The enduring allure of the top luxury fashion brands in South Africa didn’t dim in 2023.

However, according to the latest Luxity report, which monitors the luxury resale market, after years of consistent growth across brands, 2023 was a watershed year with “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 2023’s top luxury brands in South Africa by resale value was the integration of watch and jewellery brands, with Rolex and Cartier placing first and second with resale values of 97.6% and 74.6% respectively.

The top 15 luxury brands in South Africa by resale value were (from the top): Rolex, Cartier, Chanel, Hermès, Louis Vuitton, Dior, Balenciaga, Gucci, Bulgari, Christian Louboutin, 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%), again 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 in the market brings Rolex – with a modest 1.73% of search interest – charging to pole position with 13.11%.

1. Rolex 13.11%
2. Omega 4.92%
3. Cartier 4.55%
4. Chanel 4.14%
5. Louis Vuitton 3.31%

But, overall, the top five luxury brands in South Africa in 2023 were:

1. Chanel
2. Louis Vuitton
3. Rolex
4. Cartier
5. Gucci

SA’s top five differed slightly to the online top luxury brands worldwide, according to Luxe Digital, based on data from multiple sources, including Deloitte, Forbes and Google.

1. Dior
2. Gucci
3. Chanel
4. Louis Vuitton
5. Hermès

Rolex

Iconic watch brand Rolex raced ahead to become the clear winner in resale value of a whopping 97.6%. Each Rolex watch is handcrafted in Switzerland. Their relative scarcity and the desire for certain models, along with historical significance and celebrity ownership, contribute to the high prices of pre-owned watches.

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 South Africa. 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, in 2023 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.

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, while 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.