Latest news with #ECCIA
Fashion Network
a day ago
- Business
- Fashion Network
Europe's luxury sector is ' economic powerhouse' but needs more support
A new report on the high-end and luxury sector in Europe shows that it's a '€986 billion economic powerhouse driving jobs, tourism and craftsmanship'. The study comes from the European Cultural and Creative Industries Alliance (ECCIA), which includes EU countries and the UK, and shows that Europe's high-end/luxury sector represents 5% of the continent's GDP and that it 'continues to drive economic growth, preserve cultural heritage, and champion excellence well beyond the continent'. The study was conducted by Bain & Company for ECCIA and also said that the sector has global leader status with 70% global market share. And for personal goods, that share is 80%. But the prospects are 'clouded' due to 'external challenges such as tariffs and emerging global trade uncertainty'. That's a worrying situation given that the sector employees as many as 2 million people throughout Europe and further concerns include the difficulty of attracting and retaining the next generation of skilled artisans. 'European luxury goods continue to dominate global markets, with the latest figures demonstrating a strong performance over the past five years and a solid position for growth within the global high-end and luxury market — rooted in the sector's unique resilience and its ability to adapt and seize opportunities in emerging markets,' said Claudia D'Arpizio of Bain & Company. And she added that 'while these new findings show that the sector accounts for 11.5% of total European exports, high-end and luxury goods are much more than economic drivers. Luxury represents Europe's soft power 'The brands, through their products and experiences, also represent the ultimate expression of the soft power Europe wields through its creativity, innovation, and craftsmanship — Europe's unique 'artisanal intelligence'. This sector is a creative powerhouse that invests up to 5% of revenues in education and training, and up to 3% in sustainability and innovation, which contribute to social prosperity, cultural preservation, and economic growth across Europe's clusters of excellence'. But as mentioned, the sector has huge challenges to deal with, notably 'escalating geopolitical tensions, rising tariffs, and protectionist trade policies, especially between the US and China which make up 35%-45% of the global revenues for the sector'. 'It's tempting to assume that this the sector is shock-proof from some of the economic turbulence we've been seeing…. [but] we are sensitive to the some of the warning signs,' said Michael Ward, the MD of luxury London retailer Harrods who's also president of ECCIA. 'European high-end and luxury brands supported 2 million jobs in 2024, with 160,000 new jobs created since 2019, outpacing broader EU labour market growth. Tariff measures threaten to disrupt global demand, drive up costs, and force companies to reconsider supply chains as we focus on profitability and call for greater stability.' The reports shows that the high-end/luxury sector is also key for 40% of international travellers who cite luxury as a reason for visiting Europe. And high-spending tourists represent up to 25% of tourism-generated value. One aim of the report is to publicise the need for 'smart and urgent policy support to safeguard one of Europe's cultural and economic treasures'. Among the measure the body is calling for are strengthened intellectual property rights (IPR) and more power given to combat counterfeiting. It also wants to see a boost to the EU's legislative framework to help brands enforce their selective distribution networks against unauthorised distributors, protecting brand image and investments while ensuring consumer safety. And it's calling for more EU support for craftsmanship and skills development, as well as support for free trade agreements, simplifying procedures for obtaining EU visas and encouraging VAT-free shopping for non-EU tourists. The ECCIA, established in 2010, is composed of seven European cultural and creative industries organisations — Altagamma (Italy), Circulo Fortuny (Spain), Comité Colbert (France), Gustaf III Kommitté (Sweden), Laurel (Portugal), Meisterkreis (Germany) and Walpole (UK). Between them they represent 750 brands and cultural institutions.
