The enduring allure of the top luxury fashion brands in South Africa hasn’t dimmed in 2024.
However, according to the most recent Luxity report, which monitors the luxury resale market, there have been some nuanced shifts.
Some brands “…consolidated their positions, some retraced and others broke new ground”.
A shake-up for Louis Vuitton
The biggest surprise was the shake-up of two perennially popular giants, Louis Vuitton and Chanel. Both brands experienced an unexpected decline in resale values, by 1.9% and 0.9% respectively.
Resale value is the amount spent as a percentage of the original price. It demonstrates the enduring desire and resilience of a particular brand, as well as intrinsic value.
In a year marred by high inflation, a decelerating economy and a weakening rand, this slight downward turn may have been a reflection of two things:
- the affordability of luxury experiencing an undeniable dip
- an inability to keep up with the “brisk pace” of price increases in these two brands.
As if this blip wasn’t enough for Louis Vuitton, Chanel went ahead and dethroned it from the number one spot as the leading luxury brand in SA.
Balenciaga, on the other hand, experienced a massive 10.1% escalation in resale value.
The biggest revelation in Luxity’s list of the top luxury brands in South Africa by resale value was the integration of watch and jewellery brands. Rolex and Cartier placed first and second, with resale values of 97.6% and 74.6% respectively.
The top 10 luxury brands in South Africa by resale value were (from the top):
- Rolex
- Cartier
- Chanel
- Hermès
- Louis Vuitton
- Dior
- Balenciaga
- Gucci
- Bulgari
- Christian Louboutin.
These leading brands were followed, in order, by Chopard, Montblanc, Dolce & Gabbana, Givenchy and Tag Heuer.
Despite its dethronement, Louis Vuitton, along with Gucci, retained pole positions in terms of online search interest, commanding 16.88% and 14.14% respectively. Together, the two brands constituted almost one in three searches (31.02%), down a smidge from the previous year’s 32.3%.
Of course, demand is influenced by supply. A brand’s search interest within an online store, adjusted by the available items on the market, brings Rolex – with a modest 1.73% of search interest – charging to pole position with 13.11%.
- Rolex 13.11%
- Omega 4.92%
- Cartier 4.55%
- Chanel 4.14%
- Louis Vuitton 3.31%
But, overall, the top five luxury brands in South Africa are:
- Chanel
- Louis Vuitton
- Rolex
- Cartier
- Gucci
SA’s top five differed slightly to the online top luxury brands worldwide. This is according to Luxe Digital, which based findings on data from multiple sources, including Deloitte, Forbes and Google. The internation top five are:
- Dior
- Gucci
- Chanel
- Louis Vuitton
- Hermès
Rolex
Iconic watch brand Rolex raced ahead to become the clear winner, with a resale value of a whopping 97.6%. Each Rolex watch is handcrafted in Switzerland. The relative scarcity of certain models, historical significance and celebrity ownership were all factors that contributed to the highest resale prices.
Cartier
Cartier – known as “the jeweller to kings and the king of jewellers” – moved into second position for resale value with its perennially desirable watches, in particular, selling at 74.6% of the original new price.
Chanel
Chanel’s ascent to the crown position in South Africa is all the more remarkable because the brand doesn’t have any retail outlets in the country. Perhaps, it’s because of this – unwavering brand loyalty and consumer demand that’s intensified by limited supply.
Hermès
The handbags from this luxury brand are so iconic and exclusive that the Birkin bag is rumoured to be sold to only a select list of clients. Victoria Beckham’s collection is said to exceed 100 and be worth more than £1 million (R23,000,000). She has, it is said, a Birkin or Kelly bag for every occasion.
Louis Vuitton
Louis Vuitton is unlikely to be too dismayed by the tiny blip in resale value in South Africa. According to Forbes, LVMH Moët Hennessy Louis Vuitton, the world’s largest luxury conglomerate, is now Europe’s most valuable company ever, with a market cap exceeding US$500 billion.
Dior
Dior, a brand in LVMH stable, toppled Gucci from the top spot for the first time as the world’s most popular online luxury brand.
Balenciaga
Its massive performance in South Africa showcased the unique dynamics of the African luxury market. Elsewhere in the world, the brand “grappled with diminished desirability” following a campaign featuring children holding teddy bears in bondage gear.
Gucci
Worldwide, Gucci’s monogrammed star has truly fallen. According to Luxe Digital, the brand’s share of search interest dropped from 22.4% in 2019 to 13.4% in 2023.
Bulgari
This brand blends modernity with classicism to produce luxury jewellery, watches, fragrances and leather goods that are emblematic of Italian style and excellence.
Christian Louboutin
No-one can resist the shiny, red-lacquered soles of a pair of stilettos from this French designer who often incorporates rhinestones and feathers into his iconic shoes. American novelist Danielle Steel is reputed to own more than 6,000 pairs.
Top luxury brands in South Africa by category
Are you a bag or a shoe person? Or both? Search interest by brand showcases brand loyalty but search interest by category shows what consumers are actually looking for.
While bags have been perennially popular, last year shoes became the most searched category (24.86%), followed by bags (18.03%) and apparel (14.73%), debunking the idea that consumers have reservations about buying pre-owned items in the shoe category.
The table below lists the top brands by category with the highest resale value.
Shoes: | Balenciaga (67%) | Dolce & Gabbana (63%) | Burberry (62%) |
Bags: | Chanel (96.2%) | Dior (69.2%) | Louis Vuitton (68.2%) |
Apparel: | Balmain (48.7%) | Louis Vuitton (48.1%) | Chanel (46%) |
Accessories: | Chanel (70.8%) | Van Cleef & Arpels (70.5%) | Louis Vuitton (69.5%) |
Watches: | Rolex (94.9%) | Cartier (77.8%) | IWC (68.7%) |
Luxury fashion trends – what and who is driving them?
It’s hard to know who and what ultimately drives luxury fashion trends. What’s certain is that luxury items are both functional and status symbols – and they perform as outstanding investments.
With relatively few outlets for new luxury brands in Africa, the ever-increasing demand for luxury fashion brands far outweighs supply.
According to the latest edition of the Bain & Company Report with Altagamma, generations X and Y represent the bulk of luxury purchases and the key pool of income growth in the near future.
However, luxury shoppers are getting younger and younger. By 2030, Gen Z – often referred to as the first fully “digitally native” generation – will account for 25 to 30% of luxury market purchases. It’s estimated that millennials will account for 50 to 55%.
Loans against luxury assets
It’s clear that items from many of the top luxury fashion brands in South Africa hold their market value.
When you’re in need of funds, it may be possible to unlock this value – without having to sell.
If you own a Rolex watch, a Hermès Birkin bag or Balmain coat, for example, you may be able to use it to secure a short-term, asset-based loan.
At Lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork. For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.
ILLUSTRATIVE EXAMPLE
Client borrows R10,000 for 90 days.
Loan Amount | Repayment Period | Monthly Interest | Total Cost of Loan | Initiation Fee | Monthly Fee | APR |
---|---|---|---|---|---|---|
R10 000 | 3 months | R500.00 | R2 914.50 | R1 207.50 | R569.00 | 60% |
Fixed rates range from 36% to 60% APR and payment terms range from a minimum of 3 months to a maximum of 24 months. Apart from the initiation and monthly fees shown in the table, the only additional fee is credit life insurance if the borrower does not have this already.
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