SA has emerged as Africa’s premier luxury destination, defying economic pressures with a thriving high-end retail sector, according to the seventh annual state of the luxury market report by Luxity.
Despite sub-Saharan Africa’s GDP per capita dropping to $1,540 (R27,874) and inflation soaring to 15.28%, SA’s luxury market continues to grow, driven by strong consumer demand and a rapidly expanding pre-owned segment, according to the report.
SA’s dominance in the luxury market is highlighted by iconic retail hubs including Sandton City in Johannesburg and the V&A Waterfront in Cape Town. The malls have become hotspots for luxury shopping, experiencing remarkable growth in recent years.
The continent’s appetite for high-end goods, particularly in SA, remained undiminished, the report said.
“SA leads the continent’s luxury market, boasting the highest number of luxury stores. High-end shopping experiences continue to thrive, with major malls such as Sandton City seeing an increased luxury segment turnover — 19% this year, up from 12.5% in 2015, according to landlord Liberty Two Degrees,” it said.
According to Statista, SA’s luxury goods market is valued at $918.5m (R16.6bn) in 2024, with an annual growth rate projected at 3.93%. The largest segment, luxury fashion, accounts for $273.9m. Globally, China leads with $102bn in revenue.
A standout trend driving SA’s luxury market is the rise of pre-owned goods. Luxity’s report predicts the pre-owned segment will grow by 30% this year, outpacing sales of new luxury items. Michael Zahariev, co-founder of Luxity, credits this growth to affordability and investment appeal.
High-end shopping experiences continue to thrive, with major malls such as Sandton City seeing an increased luxury segment turnover — 19% this year, up from 12.5% in 2015, according to landlord Liberty Two Degrees.
— State of the luxury market report by Luxity
Zahariev is optimistic that with SA home to the most high-net worth individuals on the continent, the country’s luxury market will continue to outperform global trends. However, there is a shift in brand loyalty across the continent as consumers have started embracing new luxury trends.
According to the report, Hermès has risen to become the most coveted brand, overtaking long-standing favourites Louis Vuitton and Chanel. The resale value for Hermès goods averages 67.7%, reflecting the brand’s growing appeal.
“Signs of brand fatigue are emerging, with shifting consumer loyalty suggesting a more dynamic market as people become more open to investing in a broader selection of brands,” Zahariev said.
“This shift is evident, with Hermès rising to number one on the report’s top five brands list, a position previously dominated by Louis Vuitton and Chanel.”
Local brands are also gaining prominence. According to the report, SA’s Browns Jewellers, known for its fine craftsmanship, competes with global giants such as Cartier, boasting a resale value of 66% and an average resale price of R55,000.
“This shows Browns has managed to carve out a notable position within the competitive luxury market, standing shoulder to shoulder with international giants such as Chanel and Louis Vuitton.”
Africa’s luxury market is drawing global attention from investors, buoyed by its resilience and potential for growth. With a strong pre-owned sector and increasing participation from international brands, the continent is becoming a key player in the global luxury industry.
Zahariev predicts a stronger rand will further enhance market participation, making luxury goods even more accessible to local and international buyers.
“While global luxury sales are predicted to remain modest in 2025, Africa’s luxury market tells a different story. New brands will be entering the continent, and retail investments in luxury will continue expanding,” he said.
“The pre-owned market is also expected to grow rapidly, aided by anticipated price adjustments from designers and stronger local currencies such as the rand, which will enable more Africans to participate. This will see the continent’s luxury market share rise, positioning it as an increasingly attractive opportunity for luxury investors.”
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