Personal Luxury in South Africa

PROSPECTS

Super premium beauty and personal care strong in personal luxury

Super premium beauty and personal care remained a strong category in personal luxury in 2018. In addition to rising demand from millennials for these products, brands continued to invest heavily in innovation, which kept the category new and interesting, a trend set to continue into the forecast period.

Presence of international brands boosts category sales

The presence of strong internationally renowned brands helps boost sales of certain personal luxury categories, including designer apparel and footwear. These brands are aspirational and more accessibly priced than many other types of luxury goods.

Economic constraints force consumers to prioritise their spending

Lower consumer confidence, economic uncertainty and job insecurity are, however, factors that are making consumers rethink their purchasing decisions. For instance, many aspirational consumers are refraining or delaying purchasing personal luxury goods, with many retaining existing pairs of luxury eyewear, for instance, for longer.

COMPETITIVE LANDSCAPE

Surtee Group retains its lead in personal luxury

The Surtee Group retained the leading spot in 2018, some distance in front of second ranking Luxottica. Its Hugo Boss brand has been present in the country for some time and is aspirational to many consumers.

Low but growing share for internet retailing

In personal luxury, online retailing is strongest in super premium beauty and personal care and luxury writing instruments and stationery, though neither achieved double-digit value shares in 2018. This channel is becoming increasingly popular as it offers discounted prices, and convenience, while industry players are working to improve secure payment mechanisms and delivery services.

Growing demand for personalisation and exclusivity

Personal luxury brands trade on an element of exclusivity and emotional connection. Moreover, consumers are increasingly seeking personalisation, not only in the luxury brands they buy, but also in the services around them.

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