, 2022-12-18 07:00:00,
Branded merchandise is the Holy Grail of retail. Not only does it boost brand awareness and brand recognition, but it also increases profit margins and revenues. As consumers desire the association with heritage brands and the link to the values that these companies project, they purchase branded goods in a desperate bid for recognition as affluent, successful and authentic. But there’s a catch. Heritage and premium brands sell goods at exorbitant prices, so they compel consumers to choose the next best option. Basically, instead of buying a Valentino haute couture dress that retails for $350,000 or even a ready-to-wear outfit that costs roughly $30,000, they turn to leather accessories like wallets and bags. The same logic applies even for expensive luxury cars. Most of us can’t afford a Ferrari supercar, but we can buy branded merchandise like Ferrari caps and scarves.
Ferrari “sells nearly as much merchandise as cars,” according to Beloved Brands. “The branded merchandise accounts for $1.5 – $2 billion in sales each year. That’s a significant contribution to Ferrari’s $4 – $5 billion in revenue each year,” adds Beloved Brands.
But make no mistake, Ferrari is hardly alone in its pursuit of enchanting the customer with branded merchandise. In the past years, Bentley Motors, Bugatti, Audi, Mercedes-Benz, and Porsche have also increased their merchandise offer. And while the vast majority of the products have reasonable prices, some branded goods…
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