In spite of the influence of foreign brands, Nigeria luxury brands are gaining growing market share, with bespoke locally made luxury products which are now sought after by high net worth individuals across Nigeria.
The growing demand has resulted in the emergence of more local luxury brands which are seeking a foothold in an industry currently worth over N4 billion and targeting over N10 billion revenue by 2019, according to a report by Polo Luxury, Nigeria’s foremost luxury retailer.
Players in the industry have told BusinessDay that the potential for local luxury brands is expanding because foreign luxury brands have neglected the underpenetrated local markets across the country by their absence, creating room for aspiring local brands to position for the 31.2 percent growth forecast for the industry by 2019.
The development is coming in the wake of several reports, including one by Euromonitor, ranking Nigerians among the highest spenders in the world, and stating that the country is the next growth frontier for luxury goods in Africa. There is also a Phillips Consulting survey, which states that the wholesale and retail trade, which luxury goods fall under, accounted for 21 percent of Nigeria’s Gross Domestic Product (GDP) in 2016.
With products ranging from top of the range clothing items, perfumery, jewelry, arts, hospitality and furniture, among others, the indigenous brands, some of which include: E’sorae Luxury, Abela, Scentify, Regalo African Luxury, Nsaata, TPS Luxury bags, Oud Majestic, Adire Lounge, Pere Lei, Muji Lagos, and Lanre Da Silva Ajayi (LDA) are making efforts at matching or exceeding the craft and allure of foreign brands and exposing the Nigerian luxury market to the world.
While the improvement in the quality of the products, finishing, packaging and sustained awareness on the availability, are driving demand, on the other hand, the growth of the middle class, with more disposable income, as well as the economic downturn, has drawn the attention of more Nigerians to local alternatives, as foreign luxury brands have crept out of reach for many.
Speaking on the rationale for the growing demand, Titi Omogbemi, an indigenous jewelry maker, said, “The economic downturn beamed a searchlight on the Nigerian luxury industry. It exposed the affordable luxury available in the Nigerian market. It is a huge market and goes with the growth of the middle class. We no longer want to just export our leathers from Kano to Italy, where the value is added to it and sold back to us as Louis Vuitton, Chanel handbags, wallets, shoes, belts among others. We are processing our leather into global fashion products that are proudly Nigerian”.
Funmi Onajide, Founder, and CEO, Regalo African Luxury, insists that indigenous luxury brands such as hers, have improved on their craftsmanship, quality, luster, and availability and are neck and neck with the best global brands.
Onajide’s concept store has witnessed more patronage by Nigerians than ever in the last 18 months and points to the fact that more people are beginning to appreciate the improved quality and packaging of local brands, against the usual crave for foreign products.
According to Onajide, Regalo African Luxury Store stocks high-end leather goods and other such items, sourced from Africa, on the realisation that though Nigerians love foreign luxury, they would buy local brands that meet good quality standards.
Going by a 2015 African Wealth Report that the African luxury sector commands a market potential of $4billion dollars; a consumption is driven by new wealth, Paul Andrew, chairman, African Wealth Report, which is based in Switzerland, noted that it is time indigenous luxury brands begin to see the potential as strength and craft products that would lure Africans away from foreign brands.
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