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luxury: AfricAn perspective and diamond Walk, a luxury brands centre, will be opening in sandton.” chang adds that many brands use sA to springboard themselves into the rest of the continent. Ghana, Kenya, Morocco and Angola are all on the expansion radar of some of the brands that have already established themselves in sA. For her part, Malherbe believes the emergence of a middle class and a very aspirational and large young population means the continent could become the home of many luxury brands in the future. “It is all about how the luxury market evolves from being ostentatious to one of luxury sophistication,” she says. Home-grown quality brands Ivory coast-born swaady Martin-Leke, Premium-quality spirits are increasingly sought after, with Nigeria being one of the world’s top growth markets A Yswara tea set ... could the brand be the forerunner of other African luxury brands? founder of luxury African tea brand Yswara, believes there’s an opportunity for home-grown quality brands on the dion chang, sA-based trend analyst Malherbe believes the trick is to its ‘reserve’ (premium) spirits when African continent. speaking to cnn’s and founder of Flux Trends, says sales in find the balance between local and he toured the country last year. Market Place Africa programme last year, europe and the United states are dismal Find the balance aspirational. “The marketer does not want “There is growing emerging middle Africa could she discussed the nature of global luxury and this is leading to luxury brands eyeing between local and to alienate the market by changing the class here. It is a great opportunity for our develop its own brands and the importance of African the emerging markets. “BrIcs are their aspirational messages essence of the brand through localisation; reserved brands at the top end. We see luxury brands companies tapping into the market new markets. This is where the growth there is a fine line between keeping opportunity here, as Africa is the most with products that have a distinctly is. The appetite in china for luxury goods it aspirational, but localising it so the exciting region in the world right now.” contemporary African feel. was so high that, despite prices increasing consumer knows you care about them.” “When you go all around the world by 25%, the products were still selling. however, chang believes localised lack of suitable locations you see very distinctive luxury. Japanese This shows the hunger for luxury goods fastest growing market in the world advertising campaigns at the luxury level Another challenge faced by brands travel to Johannesburg that to any luxury has its own identity, French luxury from emerging markets.” for champagne, and in 2012 its total will not work; instead, the campaign has establishing themselves in a new African other city in Africa, he says, noting that has its own identify; so does Italian or he continues: “While most luxury consumption was 750-million bottles – to be aspirational. country is finding suitable store locations. there’s more appetite among shoppers American,” she said, adding that Africa brands concentrated on china, Brazil and placing it among the top 20 champagne regardless of a brand’s strategy, But Malherbe advises that not all brands for Johannesburg than for cape Town, can learn from the likes of France and russia, their focus has moved to Africa markets in the world. sometimes the market just runs away need to have their own outlets and brands “where the V&A Waterfront’s collection the city of Paris, which have long used and many are not waiting any more, but Among the luxury brands that with it. “nigeria is a big market for can work through already established of luxury brands is called death row ... luxury as a means of preserving heritage are launching on the continent.” have opened stores in the country are alcohol, but often the execution is not in shops. “nearly all the watch brands have travellers are not buying there.” and culture. sharon Preston, editor of Prestige ermenegildo Zegna, hugo Boss and line with the brand. For example, a major a presence through other stores; however, According to euromonitor International, “Africa has the foundation of what magazine – which bills itself as ‘Africa’s Porsche; Prada will be opening soon. brand’s logo at a venue may be located fashion brands face more challenges as spending on luxury goods in sA rose from is needed to create a vibrant luxury premier luxury lifestyle magazine for “We opened our office in nigeria just next to a competing brand,” explains they cannot always piggyback off others,” Us$628,5-million in 2007 to more than industry; we have the craftsmanship, the billionaires’ – says luxury is growing in over a year ago, but feel we only now Malherbe. “While it is easier for alcohol she notes. Us$1-billion in 2012. heritage and a rich culture that dates over Africa. “This is very clear … as a result understand the market,” says Malherbe. brands to enter a country, they also chang believes another challenge for In sA, says Preston, retail outlets hundreds or thousands of years. so here we are moving to increase distribution “At a recent launch event, the size of the face a risk as it is easier for their brands luxury brands that are newly established like Luminance – an exclusive fashion, is this continent that has the raw materials on the continent, starting with business canapés was important. It is that kind of to be damaged.” in an African country is to persuade high- beauty and lifestyle department store and the historic know-how; but what is lounges in various airports. This is detail that needs to be adhered to.” diageo, the world’s largest producer end consumers who would traditionally located in upmarket hyde Park corner in missing is that link to luxury,” she told where the audience we want to reach All luxury brands have well-developed of alcoholic spirits, is one of those that travel elsewhere to shop – to London or Johannesburg – are very well received the broadcaster. is to be found: travellers from across marketing plans and a clear idea of see great opportunity in nigeria for its dubai, for example – to begin shopping by Africans seeking luxury products. “I think now is the time and you need the continent.” their image and product positioning – top-end products, among them scotch locally. he adds that there’s also a trend “shoppers from all over Africa are to start positioning yourself, because something that has often developed whisky brands Johnnie Walker Blue Label PHOTOS: ISTOCKPHOTO, SUPPLIED for high-net-worth individuals in some travelling [to sA] because the imported Africa is getting richer. There is room for Hotbeds of consumption over decades or even centuries. entering and Johnnie Walker Platinum Label. African countries to travel to sA for their brands are here and we speak english, more [African luxury brands].” The hotbeds of luxury goods consumption a new country is about localising that “The future is very bright for the nigerian top-end shopping. so they feel comfortable,” she observes. appear to be sA and nigeria. Between strategy, but without destroying the brand market,” said Tim etherington-Judge, sA’s high quality shopping centres “There is talk that by the end of the year 2007 and 2013, nigeria was the third- essence – and Africa is no different. diageo Africa’s brand ambassador for suit the luxury brands and more people there will be more luxury brands here, Additional reporting by Mike Simpson 12 strategicmarketingafrica Second quarter 2014 Second quarter 2014 strategicmarketingafrica 13