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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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