South Africa: Luxury resale market grows as consumers seek purposeful purchases
But one part of the market is doing the opposite. The global pre-owned luxury market is outpacing the growth of new luxury sales by 7%.
'Luxury is still in demand, but today's shoppers are calling the shots,' says Michael Zahariev, co-founder of Luxity.
'Escalating prices, greenwashing, and concerns around quality have dimmed the spotlight on traditional luxury, prompting buyers to be more intentional about their purchases by going the pre-owned luxury route.'
Who's buying designer resale?
Luxury resale isn't just for the rich. Luxity's latest figures show that while high-net-worth individuals love pre-owned for limited-edition pieces, vintage gems, and brands unavailable locally, more everyday shoppers are turning to resale for affordable access to designer fashion.
As Luxity's reach expands beyond its flagship stores, online sales from areas outside South Africa's major cities are on the rise, proving that luxury lives well beyond Sandton and the Atlantic Seaboard.
It's not just about buying, either; 52% of revenue comes from shoppers who also sell to Luxity and reinvest that money into new finds.
Luxury with purpose
Millennial and Gen Z shoppers' preference for pre-owned is also largely informed by their concerns about sustainability.
'They want luxury fashion choices that don't cost the Earth - literally,' shares Zahariev. 'It's about investing in quality pieces that last, not trends that fade.'
Sure, the price tag on a pre-owned designer item might be steeper than a fast fashion find, but the cost per wear works out differently.
'Fast fashion tends to fall apart after a few wears. But with pre-owned, buyers wear it again and again. And, when they're ready, they can resell it, reinvest, and keep their wardrobe evolving without constantly consuming,' he explains.
There is also the environmental reality. Fast fashion is one of the most polluting industries in the world, responsible for roughly 10% of global carbon emissions, more than what's generated by the entire European Union.
What's more, one garbage truckload of clothes ends up in landfills or incinerators every second. Fast fashion is fleeting and deeply unsustainable.
'Conscious consumers are starting to ask smarter questions,' says Zahariev. 'Where did this come from? What's the footprint? Who made it? Pre-owned gives you the chance to buy into luxury without buying into waste.'
Inside the business of circular fashion
Circular fashion, the practice of extending the life of clothing through resale and reuse, is gaining momentum around the world. And platforms like Luxity are proving that it's not just an ethical alternative but a commercially viable one too.
The company was recently recognised as one of South Africa's top 50 Growth Champions and was featured on the Financial Times ' list of Africa's Fastest Growing Companies for the third year running.
With an absolute growth rate of 249.92%, a compound annual growth rate (CAGR) of 51.82%, and annual revenues surpassing R60.4m, Luxity's performance reflects how circular fashion is gaining traction in South Africa, with conscious consumption becoming both culturally and commercially relevant.
'Today, luxury is less about excess and more about access. As the pre-owned market continues to grow, one thing is clear: real style is defined by purpose, not price,' concludes Zahariev.
Syndigate.info).
