Most companies in car manufacturing business are “screaming” for more sales which basically assures more market capitalization, and last but not least greater revenues for the firm. That is not the case with Ferrari, as it seems the luxury brand is ready to lose some of its sale numbers in order to re-position itself as an highly exclusive brand.
As this year most of Italy is hit by negative economic data and most of European companies are recording losses, Ferrari shines brightly being one of the few adding more jobs and handing out significant bonuses.
Already having significant revenues from its luxury defined car business, the Italian car-maker stated that this year it hopes sales to reduce to 7000. This would place Ferrari deeply into the exclusive market and probably would increase the value of the new models.
“We want to increase the exclusivity of Ferrari. We want to maintain the value of the used car market. We want to develop the rest of the business like licensing and products.”,the CEO of Ferrari Mr. Montezemolo said, cited by Financial Times. The exclusivity strategy chosen by Italian car-maker is well known in luxury goods practices. The limited amount of a luxury could raise its price immensely making it an even more valued product from the customers point of view.
The company is accounting for about 10% of Fiats earnings and is said by investors that it could boost Fiats performance even more after the luxury brand cuts sales. The status of Ferrari cars is improving sales of other company goods such as car seats and accessories pertaining to the cheaper end of retail goods.
There have been interest from customers for a special top end clothing which goes with the luxury car. The idea was implemented, resulting in the launch of Pr1ma brand supplying leather jackets and sunglasses exclusively for Ferrari customers.