Industrial Strategy n°21/2013

4th December 2013

A new action plan for the fashion and high-end industries endorsed in London on December 3rd 2013

 Summary: On 3rd December 2013 in London, following an expert group meeting gathering the main sectors active in the Fashion and High-end industries[1]it was agreed to implement the 11 actions included in the European Action Plan for the fashion and high-end industries which is part of a broader strategy aimed at revitalising industry in Europe. A permanent Multi-stakeholders Forum was launched to exchange of information and ensures the follow-up on the action plan. Please find enclosed the Euratex Press Release issued yesterday (annex 1) and the Action Plan (annex 2).More actions from EURATEX and its members will be needed to secure the correct implementation and to ensure high political visibility to this action plan

Additional information on the Conference

The European Commission Vice-President Antonio Tajani, EU Commissioner for Enterprise and Industry, presented the plan to the International Press in presence of Mr José Manuel Soria, Spanish Minister for Industry, Energy and Tourism; of the Spanish Ambassador in UK as well as the Italian Ambassador, Mr Pasquale Terracciano, who all participate in the high-level lunch organized by Walpole, the British Luxury association.

Summary of the initiatives in eleven areas

1. Cooperation between industry, education and vocational training

Better understanding and anticipation of the skills needed is crucial to ensuring the availability of the necessary skills in the future. The plan foresees better coordination of existing instruments in this field as well as more interaction between industry and education. It also emphasizes the importance of the Erasmus for Young Entrepreneurs programme which gives entrepreneurs who start a business a chance to learn from more experienced entrepreneurs in other Member States.

2. Raising young people's awareness about career opportunities

The fashion and high-end industries offer diverse career opportunities, be they in retail, design, manufacturing or marketing. Attracting more young people is crucial for the long term competitiveness of these industry sectors. The action plan emphasizes the importance of initiatives aimed at raising awareness amongst young people about the career pathways and opportunities in fashion and high-end, as well as promoting traditional skills and crafts. For example, the Commission is developing a European Alliance for Apprenticeships, a multi-stakeholder initiative aimed at helping improve the quality and supply of apprenticeships across the EU.

3. Supporting ICT innovative solutions

The fashion and high-end industries are pioneers in terms of producing, using, and distributing content as well as engaging their users. Therefore, the plan outlines the importance of initiatives designed to help them exploit possibilities offered by innovative information and communication technology solutions. Hundreds of companies have already benefited from the eBIZ initiative: supported by the Commission, it helps textile, clothing and footwear companies to use ICT and to better integrate it in their value chains. Further action is needed to raise awareness amongst industrial managers and policy makers on the existence and benefits of this project.

4. Fostering creativity

Adding new functionalities, design or other creative content allows companies to move towards more innovative, high-added value products and new business models, securing their long-term competitiveness. Therefore, important parts of the action plan are initiatives aimed at stimulating enterprises’ creative efforts. Amongst them, 'Worth Pilot Project', aims to increase design and other creative content in the fashion industry. Taking into account the experience and lessons learnt from the pilot initiative, the 'Worth Project' will continue from 2016 onwards under the new COSME programme[2].

5. Supporting the development of clusters

Fashion industries have traditionally shown strong geographical concentration in clusters, which provide a fertile business environment for companies, especially SMEs, to collaborate with research and education institutions, suppliers, customers and competitors. The Commission has been supporting cluster excellence through the European Cluster Alliance, a transnational cooperation between cluster organisations. Further actions to develop cluster excellence will focus on supporting cluster development through programmes such as COSME and the Structural Funds.

6. Fighting against counterfeiting

The global market of counterfeit goods is worth more than € 200 billion, and according to some estimates it could double by 2015. Fashion and high-end products account for the largest share of all counterfeit goods: in terms of value they comprised over 50% of the detentions registered by European customs in 2012. In 2013 the European Commission launched a campaign to raise consumer awareness about the dangers of fake goods and to promote closer cooperation between the Commission, national authorities, industry and consumers. The action plan proposes further initiatives such as strengthening communication with consumers and national authorities through events promoting the 'Stop Fakes' campaign in Member States.

7. Strengthening SME support and internationalisation

New export markets are opening up for fashion and high-end goods, also creating new opportunities for SMEs. Meanwhile, when operating in third-country markets, maintaining an appropriate framework of intellectual property protection is of great importance. The action plan outlines several initiatives, such as the IPR SME Helpdesks, aimed at providing companies with further support and practical understanding of the intellectual property protection systems in key export markets.

8. Improving access to finance

Fashion SMEs systematically face difficulties in obtaining loans. This situation is even more difficult in the current period of economic crisis. The new COSME and Horizon 2020 programmes will offer funding in support of innovative and creative ideas, including in the fashion and high end industries. These programmes will make € 4 billion available in loan guarantees and equity facility to improve access to finance.

