LUXURY MARKET

Market for luxury brands in Africa showing surprising resilience

By our African Marketing Confederation News Team | 2024

Continent defies expectations, given that the luxury market is under pressure in certain other regions of the world, most notably China. 

Despite a challenging economic environment in much of Africa, including high inflation in many countries, the demand for high-end luxury goods continues to be strong. This is according to the annual ‘State of the Luxury Market in Africa’ report from Luxity, a prominent reseller of pre-owned luxury fashion items. 

 

The company says the continent is defying expectations, given that the luxury market is under strong pressure in some other regions of the world, notably China.  

 

The Asian country has typically been a strong performer for luxury brands, but 2024 has seen the market slow down due to weakened consumer spending, shifting buyer priorities toward bargains, and a slower-than-expected economic recovery. 

 

In an interview with Channel Africa, Michael Zahariev, co-founder of Luxity, noted that South Africa, in particular, has become a key hub for luxury goods. Luxury retail trading density has rising by 8%, outperforming the global average.

Photo: Mister Mister from Pexels

He said South Africa and Morocco are the only two African nations housing official brand stores like Louis Vuitton and Gucci.  

 

Luxury fashion capital of Africa 

 

“[South Africa] has essentially become the fashion capital of Africa, with many luxury shoppers from across the continent travelling to cities like Cape Town and Johannesburg for the unique shopping experience,” he told Channel Africa. 

 

“Accessibility is a major factor driving this trend, as it is easier for African consumers to visit SA than to travel to Europe or other luxury shopping destinations.” 

 

The ‘State of the Luxury Market in Africa’ report states that major malls in South Africa, such as the V&A Waterfront in Cape Town, are continually positioning themselves as luxury destinations, with the development of new luxury wings catering to this growing demand.  

 

“With the largest population of high-net-worth individuals in Africa and a strengthening market sentiment, we anticipate the luxury market in South Africa to continue outperforming global growth,” Luxity highlights. 

 

Mid-range luxury watches emerged as a standout sub-category in Africa this year, experiencing a significant 28% growth and reflecting an increasing interest in accessible luxury segments. 

 

“This interest in accessible luxury is also translating well to the pre-owned industry, where consumers are seeking value-driven luxury options that offer prestige at a more attainable price point,” the report adds. 

 

You can find out more about the report here.

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.