Fashion Network
a day ago
- Business
- Fashion Network
Europe's luxury sector is ' economic powerhouse' but needs more support
A new report on the high-end and luxury sector in Europe shows that it's a '€986 billion economic powerhouse driving jobs, tourism and craftsmanship'. The study comes from the European Cultural and Creative Industries Alliance (ECCIA), which includes EU countries and the UK, and shows that Europe's high-end/luxury sector represents 5% of the continent's GDP and that it 'continues to drive economic growth, preserve cultural heritage, and champion excellence well beyond the continent'. The study was conducted by Bain & Company for ECCIA and also said that the sector has global leader status with 70% global market share. And for personal goods, that share is 80%. But the prospects are 'clouded' due to 'external challenges such as tariffs and emerging global trade uncertainty'. That's a worrying situation given that the sector employees as many as 2 million people throughout Europe and further concerns include the difficulty of attracting and retaining the next generation of skilled artisans. 'European luxury goods continue to dominate global markets, with the latest figures demonstrating a strong performance over the past five years and a solid position for growth within the global high-end and luxury market — rooted in the sector's unique resilience and its ability to adapt and seize opportunities in emerging markets,' said Claudia D'Arpizio of Bain & Company. And she added that 'while these new findings show that the sector accounts for 11.5% of total European exports, high-end and luxury goods are much more than economic drivers. Luxury represents Europe's soft power 'The brands, through their products and experiences, also represent the ultimate expression of the soft power Europe wields through its creativity, innovation, and craftsmanship — Europe's unique 'artisanal intelligence'. This sector is a creative powerhouse that invests up to 5% of revenues in education and training, and up to 3% in sustainability and innovation, which contribute to social prosperity, cultural preservation, and economic growth across Europe's clusters of excellence'. But as mentioned, the sector has huge challenges to deal with, notably 'escalating geopolitical tensions, rising tariffs, and protectionist trade policies, especially between the US and China which make up 35%-45% of the global revenues for the sector'. 'It's tempting to assume that this the sector is shock-proof from some of the economic turbulence we've been seeing…. [but] we are sensitive to the some of the warning signs,' said Michael Ward, the MD of luxury London retailer Harrods who's also president of ECCIA. 'European high-end and luxury brands supported 2 million jobs in 2024, with 160,000 new jobs created since 2019, outpacing broader EU labour market growth. Tariff measures threaten to disrupt global demand, drive up costs, and force companies to reconsider supply chains as we focus on profitability and call for greater stability.' The reports shows that the high-end/luxury sector is also key for 40% of international travellers who cite luxury as a reason for visiting Europe. And high-spending tourists represent up to 25% of tourism-generated value. One aim of the report is to publicise the need for 'smart and urgent policy support to safeguard one of Europe's cultural and economic treasures'. Among the measure the body is calling for are strengthened intellectual property rights (IPR) and more power given to combat counterfeiting. It also wants to see a boost to the EU's legislative framework to help brands enforce their selective distribution networks against unauthorised distributors, protecting brand image and investments while ensuring consumer safety. And it's calling for more EU support for craftsmanship and skills development, as well as support for free trade agreements, simplifying procedures for obtaining EU visas and encouraging VAT-free shopping for non-EU tourists. The ECCIA, established in 2010, is composed of seven European cultural and creative industries organisations — Altagamma (Italy), Circulo Fortuny (Spain), Comité Colbert (France), Gustaf III Kommitté (Sweden), Laurel (Portugal), Meisterkreis (Germany) and Walpole (UK). Between them they represent 750 brands and cultural institutions.
Fashion Network
a day ago
- Business
- Fashion Network
Europe's luxury sector is ' economic powerhouse' but needs more support
A new report on the high-end and luxury sector in Europe shows that it's a '€986 billion economic powerhouse driving jobs, tourism and craftsmanship'. The study comes from the European Cultural and Creative Industries Alliance (ECCIA), which includes EU countries and the UK, and shows that Europe's high-end/luxury sector represents 5% of the continent's GDP and that it 'continues to drive economic growth, preserve cultural heritage, and champion excellence well beyond the continent'. The study was conducted by Bain & Company for ECCIA and also said that the sector has global leader status with 70% global market share. And for personal goods, that share is 80%. But the prospects are 'clouded' due to 'external challenges such as tariffs and emerging global trade uncertainty'. That's a worrying situation given that the sector employees as many as 2 million people throughout Europe and further concerns include the difficulty of attracting and retaining the next generation of skilled artisans. 'European luxury goods continue to dominate global markets, with the latest figures demonstrating a strong performance over the past five years and a solid position for growth within the global high-end and luxury market — rooted in the sector's unique resilience and its ability to adapt and seize opportunities in emerging markets,' said Claudia D'Arpizio of Bain & Company. And she added that 'while these new findings show that the sector accounts for 11.5% of total European exports, high-end and luxury goods are much more than economic drivers. Luxury represents Europe's soft power 'The brands, through their products and experiences, also represent the ultimate expression of the soft power Europe wields through its creativity, innovation, and craftsmanship — Europe's unique 'artisanal intelligence'. This sector is a creative powerhouse that invests up to 5% of revenues in education and training, and up to 3% in sustainability and innovation, which contribute to social prosperity, cultural preservation, and economic growth across Europe's clusters of excellence'. But as mentioned, the sector has huge challenges to deal with, notably 'escalating geopolitical tensions, rising tariffs, and protectionist trade policies, especially between the US and China which make up 35%-45% of the global revenues for the sector'. 'It's tempting to assume that this the sector is shock-proof from some of the economic turbulence we've been seeing…. [but] we are sensitive to the some of the warning signs,' said Michael Ward, the MD of luxury London retailer Harrods who's also president of ECCIA. 'European high-end and luxury brands supported 2 million jobs in 2024, with 160,000 new jobs created since 2019, outpacing broader EU labour market growth. Tariff measures threaten to disrupt global demand, drive up costs, and force companies to reconsider supply chains as we focus on profitability and call for greater stability.' The reports shows that the high-end/luxury sector is also key for 40% of international travellers who cite luxury as a reason for visiting Europe. And high-spending tourists represent up to 25% of tourism-generated value. One aim of the report is to publicise the need for 'smart and urgent policy support to safeguard one of Europe's cultural and economic treasures'. Among the measure the body is calling for are strengthened intellectual property rights (IPR) and more power given to combat counterfeiting. It also wants to see a boost to the EU's legislative framework to help brands enforce their selective distribution networks against unauthorised distributors, protecting brand image and investments while ensuring consumer safety. And it's calling for more EU support for craftsmanship and skills development, as well as support for free trade agreements, simplifying procedures for obtaining EU visas and encouraging VAT-free shopping for non-EU tourists. The ECCIA, established in 2010, is composed of seven European cultural and creative industries organisations — Altagamma (Italy), Circulo Fortuny (Spain), Comité Colbert (France), Gustaf III Kommitté (Sweden), Laurel (Portugal), Meisterkreis (Germany) and Walpole (UK). Between them they represent 750 brands and cultural institutions.
