Display of OTC products is crucial in non-pharmacy sales.
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"In my opinion PMR is an excellent company and I would have no hesitation in recommending their services. [...]"
Commercial Director, Leading cartonboard merchant
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We are a member of the Strategic and Competitive Intelligence Professionals (SCIP)
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We are a member of the European Association of Opinion and Marketing Research Professionals ESOMAR.
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| Why to enter this market? |
- EU member state
- First country in the region to introduce the Euro (2007)
- Highest per capita GDP in the region
- Enduring industrial traditions
- The collapse of Yugoslavia had comparatively few adverse consequences for Slovenia
- Dynamic development in recent years
- High level of investment in infrastructure
- High degree of integration with the economies of Austria and Italy
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Business and economic environment
Even during the communist era, Slovenia was an exceptional place, with an economy which was relatively open to the West and a well-developed industry, and it fared well after its declaration of independence from Yugoslavia. At present it is the most affluent CEE country in terms of per capita GDP, and there are many strong local players, particularly in the pharmaceutical industry, attracting investment and exporting capital.
Slovenia adopted the Euro in 2007 and was the first CEE member of the EU to do so. There is, therefore, little currency risk for Eurozone investors. This is unsurprising, given the degree of integration with the Austrian, German and Italian economies. Key areas for foreign investors include the car industry, chemicals, pharmaceuticals, electronics and electrical goods, ICT, machine manufacturing, metal working, R&D and tourism. Slovenia also offers favourable conditions in terms of logistics, as it combines well-developed road links with neighbouring countries with an Adriatic port which acts as a gate to the Mediterranean and beyond. One of the country’s drawbacks is a high rate of corporate tax, 22%, the highest in the region. Its high living standards reflect the highest average salaries in the region. Slovenia has been a member of the Eurozone since the beginning of 2007, when its currency, the Toljar, was replaced by the Euro.
The Slovenian economy grew by 1% in 2010, after contracting by 8.1% in 2009. Growth is expected to pick up in 2011 and to be robust in subsequent years. However, Slovenia will witness much lower GDP growth rates in comparison with those of other countries of Central Eastern Europe because it is much further into the transition of its economy and its growth rates are, therefore, much closer to those recorded in Western Europe. However, this did not prevent the country from achieving a record for substantial increases in GDP before the economic crisis, with growth rates of 5.9% in 2006, 6.8% in 2007 and 3.8% in 2008. Per capita GDP was EUR 17,000 in 2010, in comparison with EUR 18,370 in 2008. Forecasts for 2011 are more optimistic, as Slovenian GDP is expected to increase again and to approach its previous values.
In 2010 exports from Slovenia were worth EUR 18bn, an increase of 10.8% in comparison with the previous year, and imports EUR 18.6bn, a year-on-year increase of 10.5%. Net foreign direct investment in Slovenia came to EUR 50 million in 2010, or 0.41% of GDP, comparable with pre-crisis FDI rates of EUR -0.3bn in 2007 and EUR 0.3bn in 2006. This relatively low level of net FDI reflects the fact that Slovenian companies are actively investing abroad.
In 2010 the unemployment rate in Slovenia reached 10.6%, in comparison with 9.2% in 2009 and 4.5% in 2008. This increase was a direct result of the economic crisis, and unemployment is expected to begin to fall, possibly to 7%, in 2011 or 2012.
Inflation in Slovenia reached 2.1% in 2010 and 0.9% in 2009, also a consequence of slower growth or recession. These rates are stark in contrast to the levels registered in 2008: 5.7%, and 2007, 3.6%. However, inflation is expected to rise in 2011, in the wake of stronger economic growth, and to stay above 3%.
In terms of workforce remuneration, Slovenia boasts the highest average monthly wage in the region, EUR 1,391 in 2008, an increase in comparison with the 2007 figure of EUR 1,284. However, there was a slight reduction in wages in 2009 and 2010, with the figure settling at EUR 1,325 in February 2011.
Social environment
The population of Slovenia was 2m in December 2010, making it the 23rd largest EU country in terms of population. The average age in 2010 was 42.4: 40.7 for men and 44.1 for women. In Slovenian society, women outnumber men by 5%. The population of Slovenia consists, in ethnic terms, mostly of Slovenians: 83.1%. The other major ethnic groups include Serbs (2%), Croats (1.8%) and Bosnians (1.1%). With regard to education, Slovenia has a well-developed infrastructure, and during the 2006/2007 school year 6% of the populace were in further education. In terms of affiliation with religious groups, 57.8% are Catholic, 2.4% Muslim, 2.3% Orthodox, 0.9% other Christian and 3.5% unaffiliated. 33.1% state their denomination as none, other or unspecified. Slovenia also has a small, but positive, net migration rate, of 0.39 per 1,000.
