Austrade opinions
Austrade Prague business development manager Katerina Mazurova offers aspiring exporters a lowdown on the Czech Republic's textile, clothing and footwear market.
What you need to know
Traditionally Czechs are not "fashion" hunters. The majority of the population prefer good quality, mid-priced clothes that are not necessarily trend based. However the younger generation like to keep up with the latest fashions as long as they are affordable. The entry of luxury brands to Prague such as Gucci, Burberry, Prada or Cartier proves the demand for high-end international fashion is growing especially in the capital city.
According to the Czech Statistical Office the average Czech spends about Czech koruny 5,000 ($A294) a year for clothing and footwear. Although a small amount, this may be because there still are many second hand shops and Asian stall sellers with very cheap and poor quality goods. Lately, these were pushed out from city centres to more unpopular locations and new large shopping malls have taken their place.
Thus, even low and mid income population are finding brands such as Kenvelo, New Yorker, Orsay, H&M, C&A etc. The next price step is formed by popular Next, Zara, for more demanding ones, the popular brands are Tommy Hilfiger, Replay, Diesel, Levi Strauss, Pepe Jeans etc.
The traditional Czech footwear company Bata, which operates in every city in the country sells a pair of shoes for Czech koruny 1000 ($A60) on average, this company is considered mid priced.
Australian brands selling successfully into this market include Kakadu Traders, Cwear, Gooses T-shirts, Driza-bone, Bush skins and Planet Earth.
What gaps are there in the market?
What is really missing in the Czech Republic is a quality offering in the mid-priced apparel market (suits for around Czech koruny 20,000 ($A1170), which the expensive brands don't offer. If the fashion house is financially strong enough to open up a shop themselves this would be the best way to progress. The other alternative would be franchising or finding a local partner/distributor. There are also good opportunities for companies offering functional apparel, such as sun protective clothing, hi-tech apparel for outdoor leisure time activities etc.
A brand that focuses on board, ski and skate apparel, targeting teenage and very young people would also do well. Such brands attempting to export, if not strong enough themselves, can be distributed by local companies, which opens up a space for small to middle sized enterprises.
Idiosyncrisies of this market
Czechs seem to be a bit bigger, so we recommend offering a wider range of sizes. It is known, for example, that Italian brands sizing is "smaller" and can't satisfy everyone.
Other considerations include the fact labels must be in the Czech language and can be affixed to the product or on a leaflet attached to the product. Information must include the name of the garment, name of producer, country of origin, content/composition and washing instructions. Czech labelling requirements were harmonised with EU norms in 2002. Czech importers and distributors are responsible for the correct labelling of products that are put on the Czech market and can tyWe recommend assessing the Czech market with regards to price level you are offering. Australian companies should also decide how they will treat problems with exchanging or reimbursing for faulty pieces, in time supplies, marketing and promotion.