The development of ‘Diamond Walk’ in Sandton City reflects the growing nature of the luxury retail sector in South Africa.
The South African luxury sector generated over R30 billion (US$3.0 billion) in revenue in 2013, which was more than the rest of Africa combined. Perhaps most notably, this figure has increased by over 250 percent since 2000.
Overall luxury market
The South African luxury sector generated over R30 billion (US$3.0 billion) in revenue in 2013, which was more than the rest of Africa combined. Perhaps most notably, this figure has increased by over 250 percent since 2000.
Luxury sales include luxury cars, fine dining, luxury food stores, luxury hotels and luxury clothing & accessories.
Luxury cars
The following table details the top selling luxury car brands in South Africa in 2013. Notably, Porsche sold 1 035 cars in South Africa in the 6 months between April and September 2013, an increase of over 70 percent on the comparable period in 2012.
Top selling luxury cars in South Africa in 2013
| Brand (ranked by revenue) | Revenue (US$ million)* | Units sold in past six months |
| Porsche | 155.3 | 1 035 |
| Ferrari | 17.8 | 71 |
| Maserati | 5.7 | 19 |
* Last 6 months (April – Sept) revenue, based on number of cars sold multiplied by average price.
Note: Excludes semi-luxury cars such as Mercedes and Jaguar.
Source: NAAMSA
Other luxury car brands with dealerships in South Africa include: Bentley, Aston Martin, Rolls Royce, Mclaren and Lamborgini.
Luxury food stores
Woolworths, is the largest top end food store in South Africa. It is modeled on and part-owned by Marks & Spencer in the UK. Woolworth’s Food division posted revenue of R17 billion (US$1.7 billion) in the 12 months to June 2013, an increase of 15 percent on the comparable period last year.
Luxury food stores in South Africa in 2013
| Brand (ranked by number of stores) | No. of stores |
| Woolworths Food | 400+ |
| Bread Basket | 7 |
| Thrupps | 1 |
Source: New World Wealth
There is considerable room for new entrants in this segment.
Luxury brand stores
A large number of exclusive brand stores have been built during the past decade. The bulk of them were put up between 2002 and 2007. Most of them are based in Sandton City and Hyde Park in Johannesburg, the Waterfront in Cape Town and Gateway in Umhlanga (Durban).
Luxury brand stores in South Africa in 2013
| Brand (ranked by no.of stores) | Speciality | No. of stores | Location of stores |
| Hugo Boss | Men's clothing | 9 | 4 Johannesburg, 4 Cape Town, 1 Durban |
| L'Occitane | Beauty products | 4 | 2 Johannesburg, 2 Cape Town |
| Tag | Watches | 3 | 1 Johannesburg, 1 Cape Town, 1 Durban |
| Swarovski | Crystal & accessories | 3 | 2 Johannesburg, 1 Cape Town |
| Mont Blanc | Pens and watches | 3 | Johannesburg, Cape Town, Durban |
| Louis Vuitton | Clothing & accessories | 2 | Johannesburg & Cape Town |
| Burberry | Clothing & accessories | 2 | Johannesburg & Cape Town |
| Gucci | Clothing & accessories | 2 | Johannesburg & Cape Town |
| Paul Smith | Men's clothing | 2 | Johannesburg & Cape Town |
| Alfred Dunhill | Men's clothing | 2 | Johannesburg & Cape Town |
| Fendi | Bags | 1 | Johannesburg |
| Paul &Shark | Men's clothing | 1 | Johannesburg |
| Armani* | Men's clothing | 1 | Cape Town |
| Pink | Clothing & accessories | 1 | Johannesburg |
| Salvatore Ferrangano | Clothing &accessories | 1 | Johannesburg |
| Bally | Clothing & accessories | 1 | Johannesburg |
| Tumi | Luggage & accessories | 1 | Johannesburg |
| Aigner | Men's clothing | 1 | Johannesburg |
*Armani will open two branches in Johannesburg and Durban in 2014.
Note that the above excludes aiport stores and jewellery stores.
Source: New World Wealth
There are also a number of semi-luxury brand stores already in South Africa including Lacoste, Hackett, Hilton Weiner, Gant, Polo, Pringle, Tommy Hilfiger and Carvela.
