The Czech Republic is characterized by wide population dispersion. Over 12 percent of the population is centered in Prague, the only city with more than one million inhabitants, while most Czechs live within 30 minutes of other major commercial/industrial hubs, including Brno, Plzen, and Olomouc. Urban consumers generally have greater purchasing power than their rural counterparts. Success in this market requires an in-country presence such as an agent, distributor, or representative office. Local distributors generally take responsibility for handling customs clearance, dealing with established wholesalers/retailers, marketing the product directly to major corporations or the government, and handling after-sales service.

Companies should consider taking a regional approach to business involving one or more Central or Eastern European countries. Poland and Slovakia tend to fit into a successful regional strategy, with Hungary a close third. Performing detailed market research to identify specific sector opportunities and capitalizing on the experience of successful U.S. companies in the market is a good starting point. The Czech Republic’s communications network is well-developed. Social media, email, website, and traditional trade fair participation are an effective means of reaching local buyers. Price remains the most critical factor when positioning a product or service for sale.  

For additional information on topics that appear in this report as they relate to the European Union, please refer to Doing Business in the European Union: 2023 Country Commercial Guide for U.S. Companies. Sections of that report have been included in the following pages but not the entire report.