Ferrari is aiming to move further upmarket with its branded accessories by teaming up with another iconic Italian name, Giorgio Armani, to help push the supercar maker’s handbag and clothing lines into the premium-price space.
Unveiled today by Ferrari CEO Louis Camilleri, the collaboration is part of the luxury carmaker’s long-term plan to extend its reach well beyond the race track. Camilleri told analysts it is a company goal to make 10 percent of its earnings (before interest and taxes) come from three new lifestyle pillars––apparel, luxury services and entertainment––within the next seven to 10 years.
“This is not just about profit,” Camilleri said, according to The Associated Press. “This is about enhancing our brand equity and the vitality and vibrancy of the brand.”
Camilleri, formerly CEO of Philip Morris International, joined the company in July of 2018 and has already seen the successful marque grow under his watch. To ensure that success continues, the new business strategy involves slashing its licenses in half and cutting a third of the product categories currently sold. Roughly $892 million worth of products on the market bear the Ferrari name, a pool of capital Camilleri hopes to control more tightly.
Though there hasn’t been any indication of what Armani’s creations for Ferrari will look like, the fashion house is no stranger to functional athletic gear. In the past, Armani has dressed runners and the Italian national soccer team. What we do know is that the clothes will be produced by Armani in Italy with a multi-year commitment agreed to by both companies.