Luxury Portable Consumer Electronics in Taiwan

PROSPECTS

Sales now recovering following exit of previous leader Vertu

Following a major decline in sales in 2017 due to the liquidation of previous sales leader Vertu, luxury portable consumer electronics is now recovering. Indeed, current value sales grew at a healthy rate in 2019, with luxury wearables performing particularly well.

Strong competition from non-luxury mobile phone brands

Technological innovation is a key factor driving demand for mobile phones. Consequently, the activity of non-luxury brands such as Apple and Samsung has lured potential consumers away from luxury products.

Innovation of non-luxury brands poses threat within luxury wearables

Luxury wearables continued to see dynamic growth during 2019, with sales being driven by growing consumer interest in the novelty of the category, which only established a presence in Taiwan in 2014. Growth is still being supported by the desire of many consumers to be early adopters of wearable technologies.

COMPETITIVE LANDSCAPE

New customisable ranges ensure Tag Heuer remains in pole position

Tag Heuer remained the leading brand within luxury portable consumer electronics in 2018. Sales have been boosted by the recent launch of Connected Module 45 in 2017 and Connected Module 41, with these ranges being created in partnership with Intel and catering to consumer demand for a range of different sizes and options.

Luxury mobile phone brands focus on innovation in bid to attract consumers

While luxury brands face significant challenges within mobile phones, as illustrated by Vertu’s recent collapse, innovation could still be seen within the area towards the end of the review period. For example, Lamborghini recently launched the Alpha-One, an Android smartphone that comes in Italian leather back and liquid metal and with an Italian leather case.

Continued intense competition from non-luxury players

The development of luxury wearables is constrained by the limited availability of such products in Taiwan. Moreover, the category faces a significant dilemma around pricing as high prices have an important part to play in generating an image of exclusivity but are likely to deter consumers in luxury portable consumer electronics because of the short lifespans of such products.

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