Ferrari is into fashion now!
The Italian sports car maker is the latest to foray into the fashion industry by collaborating with Italian luxury brand Giorgio Armani.
And it’s not just fashion!
The brand is aiming to diversify into entertainment and luxury services as well, looking at garnering 10 per cent EBDIT within the next decade from these categories.
Streamlining merchandise and services that represent the Ferrari logo properly will enable the company to retail a greater portion of the 800 million euros (US $ 892 million) in official products.
The sports car maker is fearful of damaging the image of the brand which is why it is going to reduce current licensing agreements by some 50 per cent and eliminate 30 per cent of the product categories.
Ferrari’s new direction in branded goods means items like parkas and sunglasses will now carry premium-style pricing more in keeping with the image of the company’s sports cars, which can cost more than US $ 1 million.
Ferrari will also expand its entertainment offerings, which currently comprise theme parks in Abu Dhabi and Barcelona and 2 museums in Italy, with driving simulation centres to leverage its Formula 1 racing heritage.
The third category, luxury services, will include a new restaurant with Michelin-star chef Massimo Bottura to open next year at the Maranello headquarters, which already has a Ferrari-themed hotel.
Ferrari has been doing very well and raised its earnings forecast, citing a robust third-quarter performance including a 9 per cent increase in deliveries.
