Tag: luxury goods

China’s transition towards 'common prosperity' will create some short to medium-term headwinds to the growth in luxury goods sales, but these should be more than offset by long-term, structural growth in the sector driven by an expanding middle-income cohort in China.

Whilst listening to a recent presentation by Absa's equity analyst Samantha Naicker titled 'Navigating the Maze' on South African Food Producers, I stumbled on a theory dubbed 'The Lipstick Effect'.

Despite the slowdown in the global economy, the luxury sector is seeing continued rapid growth. Given the declining economy, the question is, which South Africans can still afford luxury goods? From research conducted we see that the luxury culture is evolving and there are two main sets of luxury consumers in South Africa; traditional and non-traditional.