Topics: Marketing, Cosmetics, New Zealand Pages: 6 (1668 words) Published: December 6, 2009
Market Profile for Cosmetics/Skincare/Toiletries in the Taiwan Market 1 MARKET STRUCTURE
1.1 Size

The size of Taiwan’s cosmetics, skincare and toiletries market is estimated at around NZ$4 billion a year. Major consumers are females aged between 20 and 39 and the average amount of money spent by a woman with purchasing power is around NZ$700 a year. Skincare products constitute the biggest share (48 percent) of the overall cosmetics, skincare and toiletries market. In terms of product function, skin whitening, anti-aging and moisturiser are the three most popular products. Anti-aging products are around 30 percent of the skincare product market. In the past few years, the growth of antiaging products has been around 60 percent per annum. 1.2 Market Trends

1.2.1 Products In recent years, market trends suggest the following products have the strongest potential. • Anti-aging products. • Cosmeceutical products (cosmetic products that are claimed, primarily by those within the cosmetic industry, to have drug-like benefits). • Men’s grooming and skincare products. There has been significant increase in consumption by males in Taiwan in recent years. The market size is around NZ$40 million a year. Major consumers are males aged between 25 and 35. It is expected this market will continue to grow strongly.

While every effort is made to ensure the accuracy of the information contained herein, New Zealand Trade and Enterprise, its officers, employees and agents accept no liability for any errors or omissions or any opinion expressed, and no responsibility is accepted with respect to the standing of any firms, companies or individuals mentioned. New Zealand Trade and Enterprise reserves the right to reuse any general market information contained in its reports. New Zealand Trade and Enterprise



1.2.2 Prices High-priced products are likely to be affected by the recent economic downturn. Instead, products with good to excellent quality but at a reasonable lower price, offering value for money, are likely to generate better sales. 1.2.3 Retail distribution Traditional distribution channels, for example department stores, are likely to be impacted negatively as a result of the economic downturn. However, beauty and drug stores such as Watsons and COSMED, are likely to benefit from the downturn. Also, as a result of the economic crisis, people are expected to stay home more than to go out shopping. Online and home shopping that provides convenience and products at cheaper prices are likely to attract more consumers. 1.2.4 Penetrating China markets through online shopping The establishment of direct air, shipping and postal links between Taiwan and China is expected to benefit Taiwan’s online and home shopping businesses. Cosmetics, skincare and toiletries products are one of the top three best sellers among all Taiwan online and home shopping channels. Products made in Taiwan are perceived by mainland Chinese as having better quality. Knowledge of beauty and skincare is also more advanced in Taiwan than in China. 1.3 Known Factors Influencing Growth Rate

Relative to other Asian economies Taiwan enjoys a strong average per capita income of around US$17,500 a year. In Taiwan rising living standards and wider consumer choice, as well as changes in consumption patterns, have been accompanied by growth and added sophistication in retailing and strong competition between over 50 department stores, 40 hypermarkets and 9000 convenience stores island-wide. Advertising to create and raise brand awareness has been a major influence in the growth of the cosmetics market. Due to the economic crisis in 2008-09, it is expected that the overall cosmetics, skincare and toiletries market in 2009 could have zero or even negative growth.

2.1 Major Players in the Market

Foreign brands enjoy a strong market position and hold 94 percent of the cosmetics, skincare and toiletries market in Taiwan. Japan...
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