Ferrari Mailing List: Re: Fw: Ferraris-online.com Newsletter - 1972 Ferrari 246 GT s/n 03000 - Price reduction

[Peter Rychel (dino308gt4]

Thanks for the insights and links... Point taken about the CNBC article. I figured with the recent discussion about the Dino drop, it caught my eye - and I'll add, not the only one about recent price jumps.

I appreciate the other perspectives from Alex and Rick...

Peter

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From: Erik Nielsen <judge4re [at] gmail.com>
Sent: December 13, 2015 5:25 AM
To: Peter Rychel
Cc: The FerrariList
Subject: Re: [Ferrari] Fw: Ferraris-online.com Newsletter - 1972 Ferrari 246 GT s/n 03000 - Price reduction

 

Well, CNBC has never really been considered a reliable leading indicator source…

There are a few things that can help keep the bubble inflated.  The trend is that there are more HNWI being created globally, but I do expect further shake out and a weakening in China as a result of their continued anti-corruption measures.

The 2015 Knight Frank report is here:  http://content.knightfrank.com/research/83/documents/en/wealth-report-2015-2716.pdf

The 2016 report will come out in January, it will be interesting to see what macro trends they are predicting.

Closer to home for most of us, Pew put out an interesting report about the hollowing out of the middle class, the upside for the Ferrari world is while the middle class numbers are deceasing, they are decreasing because more people are moving to the higher and upper income levels.

http://www.pewsocialtrends.org/2015/12/09/the-american-middle-class-is-losing-ground/

This is prime market space for large ticket disposable income purchases.

Demographically, we also have the boomers starting to retire en masse, so they’re adopting their lifestyle changes of not being tied up in the daily grind and will continue to look for recreational and experiential purchases. 

I crunched the IHS numbers for the ultra premium market segment on Friday and the 2016 production volumes are projected to be +20% over 2015, even with the collective investor class shitting bricks over a potential 0.25% rise in the Fed’s interest rates.

But all of that is just the numbers side of the marketing data, cars beyond transportation become a battle between the instant gratification of the id and the superego’s fight for behaving in a socially acceptable manner.  Trying to override the latter’s influence, you hear the buzzwords like culture, refinement, provenance; all marketing mumbo jumbo designed specifically to repress the superego and get you to open that wallet just a little bit further.  That’s why the insights gained from focus groups are so important and that manufacturers are willing to spend so much to get that data, as it is what really moves the needle when you look at gross margins.

I need more coffee if I’m going to ramble any further.  

Erik

On Dec 13, 2015, at 1:24 AM, Peter Rychel <dino308gt4 [at] hotmail.com> wrote:

Conflicting info?...:

http://www.cnbc.com/2015/12/05/jay-leno-wannabes-classic-car-market-goes-into-overdrive.html

Peter