Baby and Child-Specific Products in Taiwan

PROSPECTS

Acceleration in growth linked to rising incomes and higher spending on children

The forecast period is expected to see an acceleration in sales growth in baby and child-specific products at constant 2017 prices and this is linked to higher spending on children generally by increasingly affluent parents and grandparents. Although Taiwan’s birth rate is already low and set to decline further over the forecast period, potentially placing limits on volume growth in the category, rising income levels are set to encourage parents and grandparents to spend more on fewer children.

Potential threats set to continue presenting challenges to manufacturers

In addition to the low and declining birth rate, there are other threats which have the potential to have a negative impact on sales of baby and child-specific products over the forecast period. For instance, many low- and mid- income families are struggling due to weak purchasing power despite the ongoing improvements being seen in Taiwan’s general economic situation.

Baby and child-specific skin care set to be the most dynamic category

The most dynamic category during the forecast period is expected to be baby and child-specific skin care and this is mainly because of the rising interest in products which cleanse the skin from airborne urban pollution. However, until recently baby and child-specific skin care products were unpopular among Taiwanese parents in general.

COMPETITIVE LANDSCAPE

Johnson & Johnson maintains its strong leadership despite losing value share

2017 saw leading player Johnson & Johnson Taiwan Ltd lose one percentage point from its value share in baby and child-specific products as its main rivals gained value share. This was mainly due to the increasing interest in premium brands, which benefited the brands Baan and Bübchen by second-placed Baan International and Sebamed by third-placed Sebapharma.

International brands remain dominant

International players continue to dominate sales in baby and child-specific products, with local players suffering from low visibility. The category’s leading multinational companies and international brands have successfully cultivated strong images and enjoy high levels of trust among consumers.

Private label struggles as sales remain negligible at the end of the review period

Sales of private label baby and child-specific products remain insignificant in Taiwan. There are few private label products that are significantly cheaper than the category’s leading mass brands, which vitiates the price advantage that is the only real selling point of private label beauty and personal care.

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