Doing Business In - International Franchise Association

Contacts:
U.S. Commercial Service
Ms. Jana Ruckerova, Commercial Specialist
Phone: (420) 257-022-310
Fax: (420) 257-022-810
E-mail: Jana.Ruckerova@mail.doc.gov
Apparel (APP) Return to top
The Czech luxury fashion market is gathering steam. Thanks to its advantageous
geographical position in the center of Europe and favorable economic development,
Prague has become the center of attention for world-renowned designer fashion brands.
More and more Czechs are interested in fashion, read fashion magazines, watch trends
and consult experts on their wardrobe. As the presence of reputable fashion houses has
been insufficient until recently, the rising demand resulted in the growing number of new
stores emerging in the market.
The days when Hermes was the only top-end fashion brand in Prague are gone. The
vast majority of luxury brands wish to open their stores on Prague’s high-end Parizska
street. The street has a reputation as the finest shopping zone in the Czech Republic,
with more than three dozen boutiques including Gucci, Christian Dior, Salvatore
Ferragamo Italia, Cartier, Burberry, Louis Vuitton Company, Dolce & Gabbana, Prada,
Moschino, Versace, Escada, Giorgio Armani, Guess, Hugo Boss, Tod’s and others. In
April 2009, inspired by Colette in Paris, first concept store Simple was opened in
Parizska street, introducing Lanvin, Balenciaga, Chloe, Givenchy, Yves Saint Laurent,
Dior Homme and other brands to the Czech market.
There has been growth in the number of Czechs willing to spend their money on
exclusivity. Demand in the Czech market is driven not only by Czechs, but is also fueled
by tourists who are abundant in Prague. Russians are the biggest spending tourist
group, followed by Japanese.
Great opportunities also exist for mid-market apparel. There is high demand for fashion
brand apparel and the offer is still limited. A quality offering in the mid-priced apparel
market is missing and several new brands would prosper here. Fashion brands such as
C&A, H&M, Debenhams, Zara, and Marks & Spencer’s are successful in the market.
Retail businesses in the Czech Republic are more profitable than in Germany and other
European countries. The average retail turnover in the Czech Republic is Euro3,200 per
square meter per year, compared to Euro3,100 in Germany and Euro3,000 in Belgium.
Fashion retailers such as C&A and New Yorker turnover reach as high as Euro3,400.
Czech Republic has 0,91 square meters of retail space per inhabitant, which is still low
compared to the average of 1.5 – 1.7 in Europe. There are still opportunities for
newcomers.