If you are still not considering targeting Africa’s luxury market you may be leaving money on the table. No question Asia and India are the top two luxury consumer markets to capture. However, Africa is an untapped goldmine and smart luxury brands who venture first can increase profit earning.
This is not news to Ermenegildo Zegna who is scoring major success targeting Africa’s luxury market. The Italian brand has turned its focus towards Africa as it looks to open stores in Morocco and Nigeria this year.
In its latest profit update, Ermenegildo Zegna reported a 90 per cent surge in profits for 2011. Net profits came in at €115.1 million ($146.9m), while company revenue rose 17 per cent at €1.127 billion.
China continued to hold on to its main-market placing in terms of the group’s retail sales (up 28 per cent), while the US market remained strong with a 16 per cent rise. Sales were also up in Germany, France and Italy.
At the close of 2011, Ermenegildo Zegna had 311 fully owned stores in an expanding portfolio. The company said it would open another 50 stores this year, including a third outlet in China amid further expansion in Europe and the US.