Homewares in Taiwan

PROSPECTS

Homewares remains the only entirely positive category

The Taiwanese became desensitised after rounds of food safety scandals during the review period, leading to an overall slowdown in value growth of homewares. In addition, the sluggish economy resulted in more constraints on new purchases.

Stove top cookware remains stable due to long replacement cycles

Stove top cookware (a significant category in sales terms) maintained stable growth in 2017 due to a lack of major technological innovation. In line with global trends, the number of larger households declined, leading to a fall in end-users of homewares in Taiwan.

Unbranded products still account for the majority of homewares

In stove top cookware, consumers are aware of product differences between bigger brands and unbranded products, and are inclined to find out more information before purchase. In food storage, brand awareness increased due to rising health concerns over the review period.

COMPETITIVE LANDSCAPE

Dairy Farm International Holdings leads due to diversified products

Thanks to its full product range covering almost all categories within homewares, Dairy Farm International Holdings, which introduced IKEA into Taiwan, led homewares and overtook King Garb Metal Enterprise Co in 2017. Its and products’ practical uses in IKEA’s own food courts and colourful decorative styles in its kitchen design are powerful in expanding its consumer base.

Domestic and international players split homewares sales equally

Similar to home furnishings, sales performance in homewares remained equally divided between domestic and international players’ brands. Although international companies such as Dairy Farm International Holdings (IKEA), SEB Asia Ltd, Lock & Lock Co Ltd (Lock & Lock) and World Kitchen LLC offer top brands, they each accounted for a modest single-digit value share.

Bonus points promotions help boost brand visibility among consumers

In 2017, the biggest local chained supermarket PX Mart launched rounds of promotions to use bonus points in exchange for the famous stove top cookware brand WMF. According to local sources, this promotional activity caused a wave of cookware exchanges among Taiwanese consumers, and even led to temporary product shortages in German factories.

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