adminAS Africa emerges as the next big market, luxury brands are starting to take an interest. Worth an estimated $4 billion the African luxury market is certainly nothing to smirk at. Ferraris in the streets, Louis Vuitton handbags and Louis XIII cognac in crystal goblets — sound like a fancy club in Paris or London? Try Johannesburg or Lagos.
Research has shown that the median African consumer tends to be brand loyal — making it even more important to be first on the ground.
“We’ve extremely high expectations not just of South Africa but of Africa as a whole as the potential for sales growth in Africa is incredible.
“With a population of over one billion, increased consumer spending, urbanisation, accessible consumers and the explosion of digital communication that allows us to connect and interact like never before, there is no doubt that Africa offers great opportunities”, says Antoinette Drumm, Remy Cointreau zone Director for Africa, the Mediterranean & Middle East.
Louis XIII Cognac is now in SA and Nigeria. “Louis XIII isn’t just a cognac; it’s the master piece of time; it’s a blend of up to 1,200 eaux-de-vie, the youngest of which is at least 40 years old. Four generations of cellar masters have spent decades refining it”, explains Drumm.
Made from only the choicest grapes grown in the renowned Grande Champagne area in Cognac, France Louis XIII is blended from only the best eaux-de-vie (water of life) that’s been matured in French oak barrels for years. Putting the final seal on this incredible cognac is the fact that it’s decanted into handmade by the finest crystal makers with a gold neck, making it not only an exquisite cognac but a collector’s item as well. The number of decanters made per year is a closely guarded secret but what is certain is that Louis XIII is rare.
“Historically Louis XIII consumers were confined to the realm of kings and courtiers, today it’s enjoyed in the best bars and night clubs around the world by celebrities, politicians and epicureans as well as entrepreneurs celebrating successes and, of course true cognac lovers”, shares Drumm.
The time is ripe for luxury. According to the International Monetary Fund (IMF) January 2014 World Economic Outlook (WEO) update, emerging and developing economies are expected to grow by 5.4 percent this year versus mature economies with a growth forecast of 2.3 percent.
As these emerging economies grow, so do the number of millionaires; United Kingdom-based (UK) consultancy New World Wealth has ranked African cities based on their number of dollar millionaires (individuals with net assets exceeding $1 million, excluding primary residences) and the results are promising:
Johannesburg had 23,400 dollar millionaires at the end of 2012 while Cairo registered 12,300 followed by Lagos with 9,800.
Antoinette Drumm cites another New World Wealth report indicating that there are currently 140,000 millionaires in Africa, out of which 49,000 live in South Africa and these numbers are expected to increase significantly over the next 20 years.
With numbers like these it’s no wonder that international luxury brands are investing in these markets, in fact it’s certain that more will come and when they do, they’ll find Louis XIII firmly established. — Fin24
Londile Moyo
Online Reporter