How Ferrari turned the prancing horse to a cash cow at UAE retail debut
If you are one of those people who are totally cynical about the power of branding and think that too much money is needlessly poured into creating a brand and sustaining it, then you should take a trip to the Ferrari Store in Marina Mall, Abu Dhabi.
Positioned rather unassumingly on the ground floor of the newer mall extension, the Ferrari Store is a couple of corners away from 'haute couture avenue; the Burberrys, Guccis, Louis Vuittons of power shopping. But prominently displayed in the atrium facing the store is a shiny Formula One racing car, a not so understated symbol of the new Aldar franchise.
What makes the Ferrari Store very different from its posh neighbours is that it doesn't sell the actual product (ie Ferraris), but the 'experience,' through a wide range of co-branded accoutrements. After a quick assessment of the die-hard aficionados in the Store, I would estimate that about 1% are true Ferrari (car) owners, while the remaining 99% are unabashed wannabees.
The store design is a sleek fibreglass embodiment of a Ferrari. The signature bright red and yellow, characterises the décor in the small but luxurious store. You can find a broad range of items from luggage (heavy leather to soft pelts in wallets and travel size bags), 'executive' toys - think fold-out travel golf sets, 'toy' toys for upwardly mobile youngsters, sun shades, key chains (especially appropriate, I would imagine, if you really do own a Ferrari), hats, apparel for all ages, bikes for kids and knick knacks such as small branded engine parts that are beautifully produced, and selling as expensive executive desktop curiosities... like I said you really have to be a fan.
The sales assistant tells me that the cheapest co-branded item in the store is a $5.45 notebook not overpriced I think. The most expensive is a co-branded Segway at $10,891.
I wonder, what exactly is the price differential for Ferrari co-branding? It might be possible to create a formula: say, how much would a garden-variety widget cost compared to a Ferrari co-branded one? Would be interesting to do the math...
The allure of branding is unmistakable. I recall my first car at 22 years old. It was a beaten up old Honda that took me from point A to point B but little else.
When my uncle's friend gave me his Rolls Royce sound system (he was upgrading, sigh), it became the same jalopy, with incredible sound--and a Rolls Royce association.
In fact it became the source of friends' quips like: "Why don't you put a car sticker that says, 'My Honda has a Rolls Royce inside' or 'This cheap 90s bumper-sticker humour is an example of the eternal fascination with power brands.'
For those who love Ferrari, coming to the store is a reasonably satisfying immersion in the brand experience. It manages to deliver that irresistible je ne sais quoi that keeps diehard Tifosi enthralled with the brand.
It reminded of my five-year-old daughter's excitement while wandering around the M&M flagship store in New York. She bought the M&M pencil case, M&M sandals that leave M&M footprints, M&M pyjamas, M&M mug, M&M sunshades, an oversized stuffed blue M and, of course, tons of M&Ms packs. I recognised the same delight, though far more subdued, in the faces of the Ferrari Store shoppers.
Make no mistake, however, the Ferrari Store is not intended as a shrine for those pining for the prancing horse. Rather, it is a commercially potent merchandising cash cow for the brand owners.
Case in point is the strategic decision to launch more than 40 stores across the globe, including Italy, Spain, USA, China, and Hong Kong.
Across all the co-branded items, the Ferrari logo was solely displayed while some items also bear the identity of the partner company such as the Acer Ferrari laptop collection.
The one word of caution for Ferrari is to choose its product partners well. Spread yourselves too thin and you impinge the mother brand. One example of a brand that has, in my opinion, spread its brand too thinly is Lamborghini. It has extended its brand too thinly into a variety of sectors, such as F&B and luggage that it somehow ended up with substandard end products.
But all of that said, the Ferrari Store delivers the buzz of brushing with the brand plus a healthy dose of sartorial aplomb. Be it in the form of Ferrari fashion pants $218, a Ferrari executive travel bag $1,361 or a Ferrari-emblazoned baseball cap $35. Not quite the same as owning a Ferrari, but perhaps the next best thing.
Sana Bagersh, MD BrandMoxie, Abu Dhabi
© Gulf Marketing Review 2008
