REPORTS: The Economic Impact of Branded Clothing Retail in the EU27 - Oxford Economics Report Highlights Sector’s Contribution to GDP and Employment
This report studies the economic and societal impact of the branded clothing retail industry, including its value chain in the EU27.
The branded apparel retail industry is a powerhouse for the European Union’s economy. In 2023, the industry contributed €331.8 billion to the EU’s GDP and supported 4.5 million jobs.
The industry’s direct GDP contribution was €55.4 billion, accounting for 8.5% of the entire EU retail and trade sector. Supported by the industry’s procurement, it stimulated another €190.1 billion of GDP contribution along the supply chain. Additionally, the industry’s induced impact supported another €86.2 billion.
Guest Report courtesy of Oxford Economics
A new report by Oxford Economics, commissioned by the European Branded Clothing Association (EBCA), reveals the significant economic contribution of the branded clothing retail sector to the EU27 economy. The study, based on 2023 data, highlights the sector’s role in supporting jobs, generating gross value added (GVA), and driving international trade.
Key Findings:
Economic Contribution: The branded clothing retail sector contributed €331.8 billion to the EU’s GDP, accounting for 2% of total GDP, and supported 4.5 million jobs, equivalent to 2% of total employment in the EU.
Employment: The sector directly employs 1.3 million people, with an additional 3.2 million jobs supported indirectly and through induced effects. Notably, 63% of employees in the sector are women.
Global Trade: The EU is a major player in global trade for branded clothing products, ranking as the largest importer of apparel (28% of global imports) and the second-largest exporter of bags (28%) and footwear (17%).
Why is this Report Important?
The report provides a comprehensive analysis of the economic impact of the branded clothing retail sector in the EU27, highlighting its significant contribution to GDP (€331.8 billion) and employment (4.5 million jobs).
It demonstrates the sector's role in supporting local supply chains, trade networks, and other industries through direct, indirect, and induced effects.
The report also emphasises the EU's critical position in global trade for clothing-related products, both as a major importer and exporter, showcasing its influence in international supply chains.
Additionally, the methodology and data sources used ensure transparency and reliability, making the findings valuable for policymakers, industry stakeholders, and researchers aiming to understand and optimise the sector's economic contributions.
Methodology:
Oxford Economics employed a bespoke sector definition using NACE codes to capture branded clothing retail activities, including physical stores, online platforms, and leather goods. The analysis utilised input-output modelling to estimate direct, indirect, and induced economic impacts, ensuring a comprehensive view of the sector’s influence across supply chains and consumer spending.
Sector Highlights:
Direct Impact: €55.4 billion in GVA and 1.3 million jobs.
Indirect Impact: €190.1 billion in GVA and 2.2 million jobs, driven by supply chain activities.
Induced Impact: €86.2 billion in GVA and 1 million jobs, supported by employee spending in the wider economy.
Trade Analysis:
The report underscores the sector’s reliance on global supply chains, with the EU importing and exporting significant volumes of apparel, footwear, bags, and headgear. The EU’s dual role as a top importer and exporter highlights its central position in global branded clothing networks.
Key Takeaways:
Economic Contribution: The branded clothing retail sector contributes €331.8 billion to the EU27 GDP, accounting for 2% of the region's GDP, and supports 4.5 million jobs, representing 2% of total employment.
Trade Intensity: The sector is highly trade-intensive, with the EU being the largest global importer of apparel (28% of global imports) and the second-largest exporter of bags (28%) and footwear (17%).
Supply Chain Impact: The sector stimulates significant indirect and induced economic activities, supporting industries like transportation, real estate, and business services, with a multiplier effect of 3.5 for employment.
Female Employment: The branded clothing retail sector has a high share of female employees, with 63% of its workforce being women, compared to the overall retail industry average.
Sector Definition: A bespoke definition was created to analyse the sector, incorporating NACE codes for clothing, footwear, leather goods, and online retail, with an estimated 80% of sales attributed to branded clothing.
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About Oxford Economics:
Founded in 1981, Oxford Economics is a leading global advisory firm specialising in economic forecasting and impact analysis. With offices worldwide and a team of over 440 professional economists, the firm provides insights to corporate, financial, and government decision-makers.
For further information or to discuss the report visit www.oxfordeconomics.com.