Fashion United
a day ago
- Business
- Fashion United
European luxury: A new report reveals the challenges and growth prospects
European premium and luxury brands represent 5 percent of European GDP, or 986 billion euros. This figure, from a new report by the European Cultural and Creative Industries Alliance (ECCIA), in collaboration with the Comité Colbert and Bain & Company, is up 1 percent compared to 2018. While its evolution demonstrates growth dynamics, the sector's future appears more fragile than ever, given the tariff announcements by the Trump administration and geopolitical tensions. Absence of a single, clear evolutionary scenario In 2024, the value of the premium and luxury sector is down 1 percent compared to the previous year and now stands at 1,417 billion euros. These figures reflect the sector's sensitivity to recent economic fluctuations. 'In a baseline scenario where current turbulence gradually subsides, the luxury sector should reach a market size of between two trillion and 2.5 trillion euros by 2030,' the ECCIA study states. The experts confirm: 'The macroeconomic uncertainty following recent tariff announcements makes it difficult to define a single, clear evolutionary scenario.' The personal luxury goods market, which includes fashion, currently represents about a quarter of the entire luxury goods sector. It has experienced robust growth over the past five years, with a CAGR (Compound Annual Growth Rate) of 5 percent from 2019 to 2024 (estimate). In 2024, the market is expected to experience its first slowdown since the Great Recession (2008-2009), excluding the impact of Covid-19, with a projected contraction of two percent at current exchange rates compared to the previous year. In this context, ECCIA is sounding the alarm: 'Retaliatory measures, including tariffs and non-tariff barriers, threaten the industry's ability to maintain competitive access to these essential export markets,' the organisation stated in a press release. The rise of protectionist discourse could heighten tensions for a sector that relies heavily on open markets. ECCIA concluded: 'Moreover, our production cannot be relocated, as our business model and attractiveness are based on European cultural heritage and expertise.' Key pillars of luxury To maintain positive momentum, luxury and premium players must keep in mind the maintenance of key pillars: aura; craftsmanship and technical excellence; creativity and innovation; sustainability and social responsibility; customer experience; selection of their distribution network; and their global appeal. Focus on six of them. Aura Aura is an essential value lever in the luxury sector. It encompasses a brand's heritage, creativity, emotion and exclusivity to create a strong emotional bond with the consumer. In the age of digital technology and AI, where luxury codes are increasingly imitated, brands must preserve the authenticity of their creativity by combining innovation and heritage. Tomorrow's aura will no longer be limited to rare objects and materials. It will be expressed through strong emotional experiences, consistent storytelling and sincere engagement with contemporary issues such as inclusion, identity and social responsibility. Aura will thus become a marker of meaning as much as distinction. Craftsmanship and technical excellence The future of European luxury depends on brands' ability to preserve and transmit their craftsmanship in the face of two major challenges: the rise of local competition in emerging markets and the scarcity of skilled craftspeople in Europe. To address this, brands are investing in training, academies and actions to promote crafts, in order to guarantee succession and strengthen the attractiveness of these professions. By anchoring this expertise in the future, they are securing their value chains while reaffirming their uniqueness in an increasingly competitive global market. Sustainability and social responsibility The future of European luxury relies on ever-deeper integration of sustainability and social responsibility at the heart of business models. Rooted in craftsmanship and respect for nature, luxury brands must continue to innovate to protect their resources, while strengthening transparency, traceability and ethics throughout their value chain. In a context of increasing regulation, it will be essential for them to be able to make their sector-specific characteristics heard, in order to build ambitious, coherent and consumer-understandable sustainable strategies. Customer experience The future of luxury lies in deepening the relationship between brands and customers, far beyond the act of purchase. To remain relevant, brands must offer immersive, cultural and emotional experiences that fully integrate into their customers' lifestyles and values. By cultivating these authentic connections through exclusive events and personalised interactions, they will strengthen their place in each consumer's personal world, transforming loyalty into lasting attachment. Selective distribution The future of luxury relies on increasingly selective, controlled and omnichannel distribution, in order to preserve exclusivity while meeting the expectations of a demanding global clientele. Brands will need to continue to closely integrate physical and digital channels to offer personalised, consistent and emotionally engaging experiences. This strategy will not only strengthen loyalty and perceived value, but also protect product integrity in the face of growing grey market risks, while guaranteeing a direct and controlled relationship with each customer. Global recognition and appeal To stay ahead, brands will need to step up their global marketing investments, adapting to the specific expectations of key markets such as Asia, the Middle East and the US, while preserving their European identity based on excellence, creativity and expertise. This strategy will enhance their attractiveness to an increasingly diverse and demanding international clientele. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
