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Ups And Downs Of Luxury Businesses In Africa

Ups And Downs Of Luxury Businesses In Africa

pixabay.com
pixabay.com

Being in the luxury industry, there are industry specific challenges that Martin-Leke has encountered.

The logistics of exporting luxury products out of Africa brings a high bill to the business thus affecting internet sales for consumers who would like to purchase the goods online. In addition, it costs 10 – 15 times more in Africa to produce ceramic teapots in Africa in comparison to the costs of doing in it in Asia.

“There is a huge skills gap in the continent for the luxury industry as it is new in the continent. We need luxury trained professionals such as designers, communications, retail and brand experts,” Martin-Leke added. “These skills specific to the luxury industry are critical and almost non-existent, we need to build these skills while learning from the developed luxury markets. Being luxury we can’t compromise on quality of our products and services.”

Production of high quality goods is critical in this industry but the costs are high in Africa. This is a setback for small and medium sized luxury companies in the continent who are competing with international luxury companies.

“Product sourcing, supply chains, export and logistics are our toughest challenges in Africa. In our kind of business luxury, we can’t compromise with quality or integrity of our products as we are competing with international brands in the luxury sector and shifting perceptions of Africa from negative to positive.

Currently, Yswara has a store in Johannesburg while retailing through various options in the continent and using an online platform.

Yswara products have won several awards in Africa and Europe for quality and aesthetics, thus playing a role in turning Africa’s name from negative to positive.

“We create products conceptualized and produced in Africa but our packaging is done in Europe. It is luxury therefore we can’t compromise the products as experience, aesthetics and quality are fundamental,” she further added. “This means that the products come at a price while providing a beautiful and very memorable moment.”

Maryanne Maina is a Kenyan luxury consultant and writer. She has an MBA in Luxury Brand Management from HEC Paris, School of Management.