The retail sales are an indicator of the global economys progress and reflect the spending patterns, as well as highlight habits of the consumers. The people and companies involved in manufacturing, distributing, marketing and selling of goods can benefit when the economy moves forward. When consumers hold off the decision of buying something, the decision overall weighs on the economy and makes it slow down. In the case of textiles, the retail sector has seen its ups and downs throughout the globe.
The sales of luxury clothing brands and that of other brands have not been very consistent. Prior to the global economic crunch, the retail sector of textile and apparel was striving ahead in glory, but the economic slowdown resulted in the gradual decline in the overall sales of textile goods. While most of the parts of the world are still recovering from the crisis, the recovery is fairly slow paced in Europe, depicting the mindsets of the people who are still trying to sail through the lag.
The retail textile and fashion industry in Europe stands for the luxurious culture of the continent. The European economy hugely depends on the creative intellect of the retail textile industry for recovery. The multifaceted and versatile link between designers, manufacturers, retailers and consumers has made the textile retail sector an integral part of the overall strengthening process of economy. European fashion and high-end industries represent European cultural heritage and know-how. These industries are a significant part of the creative economy and form complex and strongly interlinked value chains from design and manufacturing to the distribution and retail of fashion goods.
The growth of the European clothing market has been limited to mere 3.1 percent since the last five years and it continues to remain almost at the same levels even in 2014. It has been observed that the growth rate has especially been slackened in the textile and apparel retail since the last two years, even though there were signs of gradual improvement in the European economy. The reasons for this are that among the twenty eight nations in the European Union, some are still struggling to recuperate from the financial bog.
Greece and Spain have reported decline in growth with regard to consumer market of clothing and textile, as there is high rate of unemployment and low disposable income. With the current scenario, it will take the European Union another three years (i.e. by 2017) to achieve the 2007 expenditure peak of 296.2 billion. This also indicates that the retail textile sector took almost a decade to get back on track after the economic turmoil and thus the recovery will be prolonged.
Despite of the slow recovery, there is still some opportunity for growth in the European Unions retail textile sector. Germany is among the leading European countries that have taken a global lead in the clothing sector. The economy of Germany is robust and this has attracted big brands to open their stores here. Germanys clothing sector has provided the consumers fashion-led ranges, reasonable prices and perfect commercial environment to the retail houses.