Premium Beauty and Personal Care in Taiwan

PROSPECTS

Premium beauty and personal care to outperform mass beauty and personal care

The forecast period is expected to see premium beauty and personal care outperform the industry, generating a slightly higher value CAGR than mass beauty and personal care at constant 2017 prices. Consumers are shifting towards premium products as their incomes rise and their lifestyles improve, supporting growth across all categories, but with an emphasis on skin care, hair care and sun care.

Demand for premium products to continue being based on natural ingredients

With concerns in Taiwanese society over the use of chemical ingredients in many products rising, brands and manufacturers that have a natural positioning are likely to find themselves at an advantage during the forecast period. Indeed, many premium cosmetics brands now have an explicitly natural positioning and this is clearly signalled in advertising campaigns and on product labels.

Premium sets/kits set to register very strong sales growth

Premium sets/kits is set to be the most dynamic category in beauty and personal care over the forecast period as the popularity of gift sets containing skin care, fragrances and colour cosmetics continues to rise. Gifting is a very important aspect of Taiwanese culture and many people feel that it is important to signal respect, love and appreciation for others through the offering of thoughtful and useful gifts.

COMPETITIVE LANDSCAPE

Taiwan Shiseido Co Ltd maintains its position as the leading premium player

Shiseido has long been the first choice for many affluent Taiwanese people when selecting beauty and personal care products and this remains the case as the Taiwan Shiseido Co again topped the rankings of the industry’s leading premium players in 2017. Shiseido’s Japanese origins are a major advantage as Taiwanese people are generally very interested in Japanese products and brands, while the brand’s longstanding presence in Taiwan means that it has a loyal base of long-term consumers.

International brands remain dominant

Although there are some strong local players offering premium beauty and personal care products in Taiwan, sales remain dominated by major international brands. Affluent consumers of premium products are generally quite invested in the prestige and cachet that premium brands offer, especially in fragrances, colour cosmetics and, to a lesser degree, skin care.

Consumer loyalty remains stronger for premium brands than for mass brands

While many Taiwanese consumers are quite price-sensitive and fully prepared to change beauty and personal care brands on a whim, especially if price promotions make a particular item cheaper than rival products at the time of purchase, this applies much less to premium brands. One major reason for this is that the consumer base for premium beauty and personal care tends to be older and more affluent than the general population, meaning that they are generally less price-sensitive and more set in their ways when choosing products.

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