Nigeria and Egypt are laying out their plans to rule the African fashion market, which includes footwear, clothing, and accessories.
By the end of 2023, these two countries are expected to generate a staggering $2.5 billion in revenue.
By 2023, Nairametrics’ analysis of Statista data projects that the Nigerian fashion market would grow to a $1.31 billion industry.
The projected market volume is expected to increase at a strong rate of 10.03% per year (CAGR 2023-2027), reaching an estimated peak of $1.92 billion by 2027.
By 2027, it is anticipated that Nigeria will have a booming user base of about 83.8 million users. This is projected to increase from a user penetration rate of 24.4% in 2023 to an outstanding 34.1% by 2027.
It is expected that the average revenue per user (ARPU) will rise to $24.00.
The fashion industry in Egypt is also expected to reach $1.28 billion in 2023, continuing its upward trend. This market is anticipated to reach a market volume of $2.35 billion by 2027, with a compound yearly growth rate (CAGR 2023–2027) increasing at an astounding 16.40%.
Egypt is expected to have a user base of 56.4 million in the fashion business by 2027. Egypt’s user penetration, which is currently 33.3%, is expected to soar to an astonishing 47.1% by 2027.
The average revenue per user (ARPU) projection is $34.19.
How Are Nigeria and Egypt Going to Get This Done?
Analysts at Statista claim that the fashion industry has already seen a rise in the worldwide internet revenue share to 23% by 2020.
“The East and Southeast Asian regions are poised to continue driving the global growth trajectory, buoyed by their expanding middle-class population and a lagging offline shopping infrastructure,” according to the report. Instagram Checkout is an example of an emerging trend that seamlessly incorporates shopping functionality into social media content to facilitate high-speed “inspire and sell” customer conversion.
The audience is gradually moving away from desktop platforms and toward mobile ones, highlighting the growing significance of improving the mobile browsing and checkout experience.
Nigeria is in a unique position with demand exceeding most African countries due to its massive population of over 200 million.
The success of e-commerce fashion is also being propelled by the expanding internet culture among Nigerians, which is being fueled by a remarkable 222.5 million telephone customers estimated in 2022, per the National Bureau of Statistics (NBS).
This shift is being driven by Lagos, which is frequently praised as the center of fashion and design.
With a population that exceeds 100 million and a youthful demographic that includes a sizable portion of people under 30, Egypt also has a sizable population.
This group drives demand in the fashion industry since they are fundamentally more fashion-conscious and eager to spend money on apparel and accessories.
Egypt’s reputation as a top travel destination, which attracts travelers from all over the world, supports the fashion industry further because tourists frequently go shopping and buy local clothing and gifts.
Egypt’s fashion business is boosted by the influx of foreign interest and trade, paving the way for rapid expansion.
As we continue to observe the African fashion landscapes, it appears that Egypt and Nigeria are primed to take the lead in this sector thanks to their sizable populations, thriving internet cultures, and fashion scenes.