Ferrari is rooted in the genes of the racing team. It has evolved over a century and has become a leader in ultra-luxury sports cars. Ferrari's century-old history can be divided into three stages: 1) 1929-1948: the prelude to car building, with team operations as the main focus; 2) 1948- 1969: Commercialization exploration stage, from selling reassembled racing cars to collectors to opening dealers to sell road cars; 3) 1969 to the present: Groupization and scale-up stage, group management started with Fiat Group holding in 1969 , the scale began with the acceleration of sales growth after Ferrari was launched. Annual sales growth has experienced three stages of acceleration. From 2007 to 2013, production was strictly controlled, with a CAGR of 1%; from 2014 to 2017, production restrictions were relaxed and limited models were added, with a CAGR of 5%; in 2018 -Output restrictions will be further relaxed in 2021. Model categories and the number of models in each category will jointly promote accelerated sales growth, with a CAGR of over 10%. This reflects that Ferrari has achieved a reasonable acceleration in sales growth through category expansion while controlling supply and maintaining brand tonality. . In addition to expanding its model categories, Ferrari is also experimenting with apparel, peripherals, theme parks and other areas.
The demand for consumption upgrading is obvious, and we are optimistic about the industry's growth space: from 2012 to 2021, the sales volume of practical generalized passenger cars will be CAGR 1.5%, and the sales volume of high value-added ultra-luxury car brands will be CAGR 5%. Ultra-luxury brands rely on high added value to achieve growth. Accelerating, with a CAGR of 10% from 2017 to 2021, the number of vehicles will increase from 32,000 to 46,000; according to the Knight Frank Wealth Report, global high and ultra-high net worth individuals (net assets of US$1 million, 30 million (USD and above) will increase by 36.51 million and 170,000 people in the five years from 2021 to 2026. Driven by the continued growth of the core consumer groups in the market, the future market space of ultra-luxury brands is worth looking forward to. Ferrari's future incremental market will be driven by new categories of SUVs and electric models, while existing market growth will be achieved by maintaining the brand's high-end positioning in the industry.
Ferrari has advantages in scale and price in the ultra-luxury brand market, and its leading position is stable: sales volume and revenue have grown steadily at a CAGR of 6%, with less fluctuation than its competitors' main indicators. 1) Bentley Although Ferrari ranks second in terms of sales 2, but the revenue scale is only 45-67% of Ferrari; 2) Rolls-Royce is the only mass-produced ultra-luxury brand with a price reaching Ferrari level, but its sales volume is less than 50% of Ferrari; 3) Lamborghini is as Ferrari's most direct competitor in the performance car market, despite low pricing, still has slightly lower sales: the total sales volume before and after the launch of the SUV is 40% to 80% of Ferrari's.
In the competition in the ultra-luxury automobile industry, brand image and technical strength are indispensable. Ferrari takes both into consideration and is the industry benchmark: the engine technology and vehicle performance of each ultra-luxury brand are far ahead of general passenger cars and ordinary luxury cars, and their respective The brand image is associated with strong attractive labels such as royalty and racing cars, and its product strength and high-end marketing lead the industry. 1) Brand image is a key area of focus for Ferrari. From sales restrictions to maintain scarcity, to the launch of SUVs nearly 5 years later than peers to maintain a strong sports positioning, to regulations for car owners to purchase and use Ferrari vehicles, all of them demonstrate Ferrari's commitment to Ferrari. Strict management of its brand image; 2) In terms of technical strength, Ferrari launched a limited-edition hybrid model in 2011 and used the technology in mass-produced models in 2019, leading the industry: performance car market rival Lamborghini's hybrid technology is in the trial and limited-production stages , Ferrari has obvious advantages in technical strength.
The deep penetration of the Chinese market and the horizontal expansion of the product matrix have released more room for Ferrari's sales growth: because the audience is biased towards racing fans and the model positioning emphasizes performance, which is inconsistent with the needs of the Chinese market, sales in China are only one-third of Bentley's, and The sales volume in Greater China fluctuates more than other regions, and the Chinese market needs to be explored. 1) The addition of Chinese driver Zhou Guanyu in 2021 will bring considerable traffic to F1 events in China. It is expected to deepen Chinese consumers’ understanding of motorsports in the future and alleviate Ferrari’s current situation. The problem is that China is not as concerned as other regions and the brand cannot exert its full strength; 2) The launch of highly practical SUV models can better meet the needs and preferences of Chinese consumers than existing models, and drive consumers to have a deeper understanding of the brand , improve brand potential while increasing sales in the Chinese market.
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