The company hopes they will help boost profits.
Ferrari is looking to expand its brand beyond its exclusive performance cars and racing endeavors, according to a new Reuters report. The Italian supercar maker is spearheading efforts to launch a new clothing line and open a new restaurant in a bid to create new profit generators that’ll entice wealthy customers from outside of the company’s traditional customer base. Both are set to launch in the coming days.
Ferrari’s new clothing line, led by former Armani designer and Ferrari’s creative director Rocco Iannone, will launch on Sunday. Ferrari Chief Brand Diversification Officer Nicola Boari told Reuters that the endeavour is designed to reach new clients. The company hopes that the expanded brand presence will account for 10 percent of its profits within a decade, helping to pad the coffers. According to the publication, Ferrari’s sponsorship, commercial, and brand category accounted for 11.3 percent of its net revenue last year, and that includes the company’s F1 team.
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Ferrari will also wade into the fine-dining arena by relaunching the Il Cavallino restaurant where company founder Enzo Ferrari once dined with friends, F1 stars, and other VIPs. Michelin-starred Italian chef Massimo Bottura will lead the reopening. It’s set to open two days after the clothing line launches as the staff continues to prepare for the opening. Decorations inside the eatery include an F1 nose section, framed photos of Enzo, and other Ferrari racing paraphernalia and posters.
This brand expansion was originally announced in 2019 under former CEO Louis Camilleri; however, the coronavirus pandemic delayed implementing those plans. Camilleri has since left the company, with the brand expansion announcement arriving just days after Ferrari announced its new CEO Benedetto Vigna would take the helm on September 1. UBS bank luxury analyst Susy Tibaldi told Reuters that this new expansion might not help grow the company’s margins by much, but only time will tell.