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Special Report Germany 🇩🇪
Live from the Market
The German “Mittelstand” – Key numbers of the market
In 2023, there were a total of 190 fashion and 690 textile companies in Germany. The countries industry consists mainly of small- and medium-sized companies in the medium price range, many of them still family owned (s.c. as: “Mittelstand”).
The total 2023 annual turnover in textile and fashion was 19,76 bn. €, with the fashion industry making up 37%. Comparatively, the total turnover in 2022 was nearly the same, but the fashion industry was still 600 mio € smaller, showing an improvement in the countries fashion industry.
The German footwear and leather industry amounts to about 2,86 bn. € turnover, but this sector is still recovering from the pandemic. In 2018 the turnover was 900 mio. € higher.
Technical textiles are the biggest market with 13 bn. € turnover generated in 2023, for uses mainly in the automotive-, aerospace- and medical-sector.
Exports & imports continuously growing despite the pandemic:
The export rate of the fashion & textile market in Germany is currently at 41,5% (fashion) and 49,4% (textiles), with around 75% going to other European countries (Top 5 purchasing countries: 1. Poland, 2. Switzerland, 3. Austria, 4. Netherlands, 5. France).
Germany is the world’s 3rd biggest exporter of fashion and textiles (measured by value), behind China and India, but also the 4th biggest importer (behind USA, Vietnam and China), importing from 1. China, 2. Bangladesh, 3. Turkey, 4. Italy and 5. India.
Comparing the turnover generated by the German fashion industry in 2023, around 58% were generated domestically and 42% abroad.
A weakened domestic market:
The inflation and overall rising costs hit German production hard in the years after Covid. Producer costs in the textile market increased by +2,6% in 2021, by +11,3% in 2022 and again +5,2% in 2023.
In 2023, the turnover for physical retail in fashion and textile was 68,5 bn. €, but the number of retail locations is shrinking, among others due to the insolvency of Galeria Karstadt Kaufhof Group and Signa Group further weakening the city centers.
More than 90 German textile and fashion companies had to declare insolvency in 2023. The biggest names among them were Galeria Karstadt Kaufhof, Signa Group, KaDeWe, Peek & Cloppenburg, Gerry Weber, Hallhuber.
Sustainability and the secondhand boom:
Sustainability in fashion, especially among the younger generation, is a big topic in Germany: While 56% of people have already bought clothing second hand, for Gen-Z the number is closer to 2/3. Their biggest reason is sustainability and the lower prices.
Secondhand turnover is predicted to reach 184 bn. € worldwide in 2025, with Germany making up 5-6 bn. € – around 3 % of the total market.
Many German companies follow this trend by including secondhand products in the offer. Others choose to offer extensive repairs for their products to prolong the lifecycle of products.
Looking at the future:
The last years wave of insolvencies continues throughout Germany and Netherlands, but the trend is finally slowing down. At the same time the measured consumer mood continues to improve.
However, inflation continues to be a problem for consumers and brands alike, and the uncertain market situation (due to geo-political issues) means that consumers want to save money, especially on fashion.
Understanding Artificial Intelligence and other technical / digital developments like 3D collection design and production will be a key to get out ahead in the market.
Omnichannel concepts can be used throughout the supply chain, but especially for rebuilding a retail experience for the customer.
For some, the production is moving back to local, with new solutions like C&A opening FIT (“Factory for Innovation in Textiles”) in Germany.
Ones to watch (very) closely…
Discover our selection of brands making waves on the German market
The eye of Tranoï
Tranoï, the trade show partner specializing in young international designers, shares its pick of emerging German-based brands to follow
GABRIELE FRANTZEN
Gabriele Frantzen is a design brand committed to respecting craftsmanship and quality. Gabriele Frantzen aims to create items that remain relevant over time, with a clear function and playful design.
The brand’s iconic belt bag is a perfect example. When combined with interchangeable straps and chains, it can be worn not only as a cross-body or shoulder bag, but can also be individually reconfigured again and again. Thus it is not by chance that the recurring symbol on many of Gabriele Frantzen’s pieces is the scarab beetle, representing rebirth and eternal life. The product portfolio of this ever-evolving collection ranges from classics like leather clutches and phone bags to epic pieces, from handmade raffia bags to extraordinary shorn bags.
SUSANNE BOMMER
Susanne Bommer’s clothing designs break with convention and play with values. A smart dress is neither a costume, nor a product, nor an object of desire. It is player in and of itself. Like the woman of the 21st century.
Susanne Bommer is a visionary designer and entrepreneur. Since 1993, her collections have impressively demonstrated her ability to successfully combine elegance and experimentation, continuity and innovation.