Luxury Goods in South Africa

LUXURY GOODS IN SOUTH AFRICA

Euromonitor International

February 2019

LIST OF CONTENTS AND TABLES

Executive Summary

Changing Market Due To Macroeconomic Conditions and Evolving Consumer Base

Market Experiences Growth But Ongoing Decline in Dynamism

Luxury Goods Market Remains Small in South Africa, With Scope for Further Growth

Multibrand Stores Remain the Main Distribution Channel

Positive Prospects for Changing Luxury Goods Market

Market Indicators

Table 1 Number of High Net Worth Individuals (HNWI): 2013-2018

Market Data

Table 2 Sales of Luxury Goods by Category: Value 2013-2018

Table 3 Sales of Luxury Goods by Category: % Value Growth 2013-2018

Table 4 Inbound Receipts for Luxury Goods by Country of Origin: Value 2013-2018

Table 5 NBO Company Shares of Luxury Goods: % Value 2013-2017

Table 6 LBN Brand Shares of Luxury Goods: % Value 2014-2017

Table 7 Distribution of Luxury Goods by Format and Category: % Value 2018

Table 8 Forecast Sales of Luxury Goods by Category: Value 2018-2023

Table 9 Forecast Sales of Luxury Goods by Category: % Value Growth 2018-2023

Sources

Summary 1 Research Sources

Headlines

Prospects

Premiumisation Trend Gains Traction

Promotion of Premium/luxury Brands To Nouveau Riche Black Consumers

Increasingly Targeted Marketing Strategies

Competitive Landscape

Category Remains Highly Fragmented

Players Increasingly Cater To Specific Consumer Preferences

Popular Brands Widen Their Availability by Crossing Categories

Category Data

Table 10 Sales of Fine Wines/Champagne and Spirits by Category: Value 2013-2018

Table 11 Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2013-2018

Table 12 NBO Company Shares of Fine Wines/Champagne and Spirits: % Value 2013-2017

Table 13 LBN Brand Shares of Fine Wines/Champagne and Spirits: % Value 2014-2017

Table 14 Distribution of Fine Wines/Champagne and Spirits by Format: % Value 2013-2018

Table 15 Forecast Sales of Fine Wines/Champagne and Spirits by Category: Value 2018-2023

Table 16 Forecast Sales of Fine Wines/Champagne and Spirits by Category: % Value Growth 2018-2023

Headlines

Prospects

Wide Gap in South Africa's Income Distribution

High Net Worth Individuals Drive Sales

Challenging Retail Environment Forecast

Competitive Landscape

High Concentration Defines Competitive Landscape in Luxury Cars

High-priced Brands Achieve A Low Retail Value Share

Personalisation Increasing Theme

Category Data

Table 17 Sales of Luxury Cars: Value 2013-2018

Table 18 Sales of Luxury Cars: % Value Growth 2013-2018

Table 19 NBO Company Shares of Luxury Cars: % Value 2013-2017

Table 20 LBN Brand Shares of Luxury Cars: % Value 2014-2017

Table 21 Forecast Sales of Luxury Cars: Value 2018-2023

Table 22 Forecast Sales of Luxury Cars: % Value Growth 2018-2023

Headlines

Prospects

Super Premium Beauty and Personal Care Strong in Personal Luxury

Presence of International Brands Boosts Category Sales

Economic Constraints Force Consumers To Prioritise Their Spending

Competitive Landscape

Surtee Group Retains Its Lead in Personal Luxury

Low But Growing Share for Internet Retailing

Growing Demand for Personalisation and Exclusivity

Category Data

Table 23 Sales of Personal Luxury by Category: Value 2013-2018

Table 24 Sales of Personal Luxury by Category: % Value Growth 2013-2018

Table 25 NBO Company Shares of Personal Luxury: % Value 2013-2017

Table 26 LBN Brand Shares of Personal Luxury: % Value 2014-2017

Table 27 Forecast Sales of Personal Luxury by Category: Value 2018-2023

Table 28 Forecast Sales of Personal Luxury by Category: % Value Growth 2018-2023

Headlines

Prospects

Challenging Economic Environment Restricts Growth

Multibrand Stores Retain Their Domination

Growth in the Middle Class Balances Domestic and International Expenditure

Competitive Landscape

Surtee Group Remains Outright Leader

Internet Retailing Still in Its Infancy

Online Retailers Cannot Replicate In-store Experience and Service

Category Data

Table 29 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2013-2018

Table 30 Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2013-2018

Table 31 NBO Company Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2013-2017