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
3 minutes ago
- Zawya
South Africa: Ibex sells 28% stake in Pepkor Holdings
Ibex Investment Holdings, formerly known as Steinhoff International Holdings, will exit its 28% stake in clothing retailer, Pepkor Holdings. The company will offer one billion shares, worth about R28bn, according to the terms of the deal published Monday, 21 July 2025. Demand for the shares exceeded the stock being offered within minutes of the transaction launching, the terms show. Steinhoff changed its name to Ibex Investment Holdings in 2023. It holds the Pepkor stake through its wholly-owned unit Ainsley. The company has been restructuring since Steinhoff, the former owner of Conforama in France and Mattress Firm in the US, collapsed after auditors refused to sign off on its financial statements in late 2017. That led to the start of police and regulatory investigations in both Europe and South Africa. A forensic probe by auditor PwC uncovered approximately €6.5bn ($7.6bn) of irregular transactions with eight firms over eight years. Pepkor, which owns almost 6,000 stores selling low-cost clothing, is tapping a pan-African boom in the use of phones for payment and banking services as well as for communication. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
3 minutes ago
- Zawya
Venture debt gains ground as South Africa's startup investment hits new high
Southern Africa's venture capital (VC) market ended 2024 on a high note, reaching a record R13.35bn in active investments across 1,325 deals, a 24% increase from the previous year. That's according to the latest data released in the 2025 Venture Capital Survey, which shows strong momentum in early-growth funding, greater diversity in deal types, and a maturing investment ecosystem, despite slower exit activity and ongoing global headwinds. Series A deals surge as venture debt enters the picture More than R3.29bn was deployed into startups in 2024, with R2.62bn in equity and a further R670m in venture debt — the first year this form of financing was tracked in the survey. One of the most notable shifts was the surge in Series A funding, which rose to 42.5% of all deals, more than double the share recorded in 2023. The number of investment rounds climbed to 222, a 20% increase, involving 110 companies – the highest ever recorded. While the overall equity deal value declined, the rise in deal volume and diversification of funding instruments signal a more resilient, flexible funding environment. Tech dominates, health sees renewed investor appetite As in previous years, ICT remained the top investment sector, capturing 65.9% of deal value. Within tech, software (20%), FinTech (15.9%), and online marketplaces (7.6%) stood out. Notably, healthcare investment rebounded, climbing to 20% of deal value – its strongest showing in nearly a decade. Areas like life sciences, biotech, and medical devices saw renewed interest, pointing to broader sector diversification. However, the report also flags the concentration of capital in just two sectors as a potential risk for long-term sustainability, urging wider support for underfunded industries. Independents and angels drive activity as corporates pull back Independent fund managers dominated the landscape, accounting for over 80% of all deals and capital deployed – the highest on record. Angel investors also made a comeback, contributing 10.3% of deal volume and value, their strongest showing since 2019. Meanwhile, corporate and government-linked investors pulled back, contributing under 10% of total deals and capital. This reflects a shift back to agile, founder-focused funding, though it raises questions about the future role of institutional capital in the ecosystem. Transformation showing steady progress The report shows encouraging signs of transformation across the VC landscape. Over 42% of fund managers had at least one female founder, and a similar proportion had a black founder. Nearly a quarter achieved B-BBEE Level 4 or better, with female CEOs leading just over 21% of respondent firms. These figures suggest growing inclusivity, but also highlight the need for continued efforts to broaden participation and leadership in the sector. Exit activity remains a major constraint Only three exits were recorded in 2024 – the lowest since the survey began. Key constraints include a limited buyer universe, lack of follow-on capital, and regulatory hurdles, such as exchange control rules. To unlock the next growth phase, fund managers have called for stronger international networks, greater FDI, and larger fund sizes. Some hope remains pinned on co-investments and fund-of-funds models to crowd in new capital, particularly from pension funds and insurers. Outlook: From promise to performance Despite structural challenges, South Africa's VC market appears to be evolving in the right direction. With the rise of venture debt, deepening early-stage networks, and improving diversity, the industry is shifting from promise toward long-term performance. The report closes with a call to action: build globally scalable startups, attract bold capital, and foster local resilience through smarter partnerships.
