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As Africa emerges as the next big market, luxury brands are starting to take an interest. Worth an estimated $4 billion the African luxury market is certainly nothing to smirk at.

Ferraris in the streets, Louis Vuitton handbags and Louis XIII cognac in crystal goblets – sound like a fancy club in Paris or London? Try Johannesburg or Lagos.

Research has shown that the median African consumer tends to be brand loyal – making it even more important to be first on the ground.

“We have extremely high expectations not just of South Africa but of Africa as a whole as the potential for sales growth in Africa is incredible.

With a population of over 1 billion, increased consumer spending, urbanisation, accessible consumers and the explosion of digital communication that allows us to connect and interact like never before, there is no doubt that Africa offers great opportunities”, said Antoinette Drumm, Remy Cointreau zone Director for Africa, the Mediterranean & Middle East.

According to the International Monetary Fund (IMF) January 2014 World Economic Outlook (WEO) update, emerging and developing economies are expected to grow by 5,4 percent this year versus mature economies with a growth forecast of 2,3 percent.

As these emerging economies grow, so do the number of millionaires; United Kingdom-based (UK) consultancy New World Wealth has ranked African cities based on their number of dollar millionaires (individuals with net assets exceeding $1m, excluding primary residences) and the results are promising:

Johannesburg had $23 400 millionaires at the end of 2012 while Cairo registered $12 300 followed by Lagos with $9 800.

Antoinette Drumm cites another New World Wealth report indicating that there are currently 140 000 millionaires in Africa, out of which 49 000 live in South Africa and these numbers are expected to increase significantly over the next 20 years.

With numbers like these it’s no wonder that international luxury brands are investing in these markets, in fact it’s certain that more will come and when they do, they’ll find Louis XIII firmly established. – Fin24.