Business
Capitalizing on Brand Africa
In The Lap of Luxury
As international luxury brands begin the exodus into Africa, ready to cater to a middle class whose appetite for exquisite goods and services grow, it could mean that Africa’s local luxury brands could face significant competition. Ikalafeng explained that the largeness of a global brand however will not necessarily overshadow an African brand. He stated, “If you look at the high net worth individual rates in the world, Africa is number two after America, so the high net worth individuals are growing at 11 per cent in America, and in Africa at just over 9.2 per cent.”
He then went on to add, “Those high net worth individuals are constantly seeking luxury elements to spend their money on. There’s an attraction to Africa that will not make it necessarily difficult for us but what it will do is create an incentive for Africans to create luxury brands as well.”
Companies such as luxury brand holding company Richemont, which manage international luxury brands under the leadership of South African business magnate Johann Rupert, could lead the continent to a point where African luxury brands will also be managed on a large scale.
Ikalafeng said, “If you don’t have to go to London, you can get the same solution in Nairobi, Lagos or Johannesburg, you create an enabling environment to create intra-African products.” He then concluded, “Africans are now creating ‘made in Africa’ solutions. For African brands to thrive, it’s really about ensuring that those products and services made in Africa deliver on the needs of Africans, but they also deliver on international standards.”
Source: CNBC Africa
