Economic crisis: Purchase of luxury items has declined – Ahomka-Lindsay
Former Deputy Trade Minister Robert Ahomka-Lindsay has disclosed that revenue growth in the luxury goods sector has dipped in recent years due to the economic crisis in Ghana.
He said that people are now buying more essentials such as clothes and food, and less luxury items.
Highlighting the revenue growth, the former Deputy Trade Minister said: “We are going through a period of difficulty. Apparel growth is up by 3.7%, luxury goods are down. Times are tough, people are now spending less on luxury goods. Food is up by 9%, and home and laundry care are also up. In times of difficulty, people move towards the essentials such as clothes and food, and then they drop on the luxury items such as watches, fashion, and prestige cosmetics. These are dropping. We are expecting that this trend will continue between 2023 and 2027.”
He made these remarks during the third forum of the Citi Business Festival on Tuesday, June 20, 2023, under the theme “The Changing Face of the Ghanaian Retail Market.”
He also noted that 60% of retail commerce in Ghana goes through the open market.
“We must remember that modern trade only accounts for 4% of the retail sector, community outlets account for 36%, and that 60% of everything that is sold in Ghana is sold through the open market,” he said.
About the Citi Business Festival 2023
The annual Citi Business Festival is a month-long initiative that features on-air and outdoor events in June to equip Ghanaian businesses with strategies to grow and scale up while meeting emerging trade and commerce trends.
This year, the festival is themed “Made in Ghana: Growing our own.”
There are live radio on-air series at 9:05 am every Monday to Thursday on the Citi Breakfast Show on Citi FM. On Fridays, it airs at 7:10 am.
In addition to the on-air series, there will be weekly forums on Citi TV every Tuesday to discuss the theme for the week, as well as special TV feature stories aimed at showcasing indigenous Ghanaian businesses.
The Citi Business Festival 2023 is powered by Citi TV and Citi FM in partnership with Absa Bank and is proudly sponsored by MTN MoMo, MTN Business, and Zeepay with support from GIRSAL.
Source: Ghana Business
