Why SA’s luxury shoppers are treating handbags like blue-chip stocks

For years, conspicuous branding ruled the luxury retail market of South Africa. Big logos signalled success and belonging. Now, among those who still browse Louis Vuitton bags or Gucci watches, the calculation has become more complex because the loudest logo is no longer the safest purchase.

According to Luxity’s State of the Luxury Market in Africa 2025 report, South Africa’s luxury sector is undergoing what can only be described as a coming of age.

After years of expansion, the broader luxury market stabilised in 2025, shrinking slightly by 1% year on year, according to the Clur Shopping Index. The pre-owned market moved in the opposite direction. Luxity, Africa’s largest pre-owned luxury reseller, grew by 27.86% between 2024 and 2025, extending its total growth since 2019 to more than 594%.

South Africans are not buying less luxury. They are buying better and smarter.

“This really [speaks] to the rise of what we call the ‘savvy consumer’,” Michael Zahariev, co-founder of Luxity, told Daily Maverick. “They’re really researching and they’re not just making a decision based on ‘this is my style’ or ‘this is my affordability range’. They’re really looking at the long-term value of a product.”

Luxury as a safe haven

How different luxury categories perform gives one insight into this change that’s under way. Luxity’s data showed that interest in jewellery surged by 43.8% in 2025, while bags grew by 14.6%. Shoes fell by 10.2% and wallets by 21.3%.

Read more: Is your Rolex a ‘Pepsi’ or a ‘Batman’? It makes all the difference

In an unstable economic climate, certain luxury goods are being treated as stores of value. Watches, in particular, are behaving like alternative assets. Rolex resold at an average of 126.5% of retail price in South Africa, up more than 20% year on year. Cartier retained 72.6% of its value, while Hermès held at 67.8%.

“Consumers have started to realise that certain categories resell better than others,” Zahariev said. “Jewellery and bags in particular, if you bought them pre-owned and you wanted to sell them in a couple years, you would get a much higher amount of money back or sometimes even a return on what you originally paid.”

When popularity stops paying

One of the more telling findings in the 2025 report is how little popularity correlates with value. The correlation between brand search interest and resale value sits at around 0.30. That means the most talked-about brands are often not the best investments.

Louis Vuitton and Gucci still dominate awareness, but their combined share of search interest dropped from roughly 30% in 2024 to 21.5% in 2025. Smaller designer houses like Bulgari, Givenchy and Montblanc gained traction.

Read more: The rich history of our love affair with luxury

“We can see that consumers are starting to really broaden their horizon when it comes to what brands they’re looking for,” said Zahariev. “That speaks to a maturing market where people are starting to shop outside of just what’s the most recognisable.”

How this affects you
🛍️The luxury market is no longer just for the ultra-wealthy, as pre-owned platforms democratise access to high-end goods for a broader range of South Africans.
🛍️Your wardrobe can now be viewed as a financial hedge, with items like jewellery and certain handbags serving as portable stores of value.
🛍️Research is becoming essential before you buy luxury, as savvy consumers prioritise a product’s long-term resale potential over seasonal fashion trends.
🛍️Purchasing pre-owned items from local resellers helps keep money within the South African circular economy rather than exporting capital abroad.

The limits of quiet luxury

This growing maturity has not diminished aspiration. In South Africa, luxury buying is still bound to status and visibility, especially among emerging middle-class consumers.

“What we generally see in South Africa is that it’s an older market, and generally a lot of it is aspirational shoppers. They want to have that first item. They’re looking for something that’s quite loud, quite recognisable, to really say, ‘I’ve arrived’,” Zahariev said.

According to Neville Hounsom, consumer practice lead and Africa head of consumer business at Deloitte Consulting, “Core to luxury consumption is the status signalling from logo visibility”. While global tastes are drifting toward more understated design, Deloitte Digital found that aspirational South African consumers “may still find logos appealing”.

Read more: Breitling CEO ‘quite confident’ luxury industry has hit bottom

That gap between global trends and local expectations has real consequences. Kate Spade’s South African launch in November 2025 was met with a “mild reception”, according to Hounsom. The brand struggled with low local recognition, muted logos and a lack of viral hero products, leading to a misaligned price perception.

“Often international brands assume popularity in US or European markets directly translate to popularity in South Africa,” Hounsom said. “This is not the case and brands need to create local brand recognition before launching in-country.”

Price, not desire

In South Africa, affordability is a top constraint when it comes to designer items. Despite having the highest number of dollar millionaires in Africa, estimated at 41,100, many South Africans continue to buy luxury goods abroad, Deloitte Digital found. Locally, even high-income earners are prioritising experiences over personal goods.

Global brands are responding by lowering the barrier to entry, according to Hounsom. Beauty has become the preferred foothold. Chanel and Dior have both invested in flagship beauty stores in South Africa rather than rolling out full fashion or accessories lines.

Read more: From tariffs to TikTok: the emerging narrative of Chinese artisans in luxury fashion

“Beauty is a strategic point of entry for new luxury consumers,” Hounsom said, and explained that product price points and local affordability mean premium and ultra-luxury brands are unlikely to introduce accessories and apparel in the short to medium term.

Pre-owned as first choice

One of the faster-growing parts of the market is pre-owned luxury, boosted by both affordability and access. Even ultra-wealthy consumers are turning to resellers for limited editions and brands unavailable locally.

The same logic is changing how South Africans think about local luxury. As consumers broaden their brand awareness beyond the traditional European heavyweights, homegrown names are starting to hold their own.

Read more: Birkin v Wirkin: the backlash against the global elite and their luxury bags – podcast

Luxity began testing this about a year ago by introducing Browns jewellery to its platform, unsure whether a South African brand could compete alongside international stalwarts such as Bulgari or Cartier, according to Zahariev. The result surprised them.

Browns performed on par with its global counterparts, suggesting that there is confidence in local craftsmanship, even at the highest level. Zahariev sees it as a clear sign that the market is changing direction.

“We’re investing in localising more and meeting that mature consumer in the middle,” he said. “It’s a great sign that we’re not just followers in South Africa, but that we can also be leaders and appreciate our own culture and our own brands.” DM