Asked whether Africa is the new frontier for the luxury industry, we would be tempted to say yes.
Growth rates have continued to considerable flew Saharan Africa oscillating between 5% and 7% for a little over a decade.These sustained growth rate, combined with favorable economic policies boosted consumption and given birth to an African middle class.The latter is defined as the share of the population earning between $ 2 and $ 20 per day.The number of individuals related to the African middle class will increase from 355 million people (34% of the population) to 1.1 billion (42% of the population) by 2060.
Nevertheless, 60% of individuals of the middle class in Africa (around 180 million people) are not far from the poverty line: they form "the floating class" composed of individuals earning between $ 2 and $ 4 per day.The latter are in a vulnerable position and may at any time of falling back into poverty if an unexpected shock occurs: in case of loss of income source where the death of the family head.
Middle class consumer spending reached an estimated $ 680 billion in 2008, ie almost a quarter of Africa's GDP.By 2030, this figure is expected to reach $ 2,200 billion.While Africa represents about 3% of world consumption.
All these elements put together, could augur the birth of perin luxury market in Africa.Especially, with the slowdown recorded in European economies, American and Asian.It would not be surprising to see more and more, high luxury home such as L'Oreal and Lancôme to name those there, installed in African land.
We must not fail to report the birth of a new generation of African entrepreneur in the luxury sector: Okapi, Heel The World (HTW), YSWARA etc ...These signs are definitely the event of the emergence of a new consumer class in Africa.It is obviously part of the famous African middle class, which for some who already had the privilege of visiting the great European capitals that are along the temples of luxury, would have to do the same in the West encountered quality service.
The fact remains that the luxury industry in Africa is still embryonic but promising.And it accomplishes its full potential would require that growth inclusive silk and that policies related to the emergence of the middle classes are strengthened.
-Frédéric Betta-Akwa
Growth rates have continued to considerable flew Saharan Africa oscillating between 5% and 7% for a little over a decade.These sustained growth rate, combined with favorable economic policies boosted consumption and given birth to an African middle class.The latter is defined as the share of the population earning between $ 2 and $ 20 per day.The number of individuals related to the African middle class will increase from 355 million people (34% of the population) to 1.1 billion (42% of the population) by 2060.
Nevertheless, 60% of individuals of the middle class in Africa (around 180 million people) are not far from the poverty line: they form "the floating class" composed of individuals earning between $ 2 and $ 4 per day.The latter are in a vulnerable position and may at any time of falling back into poverty if an unexpected shock occurs: in case of loss of income source where the death of the family head.
Middle class consumer spending reached an estimated $ 680 billion in 2008, ie almost a quarter of Africa's GDP.By 2030, this figure is expected to reach $ 2,200 billion.While Africa represents about 3% of world consumption.
All these elements put together, could augur the birth of perin luxury market in Africa.Especially, with the slowdown recorded in European economies, American and Asian.It would not be surprising to see more and more, high luxury home such as L'Oreal and Lancôme to name those there, installed in African land.
We must not fail to report the birth of a new generation of African entrepreneur in the luxury sector: Okapi, Heel The World (HTW), YSWARA etc ...These signs are definitely the event of the emergence of a new consumer class in Africa.It is obviously part of the famous African middle class, which for some who already had the privilege of visiting the great European capitals that are along the temples of luxury, would have to do the same in the West encountered quality service.
The fact remains that the luxury industry in Africa is still embryonic but promising.And it accomplishes its full potential would require that growth inclusive silk and that policies related to the emergence of the middle classes are strengthened.
-Frédéric Betta-Akwa
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