Ferrari and Tod’s are companies which specialize in production and distribution of luxury goods such as clothing, shoes, jewellery and other accessories. These companies started humbly in the late 1920s. Their workshops developed into factories and attracted wealthy clients from the United States of America. The growth of these products depended on innovative selling strategies, growing from handmade products to luxury goods (Doctoroff, 2007). Collaboration with other stakeholders at the turn of the century made Ferrari and Tod’s some of the strongest brands in the world.
It has been hypothesized that brands which maintained growth during a global economic meltdown have already established their niche in the luxury goods market and will continue to prosper. The strength and integrity of Ferrari and Tod’s products depends on the integrity from production to collection. This is further strengthened by liquidity of all the stakeholders. In addition, these groups of companies have made significant steps in economic growth despite the recent global economic meltdown.
The expansion strategy demonstrates astute business acumen as shown in the financial reports by Delloitte and Touche, one of the most renowned auditing companies. Stability of these brands was further exacerbated by national participation in the Initial Public Offering. This led to the increment of turnover from 50 million euros in 2007 to 250 million euros in 2013.
A review of literature and analysis from Deloitte relayed a growth of between 5% and 6% during this period with higher projections after this crisis. There is a need to evaluate performance of this sector coupled with the demand for luxury goods, since the emerging markets remained strong for all high-end goods. This is mainly due to the fact that wealthy consumers were not adversely affected by global economic turmoil.