Together the two have proven themselves a force to be reckoned with as they have acquired the rights for Africa to manage The Luxury Network International – the world’s leading luxury B2B affinity marketing, partnerships and events group with 17 international offices (including Johannesburg and Cape Town) and over 250 luxury brand members, growing by over 20 new companies per month around the globe.

“In South Africa we will be bringing together a selection of the country’s finest luxury brands and high-end service providers to work together at senior director level for mutual business and client development,” says Jeremy Nel, CEO of Luxury Brands.

“The response from the top end market in South Africa for our very unique affinity marketing, partnerships and events model has been overwhelming and we are in the process of meeting many new luxury brands and high end service providers who have formally applied to join our new network,” comments joint MD Xolisa Gaca.

Leading providers of luxury goods are rapidly catching on and the New Luxury Network South Africa members already include: Aston Martin, Rolls Royce, PamGolding Real Estate, ExecuJet Aviation Group, Live Out Loud Magazine, McLaren, Sunseeker Yachts, Audi, BMW, Luxury Brands, SA Gold Coin Exchange, Mini and the Daytona Group, with three new inquiries being processed each week.

Justin Divaris, CEO of the Daytona Group, says, “It’s not a simple feat to identify, develop, nurture and grow strong and successful marketing alliances and partnerships, but we believe that The Luxury Network South Africa will be an indispensable resource in organising and identifying high-end affinity marketing activities and events amongst a selection of leading international luxury brands.”

Mckinsey’s Quarterly states that the rate of return on foreign investment is higher in Africa than in any other developing region. With neighboring African powerhouses such as Nigeria and Angola showing escalating growth off the back of mining and resources, investors are looking to Africa for returns.

Ettore Poggi, MD ExecuJet Africa, Africa’s leading private aviation group, says, “Johannesburg is clearly the gateway to Africa and with the steady growth of Africa’s population, expansion of the middle class and rising optimism about the continent’s future we have found that local and international investors are clamoring to gain a foothold into this recent African economic boom. They are requesting our aerospace solutions which offer tailored itineraries, personal safety, comfort, privacy and ultimately increased productivity. The Luxury Network South Africa in turn allows us to communicate directly with this growing market sector via their targeted networking activities, which ultimately increases our brand reach.”

The new wealth creation and emerging middle class in Africa is driving the formation of new businesses, with resultant increased savings and investment. Disposable income levels and consumer spending is also steadily on the rise. With a predominantly youthful demographic, the youth are looking for products that convey the right image, and follow the latest international trends including technology and clothing brands.

Retailers of luxury goods have identified this new trend and are rapidly investing in the current infrastructure shortfall to accommodate the growing thirst for Luxury Brands in these emerging markets, where ‘Bling is currently still King’. Consultant Bain & Co says 60% of Africa’s dollar millionaires, or 71 000 people can be found in South Africa, the region’s largest economy. That is more millionaires than in Saudi Arabia or the United Arab Emirates.

"The real opportunity is more the emergence of the new middle class," says Claudia D’Arpizio, a partner at Bain. By 2020, Bain estimates 420 000 South African households will have disposable incomes topping $100 000. The retail value of luxury goods sold in South Africa is set to swell by 20% to $816m per year by 2015, Euromonitor International estimates.

Luxury marketing is a highly sought after niche industry where every brand interaction needs to be strategically coordinated to create an engaging and lasting, multi-faceted, sensory experience. Luxury is essentially an emotional connection to a product or brand and retailers are ensuring that not only the super-rich, but also upscale buyers are pampered and made to feel special.

“Luxury branding has always been about an intimate knowledge of your audience and how to create the right reputation. Defining luxury is as much an art as it is a science, but inspiring unforgettable experiences and building relationships in this market is paramount,” concludes Nel.