Loewe Diversifies Product Line by Entering Coffee Machine Market
The luxury television manufacturer Loewe introduces coffee machines amid financial challenges and taps into new markets with the help of Kylian Mbappè.
Loewe, traditionally recognized for its high-end television production, is expanding its product line by venturing into the coffee machine market.
This strategic transformation comes in response to declining revenues and a desire to diversify its offerings.
The company has announced the introduction of a coffee sieve machine and is planning to release a fully automatic coffee machine in the near future, aimed at emulating the functionality found in professional coffee establishments.
The move into coffee machines occurs against the backdrop of significant financial hardships faced by Loewe, which has declared insolvency twice, first in 2013 and then in 2019. Aslan Khabliev, who has served as CEO since late 2019, articulated the risks associated with remaining exclusively focused on the premium television market.
Industry analysis has reported a 3.5% increase in sales for coffee sieve machines in Germany in 2024, with approximately 250,000 units sold, contributing to a revenue growth of 6%, totaling €74 million.
Despite growing competition and rapid technological advancements, recent studies indicate that consumers give priority to technical features rather than price when purchasing televisions.
This consumer trend positions smart TVs as a vital innovation area in home automation, with a significant role anticipated in future electronics markets.
Khabliev noted a notable shift in consumer behavior resulting in decreased television viewing time, now reduced to only a few hours weekly, often limited to family movie nights.
Nevertheless, he confirmed that demand for televisions remains consistent, underlining that every household and hotel room continues to necessitate a television.
Loewe's performance, however, has been adversely influenced by global events, including the COVID-19 pandemic and ongoing conflicts in Ukraine and the Middle East, which have strained sales across the electronics sector.
Revenue figures illustrate a decline, with estimates dropping from nearly €100 to €130 million prior to previous insolvency to approximately €60 million in 2024, down from €44 million in 2023.
Kylian Mbappè, the prominent French footballer and Real Madrid star, has emerged as a central figure in Loewe's revised strategy.
As a co-owner, partner, and brand ambassador, his role is intended to enhance Loewe's visibility on a global scale, aligning with the company's efforts to strengthen its market position during this challenging transition.
This strategic transformation comes in response to declining revenues and a desire to diversify its offerings.
The company has announced the introduction of a coffee sieve machine and is planning to release a fully automatic coffee machine in the near future, aimed at emulating the functionality found in professional coffee establishments.
The move into coffee machines occurs against the backdrop of significant financial hardships faced by Loewe, which has declared insolvency twice, first in 2013 and then in 2019. Aslan Khabliev, who has served as CEO since late 2019, articulated the risks associated with remaining exclusively focused on the premium television market.
Industry analysis has reported a 3.5% increase in sales for coffee sieve machines in Germany in 2024, with approximately 250,000 units sold, contributing to a revenue growth of 6%, totaling €74 million.
Despite growing competition and rapid technological advancements, recent studies indicate that consumers give priority to technical features rather than price when purchasing televisions.
This consumer trend positions smart TVs as a vital innovation area in home automation, with a significant role anticipated in future electronics markets.
Khabliev noted a notable shift in consumer behavior resulting in decreased television viewing time, now reduced to only a few hours weekly, often limited to family movie nights.
Nevertheless, he confirmed that demand for televisions remains consistent, underlining that every household and hotel room continues to necessitate a television.
Loewe's performance, however, has been adversely influenced by global events, including the COVID-19 pandemic and ongoing conflicts in Ukraine and the Middle East, which have strained sales across the electronics sector.
Revenue figures illustrate a decline, with estimates dropping from nearly €100 to €130 million prior to previous insolvency to approximately €60 million in 2024, down from €44 million in 2023.
Kylian Mbappè, the prominent French footballer and Real Madrid star, has emerged as a central figure in Loewe's revised strategy.
As a co-owner, partner, and brand ambassador, his role is intended to enhance Loewe's visibility on a global scale, aligning with the company's efforts to strengthen its market position during this challenging transition.
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