Premium Beauty and Personal Care in Taiwan

PROSPECTS

Slowdown in premium beauty and personal care growth due to contraction in premium colour cosmetics

Growth in value sales of premium colour cosmetics cooled in 2018. This is compared to the robust growth achieved during the earlier years of the review period after which demand for premium beauty and personal care products has now reached maturity.

Premium skin care records the highest value growth

Premium skin care retained strong value growth in 2018 due to a larger consumer base and growing purchasing power. As consumers become more aware of the importance of a good skin care regime, more are turning to premium brands for their efficacy, with some starting to purchase premium skin care products at a younger age.

The internet plays a critical role in premium beauty and personal care

As the average age of consumers of premium brands is becoming younger, the importance of internet retailing is growing for brands in maintaining and building category share. Millennials are having an increasingly significant impact on the market as do their purchasing patterns, which are closely connected to the internet.

COMPETITIVE LANDSCAPE

Upward trajectory for prestige and designer brands

Designer brands that have newly entered Taiwan are enjoying rapid growth thanks to consumers’ pursuit of novelty and luxury. Tom Ford, for example, was already known by consumers in Taiwan before its first store opened in Taiwan in 2017.

Competition from mass brands

In many categories, mass brands have gradually switched their product positioning towards premium. For example, in hair care, Lux launched Lux Luminique shampoo and hair treatment, which is priced at a higher level, incorporating descriptive marketing language such as “superior” in product claims and product information.

Consumers seek premium beauty and personal care products for their proven quality

Many women are becoming increasingly attracted to premium beauty and personal care products that provide them with a more natural look, seeking products that give them natural looking coverage. Thanks also to greater awareness of health and wellness, there has been a move towards more natural and non-invasive ingredients, especially those that are environmentally friendly.

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