The Czech Republic is a landlocked country in central Europe. It is located in the heart of Europe and is a bridge connecting Western developed countries and Central and Eastern European countries. The Czech Republic has a long industrial history and has maintained a strong industrial foundation in the automobile, machinery and equipment, chemical industry, environmental protection, energy and other sectors. The textile and garment industry plays an important role in its economic development and people’s lives. In 2013, the industry’s sales revenue accounted for 2.3% of the Czech manufacturing sales revenue, and the industry’s total import and export trade accounted for 3% of the Czech Republic’s total trade volume. %.
1. Basic situation of Czech textile and garment industry
(1) Current situation of the Czech textile and garment industry
According to the latest data provided by the Czech Textile, Apparel and Leather Association, the number of employees in the Czech textile and apparel industry reached 32,000 in 2013 (about 0.3% of the country’s total population), a decrease of 3.7% from the previous year; sales revenue reached 471 billion crowns (approximately US$2.35 billion), an increase of 2.5% over the previous year.
In 2013, the total exports of the Czech textile and apparel industry were 85.5 billion crowns (approximately 4.27 billion U.S. dollars), of which the textile industry exports were 57.5 billion crowns (approximately 2.87 billion U.S. dollars), reaching the highest value since 2000. Clothing Industry exports were 28 billion crowns (approximately $1.4 billion); total imports were 96.7 billion crowns (approximately $4.8 billion), of which textile industry imports were 55.4 billion crowns (approximately $2.77 billion), and clothing industry imports were The amount is 41.3 billion crowns (approximately 2.06 billion US dollars).
Since the EU abolished import quotas on textiles and clothing from third countries in 2005, the Czech textile and clothing industry has been shrinking due to the impact of imported products. The number of employees has dropped from nearly 100,000 in 2005 to The current number is 32,000.
(2) Main characteristics of the Czech textile and garment industry
1. Characteristics of the production industry
As of 2012, there are approximately 420 large and medium-sized enterprises (with more than 20 employees) in the Czech textile and garment industry. Among them, the annual sales of the largest enterprise have reached 200 million euros. Most of the Czech textile industry is currently controlled by foreign capital, and nearly two-thirds of sales revenue comes from these foreign-funded companies; in contrast, only about 20% of the Czech clothing industry’s sales revenue comes from foreign-funded companies.
The top three Czech textile and apparel companies in terms of sales revenue in 2012 are: Juta Company (main products are geotextiles, solarization, agricultural and packaging materials, etc.), Pegas Company (main products are non-woven fabrics) and Kordarna company (main products are corduroy and technical fabrics, etc.).
2. Characteristics of the consumer market
In recent years, due to the European debt crisis, austerity policies and other reasons, the Czech economy has experienced negative growth, and the actual living standards of residents are not very high. In 2013, the per capita income in the Czech Republic was about US$19,000. The commodities consumed by residents coexist in high, medium and low grades, and are basically characterized by the mid-range being the main component, the high-end being the supplement, and the low-end being the supplement. Relevant statistics show that the proportion of the Czech population buying high-end brand-name clothing is not high, only about 5%, and most of them are white-collar workers with higher incomes who pursue fashion.
The Czech clothing market is dominated by clothing made of chemical fiber and cotton fabrics, accounting for about 80% of the market share. Silk clothing, which is a high-end consumer product, has little interest in the Czech Republic.
3. Sales channel characteristics
Sales channels generally include importers or local manufacturers selling to wholesalers, who then sell to retailers. Retailers include specialty stores, large supermarket chains, large clothing stores, general stores and markets. There are also some importers and manufacturers directly engaged in the retail industry.
High-end clothing is mainly sold through the flagship stores and specialty stores of international brands, while low-end clothing is mostly sold through market stalls scattered throughout the country. Most of these stalls are run by Vietnamese, Chinese and Czech locals. Clothing in the mid-range is generally sold through local or international wholesalers and retailers. Currently, the largest clothing retailer in the Czech Republic is TESCO in the UK, followed by MAKRO in Germany.
