The African Business Review Nov-Dec 2013 | Page 20

ANALYSIS
The luxury market in Africa –

emerging consumer empowerment is creating a luxurious future
By Glyn Atwal and Douglas Bryson

As international luxury brands look beyond China
for growth, Africa is evolving as a new luxury market
destination. In this article, we examine how luxury
brands can capitalize on Africa’s rewarding growth
opportunities.

I

t may seem odd to associate the growth of microfinance with
the burgeoning luxury market in Africa. However, our starting
point in understanding the magnitude of the potential of the
luxury market in Africa was in fact a microfinance study conducted in
Senegal. We were rather surprised that the enterprising entrepreneurs
at the bottom of the so-called wealth pyramid shared a common
attribute with the affluent classes at the top of the wealth pyramid. In
a word, empowerment.
The micro-entrepreneurs exhibited a strong sense of
empowerment, but also the willingness and drive to improve their
personal situation for themselves and their families. Similarly, we were

20 | The African Business Review

able to observe that members of the emerging affluent classes felt
empowered to demonstrate their newly acquired economic and social
status. Codes of consumption, from smartphones, imported alcohol,
fashion brands, or high performance car marques, have evolved in a
relatively short time period, and serve as powerful symbols of social
advancement and achievement. Africans have started to live an
African Dream built on their personal visions and aspirations.
Consumerism in Africa can essentially be interpreted as a
journey of personal progress. Private consumption in Africa is indeed
1.
McKinsey (2012) The Rise of the African Consumer: A Report from McKinsey’s Africa Consumer
Insights Center, October, http://www.mckinsey.com/insights/consumer_and_retail/the_rise_of_the_african_consumer
2.
DB Research Management (2013) Sub-Saharan Africa: A Bright Spot in Spite of Key Challenges,
15 July.
3.
Euromonitor International (2012) Sizing up Luxury Goods Opportunity in Africa’s Frontier
Markets, 4 September, http://blog.euromonitor.com/2012/09/sizing-up-luxury-goods-opportunity-in-africas-frontier-markets.html
4.
Som, A. and Das, S. (2012) The Rise of Indian Luxury Brands. In Atwal, G. and Jain, S. (Eds.), The
Luxury Market in India. Maharajas to Masses. Basingstoke, UK: Palgrave Macmillan.
5.
WARC (2013) African Luxury Brands Grow, 16 January. http://www.warc.com/LatestNews/
News/EmailNews.news?ID=30888&Origin=WARCNewsEmail