If you want a Rolls-Royce for Christmas but are having trouble finding it, the company has good news for you: it plans to expand its dealerships from 105 to 120. Phew. I just didn’t know what to get my family until I heard this.
Jokes aside, there is something to be said about Rolls-Royce doing well enough in this economy to expand. I have to wonder how in-demand the brand is. According to the BusinessWeek article, Rolls-Royce has been unfazed by the European debt crisis (it is based in England), and in 2011, the brand sold a record number of 3,538 cars.
There was a possibility that Rolls-Royce’s strong performance could mimic a comeback in the economy, but the article says that the leaders at Rolls-Royce admit there’s a possibility that developed markets could slump.
A company that specializes in luxury goods needs to be hyper-aware of which markets boast unencumbered wealth. Rolls-Royce has pinpointed Asia and South America as its growth targets for the coming years. (With its fiscal cliff and divisional politics, it’s little surprise that the U.S. doesn’t make the cut.)
Here’s why all of this matters: There is a lesson to be learned here. Rolls-Royce is a growing company and a smart brand. It knows which geographical consumers to target and which to let go of. It’s not pinning hopes on slowing economies or those stuck in political doldrums. It’s being realistic in a lazy economy and it’s teaching many other brands a lesson along the way.