Overview of the Czech textile industry and bilateral trade

The Czech Republic is a landlocked country located in the middle of Europe. Located in the heart of Europe, it is a bridge connecting the developed countries of the West and Central and Eastern Europe. The Czech industry has a long history and has maintained a strong industrial base in the automotive, mechanical equipment, chemical, environmental protection and energy sectors. The textile and garment industry has an important position in its economic development and people’s lives. In 2013, the sales revenue of the industry accounted for 2.3% of the Czech Republic’s total manufacturing sales revenue. The total amount of import and export trade of the industry accounted for 3% of Czech’s total trade volume. %.

I. Basic situation of the Czech textile and garment industry (I) The status of the Czech textile and garment industry According to the latest data provided by the Czech Association of Textiles, Garment and Leather, the number of employees in the Czech textile and garment industry reached 32,000 in 2013 (approximately 0.3% of the country's total population). ), a decrease of 3.7% over the previous year; sales revenue reached 4.71 billion kronor (approximately 2.35 billion US dollars), an increase of 2.5% over the previous year.

In 2013, the Czech textile and apparel industry exported a total of 88.5 billion kroner (approximately US$4.27 billion), of which, textile industry exports amounted to 57.5 billion kroons (approximately US$2.87 billion), reaching the highest value since 2000, and garment industry exports. This amounted to 28 billion kronor (about 1.4 billion U.S. dollars); the total import amount was 96.7 billion kronor (about 4.8 billion U.S. dollars), of which, the textile industry imported 55.4 billion kronor (about 2.77 billion U.S. dollars), and the apparel industry imported 413 yuan Billion kilograms (about 2.06 billion U.S. dollars).

Since the EU eliminated its import quotas for textiles and clothing from third countries in 2005, the Czech textile and apparel industry has been affected by imported products, and the industry scale has continued to shrink. The number of employees has fallen from nearly 100,000 in 2005 to the current 3.2. Ten thousand people.

(2) The main characteristics of the Czech textile and garment industry 1. Characteristics of the production industry As of 2012, the Czech textile and garment industry has about 420 large and medium-sized enterprises (more than 20 employees), of which the largest company has annual sales. Reach 200 million euros. The Czech textile industry is currently dominated by foreign investment. Nearly two-thirds of sales revenue comes from these foreign-funded enterprises. In contrast, the Czech apparel industry generates only about 20% of its sales revenue from foreign-invested companies.

The top three Czech textile and apparel companies in terms of sales revenue in 2012 were Juta (main products are geotextiles, solar, agricultural, and packaging materials, etc.), Pegas (mainly non-woven products) and Kordarna (mainly The products are corduroy and technical fabrics, etc.)

2. Characteristics of the consumer market In recent years, due to the European debt crisis, tightening policies and other reasons, the Czech economy has seen negative growth, and the actual living standards of residents are not too high. In 2013, the Czech Republic’s per capita income was around US$19,000. The high, medium and low grades of goods consumed by residents are coexisting, and basically they are characterized by being mainly mid-range, supplemented by high-grade, and low-grade supplemented. The statistics show that the proportion of the Czech population buying high-end brand-name clothing is not high, only about 5%, mostly those white-collar workers with high incomes and fashion.

The Czech clothing market is dominated by clothing made of chemical fiber and cotton fabrics, which accounts for about 80% of the market share. As a high-end consumer of silk clothing, there is little interest in Czech apparel.

3. Characteristics of sales channels Sales channels are generally sold by importers or local producers to wholesalers, and wholesalers are sold to retailers. Retailers include specialty stores, large supermarket chains, large clothing stores, general stores, and bazaars. There are also some importers and producers directly engaged in the retail industry.

The sale of high-end apparel is mainly through those international big-name flagship stores and specialty stores, while the sales of low-end clothing are mostly through market stalls all over the country. Most of these booths are operated by Vietnamese, Chinese and Czech locals. Clothing sales at the mid-end are generally through local or international wholesale and retailers. At present, the largest clothing retailer in the Czech Republic is the British TESCO, followed by the German MAKRO.

