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Prada is reaching new heights, both literally and figuratively. The Italian fashion house is designing a spacesuit for the first woman and the first person of colour ever to land on the moon, while also outshining its peers in the luxury market. Retail sales for Prada grew by 18% year-on-year in the first half of 2024, in contrast to competitors like LVMH (-2%) and Kering (-11%). As the luxury sector faces considerable challenges, particularly in markets like China and the US, Luxity co-founder Michael Zahariev asks, “Could a return to South Africa help Prada further strengthen its growth trajectory?”
He explains that weaker consumer spending, a shift in buyer preferences toward discounts, and slow economic recovery have impacted rival brands. “Broader trends in the luxury industry point to a deceleration, with personal luxury goods expected to grow by only 4% in 2024. This slowdown is driven by geopolitical tensions, rising inflation, and economic uncertainties, which have dampened consumer confidence, especially in Europe and the US. Yet Prada has defied these headwinds, achieving above-market growth.”
Zahariev notes that Prada, currently the 10th most valuable luxury brand globally, could bolster its international presence by re-entering the South African market. “Locally, demand remains high due to limited availability following Prada’s exit during the COVID-19 pandemic. As a result, with only pre-owned items available, the brand has emerged as the third most searched-for on Luxity’s site, according to the soon-to-be-released State of the Luxury Market Africa Report 2024. This shortage has, in turn, elevated the average resale value of Prada pieces, bringing it to 58.2% of the cost of items bought new.”
“Consumer interest, coupled with an expected influx of luxury brands into South Africa, creates a prime opportunity for Prada’s return,” he adds. The Clur Shopping Index report confirms this, revealing an 8% increase in luxury trading density in shopping centres over the past year, and an impressive 184% surge since 2019.
“Re-entering South Africa could boost Prada’s brand equity and satisfy a consumer base hungry for its high-fashion offerings. The question is, will Prada take this giant leap and reconnect with South African consumers?” concludes Zahariev.
About Luxity
Established in 2016, Luxity is South Africa’s first omnichannel boutique focused on buying and selling pre-owned, authentic luxury goods to consumers throughout the country. The Luxity online and physical stores in Nelson Mandela Square, the V&A Waterfront, Gateway Theatre of Shopping and Menlyn Maine provide local access to some of the world’s most coveted brands including Louis Vuitton, Rolex, Hermes, Chanel and Gucci.
For more information, go to https://luxity.co.za.