Natalie Cowling
Research Expert South Africa
In Africa, the luxury goods sector has maintained its appeal despite socio-cultural changes and various economic challenges. Most consumers of luxury goods are interested in the shoes, bags, and apparel categories, which collectively amounted to roughly 58 percent in 2023. Generally, the leading luxury brands African consumers are interested in are Louis Vuitton, Gucci, Prada, Burberry, and Christian Louboutin. The majority of these luxury consumers are interested in products which are within an affordable price range. However, a small yet significant portion of over seven percent is not discouraged by price.
Sandton City is one of the largest shopping centers in Africa and is situated in Johannesburg’s financial hub. The Diamond Walk was launched in the center in 2015 and houses most of the global high-end retail stores, which serves as a popular tourist attraction for the ultra-wealthy from all over the continent.
Additionally, luxury cars have remained popular and in demand by a niche market of wealthy consumers in the country. Among the ultra-luxury cars, Porsche sold the most units in August 2022, followed by Lamborghini. However, the best-selling luxury vehicle brands were German car manufacturers BMW and Mercedes-Benz, who sold over 1,000 units each in March 2022.
Luxury sector in South Africa and Namibia
The trading density of luxury brands within South Africa and Namibia was around 160 percent higher than all centers combined. Additionally, luxury brands were the leading retail category by around 71 percent. Throughout the global recession during and after the COVID-19 pandemic, the luxury sector has remained resilient since its target market of wealthy consumers was not impacted financially.Sandton City is one of the largest shopping centers in Africa and is situated in Johannesburg’s financial hub. The Diamond Walk was launched in the center in 2015 and houses most of the global high-end retail stores, which serves as a popular tourist attraction for the ultra-wealthy from all over the continent.
Top luxury sectors in South Africa
The luxury hotel sector is an important contributor to the South African economy as it provides well-paid jobs and brings in ample amounts of foreign currency exchange into the country. Some of the most highly rated lavish hotels in 2023 were Babylonstoren in Simodium, located in the Franschhoek wine valley, and The Plettenberg, situated along the garden route on the south-eastern coast of Plettenberg Bay.Additionally, luxury cars have remained popular and in demand by a niche market of wealthy consumers in the country. Among the ultra-luxury cars, Porsche sold the most units in August 2022, followed by Lamborghini. However, the best-selling luxury vehicle brands were German car manufacturers BMW and Mercedes-Benz, who sold over 1,000 units each in March 2022.
