Luxury Goods in South Africa

Luxury Goods in South Africa

EXECUTIVE SUMMARY

Changing market due to macroeconomic conditions and evolving consumer base

Market experiences growth but ongoing decline in dynamism

Luxury goods market remains small in South Africa, with scope for further growth

Multibrand stores remain the main distribution channel

Positive prospects for changing luxury goods market

MARKET INDICATORS

Table 1 Number of High Net Worth Individuals (HNWI): 2013-2018

MARKET DATA

Table 2 Sales of Luxury Goods by Category: Value 2013-2018
Table 3 Sales of Luxury Goods by Category: % Value Growth 2013-2018
Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018
Table 5 NBO Company Shares of Luxury Goods: % Value 2013-2017
Table 6 LBN Brand Shares of Luxury Goods: % Value 2014-2017
Table 7 Distribution of Luxury Goods by Format and Category: % Value 2018
Table 8 Forecast Sales of Luxury Goods by Category: Value 2018-2023
Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

SOURCES

Summary 1 Research Sources

Designer Apparel and Footwear (Ready-To-Wear) in South Africa

HEADLINES

PROSPECTS

Challenging economic environment restricts growth

Multibrand stores retain their domination

Growth in the middle class balances domestic and international expenditure

COMPETITIVE LANDSCAPE

Surtee Group remains outright leader

Internet retailing still in its infancy

Online retailers cannot replicate in-store experience and service

CATEGORY DATA

Table 10 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2013-2018
Table 11 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2013-2018
Table 12 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2013-2017
Table 13 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2014-2017
Table 14 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2013-2018
Table 15 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2018-2023
Table 16 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2018-2023

Fine Wines/Champagne and Spirits in South Africa

HEADLINES

PROSPECTS

Premiumisation trend gains traction

Promotion of premium/luxury brands to nouveau riche black consumers

Increasingly targeted marketing strategies

COMPETITIVE LANDSCAPE

Category remains highly fragmented

Players increasingly cater to specific consumer preferences

Popular brands widen their availability by crossing categories

CATEGORY DATA

Table 17 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018
Table 18 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018
Table 19 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017
Table 20 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017
Table 21 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018
Table 22 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023
Table 23 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Luxury Cars in South Africa

HEADLINES

PROSPECTS

Wide gap in South Africa’s income distribution

High net worth individuals drive sales

Challenging retail environment forecast

COMPETITIVE LANDSCAPE

High concentration defines competitive landscape in luxury cars

High-priced brands achieve a low retail value share

Personalisation increasing theme

CATEGORY DATA

Table 24 Sales of Luxury Cars: Value 2013-2018
Table 25 Sales of Luxury Cars: % Value Growth 2013-2018
Table 26 NBO Company Shares of Luxury Cars: % Value 2013-2017
Table 27 LBN Brand Shares of Luxury Cars: % Value 2014-2017
Table 28 Forecast Sales of Luxury Cars: Value 2018-2023
Table 29 Forecast Sales of Luxury Cars: % Value Growth 2018-2023

Luxury Eyewear in South Africa

HEADLINES

PROSPECTS

Wealthy and aspirational consumers drive demand for luxury eyewear

Economic challenges dampen luxury eyewear growth

Price discounting and the weaker rand affect profit margins

COMPETITIVE LANDSCAPE

Luxottica maintains its dominance with strong brands

Rising unit prices and stringent credit regulations impact growth

Increasingly savvy luxury goods consumers

CATEGORY DATA

Table 30 Sales of Luxury Eyewear by Category: Value 2013-2018
Table 31 Sales of Luxury Eyewear by Category: % Value Growth 2013-2018
Table 32 NBO Company Shares of Luxury Eyewear: % Value 2013-2017
Table 33 LBN Brand Shares of Luxury Eyewear: % Value 2014-2017
Table 34 Distribution of Luxury Eyewear by Format: % Value 2013-2018
Table 35 Forecast Sales of Luxury Eyewear by Category: Value 2018-2023
Table 36 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2018-2023

Luxury Jewellery in South Africa

HEADLINES

PROSPECTS

Consumer relations vital for players in this luxury category

Demand for customised luxury jewellery creates niche opportunity

Changing consumer preferences thanks to growing appetite for African-inspired jewellery pieces

COMPETITIVE LANDSCAPE

Browns the Diamond Store maintains lead

Monobrand stores launch collections globally

Luxury costume jewellery popular among wealthy shoppers

CATEGORY DATA

Table 37 Sales of Luxury Jewellery by Category: Value 2013-2018
Table 38 Sales of Luxury Jewellery by Category: % Value Growth 2013-2018
Table 39 NBO Company Shares of Luxury Jewellery: % Value 2013-2017
Table 40 LBN Brand Shares of Luxury Jewellery: % Value 2014-2017
Table 41 Distribution of Luxury Jewellery by Format: % Value 2013-2018
Table 42 Forecast Sales of Luxury Jewellery by Category: Value 2018-2023
Table 43 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2018-2023

Luxury Leather Goods in South Africa

HEADLINES

PROSPECTS

Luxury handbags remain status symbols

Disposable income directly affects sales of luxury leather goods

Local brands face competition from international counterparts

COMPETITIVE LANDSCAPE

Louis Vuitton maintains lead

Greater variety and wider competition

Personal shopper trend

CATEGORY DATA

Table 44 Sales of Luxury Leather Goods: Value 2013-2018
Table 45 Sales of Luxury Leather Goods: % Value Growth 2013-2018
Table 46 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017
Table 47 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017
Table 48 Distribution of Luxury Leather Goods by Format: % Value 2013-2018
Table 49 Forecast Sales of Luxury Leather Goods: Value 2018-2023
Table 50 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Luxury Portable Consumer Electronics in South Africa

