Africa: the ever-growing interests of big luxury groups (Part.1)

Representing 3% of the global luxury sector, the African continent is a growing market.  The new privileged class (High Net Worth Individuals) living in the big cities of Lagos or Abidjan, among others, could represent 200,000 new customers within the next five years. Several Western brands are already firmly established in the country, such as Prada, Armani and Zegna, which have a strong presence in Nigeria and Angola.

Other brands, such as Balenciaga or Chopard, are more cautious about their investments and have chosen to distribute their products through licenses granted to certain boutiques. But the country that still offers the best infrastructure for luxury goods is South Africa. It is here that the three largest shopping malls in sub-Saharan Africa are located, the most impressive being Sandton City, built on the outskirts of Johannesburg. This retail giant encompasses over 300 luxury brands, including Prada, Louis Vuitton, Gucci, Cartier and Dior. Across the continent, Egypt, South Africa, Kenya, Morocco and Nigeria together account for more than 50% of Africa's global wealth. As for the brands chosen by wealthy consumers, 90% are still foreign, still considered as true status symbols.

The size of the digital economy in Africa is expected to increase sixfold by 2050, reaching $712 billion compared to the current $115 billion, according to the international network of entrepreneurs Endeavor last June, another growth catalyst. As a result, e-commerce is also playing a major role in the development of the premium market: some platforms, such as the very active Jendaya, are bringing together thousands of consumers, attracted not only by Western brands, but also by new African luxury designers.