LONDON — The European luxury industry may currently be fighting many battles — slowing growth in China, limp demand at home, and currency headwinds, to name a few — yet it continues to prosper, according to a report issued today by the European Cultural and Creative Industries Alliance.
The alliance, which is composed of the five national European luxury goods associations, including Walpole British Luxury; Fondazione Altagamma; and Comite Colbert, lobbies on behalf of the sector.
On Tuesday, it presented “The Contribution of the High-End Cultural and Creative Industries to the European Economy,” to members of the European parliament and European Union leaders.
According to the report, the value of goods and services produced by the luxury sector grew by 28 percent between 2010 and 2013, and created close to 200,000 jobs during that same period.
It said the value of sales in the sector in 2013 was 547 billion euros, or $672 billion, and the value of exports 308 billion euros, or $378 billion. Luxury goods represented four percent of nominal European Union gross domestic product in 2013, according to the report, which was prepared for the ECCIA by Frontier Economics.
If the EU luxury sector, taken collectively, represented a country, it would be the seventh largest economy in the EU and the 20th largest economy in the world, the report said.
Elżbieta Bieńkowska, European commissioner for the internal market, industry, entrepreneurship and SMEs, said, “high-end cultural and creative industries have demonstrated that European companies, based on non-relocatable production, can continue to drive growth and jobs in our region. We look forward to continuing our cooperation and to strengthening our support for these industries.”
Michael Ward, managing director of Harrods and president of the ECCIA, called the region’s luxury industry “Europe’s Silicon Valley, synonymous with innovation.”
ECCIA presented a first report in 2012 that recognized the model of the European luxury sector. This latest report also takes into account the halo effect of luxury goods industry on tourism and travel, and to suppliers and manufacturers.
It also puts an emphasis on the importance of protecting intellectual property and consumers’ rights online.