Luxury Portable Consumer Electronics in South Africa

PROSPECTS

Niche sales remain dependent on continental demand

Luxury goods represent a niche of overall sales of portable consumer electronics in South Africa, as they appeal to a limited group of people, namely connoisseurs and those with the discretionary income to purchase such items given their hefty price tag. Sales are driven primarily by African consumers who travel regularly to South Africa and seek a unique product to distinguish themselves from the crowd.

Locals tend to purchase elsewhere

In regard to South Africans, specifically, those who can afford and who are willing to splurge on such luxurious pieces tend to be regular travellers. Given that there is a wider variety of models and brands to choose from abroad, local consumers often prefer to make such purchases when they are travelling overseas.

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

The lowering retail value growth of luxury portable consumer electronics during the review period can be attributed to the economic climate, both locally and in neighbouring African countries. Luxury portable consumer electronics is expected to continue declining in terms of volume sales over the forecast period – and at a faster rate.

COMPETITIVE LANDSCAPE

Vertu hangs up in South Africa

Vertu luxury mobile phones were no longer available in South Africa in 2018, having dominated the category two years previously. Vertu Corp Ltd, a UK manufacturer of luxury smartphones, filed for insolvency after being passed between owners since 2012.

Consumer reception for luxury mobile phones is breaking up

Luxury portable consumer electronics remains a niche in South Africa, with the country failing to become established as a growing market for these types of products. As a result, most international luxury brands are absent from the country.

Samsung looks to Galaxy Fold for stellar performance

Samsung, which has yet to amass a significant share in luxury mobile phones, launched the Galaxy Fold, a foldable phone, in South Africa in October 2019 and it retails at ZAR43,999. The model opens up like a book, has a remarkable six cameras and costs ZAR10,000 more than the most expensive iPhone.

Files are delivered directly into your account within a few minutes of purchase.