Luxury industry shows resilience during pandemic, as South Africans splurge on luxury while unable to travel

Booming pre-owned luxury market shows the astounding investment  returns on Chanel bags, Rolex watches and more 

The State of the Luxury Market Report 2021 has been issued, revealing that not only do tough times send South Africans shopping, they make them even more discerning. The report, issued annually by Luxity, and covering the period of 1 July 2020 – 30 June 2021, has revealed that Louis Vuitton is by far the country’s favourite luxury brand and that luxury accessories can prove to be exceptional investment pieces. 

The top five brands are, in order of popularity: Louis Vuitton, Chanel, Gucci, Hermès and Burberry. The iconic British luxury brand Burberry entered the top five for the very first time, showing admirable performance in the footwear category and overall interest from consumers. This may also be fueled by the international growth in desirability of Burberry, due to the brand’s increasingly modern appeal.

In a similar fashion to international trend patterns, the pre-owned luxury market in South Africa has seen remarkable success. Whereas the culture of buying pre-owned luxury is well established abroad, this sector has only taken root locally in the past five years and is being welcomed with open arms by consumers. This approach is opening the world of luxury to new generations of aspiring trendsetters, adoring fashionistas and discerning collectors who have adopted the pre-owned course for reasons such as increased brand popularity, easier access to goods, flexible payment terms and the ability to procure rare items that are not available first-hand in the country.

Investing in luxury accessories is no longer anecdotal, but rather a bankable proposition. The report revealed that pre-owned Rolex watches retail for 87,5% of their original value. If you’d like to wear your investment higher up your arm, the Chanel Medium Black Flap bag is the way to go, as the price and relative resale value of the beloved bag continues to increase. Despite the retail price only increasing slightly (5,21% in rand value, mostly due to the strengthening of the rand), the resale value of the Chanel Medium Classic Flap bag grew by 17,25% in the same period. This further supports the notion that this piece is not only a great investment, but can also function as a currency hedge.

In terms of investing in luxury footwear, one would do well with Louis Vuitton, that ranks in prime position in terms of resale value, with Hermès delivering the best return for accessories, particularly their beloved selection of scarves.

Luxity, South Africa’s most trusted luxury reseller recently celebrated five years of business with the opening of two luxurious new stores, in Nelson Mandela Square and Menlyn Maine. Proving that sustainability is at the heart of luxury, Luxity makes high-value designer items accessible through its unique omni-channel position, retailing authentic, pre-owned luxury items that are in mint condition. 

For more information, or to view the Luxity collection, visit: https://luxity.co.za/

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