South Africa is basking in record sales of luxury goods, a trend in complete contrast with the rest of the world where a steady decline in retailing is evident.

Luxury items, including leather goods, watches, clothing, jewellery, perfume, champagne and cognac are being snapped up by rich tourists taking advantage of the weak rand to buy leading brands. The industry has also benefited from the spending power of rich black consumers who are the dominant buyers of leather goods and menswear.

Global sales started to fall following the September 2001 attacks in the US. In contrast, business boomed in South Africa where luxury goods retailers such as Richemont and Gucci have reported significant growth.

Wilhelm Landman, managing director of Vendôme Distributors, a subsidiary of Richemont said the tourist industry grew substantially after September 11 as Europeans and Americans chose South Africa as a tourist destination.

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