Based on data from 2018 to 2021, the EUIPO study reveals that counterfeit goods not only diminish sales but also lead to considerable job losses across various sectors. The clothing industry has been hit the hardest, with an estimated job reduction of 160,000 positions.
The EU clothing sector faces a €12 billion annual loss due to counterfeit goods, 5.2 per cent of its turnover, as per an EUIPO study.
Counterfeiting led to 160,000 job losses in the sector from 2018-2021.
Germany, France, Italy, Spain, and Austria suffered nearly €8 billion in sales losses.
The study also notes counterfeiting’s links to environmental harm.
Germany, France, Italy, Spain, and Austria are among the most affected countries, incurring nearly €8 billion in sales losses due to the proliferation of counterfeit products. These losses represent a significant portion of the sales of genuine goods in these nations, as per the study titled ‘Economic impact of counterfeiting in the clothing, cosmetics, and toy sectors in the EU’.
Apart from the economic damage and employment impacts, the EUIPO study highlights that counterfeiting contributes to the growth of organised crime, erodes trust in the rule of law, and has adverse effects on the environment.
Fibre2Fashion News Desk (DP)