Nespresso’s espresso machine costs 2% more in Israel than it does in New York and 17% more than it does in Britain. Israelis not only pay more, they also earn less. While the minimum wage in Israel is about NIS 22 per hour, in Britain consumers earn at least NIS 33.50 per hour and in New York, NIS 27 per hour. Israelis who want a cup of Nespresso need to work 9 hours more than their friends in New York and 20 hours more than the British.
The market for espresso machines that use coffee bean capsules expanded by tens of percentage points over the past year, and the number of players in the market has grown as well. Nowadays you can get a coffee machine even at convenience stores along the highways, and major companies like Strauss are considering jumping into the playing field.
One of the groundbreakers in this category is Nespresso, whose ad campaign starring George Clooney has been credited with increasing the number of searches for the term "coffee machine" on Google.
In Israel, sales of Nespresso coffee machines registered double-digit sales compared to last year's figures. Nespresso's machines are comparable in price to those of competitors including Lavazza, and range from NIS 600 to NIS 3,000..
NESPRESSO ISRAEL STATED: "Nespresso's coffee machine is being sold in Israel for prices similar to that in the United States. The small gap in price versus Britain stems mainly from import costs and duties on importing electronic goods."
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