Ferrari Indonesia demonstrates the power of brand exclusivity
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Ferrari Indonesia demonstrates the power of brand exclusivity

Indonesia’s car sales were sluggish in 2017. According to the Indonesian Automotive Manufacturers Association, the country saw 1.08 million units shipped throughout the year – a modest 1.6% rise, year on year. Ferrari’s authorized distributor in the country, Citra Langgeng Otomotif, however, is not worried. In fact, the ultra high net worth market that Ferrari targets has shown relative immunity to the slow growth.

Ferrari’s share price has increase by 24% so far this 

graph 2702 ferrari

SOURCE: Yahoo Finance

Ferrari in Indonesia is managed slightly differently to Ferrari in other countries – but the end result is the same: a brand that is prized for its reputation and exclusivity. Prices, for example, are confidential in Indonesia, discussed only between the company and the prospective purchaser. Likewise, Ferrari is eager to contact prospective customers in the country and court them personally – a far cry from how it operates in its larger western markets.

Nonetheless, this approach is working. While the auto industry around it grinds along, Ferrari is meeting its expectations. Arie Christopher, Ferrari’s boss in Indonesia, was customarily reserved when it came to discussing those expectations, saying: “so far, we are still on track in sales.” He declined to disclose the company’s sales in the country for 2017.

Arie said that the company has delivered 20 tailor-made Ferrari cars through a customization program which allows customers to modify the exterior and interior of their new supercars. He’s confident of more growth from that service. If he’s right, it will prove something that many Ferrari bulls have been saying for a long time: when you trade on quality and exclusivity, you should never be afraid to add another zero onto the price tag.

Disclosure

Dominion holds Ferrari in its Global Trends Luxury Fund. 


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