Ferrari to hit fashion and gourmet food to boost profits

ferrari-to-hit-fashion-and-gourmet-food-to-boost-profits

The brand will launch a fashion collection on Sunday and open a restaurant two days later.

Ferrari strives to take its brand to the catwalks and into the restaurant business, trying to attract the attention of not only its loyal fans, but also wealthy customers. The company, known for its Formula 1 racing team and powerful sports cars emblazoned with the Cavallino Rampante (prancing horse) logo, launches a fashion collection on Sunday and reopens the restaurant in its hometown of Maranello two days later.

The clothing line will be created by creative director and former Armani designer Rocco Iannone, while Michelin-starred Italian chef Massimo Bottura is relaunching the restaurant where founder Enzo Ferrari once dined with friends and Formula 1 stars.

Nicola Boari, director of brand diversification at Ferrari, told Reuters that the goal was to attract new customers “in terms of age and culture,” beyond racing fans and sports car buyers who already crave his signature jackets, T-shirts and hats.

Ferrari’s car customer base is limited to less than 10,000 a year – fewer customers than Bottura’s new restaurant can serve in the same amount of time – and the luxury car maker said it hopes its so-called brand expansion strategy will account for 10% of its profits over a decade. …

Ferrari is not the first luxury car brand to take up the lifestyle business. Other companies such as Lamborghini and Bentley from the Volkswagen Group, as well as American motorcycle manufacturer Harley-Davidson, have turned to clothing collections.

Former Ferrari CEO Louis Camilleri unveiled a brand expansion strategy that includes fashion, restaurants and other luxury goods in 2019, just before the coronavirus pandemic hit the world and shelved plans.

The Italian automaker’s new business launches come days after the appointment of new CEO Benedetto Vigna, a 52-year-old physicist with 26 years at the semiconductor manufacturer STMicroelectronics, which is expected to lead Ferrari into the era of electric vehicles.