The Hugo Boss, Lacoste, Burberry, Paul & Shark and Armani stores are all controlled by the Surtee Group.
The following luxury brands are likely to open brand stores during the forecast period.
Upcoming luxury brands in South Africa in 2013
| Brand (alphabetical) | Speciality |
| Canali | Men's clothing |
| Chanel | Clothing & accessories |
| Christian Dior | Clothing & accessories |
| Christian Louboutin | Women's shoes |
| Hermes | Clothing & accessories |
| Jaeger | Men's clothing |
| Mulberry | Clothing & accessories |
| Prada | Clothing & accessories |
| Ralph Lauren | Clothing & accessories |
| Yves Saint Lauren | Clothing & accessories |
| Zegna | Men's clothing |
Source: New World Wealth
Prada and Zegna have already opened stores in Morocco and Nigeria respectively, so it is surprising that they do not have brand stores in South Africa yet.
Luxury department stores
There are also a number of locally based department stores (listed below) that stock luxury brands. Grays and Levinsons are both owned by the Surtee Group.
Stuttafords is the only one listed below that has branched out into the rest of Africa. It already has stores in Botswana and Namibia.
Luxury department stores in South Africa in 2013
| Ranked by number of stores | Speciality | No. of stores | Location of stores |
| Spilhaus | Designer& glassware | 12 | 5 Johanesburg, 5 Cape Town, 2 Pretoria |
| Stuttafords | Clothing & accessories | 12 | 5 Johannesburg, 3 Cape Town, 3 Durban, 1 Pretoria |
| Desch | Men's clothing | 2 | Johannesburg |
| Levinsons | Men's clothing | 2 | Johannesburg |
| Grays | Men's clothing | 1 | Johannesburg |
| Luminance | Clothing &accessories | 1 | Johannesburg |
The above excludes airport and jewellery stores.
Source: New World Wealth
Men’s watches
Men’s watches are becoming particularly popular among HNWIs. There are a number of ultra-luxury watch brands that have entered South Africa over the review period.
The top selling ones are listed below. We only considered watches with a base price of over R50 000 (US$5 000) per watch for this study and as a result big selling luxury brands such as IWC, Panerai, Rolex, Tag, Jaeger-LeCoultre and Breitling are excluded from our list.
Ultra-luxury men’s watches in South Africa in 2013
| Ranked by SA revenue | Brand | Client Focus |
| 1 | Patek Philippe | General |
| 2 | Ulysse Nardin | Yacht owners |
| 3 | Frank Muller | General |
| 4 | Vacheron Constantin | General |
| 5 | Roger Dubuis | General |
Source: New World Wealth
Local luxury brands
There are a few emerging South African brands that sell to HNWIs and mass affluent individuals.
Local luxury brands in South Africa in 2013
| Brand (alphabetical) | Speciality |
| Carol Boyes | Metal sculpture |
| Diana Carmichael | Metal sculpture |
| Moya | Spa products |
| Rain Africa | Body & bath products |
| Victorian Bathrooms | Baths & taps |
Source: New World Wealth
Luxury resorts
Luxury hotels, spas and lodges are one of the biggest contributors to the South African luxury sector.
The following tables detail some of the top rated luxury hotels and lodges in South Africa. These results are based on a survey conducted by New World Wealth in June 2013 on a sample of 25 HNWIs who are from or have been to South Africa.
Top rated hotels in South Africa in 2013
| Ranked by votes | Hotel | Location |
| 1 | 12 Apostles Hotel & Spa | Cape Town |
| 2 | The Oyster Box | Umhlanga |
| 3 | The Lost City | North West Province |
| 4 | Cape Grace | Cape Town |
| 5 | Saxon Hotel & Spa | Johannesburg |
Source: New World Wealth
Top rated safari lodges in South Africa in 2013
| Ranked by votes | Lodge | Location |
| 1 | Singita | Sabi Sands |
| 2 | Ngala | Timbavati |
| 3 | Savanna | Sabi Sands |
| 4 | Bushmans Kloof Wilderness Reserve | Western Cape Province |
| 5 | Londolozi | Sabi Sands |
Source: New World Wealth
Print
