Microwaves in Taiwan

PROSPECTS

Microwaves sees steady sales due to being considered necessary appliances in daily life

Despite their higher consumption of electricity, microwaves are regarded as kitchen essentials in Taiwan and penetration rates continue to increase. However, built-in microwaves are less popular compared to freestanding ones, which is attributed to there being fewer models, greater price gaps and more complicated electricity wiring needed.

Multifunctional products continue to penetrate Taiwanese households

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

Consumers are desensitised to the negative impacts of food safety scandals

Owing to rounds of food safety scandals since 2012, consumers cook meals at home and do not frequently purchase deli food from wet markets or snack bars. However, after several scandals, some consumers have become desensitised towards such news and return to buy deli food instead of cooking at home.

COMPETITIVE LANDSCAPE

Panasonic leads microwaves with an expanding advantage in volume sales

Since 2011, the microwave volume sales gap between Panasonic and the biggest local brand, Sampo, has widened, as Panasonic has a variety of product models at all price levels. Furthermore, the company continues to introduce higher-priced models from Japan, which are multifunctional as they roast, heat, steam, and bake.

Local brands strive to compete in entry-level microwaves

The biggest local player, Sampo, holds second place in microwaves, and appeals to consumers via its entry-level prices and an extensive distribution and maintenance network across the country. Another local player, Tatung, has launched products with prices similar to Sampo’s, and operates its exclusive eTungo outlets to enhance its sales performance.

Parallel imports continue in combination microwaves at premium prices

Due to the premium prices of combination microwaves, some consumers choose to purchase original products in Japan by 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 a flight or difficulty in obtaining a warranty in Taiwan.

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