African Fashion Brands Weigh Pricing Strategies

African fashion is gaining popularity globally, with demand rising both on and off the continent. As a result, brands are eager to sell their collections to international consumers, but they’re struggling to perfect their pricing strategies and remain competitive across both markets.

Experts advise adopting a dynamic pricing strategy to meet consumers abroad while remaining attractive to local consumers. Sunny Dolat, a cultural researcher and co-founder of Nest Collective, says, “Rather than applying a one-size-fits-all price point, the most sustainable path may be a strategy that reflects the realities of each market: competitive internationally, and more accessible at home.”

Several factors can impact a brand’s pricing strategy, such as infrastructural shortcomings and shipping and logistical challenges. Shipping within the African continent remains an ongoing hurdle due to poor transport systems and delayed progress with the African Continental Free Trade Area (AfCFTA).

Reaching consumers abroad is a costly process, thanks to shipping costs, tariffs, and global disruption. Dolat notes that these costs can be absorbed by the brand or passed on to consumers. Another issue is unreliable power supply, which affects nations like Nigeria, Ghana, and South Africa, and requires brands to invest in generators to bridge the gaps.

These expenses directly inflate the cost of production and, by extension, the final cost of the product. Despite these challenges, African designers are eager to succeed abroad and reach global consumers.

To better serve consumers at home, Dolat advises implementing a tiered pricing strategy. This strategy prices products more attractively for the local market, where shipping and logistics costs don’t need to be factored in.

Wanda Lephoto, a South African designer, absorbs production and logistics costs to stay competitive in the local market.

For others, the strength of the local currency plays a big role in shaping a brand’s pricing strategy. A weak or unstable currency can be impacted by socioeconomic factors, causing the currency to plunge overnight.

Brands face similar hurdles when exploring international expansion.

In a bid to compete in the international market and speak to existing streetwear consumers, some designers have found success. Some designers face challenges around pricing for the local versus international market, while others have found success.

Designers believe that figuring it out at home first is the winning formula long term. Lephoto says, “We have to come back, and prioritize our local audience and local consumer. Then once we have a strong foundation and audience that loves us here, and is able to buy us consistently, then we can look at exporting our business.”

They must prioritize their local audience.