The African clothing and footwear industry, estimated at over USD30 billion is dynamic, presenting abundant opportunities for stakeholders. Moreover, it stands to gain significantly from the evolving socioeconomic landscape of the continent, primarily propelled by a substantial demographic of young, stylish, and aspirational consumers. This evolution is not only reshaping individual wardrobes but also the dynamic retail landscape itself.
South African apparel players emerge as dominant players in the region
Two decades ago, consumers faced a limited array of choices when it came to accessing brand items. Across West and East Africa, tailors played a pivotal role in addressing the scarcity of choices. In more developed markets such as South Africa, local players such as Truworths and Mr Price had a strong foothold in the market. But with the entrance of global players such as Cotton On and Zara, they started losing market share. In other African markets, at very best, South African retailers had a regional presence, and they were perceived as being premium in these markets. In many African countries, second-hand clothing imported from Europe and North America offers a glimpse into branded items.
The prevalence of second-hand clothing is so pronounced that it has led some countries to push for greater regulation. This regulation aims to tackle the issue of waste colonialism, as a million tonnes of second-hand clothing ends up in landfill in Africa each year. According to estimates by The Or Foundation, 15 million units of second-hand clothes arrive in Ghana every week, of which 40% end up in landfills.
Digitalisation creating more opportunities for the region
The retail landscape in Africa has diversified, offering consumers a broader range of choices. International players are expanding their presence, sometimes bypassing South Africa to tap into more promising markets on the continent, such as Ermenegildo Zegna opening its first physical store in Nigeria. Digitalisation has given rise to African e-tailers, enabling luxury designers to reach global audiences. Even the second-hand clothing market is evolving towards premium options, with thrift stores in upscale areas catering to a more affluent clientele. Despite formal industry growth, informal trade remains dominant. Cheap imports flood open markets, offering competitive prices for lower- and middle-income consumers. Tailors continue to fill gaps left by formal players, especially in crafting made-to-measure traditional outfits. Ready-to-wear items often fail to accommodate the unique body shapes of African women, reinforcing the strong market presence of tailors specialising in bespoke clothing.
Retailers must tailor offerings to cater for diverse income profiles and shopping behaviours
The demands of African consumers have evolved with increased internet access and social media, allowing them to stay updated on global trends in real time. This has resulted in diverse consumer profiles and shopping habits across the spectrum, all with their unique attitudes towards mass, luxury and premium apparel and footwear brands. From one end of the spectrum, with bottom of the pyramid consumers, to discreet old money, consumers must be targeted in accordance with their consumption behaviour, with special considerations for cultural nuances and communication strategies. HENRY (“high earners not rich yet”) consumers are a growing targetable demographic across sub-Saharan Africa and these aspirational consumers provide a point of entry into the affordable luxury market across the region, aiding in its growth.
Fast-changing fashion preferences forcing players to reassess their supply chain
The demand for instant gratification has led consumers to expect retailers to stock trendy items at short notice. This shift is compelling clothing players to better understand their target audience and refine strategies for greater appeal. African players in the industry are compelled to reassess their supply chains for increased agility and reduced lead times. But Africa, despite being a major producer of raw materials like cotton, ironically remains a net importer of clothing due to a lack of value-added industries. However, this may change as governments in countries such as Ethiopia and Kenya are implementing investment policies to support local manufacturing, attracting foreign direct investment (FDI) through initiatives like industrial parks with tax breaks, improved infrastructure, and cost-effective labour.
Retailers must strike a balance, catering to price-sensitive consumers while addressing operational complexity
To thrive in sub-Saharan Africa's apparel and footwear industry, it is crucial for players to recognise that consumers, while being trendy and brand-conscious, are highly price-sensitive. Affordability remains a key factor in purchasing decisions. Consumers are sophisticated and have a plethora of options. Hence, retailers must be agile in adapting to changing tastes across the region. Additionally, a re-evaluation of distribution strategies is essential. While an online presence offers visibility, successful strategies in most markets involve opening physical stores in second- and third-tier cities rather than major cities and leading shopping centres.
Learn more about apparel in sub-Saharan Africa in our briefing, Africa’s Fashion: Tales of Diversity, published in December 2023.