Driving culture: How luxury cars, F1 are redefining prestige

As strong headwinds buffet the global luxury market, the world’s top automotive brands are finding themselves in need of new strategies to reach and inspire consumers. For many, this means steering into the heart of contemporary culture and the arts. Luxury in Motion: Autos, F1 and the Brand Opportunity, a collaborative report by Jing Daily, Esses Magazine, and CART Department, examines how iconic carmakers like BMW, Ferrari, and Porsche are transcending their roles as vehicle manufacturers to become cultural tastemakers. This shift, bolstered by Formula 1’s burgeoning popularity, reflects a rethinking of what makes a luxury brand today. Data from the report paints a picture of engineering merging with art, marketing blending with digital innovation, and status symbols evolving into cultural artifacts. Cultural integration: The new narrative Once the domain of affluent middle-aged enthusiasts, luxury car branding has taken on new life as younger buyers have entered the market. According to the report, the average age of supercar owners remains 42, yet younger consumers increasingly dominate the conversation. This change is particularly evident in China, where Maserati, Mercedes-Benz, and Volvo are bypassing traditional dealerships in favor of flagship stores on Tmall and Alibaba. This strategy enables brands to penetrate Tier 3 and Tier 4 markets, reaching digitally savvy audiences in less saturated regions. BMW exemplifies this approach, claiming the title of the most popular luxury car brand online in China, with 530 million hashtag hits on Xiaohongshu alone. Globally, Tesla’s Cybertruck garnered 222.3 million posts on TikTok, highlighting the growing interplay between social media and luxury automotive branding. Formula 1: The cultural accelerator The rise of Formula 1 as a cultural phenomenon has been a boon for luxury automakers. More than a sport, F1 has become a lifestyle and branding platform, merging high-speed engineering with high-stakes glamor. Collaborations between F1 and global luxury brands — from Monaco’s Grand Prix to high-profile sponsorships — illustrate the sport’s broadening appeal. The report emphasizes F1’s potential as a branding goldmine. Beyond traditional advertising, luxury brands leverage F1’s expansive reach, targeting affluent millennials and Gen Z. For example, partnerships between racing teams and luxury watchmakers like Tag Heuer and Richard Mille highlight a seamless integration of performance and prestige. Art cars: A canvas for creativity The concept of “art cars” transforms luxury vehicles into canvases for storytelling, redefining the relationship between engineering and art. Since 1975, BMW’s Art Car project has showcased collaborations with legends like Andy Warhol, Roy Lichtenstein, and David Hockney. These initiatives resonate deeply with audiences, elevating vehicles from utilitarian objects to culturally significant masterpieces. Newer collaborations are pushing boundaries. In 2024, British-Nigerian artist Yinka Ilori transformed a McLaren Artura into a vibrant statement of interconnected life cycles. This project, which culminated in an auction benefiting the Make-a-Wish UK children’s charity, underscores the role of luxury brands as facilitators of cultural and social dialogue. Social media: Where luxury lives The report highlights the unparalleled power of social media to shape consumer perceptions of luxury. Platforms like TikTok and Instagram are pivotal in amplifying brand narratives. Lamborghini’s collaborations with influencers like Travis Scott, whose partnership garnered millions of views, illustrate this phenomenon. A striking example is BYD, whose Yangwang U9 model generated 182 million hits on Weibo. Similarly, Supercar Blondie (Alexandra Hirschi), with over 20.3 million YouTube subscribers, exemplifies the influencer-driven expansion of luxury car culture into mainstream digital spaces. Branding beyond cars Luxury brands are increasingly exploring synergies with adjacent industries. Watches, often regarded as a gateway into the world of high-end cars, play a central role in extending brand narratives. Travel partnerships, like McLaren’s collaboration with Peninsula Hotels, unveiled last month, reflect a growing trend of integrating automotive excellence into broader lifestyle experiences. Lessons in branding The report culminates in actionable insights for luxury brands aiming to thrive in a competitive landscape: Cultural relevance is non-negotiable: Integrating art, music, and digital media ensures brands remain at the forefront of cultural conversations. Social media dominance: Platforms like TikTok and Xiaohongshu are indispensable for reaching younger, digitally native audiences. Collaborations matter: Strategic partnerships, whether with artists or other luxury sectors, amplify brand equity. Formula 1 as a brand catalyst: Leveraging F1’s cultural momentum is critical for engaging emerging demographics. Artistic expression drives value: Initiatives like BMW’s Art Car project transform cars into more than products — they become symbols of identity and aspiration. Download “Luxury in Motion: Autos, F1 and the Brand Opportunity” here.

Driving culture: How luxury cars, F1 are redefining prestige

On this page

Published November 21, 2024

Sectors

Insights

Company

Driving culture: How luxury cars, F1 are redefining prestige