Ferrari is winning luxury buyers with customization but faces a big EV test

Ferrari this year has proven luxury buyers are still willing to pay big bucks for exclusivity and personalization. Interbrand crowned the Italian sports car maker the fastest-growing brand of 2024 in its annual Best Global Brands ranking, which calculates brand value by factoring in financial performance and future risks. Ferrari now ranks 62nd on the list, ahead of more mainstream brands such as Budweiser, FedEx and KFC. Read about all of the 2024 Marketers of the Year Ferrari has enjoyed rising revenue in recent years from its personalization program, which lets customers pay more for a wide range of customizations covering materials, paint finishes and more. In the third quarter, personalizations accounted for 20% of total revenue from its cars and spare parts, the company stated, while reporting a 6.5% jump in total net quarterly revenue. Ferrari has moved aggressively into esports, allowing it to capture new audiences. Such digital interactions have replaced big red sports car posters that used to be common in children’s bedrooms, a Ferrari spokesperson suggested in the Interbrand report. “Brands that go into more places in unexpected ways, like Ferrari in esports, continue to grow almost two to three times faster than other brands on the table,” Greg Silverman, global director of brand economics at Interbrand, recently told Ad Age. But Ferrari faces a big test in 2025 when it is expected to reveal its first EV, with a reported price tag of more than $500,000. As CNBC recently reported, the electric model “marks a bold and expensive bet for a luxury automaker famed for its roaring, powerful combustion engines.” Read about all of the 2024 Marketers of the Year

Ferrari is winning luxury buyers with customization but faces a big EV test

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