3 minute read
Our Response To the Market
Our product strategy has been derived from our customer mapping and clustering techniques as well as market and competitor analysis and positioning.
OUR STRENGTH 1
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Brand, exclusivity, demand and pricing power provide for strong positioning in the growing luxury car segment
Market/Industry Factors
The HLS car segment, with an estimated value of €495 billion in 2018, was one of the fastest-expanding segments in the global luxury market, growing approximately 5% in 2018.
Strong brand recognition enhanced through continued improvements in product offerings, restoration and maintenance of heritage products, participation within motorsport industry and selective marketing activities.
The low-volume production strategy, exclusivity combined with high quality and performance of cars promotes premium pricing and high margins.
Second Century Plan
We are positioned solely in the high luxury segment of the market, although we attract some customers from the upper end of the premium segment. Aston Martin has been recognized in 2018 as the fastest-growing British brand and auto brand globally.
We have a strong secondary market for many of our models. For example, the secondary market values of the DB5 Coupe and DB5 Volante have increased by 30 times and 24 times, respectively, since 1995.
Our 7x7x7 product strategy supports the regular launch of desirable models, derivatives and special editions across the breadth of our product offer to stimulate demand and support growth.
OUR STRENGTH 2
Increased breadth of product offering to appeal to customers and take advantage of expected areas
Market/Industry Factors
High luxury sports, GT and super GT car segments and the performance premium segment predicting growth (expected combined growth rate of over 19% between 2018 and 2023).
Mid-engine car segment, which attracts higher selling prices, expected to provide opportunity for volume growth between 2018 and 2023.
The luxury and performance premium GT, sports and mid-engine markets expected to reach close to 110,000 units by 2023.
Second Century Plan
Our core sports and GT model range is ideally positioned to capture customers seeking true sporting elegance, driving pleasure and performance.
To capitalize on the expected growth of the mid-engine segment, we will enter this market with the production of a mid-engine supercar expected in 2022. This will be preceded by the launch of a special limited edition mid-engine supercar, codenamed Project 003, planned to go into production in 2021. Both models will draw on the learnings and technology developed by the Aston Martin Valkyrie. The aim is to attract a new group of customers to the brand and increase the Company’s average selling price.
OUR STRENGTH 3
SUVs and electrification to appeal to changing customer tastes now and in the future, particularly through Lagonda
Market/Industry Factors
The premium SUV sector is forecast to grow by 5% between 2019 and 2030 and high luxury SUV segment forecast to grow by 30% during the same period. More stringent emission targets, combined with consumer preferences to save on fuel for economic and environmental reasons, has driven demand for hybrid and electric vehicles.
Second Century Plan
We have adopted a multi-pronged electric vehicle strategy with plans to introduce hybridized supercars and SUVs under the Aston Martin marque and all-electric SUVs and sedans (under the Lagonda marque).
The DBX, our first SUV, will enable us to access the expanding SUV segment and address customers looking for a more versatile, luxurious and comfortable product and demand for hybrid/electric vehicles.
OUR STRENGTH 4
Targeting HNWIs and a large and diversified global dealer network to create strong positioning in attractive key growth markets
Market/Industry Factors
HNWIs are the principal driver of the HLS car segment. Mature markets remain significant in relation to the growth of HNWIs but developing markets (particularly China) are gaining in importance.
Product customization and customer engagement strategies to provide exclusive and immersive luxury experiences particularly for increasingly youthful and brand-conscious HNWIs.
Second Century Plan
Our strong positioning in the HLS car segment and our HNWI customer base provide us with significant potential for future growth.
Our large and diversified global dealer network means that our dealers are well-positioned in attractive key growth markets. Our dealer network in Asia Pacific has been restructured and expanded to take advantage of the growth of HNWIs in the region.
High-end dealer showrooms and brand centers provide customers with a truly immersive luxury experience. Emotional connections are strengthened through product personalization opportunities such as the car customization programme —Q by Aston Martin—and enhanced through brand extension activities with select brand partnerships all around. Other bespoke activities and exclusive offers are available for our customers.
