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(Last updated: 29 August 2008)
Trends and opportunities
The market
In 2007 the import value of cosmetics and toiletries in Taiwan reached AUD$844 million. Despite an economic down turn in Taiwan the retail sales in cosmetics continues to grow. Although slower than previous years, demand is still on the up and expected to continue to grow with consumers choosing mass brands over premium brands. In 2007 there were also more new mass brands and products available in drugstores than ever before.
The increase in brands, as well as their convenience and the increasing numbers of outlets has contributed to significant sales increases through drugstores. However, department stores are still the leading channel for skin care, followed by direct sales, pharmacies/drugstores and specialists.
Online shopping channels are also becoming Taiwan’s online shopping sales for consumer goods as a whole are estimated to have reached about AUD$6.5 billion in 2007.
In terms of market share, skin care continues to dominate the cosmetics market in Taiwan with demand for anti-ageing and whitening products expected to continue to grow. In 2007 the market share was dominated by skin care (54 per cent), followed by hair care (13 per cent), colour cosmetics (16 per cent), fragrances (6 per cent) and personal hygiene related products (11 per cent).
Opportunities
Australian skin care and cosmetics products are well recognised by local industry contacts and consumers for their high quality natural ingredients and unique brands. There are number of well recognised Australian brands available in Taiwan and importers are constantly looking for Australian suppliers in the following areas:
- Body/adult skin care products with emphasis on organic and natural ingredient-bases
- Spa and aromatherapy products
- Baby care products
- Sunscreen protection
- Contract manufacturers for private labels
- Bulk products such as sea salt and essential oils
(Source: Euromonitor - Cosmetics and toiletries in Taiwan)
For more information on opportunities in the Taiwan market, please contact Austrade Taipei Office.
Competitive environment
In Taiwan, well-known international brands such as Shiseido, Lancôme, Shu Uemura, Clinique, Estée Lauder, Chanel and Giorgio Armani play a dominant role in the high-end market of Taiwan whereas brands such as Revlon, L'Oréal, Olay lie in the mid-range.
Young brands from Japan and Korea such as DHC, Fancl, Laneige and niche brands, which boast natural ingredients, eg. Jurlique and Kiehl’s also play an important part in the skin care market. The increasing popularity of Jurlique and Aesop has increased the interest and demand for more Australian skin care products in the Taiwan market.
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Tariffs, regulations and customs
Tariff and tax for imported cosmetics and related products is around 7.5 per cent to 10 per cent of the CIF value, plus a five per cent value-added tax.
Import licences issued by the Board of Foreign Trade are required for all imported cosmetics-related products. All medicated cosmetics must be registered and approved by the Department of Health (DOH) prior to sale.
For further details on cosmetics import regulations, please look for ‘Statute for Control of Cosmetic Hygiene’ on the DOH website. |
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Marketing your products and services
Market entry
Foreign-made cosmetics are normally imported to Taiwan through branch offices, agents or trading companies. For the majority of small and medium-size enterprises, the most cost effective way to enter the market is to find local distributors or agents. Most local distributors or trading agents will request for exclusivity, particularly for imported brand products as Taiwan market is very small, geographically. However, for companies who export bulk ingredients normally, they could sell directly to various local buyers.
Distribution channels
Department stores – These are the most important distribution channels for cosmetics and toiletries, with a market value share of nearly 42 per cent, particularly for premium brands.
Pharmacy/drugstore chains and specialty stores – These stores cover a wide range of drugstores and discount stores such as Sasa, Marsa, Cosmed, and Watsons. They capture more than 10 per cent of the sales value of cosmetics and toiletries.
Beauty and skin care salons – Around 15 per cent of cosmetic sales are conducted through this channel.
Direct sales – Major players include Avon, Amway, Nuskin, Mary Kay, and Sunrider with a value share of 21.8 per cent of cosmetic sales.
Home shopping – This is a new distribution channels for personal care products. Eastern TV is the major player.
Others – hospital and clinic sales, Internet sales and catalogue shopping (DHC, Kirei) are becoming more popular.
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Contact details
The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.
Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.
Austrade:
- Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
- Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
- Administers the Export Market Development Grants scheme.
- Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
- Provides advice to the Australian Government on its trade and investment development activities.
- Delivers consular, passport and other government services in designated overseas locations.
A list of Austrade offices (in alphabetical order of country) is available.
More information
For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au |
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