☕️ Why Nespresso Vertuo is worst than classic.
Product design or market strategy?
Over time, I’ve had the opportunity to observe firsthand how the world’s biggest brands tackle complex challenges: innovating, fostering customer loyalty, and maintaining leadership in an increasingly competitive market. However, not all innovations arise from a genuine desire to solve user problems. Today, I want to analyze Nespresso’s Vertuo system, which seems more like a business strategy than a user-focused solution.
Context: The patent and the monopoly
For decades, Nespresso dominated the single-serve coffee machine market thanks to its original patents, which allowed the company to offer an exclusive product and position itself as a premium brand. The “classic” capsules not only guaranteed consistent coffee quality but also ensured a steady stream of recurring revenue. However, when the patent on these capsules expired, competitors began offering compatible alternatives, often at significantly lower prices. This not only weakened Nespresso’s control over its market but also reduced its profit margins.
Vertuo: A Response to the free market
Launched in 2014, the Vertuo system marked a radical shift in Nespresso’s strategy. The technology behind this system introduced a new capsule format that uses a barcode to identify the coffee type and automatically adjust preparation parameters such as temperature, water volume, and extraction time. Undoubtedly, it’s an impressive technological advancement—but is it truly a response to user needs?
In reality, Vertuo’s creation seems to have been driven primarily by business motivations. By developing an entirely new system incompatible with the original capsules, Nespresso regained control of its product ecosystem and, most importantly, once again closed the market to competitors. Furthermore, the new capsules are more expensive and have no direct competition, allowing the brand to attempt to regain its premium positioning and profit margins.
The Impact on user experience
From the user’s perspective, Vertuo offers few clear benefits, raising the paradox of simplicity while highlighting certain aspects that may be perceived as limitations:
The Crema: The crema produced isn’t the result of coffee oils extracted under pressure as with the original system. Instead, it’s an air-based foam created through the new centrifugation process.
Lack of Compatibility: Users who already own an Original Nespresso machine cannot use the new Vertuo capsules, forcing them to purchase a new machine and adapt to a completely different system.
Higher Cost: Vertuo capsules are more expensive, which may cause friction for price-conscious users.
Closed Ecosystem: As a proprietary system, users cannot purchase third-party capsules, limiting their ability to choose more affordable or sustainable alternatives.
Innovation vs. Lock-In strategy
What makes this case interesting is how it demonstrates that product design can be used as a tool for business strategy. Instead of solving a clear user problem, Vertuo addresses a market problem: losing control of the business model. This approach isn’t unique to Nespresso; we’ve seen it in other industries, such as printing, where companies use proprietary ink cartridges with embedded chips to block competitors.
The dilemma here is that such innovations can erode user trust if perceived as a way to force them to spend more or restrict their freedom of choice. A counterexample to this strategy might be Tesla, which leverages technology to expand user possibilities, such as with over-the-air software updates that improve the product experience—though the challenges of electric cars and batteries are a topic for another time.
In summary
The Nespresso Vertuo case raises important questions for those of us designing experiences: To what extent should design decisions align with business goals, and when do we cross the line into manipulating or limiting the user? The answer isn’t straightforward, but I firmly believe the key lies in transparency and striving for a balance between user needs and commercial objectives.
Vertuo may be a commercial success, but it also serves as a reminder that design decisions can be driven by motives beyond simply improving the user experience. As professionals, we must reflect on the long-term impact of these strategies and how they can shape the perception of the brands we help build.
What do you think? Is Nespresso Vertuo an innovation or a strategy to protect the business?
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