Defining African Luxury: Challenges and Opportunities for South African Luxury Brands in an Emerging Market

Lerato E. Mdaka and Iman Mkhwanazi
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Lerato E. Mdaka: North-West University, South Africa
Iman Mkhwanazi: University of Witwatersrand, South Africa

in ABEM Conference Proceedings from Academy of Business and Emerging Markets (ABEM), Canada, currently edited by Satyendra Singh

Abstract: South Africa holds the largest luxury goods market on the African continent; however, its local luxury industry remains under-researched as generic studies on BRIC emerging markets often overshadow it. This paper addresses that gap by providing a country-specific exploration of the challenges and opportunities facing local luxury brands in South Africa, exploring why South African luxury brands struggle to define themselves, compete globally, and attract sustained local demand. In-depth interviews were conducted with local designers, luxury experts, and executives from high-end fashion houses. Findings reveal macro-, micro-, and market-level challenges, including weak manufacturing capabilities, lack of skilled labor, limited investment in local production, and the absence of a cohesive identity for 'African luxury.' Simultaneously, increased urbanization, the rise of the middle class, and consumer receptiveness to symbolic displays of success present compelling opportunities for local brands to elevate their presence. This study contributes to the conceptualization of African luxury by articulating its unique characteristics while highlighting practical strategies for local brands to achieve competitiveness in an internationalized market. Ultimately, the research provides a roadmap for developing a sustainable and self-defined luxury ecosystem that positions South Africa not only as a consumer but also as a credible producer of luxury.

Keywords: African Luxury; Brands; Emerging Market (search for similar items in EconPapers)
Date: 2025
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