Africa - the 'next Asia' for fashion, report finds

However, The Middle East and Africa is set to be the most dynamic region for apparel and footwear over 2015 to 2020 with value sales of $134bn by 2020.

Bernadette Kissane.

Picture: blog.euromonitor.com

Apparel and footwear analyst of Euromonitor, Bernadette Kissane, commented: “In apparel and footwear, the differences between emerging and developed markets are significant. Developed markets reported value and volume growth of 2%, while emerging markets witnessed value growth of 8% and volume at 3% in apparel and footwear during 2015. Consumers remain cautious in developed markets as economic growth appears fragile, additionally, wider availability of trend-led products at low prices and impressive growth in e-commerce continue to affect unit prices and value growth. In contrast, emerging markets are benefiting from rising disposable incomes and aspirational purchases.

“Africa is considered to be the 'next Asia' for the fashion industry, both in terms of the consumer base as well as product sourcing. Thriving economies and substantially young populations that are tech savvy are resulting in growing awareness of global fashion brands throughout the region. Increasing exposure to international media, combined with rising disposable incomes, provides lucrative opportunities for brands seeking to capitalise on the long-term growth of this region.”

SA has played a pivotal role

The report highlights that South Africa has played a pivotal role in the development of the region, accounting for 12% of absolute value growth over 2010 to 2015. As a result, the market has attracted a slew of international brands, including Zara, Gap, Forever21 and, more recently, H&M. In addition to capitalising on the growing middle class, the market is also seen as a springboard into Africa.

Internet retailing is increasing in importance, with dynamic growth that continues to surpass the overall apparel industry. The proliferation of smartphones and tablets, which posted CAGRs of 38% and 165%, respectively, over 2010 to 2015, has enabled consumers to research products before they buy. As it becomes cheaper to access the internet and e-tailers offer free delivery, consumers are beginning to favour shopping from home, providing additional opportunities for brands to reach consumers in more rural areas.

Although the market has been steadily growing for the past five years, 2016 is expected to be the start of slowing growth as economic and political instability take its toll on the industry.