Despite some of the continent’s biggest economies being in recession this past year, the appetite of consumers for luxury brands remains high.
Recently, multinational financial services firm Deloitte published the fifth edition of its annual report, titled Global Powers of Luxury Goods. The report identifies and examines the world’s largest luxury goods companies.
In its first edition, published in 2014, the report made mention of South Africa and Nigeria showing great promise in this area. Rodger George, Deloitte’s advisory leader for consumer business in Africa, said at the time: “Africa definitely provides a longer-term growth opportunity for luxury brands.
The shifting appetite and behaviour of consumers in this segment will require luxury goods retailers to develop a sophisticated but uniquely African approach to reach and satisfy the growing demand for luxury goods in this segment.”
According to that first report, emerging markets accounted for 19% of the global market in luxury goods – and this included Africa.
It also found that while there were risks to growing this sector in emerging markets compared with developed markets, these risks were low, given people’s desire for luxury goods.
Full Article in BRICS Journal Print Issue 6