HEADLINES

PROSPECTS

African consumers are the primary category sales drivers

South Africans tend to buy overseas

Declining retail value growth

COMPETITIVE LANDSCAPE

Niche category with few growth prospects

The end for Vertu and its ostentatious brands

Smartphones challenge Vertu’s unique concierge service

CATEGORY DATA

Table 51 Sales of Luxury Portable Consumer Electronics by Category: Value 2013-2018
Table 52 Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2013-2018
Table 53 NBO Company Shares of Luxury Portable Consumer Electronics: % Value 2013-2017
Table 54 LBN Brand Shares of Luxury Portable Consumer Electronics: % Value 2014-2017
Table 55 Distribution of Luxury Portable Consumer Electronics by Format: % Value 2013-2018
Table 56 Forecast Sales of Luxury Portable Consumer Electronics by Category: Value 2018-2023
Table 57 Forecast Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2018-2023

Luxury Timepieces in South Africa

HEADLINES

PROSPECTS

Ongoing progress of second-hand luxury websites and auction sites

Luxury timepieces appeal to aspirational consumers as status symbols

Wider consumer choice with the entry of new brands in South Africa

COMPETITIVE LANDSCAPE

International Timepiece & Fashion maintains its lead

Growing popularity of second-hand watches

Second-hand luxury timepieces stimulate higher brand recognition of luxury timepieces

CATEGORY DATA

Table 58 Sales of Luxury Timepieces by Category: Value 2013-2018
Table 59 Sales of Luxury Timepieces by Category: % Value Growth 2013-2018
Table 60 NBO Company Shares of Luxury Timepieces: % Value 2013-2017
Table 61 LBN Brand Shares of Luxury Timepieces: % Value 2014-2017
Table 62 Distribution of Luxury Timepieces by Format: % Value 2013-2018
Table 63 Forecast Sales of Luxury Timepieces by Category: Value 2018-2023
Table 64 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2018-2023

Luxury Writing Instruments and Stationery in South Africa

HEADLINES

PROSPECTS

Luxury writing instruments make popular corporate gifts

Destination shopping limits growth opportunities

Category suffers competition from other entry-level luxury categories

COMPETITIVE LANDSCAPE

Iconic Montblanc remains the leading brand

Brand perception characterises the category

Lack of brand awareness hampers category progress

CATEGORY DATA

Table 65 Sales of Luxury Writing Instruments and Stationery: Value 2013-2018
Table 66 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2013-2018
Table 67 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2013-2017
Table 68 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2014-2017
Table 69 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2013-2018
Table 70 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2018-2023
Table 71 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2018-2023

Super Premium Beauty and Personal Care in South Africa

HEADLINES

PROSPECTS

Themed new brand and product launches drive growth, despite the challenging economic environment

More brands cater to ethnic consumers

Weak rand impacts unit prices

COMPETITIVE LANDSCAPE

Prestige Cosmetics Group maintains its lead

Experiential branding increasingly used to distinguish brands from competitors

Unique customer service entices consumers to spend on high-end brands

CATEGORY DATA

Table 72 Sales of Super Premium Beauty and Personal Care by Category: Value 2013-2018
Table 73 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2013-2018
Table 74 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2013-2017
Table 75 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2014-2017
Table 76 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2013-2018
Table 77 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2018-2023
Table 78 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2018-2023

Luxury Hotels in South Africa

HEADLINES

PROSPECTS

International travellers drive sales

South Africa remains a luxury destination

Shift in consumer behaviour, especially among wealthy millennials

COMPETITIVE LANDSCAPE

Luxury hotels set to grow

New hotel openings

Luxury hotels focus on offering unrivalled and unique experiences

CATEGORY DATA

Table 79 Sales in Luxury Hotels: Value 2013-2018
Table 80 Sales in Luxury Hotels: % Value Growth 2013-2018
Table 81 Sales in Luxury Hotels by Country of Origin: % Value 2013-2017
Table 82 NBO Company Shares in Luxury Hotels: % Value 2013-2017
Table 83 LBN Brand Shares in Luxury Hotels: % Value 2014-2017
Table 84 Forecast Sales in Luxury Hotels: Value 2018-2023
Table 85 Forecast Sales in Luxury Hotels: % Value Growth 2018-2023

Personal Luxury in South Africa

HEADLINES

PROSPECTS

Super premium beauty and personal care strong in personal luxury

Presence of international brands boosts category sales

Economic constraints force consumers to prioritise their spending

COMPETITIVE LANDSCAPE

Surtee Group retains its lead in personal luxury

Low but growing share for internet retailing

Growing demand for personalisation and exclusivity

CATEGORY DATA

Table 86 Sales of Personal Luxury by Category: Value 2013-2018
Table 87 Sales of Personal Luxury by Category: % Value Growth 2013-2018
Table 88 NBO Company Shares of Personal Luxury: % Value 2013-2017
Table 89 LBN Brand Shares of Personal Luxury: % Value 2014-2017
Table 90 Forecast Sales of Personal Luxury by Category: Value 2018-2023
Table 91 Forecast Sales of Personal Luxury by Category: % Value Growth 2018-2023

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