Czech Republic Textiles and Clothing Report Q4 2009

Czech Republic Textiles and Clothing Report Q4 2009

The Czech Republic is a small-sized textile and clothing producer, benefitting from a surge of investment
linked to the country’s accession to the European Union in 2004. BMI ranks it as number 62 in the world
in terms of textile and clothing manufacturing value added. In nominal terms we estimate that to have
been worth US$2.03bn in 2008. Market conditions in 2009 and 2010 are proving difficult for the
industry. We see it being battered by the combined forces of European recession and relentless
competition from low-cost Asian textile producers. The best-performing local companies will be those
with high quality, competitively prices niche products, particularly those in the technical textiles sector.
We see textile and clothing value added dropping by 8.0% in 2009 and by 2.0% in 2010, before
recovering with 3.2% growth in 2011. This path will reflect the very difficult international economic
conditions faced by the Republic. The industry’s trade performance will also reflect the especially
difficult international economic situation. Combined textile and clothing exports will fall by 13.9% in
2009, to US$3.65bn, rebounding by 5.4% in 2010, to US$3.85bn.

Executive Summary ...5
SWOT Analysis....6
Czech Republic Textiles SWOT..... 6
Czech Republic Apparel SWOT .... 6
Czech Republic Political SWOT.... 7
Czech Republic Economic SWOT . 8
Czech Republic Business Environment SWOT... 8
Market Overview..9
Industry Trends And Developments ...10
General .... 10
Table: Czech Textile And Clothing Industry Sales .. 10
General: Past Headlines...... 11
Synthetics. 11
Synthetics: Past Headlines... 11
Textiles..... 12
Textiles: Past Headlines ...... 12
Clothing ... 13
Clothing: Past Headlines..... 13
Czech Republic Market Outlook ...15
Textiles And Clothing Market Outlook...... 15
Textiles..... 15
Clothing ... 15
Table: Textiles And Clothing Production And International Trade, 2006-2013 16
Long-Term Outlook ...... 17
Table: Textiles And Clothing Production And International Trade, Long-Term Forecasts, 2011-2018 ...... 17
Macroeconomic Outlook...... 18
Table: Czech Republic – Economic Activity, 2006-2013 20
Global Textiles And Clothing Market Overview ......21
Background: International Trade In Textiles... 22
Output And Trends...23
Global Fibres Market Outlook 25
Cotton ...... 25
Wool . 27
Table: Global Fibre Prices.. 28
Synthetic Fibres ..... 28
Company Profiles.....30
Fast Retailing . 30
Gap... 32
Table: Gap Key Financial Data.. 33
Table: Gap Income Statement (US$mn).... 33
Inditex...... 34
Pegas Nonwovens .. 36
Juta Dvur Kralove . 38
Country Snapshot: Czech Republic Demographic Data ......39
Section 1: Population.... 39
Table: Demographic Indicators, 2005-2030.... 39
Table: Rural/Urban Breakdown, 2005-2030 ... 40
Section 2: Education And Healthcare 40
Table: Education, 2002-2005 ..... 40
Table: Vital Statistics, 2005-2030...... 40
Section 3: Labour Market And Spending Power ..... 41
Table: Employment Indicators, 2001-2006...... 41
Table: Consumer Expenditure, 2000-2012 (US$) ... 41
Table: Average Annual Wages, 2000-2012...... 42
Global Assumptions 43
Table: BMI’s Global Assumptions, 2007-2013 43
Table: Global And Regional Real GDP Growth, 2008-2011 . 44
Table: Developed Market Exchange Rates, 2008-2011 (average) 45
Table: Key Emerging Market Exchange Rates, 2008-2011 (average against US dollar) 45