The latest report from Oxford Economics in partnership with the Fashion Council Germany and eBay Germany analyses the economic impact of the fashion industry on the German economy in 2023, looking at key aspects such as employment, GDP contributions and tax revenues generated
In 2023, the fashion industry contributed around 70 billion euros to the German GDP-29 billion euros directly. It supported around 1 million jobs and generated 36 billion euros in tax revenue. Despite these contributions, the industry is struggling with the consequences of the pandemic and high inflation: Since 2019, gross value added has declined by 12% (inflation-adjusted) and employment by 20%.
In addition to our analyses, the Fashion Council Germany conducted interviews with 18 experts and industry representatives to shed light on the strengths and weaknesses of the industry. According to them, the German fashion industry impresses with its longevity, quality, and innovativeness. The trend towards sustainability and transparency is recognised by companies and offers growth opportunities. On the other hand, high production costs and a lack of cultural roots are a burden on the industry. To be successful in the long term, the fashion industry must focus on sustainability and digital innovation. At the same time, the balance between cost pressure and sustainable practices remains a key challenge for the industry.
The experts interviewed recommend increased political support to implement sustainability strategies and increase the international presence of German fashion. Initiatives such as funding programmes for start-ups and sustainable projects as well as export initiatives are crucial to ensure the international success of German brands. Strengthening domestic production and expanding the digital infrastructure is also essential to remain competitive in the long term.
The experts behind the research
Our Economic Consulting team are world leaders in quantitative economic analysis, working with clients around the globe and across sectors to build models, forecast markets and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Johanna Neuhoff
Director of Economic Consulting, Economic Footprint & Sustainability
Babak Adib
Business Development Manager
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