Table 32 LBN Brand Shares of Designer Apparel and Footwear (Ready-to-Wear): % Value 2014-2017

Table 33 Distribution of Designer Apparel and Footwear (Ready-to-Wear) by Format: % Value 2013-2018

Table 34 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: Value 2018-2023

Table 35 Forecast Sales of Designer Apparel and Footwear (Ready-to-Wear) by Category: % Value Growth 2018-2023

Headlines

Prospects

Wealthy and Aspirational Consumers Drive Demand for Luxury Eyewear

Economic Challenges Dampen Luxury Eyewear Growth

Price Discounting and the Weaker Rand Affect Profit Margins

Competitive Landscape

Luxottica Maintains Its Dominance With Strong Brands

Rising Unit Prices and Stringent Credit Regulations Impact Growth

Increasingly Savvy Luxury Goods Consumers

Category Data

Table 36 Sales of Luxury Eyewear by Category: Value 2013-2018

Table 37 Sales of Luxury Eyewear by Category: % Value Growth 2013-2018

Table 38 NBO Company Shares of Luxury Eyewear: % Value 2013-2017

Table 39 LBN Brand Shares of Luxury Eyewear: % Value 2014-2017

Table 40 Distribution of Luxury Eyewear by Format: % Value 2013-2018

Table 41 Forecast Sales of Luxury Eyewear by Category: Value 2018-2023

Table 42 Forecast Sales of Luxury Eyewear by Category: % Value Growth 2018-2023

Headlines

Prospects

Consumer Relations Vital for Players in This Luxury Category

Demand for Customised Luxury Jewellery Creates Niche Opportunity

Changing Consumer Preferences Thanks To Growing Appetite for African-inspired Jewellery Pieces

Competitive Landscape

Browns the Diamond Store Maintains Lead

Monobrand Stores Launch Collections Globally

Luxury Costume Jewellery Popular Among Wealthy Shoppers

Category Data

Table 43 Sales of Luxury Jewellery by Category: Value 2013-2018

Table 44 Sales of Luxury Jewellery by Category: % Value Growth 2013-2018

Table 45 NBO Company Shares of Luxury Jewellery: % Value 2013-2017

Table 46 LBN Brand Shares of Luxury Jewellery: % Value 2014-2017

Table 47 Distribution of Luxury Jewellery by Format: % Value 2013-2018

Table 48 Forecast Sales of Luxury Jewellery by Category: Value 2018-2023

Table 49 Forecast Sales of Luxury Jewellery by Category: % Value Growth 2018-2023

Headlines

Prospects

Luxury Handbags Remain Status Symbols

Disposable Income Directly Affects Sales of Luxury Leather Goods

Local Brands Face Competition From International Counterparts

Competitive Landscape

Louis Vuitton Maintains Lead

Greater Variety and Wider Competition

Personal Shopper Trend

Category Data

Table 50 Sales of Luxury Leather Goods: Value 2013-2018

Table 51 Sales of Luxury Leather Goods: % Value Growth 2013-2018

Table 52 NBO Company Shares of Luxury Leather Goods: % Value 2013-2017

Table 53 LBN Brand Shares of Luxury Leather Goods: % Value 2014-2017

Table 54 Distribution of Luxury Leather Goods by Format: % Value 2013-2018

Table 55 Forecast Sales of Luxury Leather Goods: Value 2018-2023

Table 56 Forecast Sales of Luxury Leather Goods: % Value Growth 2018-2023

Headlines

Prospects

African Consumers Are the Primary Category Sales Drivers

South Africans Tend To Buy Overseas

Declining Retail Value Growth

Competitive Landscape

Niche Category With Few Growth Prospects

the End for Vertu and Its Ostentatious Brands

Smartphones Challenge Vertu's Unique Concierge Service

Category Data

Table 57 Sales of Luxury Portable Consumer Electronics by Category: Value 2013-2018

