Luxury goods sales ‘on the uptick’ in South Africa
FOR the next five years, South Africa’s luxury goods market is expected to grow 20%-30%, global consultancy Bain & Company said this week, an indication of steady demand for upmarket trappings in Africa’s biggest economy.The prediction supports recent comments from Jeanine van Zyl, head of retail equity analysis at Old Mutual Equities, who said people with jobs had managed to climb the wealth ladder thanks to several major trends, such as above-inflation wage increases and more higher-income jobs being created.According to Paris-based Bain’s Luxury Goods Worldwide Market Study, total luxury goods revenue in South Africa is expected to reach €8m this year.Interestingly, the Bain report, which was prepared in conjunction with Italian luxury goods association Altagamma, found that tourists now account for 40% of global luxury spending.Earlier this year, Euromonitor International said a recent spate of oil and gas discoveries in Africa — and the high probability of more to come — could ...
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