Design has become one of the most influential factors shaping consumer behaviour across the European Union, but new evidence from the European Union Intellectual Property Office shows that its growing importance is also exposing businesses to rising risks from counterfeiting and unauthorised copying.
A new EU-wide survey reveals that 72% of European consumers consider product design an important factor when making purchasing decisions, with around one third describing it as very or extremely important. Nearly three in four consumers (73%) say they are willing to pay more for a product with a better design, underlining the commercial value of aesthetics, usability and branding in today’s market.
The findings show that design is particularly influential among younger consumers, with 80% of those aged 18 to 24 saying it plays a key role in their buying decisions. This age group is also more likely to associate design with emotional appeal and to pay a premium for visually or functionally superior products.
Across sectors, design is especially important in furniture, fashion and accessories, with 76% of consumers considering it very important when buying furniture and 66% when purchasing clothing and related goods. While price and quality remain dominant purchasing factors, design increasingly shapes consumer preference and brand differentiation.
However, the same attributes that make design commercially valuable also make it vulnerable. Design-led industries are particularly exposed to counterfeiting, with significant economic losses recorded across the EU. The data estimates annual losses of around €12 billion in the clothing sector alone, while counterfeit handbags, jewellery and watches cost legitimate manufacturers a further €2.7 billion every year.
In Malta, the impact is also tangible, with counterfeiting estimated to cause annual losses of around €7 million in the jewellery and watches sector and approximately €1 million in the handbags sector, highlighting that the issue extends beyond larger EU economies and directly affects smaller markets as well.
According to the EUIPO, counterfeit goods that imitate the appearance of genuine products have become increasingly widespread, driven by the expansion of e-commerce platforms and the influence of social media. Around 13% of European consumers admit to having intentionally purchased counterfeit products, rising to 26% among younger consumers aged 15 to 24.
The Executive Director of the EUIPO, João Negrão, said that European design remains a key competitive asset, noting that it helps businesses stand out globally while reflecting consumer trust and value. He stressed that protecting design rights strengthens innovation and competitiveness, enabling businesses to grow in an increasingly globalised market.
The risks associated with counterfeiting extend beyond lost revenue. The report highlights that fake products often fail to meet safety and quality standards, posing risks to consumers’ health and the environment. In some cases, the counterfeit trade is also linked to organised criminal networks and exploitative labour practices.
Small and medium-sized enterprises are identified as particularly vulnerable, as they often rely on a limited number of distinctive designs and lack the resources to effectively monitor or enforce intellectual property rights.
Despite the economic benefits of design protection, uptake remains low. EUIPO research shows that SMEs that register their designs generate nearly 30% more revenue per employee and pay around 25% higher wages than those without registered intellectual property. However, only around 1% of SMEs across the EU currently hold registered design rights.
Design-intensive sectors remain a significant pillar of the European economy, employing approximately 28 million people and accounting for around 13% of EU employment, while contributing over 16% of EU GDP. The findings underline that while design is a powerful driver of growth and consumer demand, stronger protection and wider uptake of intellectual property rights remain key to safeguarding Europe’s competitiveness.
Image provided by EUIPO
