Luxury Goods in Africa - A Maturing Sector (Report): KPMG

Table of Contents

  • Overview
  • Defining Luxury Goods
  • Macroeconomic Environment
  • The Impact of the Commodity Price Slump
  • Real Purchasing Power
  • The Changing Landscape of the African Wealth Picture
  • Global Wealth Distribution
  • Geographical Distribution of Purchasing Power in Africa
  • Luxury Accommodation
  • Conclusion

Read the full report below.

Overview

There has been a noticeable improvement in economic growth in Africa since the turn of the century, driven by an improvement in the business environment and investment climate, and a decrease in aggregate political risk.

Notwithstanding short-term downside risks, the rise of the African consumer’s wealth profile should continue to draw the attention of luxury brands seeking to unlock emerging and frontier market growth potential as mature luxury goods markets are no longer able to maintain double-digit growth.

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The global luxury goods segment has reached a more mature phase in recent years, with slower but more readily sustainable growth potential. Global macroeconomic headwinds have hurt traditional markets of luxury goods and services, such as the euro zone and Russia, while threatening to stifle burgeoning demand for luxury goods in emerging and frontier markets.

Africa has not escaped the brunt of macroeconomic headwinds brought about by global monetary policy divergence and broader commodity price weakness, and key markets for luxury goods may suffer a slowdown in demand as consumers’ disposable income decrease especially in commodity-dependent countries.

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However, the continent continues to hold strong medium-term economic growth potential, and intra-regional differentiation is increasingly coming to the fore with base commodity importers earmarked as clear winners.

Luxury Goods in Africa – A Maturing Sector: KPMG

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Source: Luxury Goods in Africa: A Maturing Sector – Blog KPMG Africa

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