It is worth noting that most consumers in the Czech Republic are still cautious about the Internet retail channels that have become popular in China in recent years. Even if they try, they will only buy some inexpensive everyday items such as clothes or clothing accessories to avoid A product does not meet expectations and cause disappointment and economic losses.

The STYL&KABO held in Brno is an important exhibition in the textile and clothing sector in Central and Eastern Europe. It is held every spring and autumn, each for a period of three days. Due to factors such as seasonality and climate, Chinese exhibitors are more willing to participate in the Autumn Fair in August than in the Spring Fair in February.

4. Characteristics of import and export trade (1) Product structure: The most imported textile products in the Czech Republic are non-woven fabrics, wool and other animal hairs and textile fabrics, and the most exported textile products are non-woven fabrics, textile fabrics and other machines. Fabrics; Imported and exported clothing products are mainly men's trousers (including long, shorts), T-shirts and vests category knitwear.

(2) Distribution of trade countries: More than 90% of the Czech textile and apparel products are exported to other EU countries, mainly Germany, Italy, Poland, and Slovakia; most of the textile products imported from the Czech Republic come from Germany. Most of the products come from China.

(3) The main problems faced by the Czech textile and garment industry 1. The industry focus is still concentrated on the low-end of the industrial chain - the processing link, which has a 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. As the average wage in the industry is lower than the average wage in the country, the number of students in related majors in universities and colleges has decreased, and the supply of professionals has been insufficient.

II. Basic Situation of China-Czech Textile and Clothing Bilateral Trade (I) In recent years, the import and export trade of garments between China and Czech Republic has been active. From 2005 to 2012, China’s clothing exports to the Czech Republic almost doubled. In the past few years, despite the competition from Bangladesh and Turkey, China remains the largest source of imported clothing in the Czech Republic. In 2013, the total value of garments imported from China by the Czech Republic was about 650 million U.S. dollars, accounting for nearly 40% of the total value of its clothing imports. Most of the imported products were knitwear and footwear.

(II) Although China’s garment industry’s exports to the Czech Republic have continued to grow, most of its products are mainly OEM-based, and China’s own brands are minimal.

Third, the relevant recommendations (a) actively promote China's independent textile and apparel brand in the Czech market's international operations.

Due to the Czech consumer's spending habits, the limited nature of Sino-Czech cultural exchanges, and low awareness of Chinese brands, many Chinese products, despite their high quality, still have to be sold in the Czech market with the help of OEM. Although OEM production is an effective way for companies expanding their exports during the expansion period, in the long run, the lack of their own brands directly affects the added value of export products, and it also loses the opportunity for local consumers to recognize Chinese brands. Not conducive to the international operation of the company.

To this end, it is recommended that strong textile and apparel companies should develop mid-to-long-term brand strategies, learn the management and marketing methods of international apparel brands, and gradually increase the level of international management of their own brands; it is recommended that relevant associations should strengthen industry guidance and encourage And guide enterprises to develop their own brands and promote high-quality national brands to the world; it is recommended that relevant government departments issue corresponding policy support measures, and actively promote the international exchange and cooperation of design talents, technical talents and marketing talents, and in policies and funds. Support clothing companies with high-quality independent brands to go out.

(2) Based on complementary advantages and win-win cooperation, the two countries will continue to explore effective forms of cooperation between the two countries in the textile and apparel sector.

A report from the German Textile Association stated that the demand for nanofibers in the international market is increasing at a rate of 33% per year. The Czech Republic’s research in the field of nanotechnology has taken a leading position in the world in recent years. Some scientific research institutions have cooperated with powerful local companies to establish a large-scale production line for nanofibers. A company that has strength and desires to develop high-tech textile products in China may consider introducing Czech technology into China.