Africa’s Fashion: A Tale of Diversity

December 2023

This briefing explores the forces driving apparel demand and supply in Sub-Saharan Africa, which has historically been a protected market, with tariffs, quotas and bans. It discusses how market routes, supply chains and competition have evolved. A one-size-fits-all approach will not suffice, given diverse consumer segments, from budget to luxury. The report aims to illuminate this diversity and guide industry players in identifying target markets for tailored strategies.

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Executive summary

Consumer diversity in Sub-Saharan Africa offers many opportunities

Local and international brands are becoming popular among Sub-Saharan Africa’s diverse consumer base. With a growing middle class and significant low-income group, the region offers many opportunities for tailored products that will meet the diverse needs of its consumers. Thus, solution-driven approaches are crucial to the success of this region by addressing concerns about services and product development, as well as tailoring offerings to local, regional and country-specific preferences and demographics.

Balancing affordability for the region’s aspirational consumers is key

Affordability remains one of the region’s most important competitive advantages. As the fashion industry continues to evolve amid the challenging economic climate, finding the right balance between value and trendy offerings is crucial to success. Companies can position themselves for success in the region if they adopt a customer-centric approach and offer products that meet the needs of the price-sensitive, yet trend-conscious consumers of the region.

Omnichannel strategy

Increasing visibility and access to brands and products requires embracing an omnichannel strategy, as well as enticing consumers to visit physical stores for discovery and interaction. By offering exceptional service, well-curated product displays, and seamless transactions from purchase to post-purchase, retailers can create compelling reasons for consumers to choose their brands and foster long-term relationships.

Partnerships and innovative distribution models are key to route-to-market success

Accessing the last mile of distribution in Sub-Saharan Africa can be expensive as logistics costs and lead times vary significantly. Establishing local partnerships along the value chain provides a lower-risk approach to market expansion, since it facilitates efficient navigation of the complex distribution landscape and drives growth by understanding consumer preferences, maintaining brand control, and leveraging local expertise.

Scope
Executive summary
Sub-Saharan Africa’s rapid economic growth offers fashion companies an attractive destination
While growth is positive, regional sales fluctuate, due to inflationary pressures
South Africa leads sales, driven by developed retail infrastructure
Footwear, followed by womenswear, leads sales across the region
Africa’s diverse consumer profile has a significant impact on spending
Tailored purchasing plans bolster spending amid budget constraints
Transnational trade agreements influence regional regulatory environment
Regional integration initiatives are expected to benefit the region
Countries use diverse approaches to protect and boost local clothing industries
Africa still lagging in global value chain due to labour shortage and underinvestments
Distribution complexity across the value chain complicates route to market
Second-hand is a key component of Africa’s apparel and footwear market
Imports of unwanted clothes from the West have huge environmental cost
Vestiaire Collective x OR Foundation to raise awareness about fast fashion’s negative impact
Consumers embrace research-driven shopping to identify the best value alternatives
Price sensitivity continues to influence consumer demand and shopping patterns
Value and discount segments lead sales in the region
Pepkor delivers value-driven fashion success in Sub-Saharan Africa
Evolving consumer preferences and the emergence of local footwear brands
Growing demand for luxury goods creates opportunities for local and international brands
Local luxury brands inspired by indigenous heritage are gaining traction
Technology is transforming the a pparel and footwear competitive landscape
Retailers adopt innovative strategies to overcome digital transformation challenges
Qshop offers cost-effective e-commerce website solutions for African businesses
Fashion is increasingly becoming more inclusive to suit demographics across the region
Jendaya shows that “just for me” options are gaining ground in emerging markets
Rendoll offers more localised clothing ranges as consumers seek inclusivity
Sustainability is becoming increasingly important to consumers
Foschini’s “Made in South Africa” sustainable initiative reduces production and lead times
Diverse players cater to different segments of the consumer market throughout the region
Fragmentation drives competition and leads players to develop unique business models
Customisation, niche designers and digitalisation contribute to competitive advantage
Demand for second-hand clothing is driven by consumers across all income levels
Buzigahill’s “return to sender” reverse sourcing model transforms second-hand clothing market
Regional expansion by South African retailers across the region drives competition
Retailers struggle to balance brand positioning consistency with market adaptability
Sub-Saharan Africa: Key Growth Categories to 2028
Key takeaways and how to win in the apparel and footwear industry in Sub-Saharan Africa

Retailing

Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.

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