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Ferrari’s Exclusivity Strategy Works; Fewer Sales, Higher Profit
You may have missed Ferrari's sales strategy announcement earlier this year. It's plan was to sell fewer cars and focus on exclusivity instead. On the surface this might sound like a straight shot way towards plunging sales, but Ferrari has proved otherwise. Check out the financial figures from the last six months.
- Trading profit of 176 million euro (+22%)
- Net profit of 116.2 million euro (+20%)
- Best-ever industrial net cash position: 1,220 million
- Revenues of 1,177 million euro (+7.1%)
- 3,767 (+ 2.8%) homologated cars delivered
See all the ‘+' symbols there? That is when the company has actually started producing fewer cars. The exclusivity strategy was announced only a couple of months before, while the sales numbers account for the past six months. Nevertheless, sales have grown by just 2 percent (a slowdown), while growth has seen a 20 percent jump, proving the strategy actually works.
A clearer picture will emerge in the coming months when the number of Ferraris being sold will be controlled further to limit the final number to 7,000 cars. Number of Ferraris sold based on countries is as follows:
- North America: (+9%, 1,048 cars delivered)
- Great Britain: (+6%, 415 cars delivered)
- Germany: (+1%, 388 delivered)
- Middle East: (+39%, 264 cars delivered)
- Japan: (+28%, 172 cars delivered)
- Only only two countries which saw a drop in growth were Italy (due to its current economic state) and China (because Ferrari limited sales in Hong Kong).
"Once again in the first six months of 2013, Ferrari has recorded excellent results. Two months ago, we took a strategic decision the effects of which will be felt more clearly over the next six months. However, that move is already beginning to make its mark," said Luca di Montezemolo. "An increase of just over 2% in volumes has been matched by 20% growth in EBIT which is and will remain our primary objective along with maintaining the exclusivity and value of our cars over time."
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