Luxury goods firms taking the battle to Africa

The luxury goods industry has turned its sights to Africa with the country's luxury goods revenue expected to reach €2bn according to a study by Bain & Company. Although the average amount of disposable income in Africa is still lower than that of western countries, "with China’s growth slowing, Africa is poised to have among the fastest-growing economies," says Claudia D’Arpizio, a partner at Bain. With the large economic disparities between classes and the increasing visibility of luxury brands, consumers in Africa are starting to view these luxury goods as a sign of success and status. "Luxury sales are still very concentrated in South Africa and Morocco, but brands are starting to expand in new markets like Angola and Nigeria," explains D’Arpizio.