open new stores in India’s top eight to ten cities and tap into premium office spaces, airports, and highways. Nair expressed confidence in Costa’s strong expansion plans and highlighted the recent re-design of some stores to appeal to younger consumers. The uplift store designs include individual workspaces, community tables, and warm, bright interiors, among other features.
As India’s cafe market becomes increasingly crowded, Costa Coffee aims to capitalize on evolving consumer preferences for experimentation and specialty brews. Of the 60 new stores added in the last year, close to 45 were modelled on the new design format, which aims to support consumers wanting to express themselves in different ways or spend time with each other.
Costa Coffee is a multinational coffeehouse chain headquartered in Dunstable, England. It was founded in 1971 by Italian brothers Sergio and Bruno Costa. In 1995, Costa was acquired by Whitbread PLC, a British multinational hotel and restaurant company. In 2018, Whitbread sold Costa to Coca-Cola for $4.9 billion, expanding the beverage giant’s presence in the coffee market. Costa Coffee has over 3,800 stores across 32 countries and is one of the largest coffeehouse chains in the world. It offers a wide range of hot and cold coffee and non-coffee beverages, as well as snacks and pastries.
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