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