Ferrari is a catwalk, a catwalk, yeah

Maranello, Italy — Talk about fast fashion. Ferrari Brings its brand to catwalks (and fine dining) to attract wealthy customers beyond loyal fans. On Sunday, we will launch our fashion collection and two days later we will reopen our restaurant in our hometown of Maranello.

The clothing line comes from creative director and former Armani designer Rocco Ianone, while Michelin-starred Italian chef Massimo Botula is renewing the restaurant with its founder. Enzo Ferrari once ate with friends and formulas 1 Performer.

Ferrari’s chief brand diversification officer, Nikolab Ali, told Reuters that its goal was to reach new clients beyond racing enthusiasts “from both an age and cultural perspective.” sports car Clients who are already anxious for branded jackets, T-shirts and hats.

Ferrari’s car customer base is, by design, limited to less than 10,000 cars per year, less than the clients that Bottura’s new restaurant can serve at the same time. Luxury car makers say they want so-called brand extension strategies to account for 10%. Of profit within 10 years.

Ferrari is far from the beginning luxury car A brand that enters the lifestyle business.Like the other Volkswagen With Lamborghini Bentley, And the United States motorcycle Manufacturer Harley-Davidson is looking to a collection of clothing. Ferrari’s entry into fine dining continues with the steps of high-end fashion groups such as French LVMH and Kering’s Gucci. Kering’s Gucci turned the first restaurant in Florence and the second restaurant in Beverly Hills to Bottura.

“Ferrari is one of the most powerful brands in the world and arguably the most powerful brand in the luxury industry,” said Massimo Pizzo, a brand valuation consultancy.

“There is potential for success in the luxury apparel industry,” he said.

Ferrari’s Il Cavallino restaurant in Maranello

Luxury profit

Former Ferrari CEO Luis Camilleri announced a brand extension strategy that includes fashion, restaurants and other luxury experiences in 2019, shortly before the coronavirus pandemic broke out and postponed plans.

The launch will take place days after the appointment of new CEO Benedetto Vigna, a 52-year-old physicist who has spent 26 years at semiconductor maker STMicroelectronics and is expected to take Ferrari to the next era. Electric car..

According to Camilleri, Ferrari’s brand spin-off has expanded too much, with plans to cut about half of automaker license agreements and about 30% of product categories.

After that, the perfume disappeared from the shelves of Ferrari’s existing stores. For example, some low-end products have no value other than a logo.

Analysts said Ferrari’s new branding strategy would take some time to succeed, but some were cautious about its potential contribution to profitability.

“Given the scale needed to make a profit in luxury, I don’t think this will increase Ferrari’s already fairly high margins,” said Susie Tibaldi, a luxury analyst at the Swiss bank UBS.

Last year, 11.3% of Ferrari’s net revenue came from the sponsorship, commercial and brand categories. This included revenue generated by the brand through the F1 team and merchandising, licensing and loyalty, down from 14.3% in 2019.

Ferrari’s direct rival Lamborghini While Bentley’s brand extension strategy focuses on accessories and luxury furniture, it offers several partnership-based brand collections, including menswear, children’s clothing and the living room.

The two companies said the brand extension strategy made an important and growing contribution, but did not provide details of the revenue they generated.

Harley-Davidson has long benefited from a wide range of brands of lifestyle gear in general merchandising, which accounted for 5.7% of motorcycle sales last year.

Renew tradition

Ferrari, which initially plans to sell fashion lines in stores and online, will compete with the high-end heavyweight division this year in a market estimated to be worth around € 280 billion ($ 341 billion).

Exor, the parent company of Ferrari, the investment company of the Agnelli family who founded Fiat, is also migrating to luxury.

Recently, he bought 24% of shoemaker Christian Louboutin and became the largest investor in ShangXia, a Chinese luxury group co-founded by Hermes in France.

Ferrari refused to reveal details of the collection prior to Sunday’s big announcement.

As we move away from the licensed apparel we already sell, industry sources expect the clothing line to fall into the “middle luxury” category. This is one step below top brands such as Gucci, Italy’s Prada and Dolce & Gabbana.

The collection is expected to include ready-to-wear items made from high-end fabrics rather than the more relaxed streetwear looks.

The work is drawn from the background of Ianone at the Italian fashion house Armani, tailored to Pal Zileri, featuring clean and elegant lines and delicate, minimalist details.

“There must be a story that clearly focuses on’Made in Italy’. They can’t come out with just a T-shirt with a logo,” said UBS’s Tibaldi.

At the Dolphin Valino Restaurant in front of Ferrari’s headquarters, staff are busy preparing for next week’s opening in a room decorated with F1 nose sections, framed photos of Enzo with friends, and Ferrari racing posters.

It stands close to the old V12 engine and the latest version used in one of the following: Michael Schumacher Bottura told Reuters that it plans to give local specialties such as tortellini and tagliatelle a fresh, contemporary look.

“I look at the past critically rather than in a nostalgic way, bringing the best of the past into the future and renewing tradition just like Ferrari,” he said.

(Edited by David Clarke)

Ferrari is a catwalk, a catwalk, yeah

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