Ferrari is collaborating on an apparel line with Giorgio Armani. This is part of the carmaker’s strategy to squeeze more out of its brand value. In the third quarter, earnings before interest, taxes and amortization rose 11 per cent. Revenues rose nine per cent. Ferrari, based in Italy, aims at earning ten per cent of earnings before interest and taxes within a decade from three defined brand extension areas: apparel, entertainment and luxury services. Ferrari has long had one of the world’s most recognizable brands, but it has only recently translated that into value. Its brand value grew from $4 billion in 2014 to $8.3 billion in 2019.
As a 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 long-term deal with Armani, Ferrari will expand its entertainment offerings, which currently comprise theme parks in Abu Dhabi and Spain 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.