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    Africa Accelerates Urbanization, Luxury Market Is Growing Prosperous

    2014/8/2 20:51:00 332

    AfricaUrbanization DevelopmentLuxury Goods MarketGrowing Prosperity

       Deloitte Touche Tohmatsu He said that the economic growth rate of sub Saharan Africa is second only to that of the Asia Pacific region. The luxury goods market in the region grew rapidly, with a growth rate of up to 35% between 2008 and 2013.


    Rodger George, head of Deloitte's African consumer business, said that the urbanization process has made more people confident about the future and they have more money in their pockets to support their ambitions.


    "We expect The luxury goods market in developed countries will recover in the coming years of this year, while emerging economies in sub Saharan Africa, for example, do not have too much debt. In the long run, luxury goods in this market are very promising. " George said.


    South Africa and Nigeria are regarded as the most important emerging markets in the region. The purchasing power of the people in these two countries has been growing, attracting the attention of many international brands.


    Jayani, a well-known menswear brand, has been providing tailor-made clothes for many Hollywood stars. Jayani opened a store in Lagos, Nigeria last year. It is understood that Jayani plans to open three more stores. At the same time, French clothing brand HugoBoss and Italian brand Prada will also open stores in Lagos. In addition, Armani, Versace, Paul Smith, Longchamp and others will open stores in South Africa in November.


    According to the data of duty-free shops in the UK, among many international consumers who come to the UK to buy luxury goods, the consumption of Nigerians ranks first. In addition to buying luxury goods in South Africa and other places, East African consumers often go to Dubai to purchase.


      however International luxury brands entering the African market have also encountered problems. The region lacks decent stores and high-end malls. In addition, it will be difficult to open stores in foreign countries without the assistance of local partners, so many famous brands adopt the franchise mode, George pointed out.


    However, South Africa is an exception. There are many stores of all sizes in South Africa, which is the most developed luxury retail market in Africa. Although the current economic development of South Africa is slowing down, South Africans have a very strong demand for designer brands.

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