Home Improvement in Taiwan

PROSPECTS

Weak performances and labour law revisions hamper growth

In contrast to other home and garden categories, home improvement witnessed a strong decline in 2018, which was due to the worse performance of some of the top players. The leader in both home improvement and home paint, Yung Chi Paint & Varnish MFG Co, the leader in wall and floor coverings, Champion Building Materials Co, and the leader in bathroom and sanitaryware, Ho Cheng Group, all continued to see value declines in 2018, due to little upgrading of housing.

Floor and wall tiles record the strongest declines

Remaining the second biggest category within home improvement, floor covering suffered a strong decline in 2018, due to the huge decline seen in floor tiles. The same applies to wall covering and wall tiles.

Home paint suffers, whilst power tools sees a less adverse impact

Home paint is the biggest category in home improvement, and was adversely affected by the economic situation and the underperformance of top brands, including Rainbow and Dulux. Bathroom and sanitaryware also saw a continued decline, but due to different marketing strategies, Toto and Caesar suffered less than HCG.

COMPETITIVE LANDSCAPE

Yung Chi Paint & Varnish MFG Co leads

The leader in both home improvement and home paint, Yung Chi Paint & Varnish MFG Co maintained its leading position in value terms in 2018, which was mainly due to its diverse product mix, lower prices compared with other brands and its extensive distribution network through hundreds of independent hardware stores in Taiwan. However, the company also saw the biggest decline in actual value sales, due to the negative effects of the economy and its much higher value sales compared with other players.

Domestic players account for the majority of value share

Domestic players dominate home improvement, as the leaders in home paint, floor and wall covering and bathroom and sanitaryware are all local. Long-established brand influence, close bonds with local independent distributors, familiarity with the local consumption culture and affordable price points make it hard for international brands to penetrate the market.

Television advertising remains the major marketing method

Unlike other categories within home and garden, television advertising campaigns remain a core marketing method for key players to reach potential customers. Almost all home paint brands use television advertising during Q4 to capture more consumers.

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