Market researchers expect that over the next 20 years the wealth of the global population will drastically shift towards the Millennials and Gen Z. Ferrari is already feeling the wealth transfer.
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What does Ferrari say? Benedetto Vigna, the CEO of Ferrari, revealed in an interview with CNBC that 40% of the company’s new customers are now under the age of 40.
Since 2023, the number of new customers under 40 at Ferrari has increased by 10%. Before 2023, it was about 30%. For Vigna, this is an achievement: “I don’t know how it is with other brands, but for us, it’s an accomplishment that we owe to our team.”
The under-40s mainly consist of Generation Y (Millennials) and Generation Z. The term “Generation Z” describes all individuals born between 1995 and 2010.
€67 Trillion for Heirs
What is the great wealth transfer? “The great wealth transfer” describes an ongoing process in which Boomers leave their accumulated wealth to their heirs – namely, Generation Y and Z.
The market research firm Cerulli Associates reported in 2022 that this wealth transfer is expected to leave approximately €67.13 trillion to heirs worldwide by 2045 – but of course, wealth transfers are already happening now.
Cerulli estimates that the wealth passed on from Boomers to subsequent generations amounts to more than €49 trillion.
New customers are only a fraction of buyers: According to the American magazine Fortune, Ferrari sold about 81% of all cars sold to customers who already own a Ferrari – 48% of customers even own more than one Ferrari.
Thus, the company sold only 19% of the cars to new customers.
However, as the wealth of the global population is set to drastically shift in the next 20 years, it is important for companies like Ferrari to attract new customers from younger generations now – after all, large banks estimate that Generation Z will soon be the largest and richest generation: Gen Z cannot afford rent but will soon be the richest generation in the world.
