Market Trends of Taiwan E-commerce Industry
This section covers the major market trends shaping the Taiwan E-commerce Market according to our research experts:
Growing Number of E-shoppers is Expected to Boost the E-commerce Market
- The online shoppers in the region are rapidly increasing in the area owing to strong smartphone and internet penetration. Furthermore, well-developed telecom infrastructure and a well-developed logistics network further attract the region's online shoppers to buy and sell through online channels.
- Moreover, due to the increase in the number of online shoppers, the share of e-commerce in total revenue is increasing over the past few years. For instance, as per the Ministry of Economic Affairs Taiwan (MOEA Taiwan), the share of e-commerce revenue in total retail revenue in Taiwan has grown by leaps and bounds in 2021 from 2017.
- Social media has become extremely important for marketing products sold online in Taiwan. Facebook is the preferred method of digital marketing, with most online vendors choosing to use it as an effective marketing tool. This is due to the low cost of promoting through Facebook and the ability to reach a broad audience through the social media platform. E-merchants also highly depend upon word-of-mouth recommendations, which spread quickly on Facebook, to generate traffic.
- Furthermore, Double 11 (11 November) and Double 12 (12 December) are the famous online sales event in Taiwan. Major E-commerce companies in the region offer hefty discounts and offer on purchasing through online mediums during these events, resulting in the increasing number of online shoppers in the region. Furthermore, these sales events generate significant revenue for E-commerce companies.
- All of the aforementioned factors are further expected to boost the e-commerce market in Taiwan over the forecast period.
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M-commerce Culture Supported by Innovative Digital Payment Solutions to Boost the E-commerce Market
- With the rising popularity of smartphones and tablets, the number of people who use wireless internet, including mobile internet, is increasing rapidly in the region. Owing to this, the number of mobile commerce services and applications used by customers in Taiwan is rising rapidly.
- Moreover, the increasing number of mobile connections in the region is very high compared to many of the Asia Pacific countries, which is another region for solid demand for M-commerce in Taiwan. For instance, as per GSMA, the number of mobile connections in Taiwan stood at 28.65 million in Q4 2021 compared to 28.2 million mobile connections in Q4 2019. The mobile connection penetration rate is close to 120% in Taiwan.
- Furthermore, mobile shopping apps are increasing rapidly for many major E-commerce companies in the region, further providing a boost to mobile commerce in the region. For instance, as per Internation Trade Administration, among the monthly visitors of mobile shopping applications, Taiwan's online shopping consumers mainly use Shopee (52.36 million pageviews/month), followed by PChome (32.44 million pageviews/month), Momo shop (31.17 million pageviews/month), and Ruten (30.17 million pageviews/month).
- Furthermore, the ease of convenience provided by digital payment solutions is gaining popularity in the region and further boosting the growth of the E-commerce market in Taiwan. Additionally, mobile payment is emerging as the preferred option for online shopping. Owing to this, many major players have already launched their mobile payment solutions, such as LINE Pay, Apple Pay, Google Pay, Jko Pay, PX Pay, and Taiwanese Government-backed Taiwan Pay.
