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(Last updated: 15 Nov 2011)
Trends and opportunities
The market
Beauty and personal care recorded strong growth in 2010 than in the previous year, with the recovering economy fuelling sale. Although there was a second recession in US and Europe, Taiwan was not impacted with the country’s GDP increasing by 10 per cent during the year. The large variety of beauty TV shows and magazines available in Taiwan have helped educate consumers on the benefits of using skincare and increase growth in this sector.
Due to the influence of magazines and television programs, a growing number of teenage girls have started to wear make-up at a younger age. With rising demand amongst younger consumers with limited budgets, the demand for mass brands has increased over the year. Products such as skincare, colour cosmetics and sun care products have lead consumers to cheaper mass brands. Consumers choose mass brand products with less functionality claims, aromas, colouring, and that are priced competitively.
In Taiwan, firming/anti-cellulite body care and whitening products are still in high demand. In 2010, the Top 10 premium skincare companies included Shiseido, P&G, Estée Lauder and Unilever Group, which dominated over 60 per cent of the market share in Taiwan. In this category, Taiwanese consumers are very brand conscious in choosing skincare and other consumer products.
The popularity of pharma brands continues to increase in Taiwan. The promotion of such brands is limited due to the high unit price and only appeal to a small group of consumers. Chain drugstore retailers, such as Watson’s and Cosmed, often cooperate with cosmetics and toiletries manufacturers to carry out price promotions in an attempt to attract more consumers into their stores. The value share of Internet retailing has also increased due to the expansion of Internet retailers such as PayEasy. This channel also offers a wide range of products at competitive prices.
In recent years, more consumers are aware of the danger of using chemical-based cosmetics and toiletries products and are now seeking products with natural and organic ingredients offering the same functionality in cosmetics and toiletries products.
Opportunities
Australian skincare and cosmetics products are well recognised by local industry and consumers for their high quality natural ingredients and unique brands. There are number of Australian brands available in Taiwan and importers are constantly looking for Australian suppliers in the following areas:
- Body skincare products with organic and natural ingredients
- Sunscreen protection
- Contract manufacturers for private labels
- Bulk products such as sea salt and essential oils
- Skin products emphasising special benefits such as anti-ageing, slimming, whitening and firming
(Source: Euromonitor - Cosmetics and toiletries in Taiwan)
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 whereas brands such as Revlon, L'Oréal and Olay lie in the mid-range market.
Young brands from Japan and Korea such as DHC, Fancl, and Laneige are perceived as niche brands. Jurlique, Aesop and Kiehl’s also play an important part in natural skincare market. The growing popularity of Jurlique and Aesop has increased the interest and demand for more Australian skincare products in the Taiwan market.
Domestic pharma brand, Dr. Wu, has increased in popularity since 2009. The brand’s wide distribution network covers health and beauty retailers and strong media coverage in beauty programs and magazine helped the brand to increase its market share. Other local make-up artists have also launched their own brands of skincare and colour cosmetics products, eg. Nuier and Kevin.
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