(1) A brief introduction to the country and economy of Slovakia
Slovakia is a landlocked country in Central and Eastern Europe, bordering Austria to the west and the Czech Republic to the north It borders Poland, Ukraine to the east, and Hungary to the south. Since Slovakia joined the European Union and the Eurozone in 2009, foreign investment has been the main driving force for Slovakia’s economic growth. Slovakia’s economic growth in recent years has also relied heavily on strong foreign trade driven by foreign investment (multinational enterprises).
Slovakia has a population of 5.44 million and a per capita income of 16,058 euros. Its domestic market is smaller than that of neighboring countries and its import volume is not large. However, it is located in a superior geographical location in Central Europe. Therefore, not only do multinational companies use Slovakia as a distribution center for European shipments, but Slovak traders also manage the border markets of neighboring countries. Therefore, small quantity and variety are one of the main characteristics of the Slovak market.
According to the OECD assessment report, the living standards of the Slovak people have gradually caught up with higher-income countries, close to the OECD average level, and the relative poverty rate is 8.5%, lower than the OECD The national average is 11.7%. The economy continued to grow in 2018, the unemployment rate has dropped to 6.19% (data from the Slovak Investment and Trade Agency SARIO), the average salary exceeds 1,100 euros (low-tech 678 euros, high-tech 1,250 euros), and the annual wage growth rate is approximately 6%. In 2019 In January it climbed to 1,123 euros.
According to OECD assessment, the Slovak economy continues to expand, new automobile production capacity improves export performance, sound financial and fiscal policies, rising labor market, real investment growth, and EU funds With this injection, the domestic demand market will continue to be strong. Wages will continue to increase, and the price index is expected to rise by 3.0%. The gap between rich and poor in Slovakia is relatively low and the employment rate is rising. In order to meet the EU’s fiscal requirements, the Slovak government plans to achieve balance of payments in 2020. However, the gradual aging of the population still puts great pressure on Slovakia’s long-term fiscal expenditure. Congress is currently discussing The retirement annuity system will be a major challenge.
In terms of trade, Slovakia’s exports reached 79.8 billion euros in 2018, an increase of 6.6% compared with the same period in 2017; total imports reached 77.3 billion euros, an increase of 7.7% compared with the same period in 2017 %; enjoying a trade surplus of 2.5 billion euros in 2018, slightly lower than 3 billion euros in 2017. EU member states remain Slovakia’s main trading partners, with the main exporting countries being Germany (22.2%), the Czech Republic (11.9%), Poland (7.5%), France (6.3%), Austria (5.7%), and Italy (5.7%). , Hungary (5.54%), the United Kingdom (5.2%), Spain (2.83%), the Netherlands (2.18%); the main importing countries are Germany (17.7%), the Czech Republic (10.2%), China (5.83%), and South Korea (5.74 %), Hungary (5.74%), Poland (5.47%), Russia (5.25%), Italy (3.36%), France (3.06%), and Austria (3.03%).
(2) Overview of the second-hand clothing market
It is estimated that about 10% of Slovaks often buy clothes in Second-hand store spending. The Slovak second-hand clothing market is mainly dominated by four companies: TextileHouse, Humana, Kilovka, and Genesis.
1. TextileHouse has been in the second-hand clothing market for 25 years and has 170 branches in 8 European countries, 42 of which are in Slovakia.
2. Humana has 42 stores in Slovakia. TextileHouse and Humana are both supported by Scandinavian, which has a cooperative relationship with the non-governmental organization TeachersGroup.
3. Kilovka has 15 stores in Slovakia, mainly in eastern Slovakia.
4.Genesis is owned by the Czechs and has 5 stores in Slovakia.
