Analysing the impact of operational challenges on value perceptions of South African luxury fashion brands

Abstract

South Africa is the leading luxury fashion market in Africa. The growing significance of its luxury market driven by a sophisticated and rapidly expanding retail industry has attracted the biggest footprint of international luxury fashion brands in the continent. The influx of international brands has intensified competition in the local luxury industry and introduced new complexities to the management of local luxury fashion brands. A major drawback to the growth potential of local luxury fashion brands is the prevalence of weak brand value, with a consequent negative disposition of consumers to local luxury fashion brands, which adversely impacts their ability to command premium prices. We explore the operational environment of five local luxury fashion brands to understand the factors militating against their efforts at building valuable brands. A number of challenges were identified in the value and supply chain of local brands, which inhibits the ability of local brands to attract premium prices. This article provides insight into the marketing of local luxury brands in emerging markets with a specific reference to South Africa.