© Priya Narayanan, Assistant Professor of Marketing, IIM Kozhikode. Views are personal.

From a well-known brand of racing cars to a fashion brand label, Ferrari has come a long way. Yes, you read that right, Ferrari is now selling in-house fashion apparel. Here’s a video of the models on the ramp, oops, on the Ferrari production line. Are we witnessing the democratization of luxury, or is this just another unimaginative attempt to milk the market?

So, Ferrari seems to say: If you can’t buy the car, you can buy the jacket. Or at least a cap. But then you could always buy Ferrari merchandise earlier through franchisees. These branded products have been used in product placements as well. (A hilarious scene in the Bollywood movie Munna Bhai MBBS shows taporis whisking off a tourist – wearing a Ferrari red cap – to supply a personal cadaver for Munna Bhai, the doctor-to-be, to tear apart and learn.)

But now, well-known designers are on the Ferrari payroll. Fashion is in with a capital F. The company agrees as much. So, now, anyone, or at least the poorer among the really rich, can afford a Ferrari, in the form of a jacket if not a car. Does this mean we will now see a “prancing pony” (the Ferrari horse) in every closet (if not every garage)? Could this really be the ultimate democratization of luxury or is it the beginning of the end of brand Ferrari?

Granted, big brands have always sold merchandise. Disney sells their movie characters as toys and Hello Kitty is a masterpiece in merchandizing. However, evolved fans might prefer subtle signaling through minimal presence of brand markers, as Jonah Berger and Morgan Ward explain in their 2010 research article. But a large proportion of merchandise across categories comes with the brand etched prominently. And the average fan does seem to like it, to declare aloud that they are fans.

But now, Ferrari is moving from merchandizing to fashion. A big difference between these two purposes of branding is who the statement is meant for. Of course, the people who see the product will form an opinion of the user. But fashion lays an emphasis on what the user himself or herself thinks, more so than merchandise. Fashion is part of you, close to you, and could influence the way you think when you wear the fashion. Including the way you think others think of you. Merchandizing, on the other hand, is about products and they are not as close to you, they might be bought and used more casually (an exception could be apparel). So, Ferrari fashion might not really cannibalize or even compete with franchisee-driven merchandise. This also means that Ferrari fashion can help milk the Ferrari cow, or the horse, better.

Whether Ferrari’s move towards inclusive luxury will succeed is a moot point. After all, while the company does declare its intention to reach out to younger customers who might not care much about the legacy of Ferrari through a category that they do care about. What Ferrari does not voice out loud is that many youngsters of today prefer the excitement derived from video games to what watching Formula 1 racing can provide. Yes, Formula 1 racing is real, but in video games I am the racer. And both are now on the screen anyway.

Fearing a potential loss of car customers or the dissipation of the aura of brand Ferrari, the fashion designers seem to have maintained some synergy between the brand and the fashion products. But the synergy relies on symbolism from the car category and a clear opportunity to communicate what the brand stands for remains unutilized. The purpose of the designs seems to be to swamp viewers in anything and everything car-like or Ferrari-like. There is no signature fashion beyond what we obviously see in the cars. And the automotive production line doubles as a fashion ramp. Something more imaginative would have been nice. Hopefully, Ferrari’s foray into fashion is not short-lived. And, hopefully, we can soon bring (not drive, though) home our very own Ferrari.

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