Microwaves in Taiwan

PROSPECTS

Microwaves maintains growth, but the built-in format is unpopular

Retail volume sales of microwaves continued to increase in 2019. Despite their high consumption of electricity, a microwave is increasingly regarded as an essential in kitchens in Taiwan, and the penetration rate continues to increase.

Multifunctional products increase their household penetration

Limited kitchen space in households is encouraging consumers to choose multifunctional products over standard products. More innovative technology has been incorporated into microwaves, and more combination products are being launched, contributing to a moderate increase in sales of this format.

Consumers become immune to the negative press from food safety scandals

Owing to several food safety scandals since 2012, some consumers returned to cooking meals at home and did not purchase food from wet markets or snack bars, which had a positive impact on sales of microwaves over the review period. However, some consumers have become desensitised to such news, and are returning to purchasing food from wet markets or snack bars.

COMPETITIVE LANDSCAPE

Panasonic leads microwaves with a wide range of products and prices

Panasonic Taiwan continued to lead microwaves in retail volume terms in 2019, with an increasing share. Since 2011, the retail volume sales gap between Panasonic and the local brand Sampo, in second place, has widened, as Panasonic offers a variety of models at various price levels.

Local brands are striving to compete in the entry-level segment

The biggest local player, Sampo, held second place in microwaves in retail volume terms in 2019. It appeals to consumers via its entry-level prices and an extensive distribution and maintenance network across the country.

Parallel imports continue in combination microwaves

Due to the premium prices of combination microwaves, some Taiwanese consumers choose to purchase original products in Japan themselves, or parallel imports from independent retailers in Taiwan. Both channels are regarded as cost-effective, even though there tends to be an excess baggage charge on flights, or difficulty in obtaining a warranty.

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