Taiwan’s economy remained resilient in 2022 despite macroeconomic headwinds, with their GDP per capita expected to surpass Japan and South Korea. The Taiwanese have the strongest spending power in east Asia. This will encourage consumer behavior in Taiwan towards spending on consumer goods and services. The retail market is expected to register a compounded annual growth rate (CAGR) of 4% by 2027.
The government was successful in containing the spread of the COVID-19 pandemic in the country, which helped prevent large-scale closures of retail businesses in Taiwan. But consumer behaviors continue to evolve, which should push retailers to adopt different approaches to provide a seamless experience for shoppers.
Consumer confidence in Taiwan is driven by an increase in the country’s minimum wage, which had a positive impact on the retail market. The food and beverage sector continues to grow off the back of consumer trends in Taiwan, especially in urban areas like Taipei where the rising middle class and young urban adults like eating out and trying different varieties of cuisines.
The apparel and footwear industry is also enjoying high growth. It is expected to grow by 3.5% annually to 2024. Fast fashion is a lucrative segment, and millennial shoppers are driving consumer spending.
As consumer preferences and spending behaviors in Taiwan continue to evolve, retailers in Taiwan can expect that shoppers will seek out good deals, refined products and menu offerings, and creativity in consumer goods and services.
A great volume of consumer spending in Taiwan is done online. Due to the high internet penetration and mobile usage rates in the country, the size of the e-commerce market continues to increase. The most popular online retail categories in Taiwan are apparel, footwear, and consumer electronics. The B2C e-commerce market is expected to grow by 9% annually until 2025.
According to an industry report, 90% of Taiwanese consumers favor comprehensive e-commerce platforms that offer a variety of products compared to those that focus on a certain retail segment. The top B2C platforms in Taiwan include Shopee, Momo, and PChome. Free shipping and quick delivery times are what help digital shoppers decide which platforms to buy from.
Retailers can take advantage of the e-commerce boom by developing an omnichannel strategy, starting with offering order fulfillment and returns through different channels and locations. Integrating online marketplaces and physical stores will allow consumers to have a more pleasant experience and will also allow retailers to make additional revenue.
As consumer confidence in Taiwan continues to increase, the retail industry must make shopping easier and take note of consumer behaviors to inform their business decisions. Taiwan’s retail market will continue to thrive, and business owners must ensure that they are offering high-quality products and services to consumers.
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