There’s mass luxury, like, say Starbucks. There’s affordable luxury, like the occasional trip to Saks or Neiman Marcus. And then there’s unaffordable luxury, like Ferrari, the Italian car brand whose entry-level vehicles start at around $190,000.

Amid a generally blah spring for car sales, Ferrari just turned its best half year in history, with revenues up nearly 20 percent from the year before. Worldwide, it delivered 11.8 percent more cars in the first half of 2011 than it did in the first half of 2010. And the U.S., its largest market, is booming. Sales in North and South America (with the U.S. accounting for the overwhelming majority of sales) were up 23.9 percent in the first half, to 939.

The numbers are impressive given the many headwinds to Ferrari sales. Rising uncertainty in the economy and the weak dollar, which makes Italian imports more expensive, would be expected to put a crimp in sales. You’d also think that the new normal of careful purchasing and concerns about flaunting wealth in an era of 9 percent unemployment would hamper sales.

It’s not your normal car dealership. Only two vehicles are on display. Much of the space is filled with accessories —- luggage, clothes, model cars that go for about the price of a gently used Hyundai. Vivaldi plays in the background as visitors sip espresso in little glasses.

If the rich have done well in the past few years, the extremely rich have done extremely well. Ferrari North America President Marco Mattiacci notes that the number of high net-worth individuals grew last year and is back to the level of 2007. “What has changed is that people now want to spend, they want to enjoy life,” he says. While anyone can walk into a Ferrari showroom, it’s very hard to walk out with one. “Our philosophy is always to deliver one unit less than the market demand, as a way to keep exclusivity,” says Mattiacci. The current wait for a California coupe (price: about $192,000) is six to eight months. (Mattiacci himself drives a Jeep Cherokee, made by another unit of Fiat.)

Unlike other luxury car makers, Ferrari hasn’t adjusted to the new era by introducing a lower-priced, more accessible version. In fact, it went in the other direction. “We don’t define our segment on price, we define it on best-in-class product,” says Mattiacci. “Our customer is looking for something extremely exclusive. They don’t want to see the same car in the parking lot.”

The newest entry is the FF, a true four-seater, roomy, fit for a family. It costs about $300,000, and is the perfect bauble for the type of guy (almost all U.S. Ferrari buyers are male) who wants to drop his kids off at the soccer game in comfort. Why did Ferrari develop what could be described as a crossover? “Different Ferraris for different Ferraristi,” says Mattiacci. “A lot of customers said, ‘I would like to go Colorado to my ranch, I would like to go to ski, I need a Ferrari to go there.’”

There is one significant difference from the pre-crisis days. Most buyers can afford to pay cash, but today some 40 percent of car buyers in the U.S. rely on a lease or loan from Ferrari Financial Services, a financing unit started several years ago. (The typical customer using financing has annual income of $1.5 million a year and liquid assets of more than $10 million.)

Matiacci foresees more growth and new dealerships in the U.S. But as with luxury brands, Ferrari may find that the greatest prospects for growth lie in China. Sales in China more than doubled in the first half of 2011; its network of dealers in the former worker’s paradise is expected to rise from 10 to 15.

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Source: finance.yahoo.com

Ferrari 599 GTO

Women in China buy four times as many Ferraris as women in North America, thanks in part to newfound prosperity and a glut of female entrepreneurship.

Of the 220 Ferrari cars sold last year in China, 44 were bought by women. That is four times greater than their Western counterparts. This represents 20% of the total sales, as compared to 5% elsewhere. In an interview with GoAuto, Ferrari CEO Amedeo Felisa stressed the importance of the Asia-Pacific market. “We don’t see big possibilities (to increase sales) in Europe and we don’t see big possibilities in the U.S.,” he said “But for sure we have not exploited the potential we have in Asia-Pacific as well as the Middle East and East Europe.” Felisa pointed out that the customers who buy Ferraris in China are 10 years younger on average than European customers.

He thinks that it’s because many women in China are running businesses and they can certainly afford this type of car. Felisa added that it still came as a surprise for them since they didn’t think that the car would appeal that much to women.

He also believes that it could be a reflection of the business condition in China. Because of the emerging sales in China, Ferrari was shielded from the economic difficulties in the North American and European markets that were actually dropping even before the global crisis.

Felisa also stressed that Ferrari would adapt their production to meet the needs of the Chinese market, but it would not oversupply the market with cars. Ferrari spokesman Antonio Ghini once said that “…we will produce one less car than the market demands”, and this maxim has unquestionably helped Ferrari maintain its mystique and cachet among the uber-wealthy of the world.

Ferrari sought to honor the Chinese market by deciding to launch the 599 GTO at the Beijing Motor Show. Last year, Ferrari was the only sports car maker to continue to grow in the Asia-Pacific. About 500 cars were sold last year in the Asia-Pacific. The biggest market was China, including Taiwan and Hong Kong. Over 220 cars were sold via 10 China dealerships, 150 units sold in Hong Kong and 50 cars in Taiwan.

What do you think about the Chinese market for Ferrari?

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Source: 4wheelsnews.com and autoguide.com

Ferrari 612 Scaglietti

In 2009, Ferrari sold 6,250 cars worldwide, a 5% drop compared to the previous year. This is by no means a remarkable act but it is a far cry from the 35% sales plunge felt in the luxury sports car market.

Ferrari sold 1,467 cars in North America, its largest market, 200 fewer cars than in 2008. In Europe, Ferrari delivered 2,752 units, a 6% drop compared to the year prior. In particular, Ferrari’s main markets in Europe are Italy (655 units sold) and Germany (644 units sold). Ferrari’s new markets have displayed increasing sales. For instance, sales in the Middle East were up 29% to 471 cars.

Meanwhile, in the Asia Pacific Region, 2,752 Ferrari cars were sold, a 3% increase. Japan is still one of Ferrari’s top 5 markets worldwide, with 8% of worldwide deliveries. In China, 206 cars were sold. About 60% of the total vehicles sold were Ferrari California models.

Incidentally, the new Ferrari 458 Italia did not contribute to 2009 sales, as this model had entered the market after the results were obtained. Last year, Ferrari’s market share increased and posted an average worldwide increase of 10%, thus making the company the segment leader.

At the end of last year, consolidated revenues dropped by 7%, reaching 1,778 million euros with its operating profit falling 28% to 245 million euros. Ferrari said that these figures were seriously affected by the weakness of the US dollar because 30% of its sales were made in this currency.

What do make out of Ferrari’s sales in 2009?

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Source: 4wheelsnews.com