Ferrari to launch fashion collaboration with Armani
MILAN—Sports car maker Ferrari has announced a fashion collaboration with Giorgio Armani as part of its long-promised strategy to squeeze more value out of the storied company’s allure.
CEO Louis Camilleri told analysts that Ferrari aims to earn 10 percent of earnings before interest and taxes within a decade from three defined brand extension areas: apparel, entertainment and luxury services.
The Italian company aims to both increase and retain a greater portion of the €800 million ($892 million) in products bearing the prancing horse logo, the CEO said.
That will include jettisoning licenses that don’t properly represent Ferrari.
“This is not just about profit, this is about enhancing our brand equity and the vitality, and vibrancy of the brand,” Camilleri said.
Ferrari has long had one of the world’s most recognizable brands, but it has only recently translated that into value. Its brand’s value grew from $4 billion in 2014 to $8.3 billion in 2019, according to London-based consultants Brand Finance. It is now seventh on Brand Finance’s list of most valuable luxury brands, from 350th five years ago.
As part of the new strategy, Ferrari will focus the use of its brand, reducing licenses by half and eliminating a third of the product categories currently available.
Besides the apparel line to be produced in Italy through a longterm deal with Armani, Ferrari will expand its entertainment offerings, which currently comprise theme parks in Abu Dhabi and Barcelona, and two museums in Italy, with driving simulation centers 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.