ASEAN KEY DESTINATIONS
Demand in Taiwan’s small appliances market increased in the first three quarters of this year: GfK
Total market value reached USD 388 million; Virtual channel gaining importance
28 October 2013, TAIPEI –.The Small Domestic Appliances sector in Taiwan continues on its upward trend from the last two years, registering 7 and 5 percent growth in value and volume respectively in January to September of 2013 over 2012. Albeit a slowdown in growth level from last year’s strong double digit expansion, the total market—which is made up of the kitchen, housekeeping and personal care segments, continued to see an overall rising demand in the country with consumers there buying nearly 5 million units of such products.
Vacuum cleaners, food preparation appliances, thermo pots, hot beverage makers and water filters were the key segments which saw strong double digit gains in sales value and volume. The most rapid growth in value is reflected in vacuum cleaners, where consumers spent 39 percent more, or USD 20 million on nearly 390,000 units of the housekeeping tool—19 percent more than last year. However, in terms of volume, it is the food preparation segment which saw the highest sales surge of 36 percent. Over 300,000 units worth almost USD 20 million were snapped up—17 percent more compared to last year.
“One key reason for the rise in take up of kitchen appliances is the recent spate of scandals revolving around food safety in Taiwan,” highlighted Lydia Huang, Managing Director for GfK in Taiwan. “This series of incidents have raised the level of concerns amongst locals towards eating clean and healthy food and have caused many to switch to home cooking to safeguard their family’s health.”
The rising popularity of online and TV shopping has also been playing a significant role in spurring the growth of SDA. These platforms have become increasingly important, contributing over 15 percent of total volume sales this year. The most sought after products from virtual shops selling household products are vacuum cleaners, air treatment and food preparation products which garnered combined sales of USD 43 million and make up over 65 percent of virtual shopping in this sector.
“The small domestic products lineup is very divergent and versatile ranging from entry level to the very premium models so as to cater to all consumer types,” noted Huang. “The attractive promotions, on top of the convenience of not needing to travel out and having bulky appliances delivered to your doorstep are greatly appreciated by Taiwanese consumers who prefer shopping from home.”
According to GfK findings, water filters and vacuum cleaners are the two segments which reported the highest average price surge of 16 and 17 percent respectively in overall SDA, attributed to the better performance of the higher end products over the last year.
“The rising emphasis on healthy eating will likely bring about greater demand for healthier food choices; resulting in higher frequency of home cooking which in turn will heighten demand for cooking appliances,” said Huang.
“With this growing trend, we are anticipating to witness more excitement in the market as manufacturers continue to introduce new products and features into the market to whet consumers’ appetite for the latest appliances,” she concluded.
GfK is one of the world’s largest research companies, around 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion.
To find out more, visit www.gfk.com or follow GfK on Twitter: www.twitter.com/gfk_en
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