After seeing solid current value growth rates throughout most of the review period, personal luxury saw a significant decline in 2020. The arrival of COVID-19 in the country led the South African government to take action to try and halt the spread of the virus in the country.
Declines were seen across all personal luxury categories in 2020. In addition to the closure of store-based retailers, some consumers were affected by the economic impact of COVID-19.
Surtee Group maintained its lead in personal luxury in value terms in 2019, and remained the only player holding a double-digit value share in a very fragmented competitive environment. Its Hugo Boss brand has been present in the country for some time and is aspirational to many consumers.
Despite the strong current value decline seen by personal luxury in 2020, sales are set to continue to fall in 2021, although at a slower rate. Even before COVID-19, the South African economy was struggling, seeing a strenuous and continued decline, impacted by political instability, declining investor relations and business struggles.
Before the global pandemic, personal luxury goods were becoming more popular amongst aspirational as well as wealthier consumers, driven by fashion trends, especially given that social media advertising of these brands increased. However, not only did the COVID-19 pandemic affect consumers’ incomes, it also changed the way that people interacted for business or leisure, and many of these experiences moved online.
Retail stores have reopened, but under strict social distancing rules, which means that the shopping experience will not be the same again. New measures have also had to be put in place and used, such as secure contactless payments.
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Understand the latest market trends and future growth opportunities for the Personal Luxury industry in South Africa with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
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This report originates from Passport, our Personal Luxury research and analysis database.
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