Zawya
3 minutes ago
- Zawya
South Africa: MAS shareholders urged to reject Hyprop's value-destructive offer
MAS shareholders are strongly urged to exercise caution and reject the recent unsolicited offer made by Hyprop Investments Limited ('Hyprop'). The purported offer is not only economically unattractive but also raises significant governance and regulatory red flags. Hyprop's offer fails JSE standards and is a disguised free option request PK Investments Limited ('PKI'), the largest shareholder in MAS, has highlighted that the Hyprop offer is inconsistent with the JSE Listings Requirements governing corporate actions, specifically the requirement for an offer to remain open for 12 days after becoming unconditional. More importantly, the offer is not a bona fide attempt to acquire MAS shares, but rather a cleverly disguised request for MAS shareholders to grant Hyprop free options to acquire their shares at a future date - and at a price far below market value, intrinsic value, and competing offers. In essence, this proposal gives Hyprop the right - but not the obligation - to acquire MAS shares from independent shareholders at a future date, under terms determined by Hyprop, but which offer must be accepted by 25 July 2025. The option is "free" in as Hyprop is not required to pay anything upfront for the right to acquire MAS shares in the future. This gives Hyprop a significant advantage, as it can choose to exercise the option only if it is beneficial to them, while shareholders receive no compensation for granting this right, and are prevented from considering alternatives. 'The Hyprop proposal is engineered to prevent shareholders from considering alternative offers, locking them into an arrangement that is materially below current trading levels, MAS's NAV, and PKI's own offer. This is essentially a free call option to Hyprop, with no fixed timeline for implementation. The inherent risk for shareholders if they accept the Hyprop free option is that they will be tied up without any time limitation or alternatives as Hyprop seeks to obtain regulatory, shareholder and other approvals. This carries zero risk for Hyprop with shareholders exposed to significant transaction risk,' said Martin Slabbert, CEO of Prime Kapital. Moldova Mall Cash portion is a 'smoke and mirrors' exercise The so-called cash component in Hyprop's proposal is a 'smoke and mirrors' exercise, designed to distract from the deeply unattractive pricing of the equity swap. The cash portion covers only a fraction of the free options Hyprop is seeking, with the equity swap component valuing MAS at just R18.03, or €0.88 per share — far below Friday's market close (22% discount), MAS's IFRS NAV (48% discount), PKI's cash offer of €1.40 per share (37% discount), and PKI's equity offer currently valued at €1.50 per share (42% discount), which also provides a guaranteed cash exit at 90% of MAS's adjusted NAV per share. Key shortcomings of the Hyprop offer: - The offer is essentially a share swap proposal at a ratio very unfavourable to MAS shareholders. - The cash offer covers just 5% of MAS's market capitalisation, represents only a 4% premium to the current share price for control of the business, and is a 31% discount to IFRS NAV, 17% discount to PKI's cash offer and 22% discount to PKI's equity floor level. - The offer forces MAS shareholders to dilute their high-quality CEE real estate exposure in favour of a riskier South African real estate profile, with limited rand hedge, convoluted corporate structure and a management team with substantially less experience and focus on CEE assets. - The offer's conditions give Hyprop a free option to acquire control, stripping shareholders of their rights to consider alternatives. - Shareholders who accept the Hyprop offer before it becomes unconditional will be severely prejudiced, losing their ability to consider superior alternatives and will be further exposed to the risk of extended and substantial price overhang due to the insignificant cash component. Moldova Mall Superior offer from PK Investments Limited PKI has tabled a voluntary offer that is significantly more attractive for MAS shareholders: - c. R28.80 per share, compared to Hyprop's R24.00 per share. - Over R2.2bn cash cap, versus just R800m from Hyprop; with the current MAS holdings of PKI and its shareholders, this offers a c.17% cash cover for the remaining MAS shares (versus Hyprop cash cover of a meagre c.5%). - The listed cash alternative has direct exposure to MAS's CEE assets, as opposed to Hyprop's South African-focused portfolio - The listed cash alternative has guaranteed minimum returns, upside linked to MAS NAV and a guaranteed exit. - Experienced and proven management team dedicated to CEE real estate, not a diversified South African/European portfolio. A defining moment for governance and shareholder value 'The manner in which the Hyprop offer has been conducted raises profound governance and regulatory concerns,' added Slabbert. 'The offer is not a genuine acquisition, but an attempt to secure control without paying for it - at a price that deeply undervalues MAS in an attempt to hoodwink minority and vulnerable shareholders. This is not just a corporate power grab. It is a fundamental test of governance, fairness, and transparency in South Africa's capital markets. Independent MAS shareholders - and the JSE itself - are at risk of becoming collateral damage in a scheme engineered by a small group of self-interested actors.' A call for unity among MAS shareholders This is a crucial time for MAS. Unity among independent shareholders is essential to protect value, fairness, and high governance standards. PKI remains fully committed to safeguarding shareholder interests and achieving the best possible outcome for all.
