Luxury Writing Instruments and Stationery in Taiwan

2021 DEVELOPMENTS

Increasing incidence of writing as a hobby during the extra time at home helps drive sales

In 2021, COVID-19 will continue to have a slightly negative impact on luxury writing instruments and stationery, although luxury writing instruments and stationery will continue to see positive growth, regardless of the pandemic. One of the main reasons for this is that, due to the outbreak of the virus, many Taiwanese consumers have been spending more time at home during 2021, not least due to the government implementing a national lockdown in mid-2021.

Luxury writing instruments continues seeing competition from digital devices and other luxury goods

Aside from the pandemic, there have been other factors that have been holding back growth in 2020. For example, the rise of digital devices has resulted in writing by hand almost entirely disappearing from many consumers' everyday lives, in both the private and commercial spheres, with digital services such as smartphones and tablets often replacing traditional pen and paper.

No new product launches under the leading Montblanc and Cartier brands in 2021

Richemont Asia Pacific remains the clear number one player in luxury writing instruments and stationery, maintaining a strong lead over Louis Vuitton Taiwan, in second place, and Hermès International, in third place, with a share of more than half of overall retail value sales. Richemont’s two biggest brands in Taiwan are Montblanc and Cartier, which enjoy widespread popularity in the local market.

PROSPECTS AND OPPORTUNITIES

Stable consumer base will continue to help drive consistent growth over the forecast period

After experiencing a slight slowdown in its growth rate in current value terms in 2020 as a result of the pandemic, luxury writing instruments is expected to see slightly faster growth again in 2021, with consumers and society at large making ongoing adaptations to COVID-19. One of the main reasons for this will likely be due to the recovery of consumer confidence, which will make shoppers more willing to splash out on luxury items.

In-store retailers continue to dominate as consumers like to try out the products before purchasing them

Despite the rise of e-commerce as a sales channel in Taiwan, sales of luxury writing instruments will continue to be largely dominated by bricks-and-mortar retailers. Due to the nature of the products, given that they are luxury items, most consumers prefer to use the products first before buying them, which is especially true of writing instruments.

Innovation possibilities in the merging of digital devices and writing instruments

While the growing importance of devices such as smartphones and tablets in consumers’ daily lives makes them major competitors for luxury writing instruments and stationery, it also presents opportunities for manufacturers of luxury writing instruments and stationery to leverage their established brand images and introduce products such as stylus pens designed for use with digital devices. Nevertheless, the fact that technology in devices like smartphones and tablets is constantly changing, mostly advancing and improving, along with strong competition from non-luxury players, means that many consumers will remain less willing to spend large sums of money on luxury writing instruments and stationery.