9. Strengthening dialogues with key trade partners

Many European fashion and high-end companies strongly rely on exports, especially to markets such as China, Brazil, India, Japan, Russia and the USA. High-end industries alone export over 60% of their production outside Europe. It is critical for them to obtain improved access to key markets, notably through the negotiation of Free Trade Agreements. Thus, the Commission's 'Missions for Growth' will be continued, with the aim of strengthening cooperation with third countries in key policy areas and helping companies go international. In 2014, new initiatives will include launching a call in the framework of COSME for actions aimed at reducing barriers to trade and investment, helping European business gain better access to key markets and improving the business environment with partner economies.

10. Assessing the feasibility of leather labelling

The European leather sector faces problems related to products that are fraudulently labelled as leather or are counterfeit. Some products may also be labelled using the term ‘leather’ inappropriately. Misleading and fraudulent labelling are not only detrimental to businesses but also to consumers who are not correctly informed. The European Commission is addressing this particular challenge by assessing different policy options, including the possibility of introducing an authenticity leather labelling system at the EU level.

11. Attracting tourists to Europe

The tourism, fashion and high-end industries are highly interconnected, and the figures confirm this trend. For example, in 2011 in the United Kingdom foreign visitors spent more than £ 4 billion in shops and over half of this they spent on fashion and high end personal goods. Planned initiatives will aim at raising tourists’ awareness of Europe’s unique heritage, niche markets, local products and crafts. For example, in 2014 a call will be published to form a new European tourist route involving the fashion and high-end industries, such as a "route of perfumes" or a route of "arts and crafts". The European Commission is also working on visa facilitation measures to attract more tourists to Europe.

Reminder - The roadmap to London

Several high-level meetings this year – in Madrid, Milan and Paris – were all in preparation for the conference in London which took place today. The action plan that was endorsed is a follow-up to the two Staff Working Documents that the Commission published in September 2012: one on the fashion industry and another one on the high-end industry. The action plan reports on what has been achieved since the publishing of the two Staff Working Documents and puts forward new actions for the long-term competitiveness of the fashion and high-end industries. Furthermore, the plan is in line with the objectives of the industrial policy which aims at strengthening European industry and reinforcing sectors with strong growth and employment creation potential.

(Original signed by)

Francesco MARCHI

Director General

EURATEX salute and agree on the EU plan to boost the European Fashion and High-end industries[3] competitiveness

London, 3rdDecember 2013

EURATEX, the European Apparel and Textile Confederation,together with all the key stakeholders and sectors of the Fashion and High-end industries was present at a high-level lunch organized by Walpole, the British Luxury association, during which European Commission Vice-President Antonio Tajani, EU Commissioner for Enterprise and Industry, presented the Action Plan to implement the European strategy for Fashion and High-end industries by 2020.

Mr Alberto Paccanelli, President of EURATEX thanked VP Tajani for the work carried out since the decision taken in February 2013 to provide a clear roadmap to this industry following the 26 September 2012 Staff Working Documents on Fashion and High-end industries. He stressed that “the most important objective is to create an environment in which our companies operating in the various industrial value chainsare able to operate in the right conditions so to be able to successfully compete in a globalized world and therefore encouragedto maintain investments and re-invest in Europe. Today agreed roadmap for future initiatives is an important step in recognising the important contribution our industries are making to Europe prosperity.”

Vice-President Tajani highlighted the importance of the identified tangible initiatives at EU-level to support the development of the Fashion and High-end value chains. “European Fashion and High-end industries are known throughout the world for their creativity, high-quality manufacturing, innovation and inspiration stemming from Europe's rich culture. Today, all operators are committed to ensuring that Fashion and High-end manufacturing sectors continues to prosper as key pillars of European industry.”

The action plan for future initiatives is the result of a wide consultation among all stakeholders active in theFashion and High-end industries and provides a number of concrete initiatives to be undertaken in the upcoming years in order to strengthen Europe’s competitiveness in the Fashion industries.

In concluding Mr Paccanelli emphasised that “The Fashion industries should all remain vigilant that those actions would become tangible reality also in the context of the next Commission. We should all work to maximise the benefits from the actions proposed and present, when needed, the best projects possible in a coordinated way in order to reach those goals”.

EURATEX has supported and played a central role since the start the process and with other industries participated to debates, workshops and events organized in Madrid, Milan, Paris and Brussels by the stakeholders in order to provide tangible proposals for future development of those key value chains.

