Ferrari’s Success Formula In Asia: Focus On HNWs
That legendary Italian maker of luxury sports cars, Ferrari N.V., does one thing really well in successfully selling its multi-million dollar sports cars and GTs in China, Japan and the rest of Asia. It strives to win the hearts of high net worth individual or HNWs by creating a special relationship with them.
Dieter Knechtel, CEO, Far East, and the Middle East, said Ferrari is always looking to impress and win the hearts of HNWs. He said what is at the heart of the Ferrari brand is this "intimate relationship between us and our clients." He pointed out that Ferrari continues to work harmoniously to maintain this special relationship with its clients, its partners and its colleagues.
This same special closeness will be leveraged by Ferrari when it introduces the "Ferrari Icona," the first two models in a series of limited-edition specials named the "Icona" series. No news yet as to when the Icona series and its first two sports car models -- the Monza SP1 and SP2 -- will make it to Asia. No hurry here since both these speedsters still have to be revealed at the ongoing Paris Motor Show that will last from Oct. 4 to Oct. 15.
The SP1 is a single-seater while the SP2 can seat two persons. There's no official word on pricing, but experts believe the SP1 and SP2 to cost some $3 million apiece. The limited-edition sports car will be produced specially for Ferrari's most loyal and best customers worldwide. Many of these customers will undoubtedly come from Asia.
Fewer than 500 of both models will be produced compared to the 9,000 Ferraris the company will make this year.
Knechtel said Ferrari's most popular models in Asia are its GT (Gran Turismo) series and, of course, its powerful sports cars. For the former, there is the Ferrari Portofino (the current model) introduced only in 2017 and the California and California T. The latter is ably represented by the Ferrari 488, which was named "The Supercar of the Year 2015" by car magazine Top Gear.
Knechtel revealed that Ferrari customers in Singapore and Southeast Asia prefer sports cars such as the V8 488 GTB and 488 Spider. For Japan and South Korea, Ferrari's Gran Turismo range is proving more popular. New models are coming into the range.
He noted the California T introduced around 70 percent of new customers to the Ferrari brand and was highly successful. This success has continued with the Ferrari Portofino "which is very well received," said Knechtel.
The Portofino was road showed last year in China and Japan. China, in particular, is expected to be a big market for the Portofino. A China-spec, left-hand drive model is in existence and features a simplified Chinese GUI menu display. First deliveries for the Portofino worldwide are scheduled to begin in the last quarter of the year.
Australia is typically a sports car market but Knechtel said the response to Ferrari's GT cars has been equally good. The Middle East is predominantly a sports car market. Middle East customers want a very masculine, traditional and performance-oriented sports car. Surprisingly, the Portofino has proven to be a success here, as well, with sales doubling during its first year in the market, said Knechtel.
Ferrari's sales operations in Asia and the Middle East are based in Singapore. Both regions are vital since they account for 24 percent of Ferrari's global market in terms of volume. The business outlook in both regions is good, said Knechtel.
Ferrari is the market leader in the sports car segment in Singapore. Japan, however, is Ferrari's largest market in Asia.
Knechtel said Ferrari will add a number of magnificent new models over the next five years. The challenge facing the Singapore office is to maintain the brand's exclusivity, and this "will always be one of our main guiding principles,"
Ferrari's Southeast Asia market includes Singapore, Malaysia, Thailand, Indonesia, and the Philippine. Its Northeast Asia market consists of Japan and South Korea.