Transparency International, in its corruption perception study, ranked Slovenia 27th in 2010, with a CPI (Corruption Perception Index) of 6.4. This was the highest figure in Central and Eastern Europe and the 12th highest in the European Union. The figure had fallen slightly in comparison with the year before, when 6.6 was recorded.
Infrastructure and technological environment
With lengthy experience of industries such as pharmaceuticals (the key players are Lek and Krka) and chemicals and strong domestic market players running R&D operations in the country, Slovenia is also an appealing location for skilled R&D specialists. In addition, the country has a well-developed educational base and a network of state and private research institutions.
The energy industry in Slovenia consists of three branches: hydroelectric, thermoelectric and nuclear. Total capacity recorded in 2009 reached 13,000 MW, 20% of which was accounted for by the nuclear power station at Krsko. The plant also provides 15% of Croatia’s energy needs. In 2006, Slovenia announced that it was planning to build a second nuclear reactor at the Krsko plant, to be completed by 2017. However, this has proved insufficient to satisfy local energy needs and Slovenia had to import 11.5% of its electricity. Another important fuel is gas, most of which Slovenia imports from Russia and Algeria. The only fossil fuel available in Slovenia is lignite, which is produced in Velenje, in the deepest lignite mine in the world.
In 2009 it was estimated that 1.3 million Slovenians, or 65% of the population, used the internet, a number which has remained constant for more than two years. The mobile penetration rate reached 105% in the same year.
Slovenia is also a logistics hub, as it is located between Western Europe, Central Europe and the Balkans. The country’s railway network consists of 1,230 km of track, 41% of which is electrified. The network of major roads is 6,000 km long, and expressways account for 696 km.
Political environment
Slovenia is a parliamentary republic, and the head of state is a directly elected President. The government is elected by the two chamber parliament. This is elected every four years, and the President is chosen every five years. The next elections (parliamentary and presidential) are to be held in 2012.
Slovenia has been a member of the European Union since May 2004. It has access to EU funds, and its legal system is harmonised with that of the EU. In first half of 2008, it held the presidency of the Union. Slovenia is a member country of all of the major international organisations.
General Data
Area: 20,273 sq km
Population: 2.01m (2011)
Capital: Ljubljana
Language: Slovenian
Ethnic groups: Slovenians (83.1%), Serbs (2%), Croats (1.8%) and Bosnians (1.1%)
National boundaries: Austria 330 km, Hungary 102 km, Croatia 455 km, Italy 199 km
Major economic indicators
| |
2007 |
2008 |
2009 |
2010 |
2011f |
| GDP (EUR bn) |
34.5 |
36.7 |
33.7 |
3435,1 |
|
| Population (m) |
2.0 |
2.0 |
2.0 |
2.0 |
2.01 |
| GDP per capita (EUR) |
17169 |
18366 |
16850 |
17000 |
16740 |
| GDP (constant prices y-o-y %) |
6.8 |
3.7 |
-8.1 |
1 |
3.4 |
| Exports, real, y-o-y (%) |
13.8 |
3.3—6.5 |
10.8 |
|
| Imports, real, y-o-y (%) |
15.7 |
3.5 |
-5 |
10.5 |
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| CPI (average, y-o-y %) |
3.6 |
5.7 |
0.9 |
2.1 |
3 |
| Central bank reference rate |
4 |
2.5 |
1 |
1.00 |
1.00 |
| Monthly wage, nominal (EUR) |
1284 |
1391 |
1270 |
1312 |
1325 |
| Unemployment rate (%) |
4.9 |
4.5 |
9.2 |
10.6 |
7.1 |
| Net FDI (EUR bn) |
-0.3 |
0.3 |
0.1 |
0.05 |
|
| FDI % GDP |
-0.8 |
0.8 |
0.3 |
0.15 |
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| Exchange rate to USD AVG |
1.35 |
1.44 |
1.38 |
1.33 |
1.36 |
| Exchange rate to EUR AVG |
1 |
1 |
1 |
1 |
1 |
Last update: Q1 2011
Useful data
Currency: EUR (since 1.1.2007)
Time zone: GMT +1
Area code: +386
If you would like to find out more on the Slovenian market opportunities please do not hesitate to contact us directly:
tel. (48 12) 292 22 50
fax (48 12) 292 22 99
e-mail: info@pmrconsulting.com
PMR Business Solutions in Slovenia
Market reports Slovenia
To purchase or find detailed information on PMR Publications reports covering the general economy, construction, retail, pharmaceutical, and ICT sectors in Slovenia.
If you are looking for greater detail trust our research and consulting divisions to carry out projects tailored to your business needs.
Consulting in Slovenia
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.
Market research in Slovenia
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.
Case studies for Slovenia
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