Yahoo Finance Ferrari woos buyers with new models, crypto payments
Italian luxury automaker Ferrari (RACE) is known for producing some of the most desirable cars in the world. It’s also been known to operate in an insular, cocooned circle with a small number of privileged clients who buy multiple cars. It’s been said you don’t just walk in and buy a new Ferrari, you have to be invited.
But things may be changing for the Maranello-based brand. New leadership, a publicly traded stock, and the ability to expand the business may be too much to give up for the storied automaker.
“You are right — that was the image of the company, to be focused on a small group of clients,” said Ferrari chief commercial officer Enrico Galliera in an interview with Yahoo Finance, addressing the Ferrari modus operandi of the past. “This created a kind of perception where it was impossible for a new buyer to buy a Ferrari, so everything we did so far — which was enlarging the portfolio, offering products that are designed for a different client profile, and offering different services — was exactly designed in order to open the company to the whole world, and also potentially to new buyers.”
In addition to reaching more clients with new products like the Purosangue SUV and Roma Spider convertible, Ferrari is also offering a new form of payment — cryptocurrencies.
Despite crypto’s fall from grace over the past two years, Ferrari found that clients still wanted to pay for new cars with crypto and that these clients are a different demographic than past clients.
“We're also working to identify opportunities to offer alternatives and services to our clients, and it was pretty clear that there were opportunities offering clients the possibility to pay also in crypto, which is opening two different opportunities,” Galliera said.
Traditional clients have been investing in crypto and diversifying in it as an asset class, Galliera says, but there’s a younger generation that has made a lot of money in crypto too. “[Accepting crypto] will allow us to start talking with [the younger generation], and open the possibility for them to become clients of Ferrari, enlarging the family.”
Whether this actually happens remains to be seen, but it must be said Ferrari does not jump into new initiatives without a deliberate process. The company has long worked to protect its brand and heritage. For instance, Ferrari famously does not engage in paid advertising.
Ferrari investors aren't necessarily looking for change, as business has been good thus far in 2023. The automaker raised its guidance slightly at the end of Q2 on the back of strong sales and high interest in personalizations, or custom work on its cars that clients highly desire and are willing to pay high amounts for, which is great for margins.
“You design the car with our designer and this has been [a] very successful experience for the clients, giving them the feeling to create a unique thing in the market — that has been pretty rewarding,” Galliera says.
It seems it's been pretty rewarding for Ferrari's bottom line, as well.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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