The state of the luxury goods market in Africa: Why Louis Vuitton is a fan favourite in SA

Johannesburg - During the Covid-19 pandemic, wealthy consumers who were not financially affected by the novel Coronavirus traded in luxury experiences for luxury items.

This is because many people were confined to their homes in a bid to curb the spread of the deadly virus, so as a means of escape, they spent their money on opulent clothes, jewellery, shoes and accessories.

And this week, Michael Zahariev, the co-founder of Luxity, South Africa’s largest pre-owned luxury reseller, explained to The Saturday Star that this has led to a new movement and an entirely new customer base that has continued to grow after the pandemic.

“This increase in new customers has remained resilient as consumers become shifted towards higher quality products that hold their integrity and value over time,” he said.

“As the pre-owned market makes luxury more accessible and therefore widespread, this added to greater demand in atypical markets.”

Luxity also this month released a new report, “The State of the Luxury Market in Africa 2022.”

The fifth edition of the luxury-market report tracked the state of the luxury market in Africa and how individual brands fare. This research is compiled based on a variety of factors including sales, searches, and external data.

It found that the global luxury resale market is booming and is forecast to be worth US$51.77 billion by 2026, up from US$32.61 billion in 2021. And according to recent findings in the 2022 report, South Africa and the rest of the continent are seeing similar trends.