Why You 'Can't' Buy a Ferrari! | The Business of Exclusivity | WOZA #entreprenuer

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0:00 Intro
1:45 First Ferrari
2:18 Ferrari Purosangue
2:48 Exclusive Brand
3:50 Ferrari Value
4:04 Preferred List
4:29 Ferrari Accused of Criticism
5:14 Other Supercars

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Cambridge dictionary, defines exclusive as limited, to only one person or a group of people.

This video is less about the car manufacturer, Ferrari, and more about exclusive brands. Swap the word Ferrari and their tactics, for other exclusive luxury lifestyle brands, and their tactics, and this video will still make sense. It may seem like a new trend with the emergence of companies that create their entire business system around exclusivity, but this style of business is as old as the concept of entrepreneurship itself.

The Car market goes far beyond the idea of point A, to B, transportation. Since the start of car manufacturing, a growing luxury customer base has always demanded for something special, bringing about the rise of Ferrari.

Fast, sleek, and eye-catching can be used to describe a Ferrari car, exclusive is what you use to describe the Ferrari company. The company literally has a car they call the super fast, which shows their rich history of racing and victory on the tracks.

Attention to detail, bespoke luxury features, and incredible performance make the car manufacturer stand out even from rival brands like Lamborghini and Pagani. As a car, Ferrari shows off incredible high-performance engineering, while as a brand it screams exclusive.

Very few brand names in the world come close to the recognition that Ferrari has. Ferrari started as a small manufacturer of highly specialized cars. The name comes from the founder of the brand, Enzo Ferrari, who was a race car driver. Enzo, founded Scuderra Ferrari, as an Alpha Romeo racing team before setting up Auto Avio Costruzioni, in Maranello, Italy. This later transitioned to what we know today as Ferrari. At first, Enzo, saw selling cars as a way to raise funds for the racing team.

The brand is truly Italian and it stays true to Its founders’ racing roots. The Ferrari one twenty five S which had 12 cylinders, was the first racing car that Ferrari developed to completion in 1947.

In 1948, their first street car, the Ferrari one sixty six inter, was developed.

A lot of innovation that the company does, is first showcased in the tracks before being available in their fleet of road/street cars.

On May 4th, 2020, Ferrari’s market value grew to 30 Billion dollars. Ferrari has become one of the most respected car companies in the world, and it has an incredibly huge brand value. In 2020, a Ferrari Enzo, from 2003, sold for a record-breaking 2.6 Million dollars at an auction which is a testament to the worth of rare Ferrari models.

In the future, the company plans to design and sell fully electric cars. Ferrari also has plans to manufacture an SUV, called the Ferrari Purosangue. The name Purosangue, means pure blood or thoroughbred. This will be a first of its kind for the company, after much resistance to selling an SUV despite many other car manufacturers like Lamborghini, and Bentley selling SUVs.

Innovation, performance, and engineering excellence are only some of what Ferrari does to maintain its’ status, as one of the most exclusive brands, in the world.

The brand is built on exclusivity, and limiting ownership of the cars to only certain people. Some people would criticize this strategy, and label it as discriminatory. All the same, it creates a lot of demand for their cars. The company has a unique class of customers who buy multiple vehicles in their collection. Having such a unique customer base, cushions them from economical lows and highs that would affect most customers’ behavior and buying trends.

Ferrari, is known to limit production to around 10,000 cars per year, after increasing the limit from 7,000 cars. Sergio Marchionni, the late C.E.O of FIAT Chrysler and Chairman and C.E.O of Ferrari said that “I actually think cars are incidental to Ferrari. It sounds sacrilegious, but it’s truly a luxury brand”.

The Business is built on the company’s strong brand recognition, which some analysts feel is still underrated. Brand Finance considers Ferrari, as the world’s most powerful brand, exceeding giant companies like Disney, and Google.

Ferrari cars are hand-built and customized to the owners’ specifications by their brand guidelines. This makes the cars have a slower build process and a higher price tag.

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