Luca di Montezemolo

You kind of like the fact that this is a, yeah, there's robots, but like a pseudo handmade, bespoke, inefficient manufacturing process to make it.

It's wrapped up in the value proposition.

Yes.

So when we're talking about caps on the number of cars they create...

It's not that you can't produce any more units without diluting your brand.

It's that you can't sell any more units into your current market without diluting your brand.

New markets are perfectly allowed as long as it doesn't change the perception in the current markets that, oh no, there's suddenly lots of Ferraris zooming around the streets.

And geographic segmentation can be a great luxury strategy.

So he goes to start selling in China meaningfully for the first time.

And the timing couldn't have been better since in Europe it was becoming less fashionable to display your wealth.

China, it was perfectly acceptable.

Very fashionable.

Yes.

Extremely fashionable.

And this is a strategy that they then continued to run.

Anytime a new geography sort of came up in global wealth or disposable income or was okay with becoming flashier, then suddenly there's a whole new area where you can sell your Ferraris without changing perception in existing markets.

The funniest thing is since a large number of Ferraris are owned by people with 10, 20, 30 Ferraris, they actually can soak up a lot of the units into garages that you never see anyway.

Yes.

Yeah.

So if you're Ferrari and you're trying to manage scarcity, you sort of have an incentive to continue selling to the same person over and over and over because it is a way to generate a sale without having the problem of a Ferrari out on the streets feeling commonplace.