Louis Vuitton, the fan favourite
DURING the Covid-19 pandemic, wealthy consumers who were not financially affected by the virus traded in luxury experiences for luxury items.
Many people were confined to their homes, so as a means of escape, they spent their money on opulent clothes, jewellery, shoes and accessories.
This week, Michael Zahariev, the co-founder of Luxity, South Africa’s largest pre-owned luxury reseller, said this had led to a new movement and an entirely new customer base that continued to grow after the pandemic.
“This increase in new customers has remained resilient as consumers shifted towards higher quality products that hold their integrity and value over time,” he said.
“As the pre-owned market makes luxury more accessible and widespread, this added to greater demand in atypical markets.”
Luxity this month released a report, “The State of the Luxury Market in Africa 2022”.
The fifth edition of the report tracked the state of the luxury market in Africa and how individual brands fared using factors such as sales, searches, and external data.
It found the global luxury resale market was booming and is forecast to be worth $51.77 billion (about R942bn) by 2026, up from $32.61bn in 2021. South Africa and the rest of the continent are seeing similar trends.
The research revealed Louis Vuitton took the top spot while Chanel and Gucci tussled for second and third place, Christian Louboutin ranked fourth, knocking Burberry off the list.
Zahariev believes this was spurred by strong demand within the shoe category and appeal across genders.
Hermès dropped to fifth place, just narrowly making the list this year. “Perhaps the brand’s lack of supply and presence in Africa may finally be showing its downside,” he said.
The report also revealed that Chanel, Louis Vuitton and Celine were the most popular luxury bag items and Louis Vuitton, Gucci and Christian Louboutin the most desired shoe brands.
When it came to clothing, Louis Vuitton again took the top spot, followed by Fendi and Burberry, while Rolex, Hublot and Breitling were the most popular luxury watches.
“The top brand in South Africa is undoubtedly Louis Vuitton, making up one in five searches.
“When looking at shoes, we see Gucci and Christian Louboutin featuring as some of the favourites due to their cross-gender appeal, something that has become vitally important for brands as men begin to make up an ever-increasing market opportunity,” he added.
Zahariev believes the purchase of pre-owned items has many benefits.
“By purchasing pre-owned, not only do you have greater access due to lower prices, and payment plans, as well as greater access to many models outside of the current range, but you are also contributing to a circular economy,” he explained.
“‘This circular economy allows for greater sustainability as items are not sent to landfill; rather, they are reused and passed on to others. Additionally, the funds to purchase these items also stay in the local economy and pass on to other consumers in the pre-owned circular economy.”
Luxity found another growing trend was people buying and selling and continuously using the funds raised to fund their new purchases.
“Although this trend is at its beginning, with only 5% of Luxity customers being buyers and sellers, this small group accounts for 25% of total revenue.”
He believes one of the biggest drivers behind Africa’s penchant for preowned luxury is access.
“Consumers are looking for the best way to access luxury brands, and pre-owned offers this superior access – not only through lower prices but also the ability to access payment plans, shop online, as well as shop ranges and brands not available on the continent.”
He said South Africa was one of two countries in Africa that had luxury stores. “In South Africa, as internationally, we have seen the luxury market flourish.”