Market Trends of Taiwan Retail Sector
This section covers the major market trends shaping the Taiwan Retail Market according to our research experts:
Consumer Confidence to Strengthen on Minimum Wage Hike.
Consumer confidence in Taiwan is expected to strengthen on the back of the recent pay increase. The current net minimum wage in Taiwan is TWD 24,000 per month (USD 854/EUR 704) and TWD 160 (USD 5.7/EUR 4.7) per hour, as of January 1, 2021. Minimum wages in Taiwan increased to TWD 24000/month in 2021 from TWD 23800/month in 2020. Improved consumer confidence and higher income levels are expected to have a positive impact on the retail market, especially the F&B sector. With changing lifestyles and family structure resulting in the growing prevalence of one-person households, more Taiwanese consumers, especially young adults living in urban cities like Taipei, prefer eating out for convenience and for the variety of cuisines on offer. Currently, the number of eateries on the island is growing at an average of 3% to 6% each year to over 120,000, according to Channel News Asia. In 2017, the total revenue of the catering sector in Taiwan topped TWD 452.3 billion, smashing the record high of TWD 439.4 billion in 2016. The average Taiwanese consumer prefers to dine out, while dining-in is most carried out by older people or young families co-habiting with their parents. There is a tide of fashionable, urban, singles, couples, and young families turning that notion around, viewing cooking as a recreational activity.
High Growth of the Apparel and Footwear Industry.
At present, Taiwan is one of the major manufacturers and exporters of textile and apparel in the world. The country has invested in and developed a new technology to integrate the entire value chain of the industry. The apparel industry of the country is highly export-oriented. Approximately 75% of the apparel produced are exported. The total production value of Taiwan's apparel industry is estimated at USD 13.1 billion in 2021. The apparel market is expected to grow annually by 3.5% by 2024. The retail apparel market includes baby clothing, formalwear, formal wear, toddler clothing, casual wear, essentials, and outerwear for men, women, boys, and girls; the market excludes sports-specific clothing. The children's wear segment was the industry's most lucrative segment in 2018, holding a 45.1% share of the apparel market. Fast fashion has also proven to be a lucrative sector in the industry, particularly for millennial customers. The fast-fashion brand H&M opened its first store in 2015, and it now has a total of 12 outlets across the country. The industry is now highly aware of the power of combining design with aesthetic and cultural creativity. Encouraged and supported by government policies, the industry is actively integrating creativity, innovation, and cultural heritage into designs to create unique and refined products. Crossover collaboration is also a new direction to augment market coverage.
