In Italy, car manufacturer Ferrari has formed a partnership with the fashion house Giorgio Armani. The collaboration should enhance the attractiveness of the Ferrari brand portfolio outside the automotive sector. For the collaboration, the car manufacturer has recruited the Italian designer Rocco Iannone as creative director. In addition to fashion, watches and glasses are also closely related to Ferrari's core businesses.
"The late Ferrari CEO, Sergio Marchionne, had long dreamed of making the company a broader luxury brand," said Daniele Lepido, automotive specialist at the Bloomberg news agency. "Louis Camilleri, Marchionne's successor, seems to want to make this ambition a reality. "
Ferrari has introduced handbags and clothing to the market for some time. The cooperation with Armani, however, should be able to further strengthen the position of these products in the luxury market. Camilleri pointed out that clothing, luxury services and entertainment should account for about 10% of the company's operating profit in the next seven to ten years.
"Ferrari's brand new brand orientation means that items like parkas and sunglasses will now benefit from premium pricing that is more in line with the company's sports car image, which can cost more than a million dollars each, "explains Lepido. According to Camilleri, the exclusive value of the Ferrari brand could be compromised if other products do not have a high-end appearance.
Ferrari has long used shopping malls and airport shops to sell polos and luggage to allow fans to take home a piece of the brand at a fraction of the price. "These activities can increase Ferrari's total revenue," says Lepido. "On the other hand, $ 100 watches and $ 30 caps can hurt the brand's exclusive image. "
Camilleri pointed out that this would reduce the current licensing agreements by around 50%. He also said he would eliminate about 30% of the categories of products in which Ferrari is currently active. Currently, approximately $ 892 million worth of products are known as Ferrari.
Ferrari's entertainment division should include the opening of driving simulation centers. With that, the brand would like to focus on fans who can not afford a real try. The division already has theme parks in Abu Dhabi and Barcelona and operates two museums in its own country.
Luxury services include a new restaurant on the Ferrari site in Maranello. This establishment would be operated by the great Italian chef Massimo Bottura.