Luxury Goods in South Africa

Luxury Goods in South Africa

EXECUTIVE SUMMARY

A challenging year for luxury goods as economic, competitive and consumer pressures intensify

Luxury goods loses its spark as prices are prioritised

Potential remains for high growth once economy fully recovers

The crowds still head for the multi-brand stores

Sales recovery is expected, while luxury will be redefined by modern lifestyle trends

MARKET INDICATORS

Table 1 Number of High Net Worth Individuals (HNWI): 2014-2019

MARKET DATA

Table 2 Sales of Luxury Goods by Category: Value 2014-2019
Table 3 Sales of Luxury Goods by Category: % Value Growth 2014-2019
Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2014-2019
Table 5 NBO Company Shares of Luxury Goods: % Value 2014-2018
Table 6 LBN Brand Shares of Luxury Goods: % Value 2015-2018
Table 7 Distribution of Luxury Goods by Format and Category: % Value 2019
Table 8 Forecast Sales of Luxury Goods by Category: Value 2019-2024
Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2019-2024

SOURCES

Summary 1 Research Sources

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

HEADLINES

PROSPECTS

Widespread dip in consumer confidence cuts into volume sales

Consumers become more rational in their choices

Multi-brand stores cover product and finance needs best

COMPETITIVE LANDSCAPE

With a portfolio of favourite brands, Surtee has a commanding lead

Condé Nast showcases Africa to the world as potential luxury hub

Internet retailing is still underdeveloped

CATEGORY DATA

Table 10 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2014-2019
Table 11 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2014-2019
Table 12 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2014-2018
Table 13 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2015-2018
Table 14 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2014-2019
Table 15 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2019-2024
Table 16 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2019-2024

Experiential Luxury in South Africa

HEADLINES

PROSPECTS

South Africa has the Big Five draw and a cost-advantage

Safety concerns resurface, while national carrier comes under fire

COMPETITIVE LANDSCAPE

Train hotel set to offer a one-of-a-kind experience

South Africa makes visiting easier for internationals

CATEGORY DATA

Table 17 Sales of Experiential Luxury by Category: Value 2014-2019
Table 18 Sales of Experiential Luxury by Category: % Value Growth 2014-2019
Table 19 NBO Company Shares of Experiential Luxury: % Value 2014-2018
Table 20 LBN Brand Shares of Experiential Luxury: % Value 2015-2018
Table 21 Forecast Sales of Experiential Luxury by Category: Value 2019-2024
Table 22 Forecast Sales of Experiential Luxury by Category: % Value Growth 2019-2024

Fine Wines/Champagne and Spirits in South Africa

HEADLINES

PROSPECTS

Strong wine tradition in South Africa supports luxury sales growth

The nouveau riche bolster demand

Sheebeens respond to the nouveau riche market

COMPETITIVE LANDSCAPE

Limited editions trend ramps up sales fragmentation

Collector’s editions sought after as connoisseur culture deepens

Traversing the price-spectrum

CATEGORY DATA

Table 23 Sales of Fine Wines/Champagne and Spirits by Category: Value 2014-2019
Table 24 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2014-2019
Table 25 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2014-2018
Table 26 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2015-2018
Table 27 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2014-2019
Table 28 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2019-2024
Table 29 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2019-2024

Luxury Eyewear in South Africa

HEADLINES

PROSPECTS

Aspirational consumers are discouraged by limited credit and economic gloom

Luxury eyewear brands feel the pinch as local currency weakens

Lower prices tempt consumers to buy online

COMPETITIVE LANDSCAPE

Luxottica leads a highly fragmented category

Consumers increasingly set their sights on lower-cost eyewear

CATEGORY DATA

Table 30 Sales of Luxury Eyewear by Category: Value 2014-2019
Table 31 Sales of Luxury Eyewear by Category: % Value Growth 2014-2019
Table 32 NBO Company Shares of Luxury Eyewear: % Value 2014-2018
Table 33 LBN Brand Shares of Luxury Eyewear: % Value 2015-2018
Table 34 Distribution of Luxury Eyewear by Format: % Value 2014-2019
Table 35 Forecast Sales of Luxury Eyewear by Category: Value 2019-2024
Table 36 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2019-2024

