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Ferrari is Hermes plus Manchester United
The Licensing Problem
Licensing the brand is close to pure margin, which was attractive when Ferrari was posting real losses from 1992 to 1994 and did not turn a profit until 1997. But the prancing horse ended up on a lot of junk, and by 2009 it was on an Acer netbook.
Why Fans Help
For Louis Vuitton, Hermes, Patek Philippe, or Rolex, that would be all downside. Ferrari is different because it is an apex luxury brand that also has a couple hundred million fans to serve, and its clients and collectors are not bothered by that. They are happy about it. Hermes has no couple hundred million teenage girls around the globe with posters of Birkins on their walls.
Cleaning It Up
After the IPO, Ferrari cleaned up its merchandising and narrowed licensing to specific categories and partners: Luxottica for glasses, Montblanc for pens, Richard Mille for watches, and Puma for shoes. It also started its own lifestyle products for affluent people who want to wear the brand but do not want to buy it from a partner. Ferrari is both a luxury brand and a giant international sports team.
How does Ferrari reach fans beyond cars?
Ferrari World Abu Dhabi, a Ferrari-themed park, opened in 2010 and features a roller coaster billed as the fastest in the world. Ferrari Land, a themed area at the PortAventura resort in Spain, opened in 2017. Ferrari also runs museums in Maranello and Modena.
How did Ferrari's name reach laptops?
Acer began selling Ferrari-branded laptops in the mid-2000s under a licensing deal, with red cases and Ferrari badging. The line included the Acer Ferrari One netbook in 2009. Under a licensing deal, the brand owner is typically paid a royalty on each product sold.
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