Demand for luxury goods in South Africa is traditionally driven by different target audiences; aspirational consumers who want to be associated with luxury brands which are a status symbols which allow them to display an image of success, and affluent consumers who appreciate brands of luxury goods known for their uniqueness, rarity and craftsmanship. Inbound tourists comprise the other main target audience.
Although the local industry is starting to show signs of a tentative recovery in 2022, the challenging consumer environment is still likely to hinder stronger growth. Consumers are battling rising prices and declining disposable income, and are exercising caution when it comes to the purchase of luxury goods.
Due to the high prices of premium and luxury cars, companies which lead this category also continued to lead overall luxury goods in 2021 – namely Bayerische Motoren Werke AG, which gained notable share to overtake close competitor Mercedes-Benz which now ranks second, and Volkswagen. All three players maintained double-digit value shares in 2021, together accounting for more than half of overall sales of luxury goods.
While e-commerce retains an overall low presence in South African luxury goods with consumers preferring to visit non-grocery specialists for high-value items, key players within super premium beauty and personal care are increasingly investing in their e-commerce platforms and are working to improving the consumer’s online shopping experience. With a few exceptions, most players now have an online presence and offer consumers the ability to shop online and easily return their products without any issues.
If current economic situations persist, the recovery of luxury goods is expected to be slow as one of the major customer bases for this industry in South Africa continues to face a difficult economic environment. On the other hand, more affluent consumers remain mostly unaffected by the economic situation, although now their focus is on making more long-term investments such as having a secondary passport and residence in more financially secure and perceived safer countries, which is likely to hinder a stronger recovery of various luxury goods.
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Understand the latest market trends and future growth opportunities for the Luxury Goods industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
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This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.See All of Our Definitions
This report originates from Passport, our Luxury Goods research and analysis database.
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