Post on 17-May-2020
Luxury & Retail Trends in
Sub-Saharan Africa
INSIGHT BREAKFAST AFRIQUE
martine.ghnassia@ifop.com
Luxury & Retail Trends in Sub-Saharan Africa Book
Methodology
SMART DATA MONITORING
ON SOCIAL TRENDS AND
LUXURY TRENDS IN SUB
SAHARAN AFRICA
HUNTING BRAND
AND RETAIL INITIATIVES
IN SUB-SAHARAN AFRICA
South Africa
Ivory Coast
Nigeria
Kenya
Angola
Industries observed : Cosmetics, fashion,
accessories, make-up, jewelry, wines,
spirits, tourism, hotels.
90 Initiatives covering : advertising and
social media, services, special offers,
events, merchandising, pop-up stores.
InCapsule by Ifop Local network of trendhunters
SOCIOLOGICAL INSIGHTS, MARKETING LEVERS AND ACTIVATION STRATEGIES
FOR AN EASY AND PRACTICAL APPROPRIATION
BY A LUXURY MARKETING TEAM
LUXURY
RETAIL AND
MARKETING TRENDS
5 MARKETS
KEY FACTS
SOCIOLOGICAL
CONTEXT
ANGOLA
Main city Luanda
Population: 25 million
HNWI: 330
Language Portuguese
Sectors Diamonds, oil, gold,
copper
SOUTH AFRICA (HUB)
Main Cities Cape Town,
Johannesburg
Population: 55 million
HNWI: 2060
Language English
Sectors Platinum, diamond,
gold, mining and
manufacturing products
NIGERIA
Main city Lagos
Population: 182 million
HNWI: 770
Language English
Sectors Oil, petroleum,
cocoa, rubber
BOTSWANA
Main city Gaborone
Population: 2 million
HNWI: 90
Language English
Sectors Diamonds, gold,
copper
KENYA
Main city Nairobi
Population: 45 million
HNWI: 340
Language English
Sectors Tea, coffee,
horticultural products,
petroleum products,
cement, fish
IVORY COAST
Main city: Abidjan
Language: French
Population: 27 million
Sectors: Cocoa, petroleum
SUB-SAHARAN AFRICA : OVERVIEW
Sub-saharan Africa
44 countries
SUB-SAHARAN AFRICA : RETAIL MATURITY
IVORY COAST
Concentration of
wealthy people
Developing
luxury market
SOUTH AFRICA
Presence of fashion and beauty
brands (Louis Vuitton, Emergildo
Zegna, Hugo Boss, Prada and
Gucci, Mac and L’Oréal)
Automotive industry
(BMW, Jaguar and Mercedes Benz)
Tourism
NIGERIA
Largest consumer market
Lagos Fashion Week
Private Jet market
“Nollywood”
ANGOLA
Creative Market. Luxury,
beauty and fashion market.
Infrastructure is underdeveloped, but locally
owned retail networks are expanding rapidly.
Shopping abroad (Portugal)
KENYA
Nairobi seems focused
on developing a fashion
market for everyone.
Bigger market with a
good opportunity for luxury.
BOTSWANA
Concentration of wealthy
people
Small local market
High presence of luxury brands and infrastructure available
Infrastructure and emergency of luxury brands
Luxury brands are still not present in the country
EMERGING
MARKETEMERGING
MARKET
EMERGING
MARKET
NEW
MARKET
MATURE
MARKET
NEW
MARKET
SECOND FASTEST GROWING REGION IN THE WORLD1
0
1
2
3
4
5
6
7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
The economy is due to
double in the next 6 years double the rate of advances economies
Sub Saharan Africa (3)
Sub-Saharan Africa has emerged in the
last 10 years as the second fastest growing
region in the world and is projected to
remain the same by 2020.1
The term “untapped potential” is often bandied about when it comes to Africa, but when we drill down to the reality, the numbers speak for themselves.
And while it remains fragile, it is making progress as it undergoes a complex process of transition. Focus on Sub Saharan growth.
Sub-Saharan Africa World
GDP Growth: Global vs Sub-Saharan Africa in trillion.2
1,4trillion
Expected in customer
spending by 2020
Sub Saharan Africa in $ (3),
1 Euromonitor 2 PWC 3 McKinsey Global Institute
X2
From population increase to a rising household income and purchasing power,
Africa is a very attractive market for investors. These opportunities rest on eight pillars.
A
DEMOGRAPHIC
BOMB
POWER TO
THE YOUTH
THE
EMERGING
MIDDLE
CLASS
REDUCING THE
GENDER GAP
A CONNECTED
CONTINENT
STRENGTH
LIES IN
DIVERSITY
A RAPID
URBANIZATION
THE GROWING
UPPER SCALE
THE 8 PILLARS
PART TWO
LUXURY MARKETING & RETAIL TRENDSAnalysing Luxury and Premium brands initiatives from late 2016 to today, sourced in Sub-Saharan Africa
with a mix of fashion, accessories, cosmetics, perfumes, make-up, jewelry, automotive, hotels & retail.
