Market research Czech Republic

PMR Research is a specialised custom market research unit of PMR Ltd., a British-American company based in Poland. We offer a wide range of research services in Central and Eastern Europe for companies interested in business over the countries in the region.

Research services provided by PMR Research in Czech Republic include:

brand and company image studies
research on customer preferences, their satisfaction and their purchasing habits
product concept tests
usage & attitude studies
internet surveys
quantitative surveys - telephone, CATI, face-to-face
qualitative research - focus groups, IDIs
industry analyses (comprehensive analyses of given market sectors performed using PMR's proprietary methodology PMR MarketInsight)
preparation of databases
fieldwork services

Why to invest?

Stable political and economic environment
Geographical location
Well developed infrastructure
Industrial traditions
Strong local supplier base
Highly educated workforce – both secondary and tertiary
Member of the EU
R&D, designing and educational resources

Business and economical environment

For some this may sound odd, but prior to World War II the Czech Republic was one of the richest and most technologically advanced countries in Europe. Nowadays, the country has a strong industry which easily competes with Western players. The country is home to key parts of international conglomerates, such as Skoda within the VW group.
Having the second highest GDP per capita in the region, low unemployment and inflation rates, the Czech Republic has nearly managed to catch up with the countries of the old EU despite of the GDP growth rate decrease to 3.2% in 2008. A skilled workforce pool, which easily manages to keep-up with the highest quality standards, an attractive domestic market and unique location, as a neighbour of Germany, Austria, Poland, Slovakia and Hungary, the Czech Republic is one of the best investment locations for high quality production or for logistics centres in the region. The country also has a strong educational and R&D base and a developed infrastructure. One of the drawbacks is a persisting relatively high corporate income tax rate of 20% which is planned to decrease to 19% in 2010.
In 2008 the value of the Czech foreign trade in terms of exported goods reached EUR 99bn in current prices while the value of imports amounted EUR 95.97bn. The balance of international trade reached a surplus of EUR 2.78bn. In the first quarter of the 2009 the value of exports from the Czech Republic decreased by 17.5% compared with Q1 2008 and value of imports followed the trend declining by 18.8%. However, despite worse results that again created a surplus of exports over imports at EUR 1.3bn slightly above the result in the corresponding period of the 2008. The FDI (Foreign Direct Investments) in the Czech economy has amounted at EUR 4.9bn in 2008 while in 2009 forecast is recorded at EUR 3.5bn .

Inflation in the Czech Republic has reached a level of 6.3% in 2008 and the forecast for 2009 is nearly 1.7%. In 2010 the inflation is forecasted to hike again to 6.1%.

In terms of corruption its perception in 2008 has been recorded by Transparency International at the level of 5.2 (CPI – Corruption Perception Index). The same level has been recorded the previous year. However, compared with the other countries in the ranking Czech Republic rank decreased in 2008 by 5 points to the 45th position.

The unemployment rate in the Czech Republic has reached 5.5% in 2008 while in 2009 it is forecasted at the level of 7.6%. In 2010 the number of those registered as unemployed is expected to face a slight increase to the level of 8.2%.

In terms of salaries paid in the Czech Republic their average value was recorded at EUR 944 in 2008 (21% up from EUR 781 in 2007) and is forecasted to decrease by 7% to the level of EUR 963 in 2009.

Within the most attractive sectors of the Czech economy the following might be mentioned:

Automotive
Business process centres
Construction
Aerospace
Electrical engineering and electronics
High-tech engineering
Life sciences
Medical devices
IT and software development
Business support services
R&D

It is expected that the Czech Republic will become a member of the Eurozone not earlier than in 2012.

Social environment

The population of the Czech Republic as of 2008 has amounted to 10,4mn inhabitants making it the 14th country of Europe by population. The average age in 2007 has been recorded at 40.3, however, it differs for men and women reaching 38.8 for men and 41.8 for women. In the Czech society the number of women outnumbers men by 5%. In terms of nationalities the major groups are: Czech 81.1%, Moravian 13.2%, Silesian 0.4%, Slovak 3.1%, German 0.5%, Gypsy 0.3%, Polish 0.6% and other 0.2%.
While education is concerned Czech Republic has a well developed infrastructure in this terms and 15.5% of all the pupils in the 2006/2007 school year were in tertiary education. What is typical for the Czech Republic is that a majority of people declare themselves as atheist (unspecified 8.8%, unaffiliated 59%) what is both a result of communist government but also an effect of religious dissent ranging from the middle ages while Jan Hus followers pressed the Catholic Church to reform. Those Czechs who declare affiliation with religious group declare being Roman Catholic 26.8%, Protestant 2.1% and other 3.3%.
Infrastructure and technological environment
The Czech Republic has a strong research and development potential due to both its high technical culture as well as vast numbers of various organisation providing this kind of services in various branches both private and state owned or involved as well in educational activities. Just to mention a single example, the Skoda cars (part of the Volkswagen group) are both manufactured and developed in the company HQ in Mlada Boleslav north of Prague.

