The branded clothing retail industry contributed €331.8 billion to EU GDP and supported 4.5 million jobs in 2023, representing approximately 2% of both GDP and employment across the 27 member states.
- The study, conducted by Oxford Economics, was commissioned by the European Branded Clothing Association and covered all 27 EU member states using 2023 as the reference year for analysis.
- Most economic contribution came from local supply chains, including logistics and marketing companies, despite the sector's global trade intensity.
- The research found that the sector contributed significantly to employment, with a notably high proportion of female workers compared to other retail sectors.
- Branded clothing retail generated substantial economic activity through direct operations, supplier relationships, and employee spending patterns throughout the EU.
KEY ECONOMIC IMPACT RESULTS: The direct gross value added represented 8.5% of the total retail and trade sector, and direct employment accounted for 9.4% across the EU27.
- Total economic impact comprised €55.4 billion in direct gross value added, €190.1 billion indirect, and €86.2 billion induced effects across all member states.
- Employment impact included 3 million direct jobs, 2.2 million indirect positions, and 1.0 million induced jobs supported throughout the EU27 economy.
- The sector demonstrated a notably high proportion of female employees, with 63 out of 100 retail industry workers being women, according to statistical data.
- The employment multiplier reached 3.5, meaning each direct job in branded clothing retail supported an additional 2.5 positions elsewhere in the economy.
- Major supported sectors included other business services (€49.7 billion), real estate activities (€35.9 billion), and transportation and storage (€23.9 billion in value added).
GLOBAL TRADE ANALYSIS: The EU ranked among the top two importers across all analysed product categories, highlighting the sector's reliance on international supply chains.
- The EU was identified as the largest global importer of apparel, accounting for 28% of worldwide imports in this category during 2023.
- Analysis showed the EU as the second-largest exporter globally, with 28% of global bag exports, 17% of footwear exports, and 11% of apparel exports.
- The research noted that the EU was uniquely positioned as the only entity appearing in top-five rankings for both imports and exports across all analysed products.
- Trade data covered apparel, bags, footwear, and headgear using UN Comtrade database information, focusing on non-EU trade to avoid double-counting intra-EU commerce.
- The findings demonstrated the EU's central role in global clothing supply chain networks, contrasting with other major economies that specialised in either importing or exporting.
DEFINITIONS AND METHODOLOGY: Oxford Economics developed a bespoke sector definition using NACE classification codes, as no single code adequately represented the branded clothing retail sector for statistical analysis purposes.
- The definition included three main sectors: retail sale of clothing in specialised stores (NACE 47.71), footwear and leather goods retail (NACE 47.72), and internet retail sales (NACE 47.91).
- The sector definition was agreed upon with EBCA, focusing specifically on the main activities undertaken by the association's member companies across Europe.
ECONOMIC IMPACT MODELLING FRAMEWORK: The study employed a three-channel economic impact model to quantify direct, indirect, and induced effects of branded clothing retail across the EU27 member states.
- Direct impact captured gross value added and employment generated by branded clothing retailers through their own operations in physical stores and online platforms.
- Indirect impact measured economic activity stimulated by procurement from suppliers, incorporating trade feedback to account for the sector's globally intensive supply chain networks.
- Induced impact quantified economic activity generated when employees and suppliers' staff spent their wages in the broader consumer economy, supporting additional businesses.
- Oxford Economics used Wassily Leontief's input-output modelling method, utilising their Global Sustainability Model covering more than 180 countries for comprehensive analysis.
- The model incorporated OECD data and created separate vectors for each EU27 country to account for specific regional economic structures and employment costs.