AN APPETITE FOR LUXURY
Sub-Saharan luxury markets
represented 2,4 billion in 2015
and may grow by 30% in the
5 following years.2
South Africa
Kenya
Largest luxury markets in Africa by revenue in 2016, in
billions.3 (different source )
Nigeria
Angola
2,3
0,5
0,4
1,8
South Africa
Angola
Luxury Goods Potential Index (based on demographics, income,
and institutional factors) 4 (All values out of 100)
Nigeria
Kenya
72,4
Ivory Coast
1 Euromonitor
2 Capital 23/02/2016
3 Africa Wealth Report 2017
4 KPMG, Luxury Goods and Wealth Management in Africa 2016
65
27.8
21.7
16,3
Luxury cars, private jets, personal luxury goods, luxury hotels and lodges... A dazzling progression of luxury markets is on its way in Africa, which make
the continent appear as the future Eldorado for big fashion houses.
Africa will be the second fastest
growing region in the world for
luxury goods through 2019 (rising
5,6% per year) and up to $ 5,2
billions . 2015: $3 billions. 1
2nd
+ 30%
0,2
ALL ABOUT MALLS
1 Uqala Research
COUNTRY: SOUTH AFRICA, KENYA
Formal shopping culture, increased international
exposure, growing private label exposure, relatively
stable and transparent pricing.
SA : 1942 malls, K: 24
MATURE
DEVELOPPINGCOUNTRY: NIGERIA
Emerging shopping culture, average international
exposure and widening assortments.
N: 10 malls
BASICCOUNTRY: ANGOLA, IVORY COAST
Little to no shopping culture, international exposure
almost nonexistent.
A : 9 malls
SHOPPING GOES DIGITAL
1 McKingley
By 2025, online shopping could
account for 10% of retail sales
in Africa.1
#1Jumia is the leader in e-commerce
across Africa with a 1.2M active
customers across 11 countries.
oxosi.com connects African brands with
Global consumers.Nigerian concept store Polo Luxury
launched pololuxury.com, a portfolio of
international brands.
onycheck.com makes luxury fashion of
‘Made in Africa’ brands easily accessible to
the world.
Following pages : examples of key initiatives
on Adapt & Localize trend
&
THREE DRIVERS
ADAPT
LOCALIZE &SUPPORT
THRIVE &ENGAGE
SEDUCE
ADAPT & LOCALIZEContinent of contrasts, Africa remains a complex and challenging market, but it offers opportunities
to those prepared to adapt their business models to the region. Companies ready to innovate within
their brand, communication and portfolio strategies are most likely to reap the rewards.
MADE
FOR
AFRICA
HERITAGE
WITH A
TWIST
GOING
NATURAL
BRAND
AMBASSADOR
MADE
FOR
AFRICA
With the arrival of a stronger
competition – particularly from
homegrown African companies –
it is becoming imperative for
anyone interested in the African
markets to offer products that
answer their specific needs,
desires and what they care
about.
A strategy that won’t go without
careful examination and deep
understanding of the types of
people, demographics and
psychographics across all
segments. But by doing so,
brands can offer products that
will be warmly welcomed by
consumers and could potentially
become a real source of pride
and honor for locals.
With Brassivoire, Heineken opened a brewery
in Ivory Coast that crafts a new product
specifically addressed to the Ivorian market.
New Daywear Matte by Estée Lauder has
been created with South African women in mind
for a better oil control.
Nigerian Artist Laolu Senbanjo collaborated
With Bulgari On A Limited-Edition Fragrance
that displays the mystery of African through
pattern.
ADAPT & LOCALISE
Africa’s first luxury perfume, Scent of Africa is
a blend of sophistication and elegance that
pays homage to the continent rich identity.
For its latestt Maxhosa x Nivea collaboration,
the designer embraced astonishing patterns
and colors of his Xhosa heritage in a modern
way.
The Nsukka Project by Kenzo was shot in the
Igbo communities of Nigeria and showcases the
various rites, rituals and ceremonies involved
with being young in this society.
An homage to Senegalese mythology, The
Other Dakar short film from fashion designer
Selly Raby Kane transports viewers to a place
where past and future meet.
Wax prints were embellished with Swarovski
crystals for the latest Da Viva collection, a bold
statement that mixes traditional fabrics and
modernity.
ADAPT & LOCALISE
HERITAGE
WITH A TWIST
Culture and traditions are often
set at the center stage of African
societies and seen as an object
of pride for its civilians.
As Africa is progressing into
more developed economies, the
younger generation is using them
in order to build a strong and
impactful contemporary
narrative. African cultures and
values are rebranded, sustaining
and establishing their relevance
in the modern world.
ADAPT & LOCALISE
GOING
NATURAL
As the natural hair and beauty
movement sweeps across the
United States and Europe, it’s
also making its way to various
corners of the motherland.
A movement that encourages
African women to go against
Western beauty standards and
embrace their beauty in its
natural state, from curly hair to
darker skin. An holistic approach
that urges people to live
their best life by embracing their
natural self and true identity.
Beauty brand The Kinky Apothecary’s created
the Nigerian Natural Hair + Beauty Show to
change ideals of beauty and support women
who are going against the mold.
Pantene Gold Series celebrates black beauty
in all its texture, style and history with the
launch of its new collection Gold Series.
Nivea was severly backlashed by the African
community for promoting and encouraging skin
bleaching with its new campaign for "Natural
Fairness Body Lotion’.
L’Oréal launched Elvive’s new Extraordinary
Oil Curl Nourishment range for natural hair.
The product is accompanied by the motto ‘You
never go natural, you return to it’.
Full report on demand
contact : martine.ghnassia@ifop.com