Download - Market Overview and Opportunities
1Czech Republic Market Overview and Opportunities March 2013
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Market Overview and Opportunities
general presentation update March 2013
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Czech Republic in Europe
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Map of Czech Republic
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Czech Republic: basic facts
£ 4.2bn (2011)UK Imports
£ 1.8bn (2011)UK Exports
20,400 USD (IMF) GDP per head
Brno, Ostrava, Plzeň, OlomoucMajor Cities
Prague, population 1.2 millionCapital
78,900 sq. km; 30,500 sq. miles Area
10.5 millionPopulation
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Czech Republic: basic facts
Member of:
NATO, EU (since 2004), OECD, UN, IMF, WTO, Council of Europe
Highly developed industrial base:
Manufacturing and engineering, mining, automotive, electronics,
construction, machinery, metallurgy, glass manufacture, production
of beverages (beer)
Intensive growth in the service sector
Working population of 5.3m, well educated and skilled workforce
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Czech Republic: basic facts
British investment reached more than Eur2bn since early 90’
Major investors: Vodafone, Tesco, Logica, Rolls Royce
CEE Headquarters: Mott MacDonald, BAE Systems, M&S, Rolls
Royce, Allen & Overy
Financial services: HSBC, RBS, Provident Financial
Retail: M&S, Karen Millen, TM Lewin, Next, Mothercare, Top Shop,
Body Shop, Tie Rack, Debenhams
Luxury brands: Burberry, Jimmy Choo, Barker, Agent Provocateur
Over 300 British companies present in the market
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Czech Republic: more basic facts
GDP Growth 2011 1.7% (EIA, CNB)
GDP Growth forecast 2013 1.0% (EIA)
Unemployment 6.8% (October 2012) (Eurostat)
Inflation 3.4% (October 2012)
Gross wage average CZK 24,626 (October 2012)
Exchange rate to £ CZK 31.406 (CNB 1st November 2012)
FDI (2011) 3.8bn EUR (CNB)
FDI total until end Sep 2012 106bn EUR
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Czech RepublicPolitical situation
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Czech RepublicCzech Industry
• Generates 30% of GDP and employment (1.3 million)• 50% of production depends on exports• Key branches
– Production of automotive vehicles and related production (rubber and plastics)
– Production and distribution of electricity, gas, heat and climatised air
– Production of metal structures and metalworking including machinery and equipment
– Production of other non-metal mineral products (linked to construction)
– Production of food– Production of basic metals, metallurgy, casting– Production of ICT, electronics and optical devices
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Czech RepublicOpportunities
PRIORITY SECTORS
• Power
• Science & Technology/Innovation (ICRC, CEITEC, ELI)
• Food & Drink
• Consumer Goods – luxury and high street brands
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Czech RepublicOpportunities Market Entry
Sales
• Direct
• Distributor (Agent)
Investment
• Local manufacture
• Branch/Subsidiary
• Partnership/Joint venture
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Czech RepublicBusiness Culture
• Liberal/sophisticated market
• British products good reputation
Welcome face to face
• Confirm language of meeting/if in doubt, use an interpreter
• Confirm objectives of meeting
• Relaxed
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Czech RepublicUKTI Team Prague
• Over 500 companies can’t be wrong!
• Strong collaboration with other colleagues in Central Europe e.g.
regional
market reports, regional events, Regional Director
• Good relationship with Czech Government and other partners
• Work closely with the British Chamber of Commerce
(www.britishchamber.cz)
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Czech RepublicSummary
• Much closer than BRIC/ Excellent strategic location
• Very strong history of innovation, entrepreneurs, productivity, engineering
and industrial tradition
• Access to EU structural funds
• Natural crossroads between East & West
• Anglophile; British products & investment well received
• Well educated, skilled & still relatively low cost workforce
• English widely spoken
• EU member
• Many business opportunities
• It's close...