Potential of Luxury Brands in South Africa
Luxury Brands:
Creating luxury brands is difficult; expanding one is even more so. But what all luxury brands in terms of consumer acquisition find as their foundations is their ability to tap and perfect marketing communication, product quality and a specific target niche portfolio in which it can thrive for a more competitive advantage.
Emerging Markets hold huge potential for growth for Luxury Goods. The surge of numerous flagships stores and sold goods within Asia is a prime indication that brands themselves are aware of the buying power these markets hold. On a localized stance, for South Africa I think Luxury Goods have huge potential, though the environment and Brand implementation would have to be localized in certain sectors, recent migration of HNI post rescission is a indication that such markets along with dominant BRIC countries are not to be ignored. South Africa holds what experts now are calling an ‘aspirational’ buyers market. Such markets contain individuals who seek access to entry-level goods backed by luxury brand names. Luxury Goods now consist of products on both end of the spectrum. Ultimately the hope is that, the image and brand itself will allow such consumers to ‘trade-up’ during their life span. (There is also the risk of devaluating the brand, but these issues are prone to any expansion by any fashion house and can later be addressed with proper marketing and promotional tools). Brands that fall under this category for me are “Ssella Mccartney” , “Clhoe”, “Oscar de la Rental (ODLR) “ and “Bottega Vennetta” for the aspiratiional market. Each of the above goods contain middle ground ranges as well as low end.
That being said I also feel that there is a niche of HNI that are willing to buy luxury goods within their home country and situation arises. ‘Vertu’ is a luxury brand specializing in top of the range, deluxe mobile phones. Mobile phones typically retail for around £100 - £250 pounds, however Vertu is aimed at the top end of
Creating luxury brands is difficult; expanding one is even more so. But what all luxury brands in terms of consumer acquisition find as their foundations is their ability to tap and perfect marketing communication, product quality and a specific target niche portfolio in which it can thrive for a more competitive advantage.
Emerging Markets hold huge potential for growth for Luxury Goods. The surge of numerous flagships stores and sold goods within Asia is a prime indication that brands themselves are aware of the buying power these markets hold. On a localized stance, for South Africa I think Luxury Goods have huge potential, though the environment and Brand implementation would have to be localized in certain sectors, recent migration of HNI post rescission is a indication that such markets along with dominant BRIC countries are not to be ignored. South Africa holds what experts now are calling an ‘aspirational’ buyers market. Such markets contain individuals who seek access to entry-level goods backed by luxury brand names. Luxury Goods now consist of products on both end of the spectrum. Ultimately the hope is that, the image and brand itself will allow such consumers to ‘trade-up’ during their life span. (There is also the risk of devaluating the brand, but these issues are prone to any expansion by any fashion house and can later be addressed with proper marketing and promotional tools). Brands that fall under this category for me are “Ssella Mccartney” , “Clhoe”, “Oscar de la Rental (ODLR) “ and “Bottega Vennetta” for the aspiratiional market. Each of the above goods contain middle ground ranges as well as low end.
That being said I also feel that there is a niche of HNI that are willing to buy luxury goods within their home country and situation arises. ‘Vertu’ is a luxury brand specializing in top of the range, deluxe mobile phones. Mobile phones typically retail for around £100 - £250 pounds, however Vertu is aimed at the top end of