Homewares in Taiwan

PROSPECTS

All homewares categories register growth

Taiwanese consumers became more careful about their health after a spate of food safety scandals over the review period, leading to stability and even growth in homewares. In addition, although the sluggish economy resulted in limited investment in new purchases, once consumers decided to buy new products, they preferred multifunctional or creative products or bigger brands with better quality to justify the higher upfront cost.

Stove top cookware sees little growth due to less innovation

The most significant category within homewares, stove top cookware, saw only slow current value growth in 2018, due to a lack of major technological breakthroughs and a slight increase in the number of local households. The number of households with three people or more, which are major consumers of homewares (stove top cookware in particular) fell over the last decade.

Unbranded products account for most sales

In stove top cookware, which is higher-priced, consumers are fully aware of the differences between bigger brands and unbranded products, and tend to find out more information before purchasing. In food storage, brand awareness is increasing due to rising health concerns over the review period.

COMPETITIVE LANDSCAPE

Dairy Farm International Home Furnishings Taiwan leads

Owing to its comprehensive product coverage, from beverageware and cutlery to kitchen utensils, Dairy Farm International (IKEA), led homewares in value terms in 2018. With respect to IKEA, its practical application of homewares in its food courts and colourful decorative styles in its kitchen designs demonstrates its strength in attracting potential customers.

Domestic and international players have different distribution channels

Similar to home furnishings, the performance of homewares is equally divided between domestic and international brands. International companies such as IKEA, Groupe SEB, Lock & Lock and World Kitchen focus more on higher-priced products and distribution via department stores, warehouse clubs and exclusive retail outlets, whilst domestic players pay more attention to budget to mid-priced ranges, and are mostly distributed in hypermarkets, supermarkets, online retailers and traditional hardware stores.

Promotions using bonus points in exchange for stove top cookware

In 2017, the biggest local chained supermarket, PX Mart, launched a promotion for consumers to use bonus points in exchange for a famous stove top cookware brand, WMF. It went around local agent Test Rite Group, directly importing from WMF’s German headquarters.

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