The 21st–century business landscape of consumers and entrepreneurs: a South African luxury market

Entrepreneurs in emerging economies face the dual challenge of establishing legitimacy in global markets while securing local consumer support. In South Africa’s luxury fashion sector, talented entrepreneurs remain overshadowed by international brands, raising questions about how innovation can strengthen domestic market engagement. This study investigates the relationship between entrepreneurs’ use of innovative techniques and consumer motivation to purchase locally produced luxury clothing. A quantitative data collection was applied using a self-administered questionnaire that was conducted towards 309 consumers in both Johannesburg and Cape Town. Drawing on survey data from the 309 consumers, correlation and regression analyses were conducted to examine the link between innovation and consumer behavior. The findings reveal a significant positive relationship between innovative practices, particularly digital engagement and creative product strategies, and consumer motivation to support local brands. Younger and more educated consumers emerged as especially responsive to innovation, underscoring their importance as a target segment. By combining Schumpeter’s (1934) supply-side view of entrepreneurial innovation with Rogers’ (2003) demand-side model of consumer adoption, this study highlights how innovative strategies shape consumer motivation in South Africa’s luxury fashion market. This dual perspective contributes to entrepreneurship scholarship by bridging entrepreneurial practice and consumer behavior in an under-researched African context. The findings of this study are more significant today as South African fashion designers are on the rise in making a solid global fashion presence. With this global recognition, it is now imperative to shift the mind of local consumers on the capability and capacity of South African designers to offer a competitive luxury market. This new luxury fashion presence represents the “confident fashion voice” local consumers have never experienced from the local designers before. Practical and policy recommendations are offered for entrepreneurs and stakeholders seeking to enhance the competitiveness of South Africa’s luxury fashion industry.