For further information contact:
Francesco MARCHI
Director General
Tel : +32.2.285.48.82
Fax : +32.2.230.60.54
E mail :

NON PAPER

(Draft) Action Plan for Fashion and High-end Industries

  1. Background

The European Commission’s 2012 Communication ‘Promoting cultural and creative sectors for growth and jobs in the EU’[4] presented by Commissioner Vassiliou, with the support of Vice-President Tajani, was the Commission’s first recognition of the economic, social and cultural significance of these specific industries. The Communication is accompanied by two Staff Working Documents (SWD) — one on the fashion and the other on high-end industries[5] — which assess the current situation and prospects for the fashion and high-end industries and which set out policy options to strengthen their competitiveness.

These Commission’s documents benefited from significant inputs by an informal High-Level Group of CEOs and presidents of major European brands and sector associations, and by the Working Group on fashion and high-end industries. To echo, several events — notably in Madrid, Milan and Paris — were organised by European sector associations to prepare the ground for the present Action Plan for the long-term competitiveness of these industries. This Action Plan is to be presented and fine-tuned by main European associations in London on 3rd December 2013. It is consistent with industrial policy objectives that aim to strengthen European industry and reinforce sectors with strong growth and employment creation potential.

The Action Plan highlights the main characteristics of both fashion and the high-end industries (chapters II and III), reports on what has been achieved since the publication of the Staff Working Documents (chapter IV) and puts forward new actions for the long-term sustainable competitiveness of the fashion and high-end industries (chapter V).

  1. Fashion industries: where manufacturing meets creativity

The fashion industries are one of the most vibrant and creative sectors in Europe. With over 5 million directly employed in the fashion value chain and 850 000 companies, these industries provide an important contribution to the EU economy with an annual turnover of EUR 525 billion.

Due to pressures for change resulting notably from trade liberalisation and increasing external competition, consumer developments, technological advances, changes in production costs and environmental issues, the fashion industries are characterised by continuing restructuring and modernisation.

Despite the economic crisis, many European companies have managed to defend their market positions in the international competition; this is mainly owing to their move to innovative, high-added value products, niche markets and new business models. This shift indeed requires a more qualified workforce to deal with new technologies, stimulate innovation, ensure quality management and develop international strategies and marketing. Therefore, the availability of adequately skilled workers has become one of the major issues for the fashion industries.

Access to finance remains also a key issue, given the average small size of fashion businesses as the sector is dominated by micro-enterprises with less than 10 employees. The type of their activity, the presence of mostly immaterial assets and difficulties in presenting the investment opportunities to investors hamper further their ability to obtain external financing needed to ensure the everyday functioning and growth of businesses.

Creativity and innovation are inherent in the European fashion industries at all stages of the value chain, from material properties and functions, manufacturing processes, supply chain management and finally to design and branding. It is crucial to further support creative and innovative efforts of European companies, notably through small scale projects focused on the up-take of ICT and other technologies, increasing design and other creative content as well as developing and introducing innovative products on the market. Moreover, reinforcing cross-national and cross-sectoral cooperation between clusters can further drive innovation and creativity in the fashion industries.

Responsible management of individual companies is increasingly a soft but key element in any modern business strategy, not just in developed economies and societies like the European one, but also in emerging and developing countries. Recently, companies of the fashion value chain have been confronted with safety of workers in third countries' factories and with criticism by European consumers and other civil society organisations. It is therefore important to further develop multi-stakeholder initiatives, like the Agreement on Fire and Building Safety in Bangladesh, subscribed by European companies, in order to minimize potential social and environmental risks, but also maximize the benefits of proactive and responsible strategies of European companies for both their reputation and long-term sustainable competitiveness.

Finally, with demographic expansion and economic growth leading to the increase of revenues in certain third countries, new export markets opened up for EU fashion products. Recent years have seen an increase in European exports, both to some of the rapidly growing emerging markets such as China, United Arab Emirates and Saudi Arabia as well as to developed countries, including USA and Japan. Taking into account the stagnating internal demand, exporting is currently the driving force for the fashion industries. To benefit from this trend, more and better support is needed for companies, in particular SMEs, for which it is more difficult to sell or invest in new markets. Moreover, it is critical for the fashion industries to secure a substantial improvement in access to key markets, notably through balanced outcomes of free trade agreements.

  1. High-end industries: allying cultural heritage and economic performance

European brands account for 70% of the global high-end goods market, making Europe the global leader. Although high-end products are usually associated with fashion, the sector consists of the high-end segments of a wider range of products and services based on a unique business model. Besides fashion, perfumes, luxury watches and other personal goods, the high-end industries cover also cars and yachts, furniture and design household equipment, hotels and leisure, wines and spirits, gastronomy, to name but a few.