Luxury Hotels in South Africa

HEADLINES

PROSPECTS

Luxury at an attractive price extends potential consumer base

Luxurious yet eco-friendly – South Africa takes a modern approach

Attracting millennials is the key to success

COMPETITIVE LANDSCAPE

Business events and tourism push to keep luxury hotels in demand

South Africa makes visiting easier for internationals

It is more about the whole travel experience

CATEGORY DATA

Table 37 Sales in Luxury Hotels: Value 2014-2019
Table 38 Sales in Luxury Hotels: % Value Growth 2014-2019
Table 39 Sales in Luxury Hotels by Country of Origin: % Value 2014-2019
Table 40 NBO Company Shares in Luxury Hotels: % Value 2014-2018
Table 41 LBN Brand Shares in Luxury Hotels: % Value 2015-2018
Table 42 Forecast Sales in Luxury Hotels: Value 2019-2024
Table 43 Forecast Sales in Luxury Hotels: % Value Growth 2019-2024

Luxury Jewellery in South Africa

HEADLINES

PROSPECTS

Consumers continue to defer their purchases amid economic turbulence

Offering customisable services is a distinct advantage

Locals seek pieces that reflect their African heritage

COMPETITIVE LANDSCAPE

Browns marries culture with class

Competition enrichens as more mono-brand stores appear

High-end luxury costume jewellery creates overlap in customer base

CATEGORY DATA

Table 44 Sales of Luxury Jewellery by Category: Value 2014-2019
Table 45 Sales of Luxury Jewellery by Category: % Value Growth 2014-2019
Table 46 NBO Company Shares of Luxury Jewellery: % Value 2014-2018
Table 47 LBN Brand Shares of Luxury Jewellery: % Value 2015-2018
Table 48 Distribution of Luxury Jewellery by Format: % Value 2014-2019
Table 49 Forecast Sales of Luxury Jewellery by Category: Value 2019-2024
Table 50 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2019-2024

Luxury Leather Goods in South Africa

HEADLINES

PROSPECTS

International luxury handbags match consumer status ideals

Credit restrictions limit spending power, hampering sales

Reputation counts, as local names struggle to compete

COMPETITIVE LANDSCAPE

Leader Louis Vuitton feels the heat from price-competitive Michael Kors

Luxury handbags are a staple for aspirational and wealthy African women

South Africa remains popular cross-border shopping destination

CATEGORY DATA

Table 51 Sales of Luxury Leather Goods: Value 2014-2019
Table 52 Sales of Luxury Leather Goods: % Value Growth 2014-2019
Table 53 NBO Company Shares of Luxury Leather Goods: % Value 2014-2018
Table 54 LBN Brand Shares of Luxury Leather Goods: % Value 2015-2018
Table 55 Distribution of Luxury Leather Goods by Format: % Value 2014-2019
Table 56 Forecast Sales of Luxury Leather Goods: Value 2019-2024
Table 57 Forecast Sales of Luxury Leather Goods: % Value Growth 2019-2024

Luxury Portable Consumer Electronics in South Africa

HEADLINES

PROSPECTS

Niche sales remain dependent on continental demand

Locals tend to purchase elsewhere

Struggling economy, loss of Vertu and strong competition paint bleak outlook

COMPETITIVE LANDSCAPE

Vertu hangs up in South Africa

Consumer reception for luxury mobile phones is breaking up

Samsung looks to Galaxy Fold for stellar performance

CATEGORY DATA

Table 58 Sales of Luxury Portable Consumer Electronics by Category: Value 2014-2019
Table 59 Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2014-2019
Table 60 NBO Company Shares of Luxury Portable Consumer Electronics: % Value 2014-2018
Table 61 LBN Brand Shares of Luxury Portable Consumer Electronics: % Value 2015-2018
Table 62 Distribution of Luxury Portable Consumer Electronics by Format: % Value 2014-2019
Table 63 Forecast Sales of Luxury Portable Consumer Electronics by Category: Value 2019-2024
Table 64 Forecast Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2019-2024