It is worth noting that most Czech consumers are still cautious about the Internet retail channels that have become popular in China in recent years. Even if they try, they only buy some less expensive daily necessities online, such as tops or clothing accessories. To avoid disappointment and economic losses if the product does not meet expectations.
The International Textile Exhibition (STYL & KABO) held in Brno is an important exhibition in the textile and apparel field in Central and Eastern Europe. It is held once every spring and autumn, each lasting three days. Due to factors such as season and climate, Chinese exhibitors are more willing to participate in the autumn show in August than the spring show in February.
4. Characteristics of import and export trade
(1) Product structure: The Czech Republic’s most imported textile products are non-woven fabrics, wool and other animal hair and textile fabrics, and its most exported textile products are non-woven fabrics, textile fabrics and other woven fabrics; imported and The exported clothing products are mainly men’s trousers (including long and short shorts), T-shirts and vests.
(2) Trade distribution by country: More than 90% of Czech textile and clothing products are exported to other EU countries, mainly Germany, Italy, Poland and Slovakia; most of the textile products imported by the Czech Republic come from Germany. Most of the clothing products come from China.
(3) Main problems faced by the Czech textile and garment industry
1. The focus of the industry is still on the industrial chainThe low-end processing link, which has low added value and is most vulnerable to competition from cheap imported products from abroad;
2. The industry generally lacks skilled workers and innovative talents. Since the average salary in the industry is lower than the average salary in the country, the number of students in related majors in colleges and universities has decreased, and the supply of professional talents is insufficient.
2. Basic situation of bilateral trade in textile and apparel between China and the Czech Republic
(1) The import and export trade of clothing and apparel between China and the Czech Republic has been active in recent years. From 2005 to 2012, China’s clothing exports to the Czech Republic have almost doubled. Over the past few years, China has remained the Czech Republic’s largest source of imported clothing, despite competition from Bangladesh and Turkey. In 2013, the total value of the Czech clothing imports from China was approximately US$650 million, accounting for nearly 40% of its total clothing import value. Most of the imported products were knitted sweaters and footwear.
(2) Although my country’s garment industry’s exports to the Czech Republic continue to grow, most of the products are OEM-produced, and there are very few Chinese independent brands.
3. Relevant Suggestions
(1) Actively promote the international operation of my country’s independent textile and apparel brands in the Czech market.
Affected by factors such as the consumption habits of the Czechs, the limited cultural exchanges between China and the Czech Republic, and the low awareness of Chinese brands, many Chinese products, although of high quality, still have to rely on OEMs to be sold in the Czech market. Although OEM production is an effective way for enterprises in the expansion period to expand exports, in the long run, the lack of private brands directly affects the added value of export products, and also loses the opportunity for local consumers to recognize Chinese brands. It is not conducive to the international operation of enterprises.
To this end, it is recommended that powerful textile and garment enterprises should formulate medium- and long-term brand strategies, learn the management and marketing methods of international clothing brands, and gradually improve the international operation level of their own brands; it is recommended that relevant chambers of commerce and associations should strengthen industry Guide, encourage and guide enterprises to develop their own brands and promote high-quality national brands to the world; recommend that relevant government departments introduce corresponding policy support measures and actively promote international exchanges and cooperation of design talents, technical talents and marketing talents, and in policy and financial support for clothing companies with high-quality independent brands to go global.
(2) Continuously explore effective forms of cooperation between China and the Czech Republic in the textile and apparel field on the basis of complementary advantages and win-win cooperation.
A report from the German Textile Association pointed out that the international market demand for nanofibers is increasing at a rate of 33% per year. In recent years, the Czech Republic has led the world in research in the field of nanotechnology. Some scientific research institutions have cooperated with powerful local companies to establish production lines for large-scale manufacturing of nanofibers. Enterprises in my country that are capable and want to develop high-tech textile products can consider introducing relevant Czech technologies into China.