Table 58 Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2013-2018

Table 59 NBO Company Shares of Luxury Portable Consumer Electronics: % Value 2013-2017

Table 60 LBN Brand Shares of Luxury Portable Consumer Electronics: % Value 2014-2017

Table 61 Distribution of Luxury Portable Consumer Electronics by Format: % Value 2013-2018

Table 62 Forecast Sales of Luxury Portable Consumer Electronics by Category: Value 2018-2023

Table 63 Forecast Sales of Luxury Portable Consumer Electronics by Category: % Value Growth 2018-2023

Headlines

Prospects

Ongoing Progress of Second-hand Luxury Websites and Auction Sites

Luxury Timepieces Appeal To Aspirational Consumers As Status Symbols

Wider Consumer Choice With the Entry of New Brands in South Africa

Competitive Landscape

International Timepiece & Fashion Maintains Its Lead

Growing Popularity of Second-hand Watches

Second-hand Luxury Timepieces Stimulate Higher Brand Recognition of Luxury Timepieces

Category Data

Table 64 Sales of Luxury Timepieces by Category: Value 2013-2018

Table 65 Sales of Luxury Timepieces by Category: % Value Growth 2013-2018

Table 66 NBO Company Shares of Luxury Timepieces: % Value 2013-2017

Table 67 LBN Brand Shares of Luxury Timepieces: % Value 2014-2017

Table 68 Distribution of Luxury Timepieces by Format: % Value 2013-2018

Table 69 Forecast Sales of Luxury Timepieces by Category: Value 2018-2023

Table 70 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2018-2023

Headlines

Prospects

Luxury Writing Instruments Make Popular Corporate Gifts

Destination Shopping Limits Growth Opportunities

Category Suffers Competition From Other Entry-level Luxury Categories

Competitive Landscape

Iconic Montblanc Remains the Leading Brand

Brand Perception Characterises the Category

Lack of Brand Awareness Hampers Category Progress

Category Data

Table 71 Sales of Luxury Writing Instruments and Stationery: Value 2013-2018

Table 72 Sales of Luxury Writing Instruments and Stationery: % Value Growth 2013-2018

Table 73 NBO Company Shares of Luxury Writing Instruments and Stationery: % Value 2013-2017

Table 74 LBN Brand Shares of Luxury Writing Instruments and Stationery: % Value 2014-2017

Table 75 Distribution of Luxury Writing Instruments and Stationery by Format: % Value 2013-2018

Table 76 Forecast Sales of Luxury Writing Instruments and Stationery: Value 2018-2023

Table 77 Forecast Sales of Luxury Writing Instruments and Stationery: % Value Growth 2018-2023

Headlines

Prospects

Themed New Brand and Product Launches Drive Growth, Despite the Challenging Economic Environment

More Brands Cater To Ethnic Consumers

Weak Rand Impacts Unit Prices

Competitive Landscape

Prestige Cosmetics Group Maintains Its Lead

Experiential Branding Increasingly Used To Distinguish Brands From Competitors

Unique Customer Service Entices Consumers To Spend on High-end Brands

Category Data

Table 78 Sales of Super Premium Beauty and Personal Care by Category: Value 2013-2018

Table 79 Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2013-2018

Table 80 NBO Company Shares of Super Premium Beauty and Personal Care: % Value 2013-2017

Table 81 LBN Brand Shares of Super Premium Beauty and Personal Care: % Value 2014-2017

Table 82 Distribution of Super Premium Beauty and Personal Care by Format: % Value 2013-2018

Table 83 Forecast Sales of Super Premium Beauty and Personal Care by Category: Value 2018-2023

Table 84 Forecast Sales of Super Premium Beauty and Personal Care by Category: % Value Growth 2018-2023