Since 2015, the general economy of Taiwan has enjoyed steady growth with plenty of dynamics and development. Following the food safety outbreaks, the increased awareness and willingness to upgrade on products purchased has fueled FMCG sales turnover to grow 5.3% in 2016 according to statistics from Nielsen retail data. However, the trend slowed down in 2017, with only 2.2% increase throughout the year.
Retailers are also opening new stores at a slower pace, especially in supermarket chains. The industry’s overall expansion rate dropped from 13.7% in 2016 to 5.4% in 2017. The 2018 Nielsen Shopper Trends Report found that total amount spent on last trip at hyper/supermarkets has decreased from NTD$1,203 per visit in 2016 to NTD$1,008 in 2017. These figures suggest one fact: when retail expansion is limited, a red ocean market is under way.
Although 2017 may seem to have been a sluggish year for the retail market, there are still plenty of business opportunities to be grasped. According to Nielsen e-Commerce retail measurement service and Costco e-read, report, both channels enjoyed outstanding performances throughout 2017 at 18.2% and 4.1%, respectively. Moreover, non-chain supermarkets known as “other supermarkets” also outperformed other physical channel types. On the product side, more and more popular items continue to emerge. It can be concluded that although the overall FMCG market may seem slow, consumers have not really stopped spending. Rather, they are shopping with a different behavior. Identifying the main retail channels and genuine shopper needs can still attract purchases and gain growth.
• Convenience: providing instantly satisfying shopping experiences anytime, anywhere
• Differentiation: offering differentiated products in a fragmented consumer market
• Innovation: creating brand new experiences via new product launches for consumers who love sharing