Ferrari’s Licensing Agreements to Be Cut by 50%
As one of the most recognized luxury brands #Ferrari will be redesigning its licensing strategy by reducing the amount of agreements with third parties in connection with non-automotive products and services.
The licenses for the prancing horse range from video games, apparel and suitcases to theme parks and hotels. The #Maranello company considers that many of the goods and services under current licenses do not meet the brand’s image and luxury positioning.
The long term game is then to avoid the dilution of the #brand and its value. While the company generated almost $4B in 2018, the new strategy aims to reducing by up to half the licensing agreements betting for the long game instead of the convenience of a quick buck for lower quality products. By contrast, this past week the company struck a long-term fashion collaboration agreement with #Armani to continue raising the quality standards of their products. Fantastic example of self-policing of the value of a brand by a company with a vision willing to sacrifice short-term gains.