Ferrari's success lies in scarcity, emotion-driven pricing, personalization, VIP access, and exclusivity.

From CNBC: 2024-07-04 08:00:01

– Ferrari has surpassed Hermès as the most valuable luxury company in the world, with its stock trading at 50 times earnings and shares valued at $410 each. The automaker produced only 13,663 cars last year but is valued at over $75 billion.
– Ferrari’s CEO, Benedetto Vigna, highlights the importance of scarcity, exclusivity, and emotion in the brand’s strategy. The company sells one car less than market demand to maintain its allure and has a strong focus on the emotional connection with customers.
– Pricing for Ferrari models is not profit-driven but based on emotions felt by Vigna and other executives after test-driving the cars. Personalization options add significant value to each sale, with custom details like paint colors and fabrics leading to higher price points and profits.
– VIP status with Ferrari involves working up a costly ladder to access new models and limited editions, similar to the trajectory for buyers of luxury brands like Rolex and Hermès. The exclusivity and prestige associated with owning a Ferrari reinforce the brand’s luxury status.



Read more at CNBC: Ferrari’s success as a luxury brand comes down to five secrets