On Sunday, Ferrari launched its first in-house fashion collection designed by creative director and former Armani designer Rocco Iannone at the Ferrari factory in Maranello, with a catwalk set up on the assembly line where Ferrari’s craftsmen and craftswomen usually assemble cars such as the new 812 Competizione. This significant step in Ferrari's new brand strategy comes a few days after Ferrari appointed technology industry master Benedetto Vigna as its new CEO, who’s expected to bring Ferrari into the electric car era. Previously, former Ferrari CEO Luis Camilleri announced a brand extension strategy that includes fashion, restaurants, and other luxury experiences in 2019, shortly before the coronavirus pandemic broke out and postponed plans.

Ferrari’s refreshed fashion line, which used to be polyester polo shirts, will extend the brand’s offering beyond its astounding sports cars. Beyond the actual fans of the Ferrari brand and its clients, the Italian icon is broadening its target audience by reaching a wider public of potential new groups of customers, especially women and youth in particular, with a touch of "haute couture" that would be directly recognizable with the Ferrari style and futuristic aspect. In other words, Ferrari is segmenting the targeted audience by defined criteria such as age and cultural perspective. Ferrari, however, will not forget its Formula One supporters even though it is cutting back on license-based merchandising by 50%. The company will still sell hats, cups, and T-shirts beloved by fans.

This is one of the largest investments outside the car business, which the company wants to account for around 10% of the profits in 7 to 10 years. Although the fashion market is filled with large, competitive companies that dominate the industry, Ferrari can enter this market safely thanks to its global brand awareness and positioning. Decades ago, Ferrari started to use a growth strategy called customer marketing to create brand advocates and build long-term relationships with their customers. Customers get the most value out of Ferrari’s scarce products and, in turn, remain in business with them for the long term. The car customer base of Ferrari, which is limited to less than 10,000 cars per year to keep exclusivity high, is the fulcrum on which Ferrari departs to acquire new customers for its fashion collection.

"We want to attract young people and women," Iannone said. "Our targets are not just those who buy a Ferrari but also those who have awareness of the brand and of its values," he said.

Iannone, 37, a native of Calabria in the south of Italy, said he worked hard on fabrics, which include silk, with a printed pattern of Ferrari iconography, and nylon.

"Most of them are high performance technical fabrics but with a haute-couture touch," he said.

Iannone described the collection as "fluid," with 80% of the fashions designed to appeal to both women and men, with sizes spanning XXXS to XXXL.

“There is potential for success in the luxury apparel industry,” he said.

"Ferrari is never a nostalgic company, it's always ready to seize the spirit of present and to look at the future," he said.

With prices ranging from around 200 euros ($242.12) for T-shirts to up to 3,000 euros for top-range coats, the collection has a "luxury" ethos.

"Our offer will preserve its two souls, car buyers and supporters," Ferrari's Chief Brand Diversification Officer Nicola Boari said on Sunday.

Ferrari's fashion collection will be available primarily online and through the company's official stores in Maranello, Milan, and Rome, while further store openings are scheduled in Los Angeles and Miami this year and in China in 2022.

Not only Ferrari moved into fashion but also food, as they reopened today to the public the legendary Cavallino restaurant in their hometown of Maranello in northern Italy with Michelin-starred chef Massimo Bottura. The strategy to move its non-automotive products upmarket again by entering new markets like the lifestyle business is a move from Ferrari that will pay off in the long term. Diversification will help Ferrari expand its market share, develop a larger market presence by adding new product lines, and reignite growth.