The Czech energy sector is operating using nuclear power plants, coal powered plants (both hard coal and lignite), gas as well as renewable resources (hydropower, wind etc.). In terms of nuclear power plants in the Czech Republic are located two units of this type in Dukovany and Temelin with a combined capacity of 3,760 MW. There are also 10 coal power plants with capacity of nearly 11,000 MW and hydropower plants offering over 2,100 MW. It is worth mentioning that CEZ the Czech former national and now major energy provider is 8th company in Europe of this type in terms of number of served customers and 7th in terms of market capitalization. The Czech Republic has also deposits of coal and lignite what makes it the 14th country in terms of recoverable world reserves and 15th concerning production.

Nearly 55% of Czechs had access to the internet in December 2007 what was one of the highest levels recorded in the region. Regarding mobile phones usage the number of SIM cards has outnumbered the inhabitants by 22% already in 2006.

The transportation network of the Czech Republic consists of the 9,600 km of railways and 55,000 km of roads. The Czech Republic has an extensive network of motorways and expressways connecting nearly all major cities of the country making altogether 950 km of high quality roads. There are 45 airports with paved runways out of which four are international located in Prague, Brno, Ostrava and Karlovy Vary.

Political environment

The Czech Republic is a parliamentary democracy with the President being a head of state and well developed political parties. The next parliamentary elections are expected in 2010 for the lower chamber of the parliament and for Senate the elections are held every two years in which third of the chamber is elected. President is elected by the Parliament for a five year term and the next elections will be held in 2013.

In 2004 the country has acceded the European Union and due to this has access to the EU funds which support the country development process and within the budgetary perspective of 2007 – 2013 will amount to nearly EUR 27bn . It must be also emphasized that the Czech legal system is harmonized with the system of the European Union. On January, 1st 2009 the Czech Republic will start it 6 month presidency of the European Union.

Czech Republic is a member of all major international organizations.

General data

Area: 78,866 sq km
Population: 10,4 mln (2008)
Capital city: Prague (Praha)
Language: Czech
Ethnic groups: Czech 81.1%, Moravian 13.2%, Silesian 0.4%, Slovak 3.1%, German 0.5%, Gypsy 0.3%, Polish 0.6% and other 0.2%
Land boundaries: Austria (362 km), Germany (815 km), Poland (615 km), Slovakia (197 km)

Major economic indicators

	2006	2007	2008	2009f	2010f
GDP (EUR bn)	113.5	127.2	148.6	137.0	150.6
Population (mn)	10.3	10.3	10.4	10.5	10.5
GDP per capita (EUR)	11,050	12,318	14,245	13,063	14,279
GDP (constant prices y-o-y %)	6.8	6.0	3.2	-1.8	1.6
Eksport, warto�ci realne, r-d-r (%)	15.8	14.9	6.9	-7.8	5.7
Imports, real, y-o-y (%)	14.2	14.2	4.6	-7.3	5.5
CPI (average, y-o-y %)	2.5	2.8	6.3	1.7	1.7
Central bank reference rate	2.50	3.50	2.25	1.50	2.50
Monthly wage, nominal (EUR)	713	781	944	877	963
Unemployment rate (%)	8.1	6.6	5.5	7.6	8.2
Net FDI (EUR bn)	4.4	7.6	7.3	4.8	9.2
FDI % GDP	3.8	6.0	4.9	3.5	6.1
FX reserves (EUR bn)	23.9	23.7	26.6	28.0	29.0
Exchange rate to USD AVG	22.56	20.25	16.96	21.05	19.77
Exchange rate to EUR AVG	28.34	27.76	24.94	27.30	26.00

Last update: Q2 2009

Useful data

Currency: CZK
Time zone: GMT +1
Area code: +420

If you would like to find out more on the Czech Republic market opportunities please do not hesitate to contact us directly:
phone: (48 12) 618 90 80
faks (48 12) 618 90 08
e-mail: [email protected]

PMR Business Solutions in Czech Republic

Czech Republic market reports
To purchase or find detailed information on PMR Publications reports covering the general economy, construction, retail, pharmaceutical, and ICT sectors in Czech Republic.

If you are looking for greater detail trust our research and consulting divisions to carry out projects tailored to your business needs.

Czech Republic market research
PMR Research offers a full array of qualitative and quantitative research methodologies, providing services such as customer satisfaction studies, brand awareness and brand image research, distribution and competition studies, segmentation and sector analyses.

Czech Republic consulting
PMR Consulting offers a wide range of consulting services in Central and Eastern Europe for foreign companies interested in the region. The typical projects include: competitive intelligence, sourcing, strategic advisory, consulting at foreign direct investments and mergers & acquisitions.