Luxury Timepieces in South Africa

HEADLINES

PROSPECTS

Second-hand market makes consumers tick

More than just a status symbol

The price spectrum widens, making ownership more affordable

COMPETITIVE LANDSCAPE

Share sizes are generally small as competition strengthens

Rise in online retail winds up demand for second-hand trade

International names increase their local presence

CATEGORY DATA

Table 65 Sales of Luxury Timepieces by Category: Value 2014-2019
Table 66 Sales of Luxury Timepieces by Category: % Value Growth 2014-2019
Table 67 NBO Company Shares of Luxury Timepieces: % Value 2014-2018
Table 68 LBN Brand Shares of Luxury Timepieces: % Value 2015-2018
Table 69 Distribution of Luxury Timepieces by Format: % Value 2014-2019
Table 70 Forecast Sales of Luxury Timepieces by Category: Value 2019-2024
Table 71 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2019-2024

Luxury Writing Instruments and Stationery in South Africa

HEADLINES

PROSPECTS

Gifting can lead to repeat purchases

The lure of destination purchases hinders domestic sales

Challenges to justify the high prices among competing products

COMPETITIVE LANDSCAPE

Montblanc fills in the blanks with a wide price range

Upper-end standard brands are regarded as luxurious by consumers

Low brand-awareness and sporadic distribution leave their mark

CATEGORY DATA

Table 72 Sales of Luxury Writing Instruments and Stationery: Value 2014-2019
Table 73 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2014-2019
Table 74 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2014-2018
Table 75 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2015-2018
Table 76 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2014-2019
Table 77 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2019-2024
Table 78 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2019-2024

Personal Luxury in South Africa

HEADLINES

PROSPECTS

Many categories struggle as consumers cut back on personal luxury

Dynamic and inclusive, super premium beauty and personal care grows

International giants with attractive prices help limit volume decline

COMPETITIVE LANDSCAPE

Surtee Group leads the category thanks to Hugo Boss

Lower-priced avenues and channels are pursued

The personal touch has growth potential

CATEGORY DATA

Table 79 Sales of Personal Luxury by Category: Value 2014-2019
Table 80 Sales of Personal Luxury by Category: % Value Growth 2014-2019
Table 81 NBO Company Shares of Personal Luxury: % Value 2014-2018
Table 82 LBN Brand Shares of Personal Luxury: % Value 2015-2018
Table 83 Distribution of Personal Luxury by Format: % Value 2014-2019
Table 84 Forecast Sales of Personal Luxury by Category: Value 2019-2024
Table 85 Forecast Sales of Personal Luxury by Category: % Value Growth 2019-2024

Super Premium Beauty and Personal Care in South Africa

HEADLINES

PROSPECTS

Super premium beauty and personal care fares better than many amid sluggish economy

Products for darker skin have bright potential

Pure online players are undercutting bigger retailers on price

COMPETITIVE LANDSCAPE

Experiential branding is the way forward

Estée Lauder aims for double impact with new skin care launch

CATEGORY DATA

Table 86 Sales of Super Premium Beauty and Personal Care by Category: Value 2014-2019
Table 87 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2014-2019
Table 88 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2014-2018
Table 89 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2015-2018
Table 90 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2014-2019
Table 91 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2019-2024
Table 92 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2019-2024

Premium and Luxury Cars in South Africa

HEADLINES

PROSPECTS

Economic woes keep sales plummeting in luxury cars

The wealthy are putting a plan B in place, threatening luxury sales further

Struggling performance likely to continue amid slow economic recovery

COMPETITIVE LANDSCAPE

Variety in car range and price keep the leaders in the driving seat

SUVs gain traction

The institutional channel also drives sales

CATEGORY DATA

Table 93 Sales of Premium and Luxury Cars: Value 2014-2019
Table 94 Sales of Premium and Luxury Cars: % Value Growth 2014-2019
Table 95 NBO Company Shares of Premium and Luxury Cars: % Value 2014-2018
Table 96 LBN Brand Shares of Premium and Luxury Cars: % Value 2015-2018
Table 97 Forecast Sales of Premium and Luxury Cars: Value 2019-2024
Table 98 Forecast Sales of Premium and Luxury Cars: % Value Growth 2019-2024

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