cens logo

Turnover of Taiwan's Businesses Totals NT$1.19 Trillion in June for 3% Yearly Drop

Aug 05, 2015 | By CENS

news-photoSales boom during Dragon Boat Festival energize Taiwan’s retail and food service sectors to offset lackluster performance by local wholesalers. (photo courtesy of UDN.com)
Overall turnover achieved by Taiwan's mainstay business sectors, defined by the Taiwanese government as retail, wholesale and food services, totaled NT$1.196 trillion (US$37.96 billion) in June, up 2.5 percent over May but down 3.0 percent from last June, which was due to lackluster performance by local wholesalers, according to the latest report issued by the Ministry of Economic Affairs (MOEA).

Separately, the report shows turnover by the wholesale sector reaching NT$826.9 billion (US$26.25 billion) in the month, down 4.5 percent compared to last June. Of the total, that by local wholesalers of machinery and electronic devices, including PCs, handsets, power equipment and related peripherals, declined 7.8 percent year on year (YoY), mostly due to a widespread downturn in distribution of such products with Japan.

Also revenue achieved by wholesalers of building materials and chemicals dropped by 7.2 percent and 10.5 percent, respectively, due to similar reasons, including protracted inertia among buyers amid weak international steel prices; petrochemicals price having begun dropping when suppliers across Asia generally have ramped up output after production suspension for periodical maintenance, which, in turn, have made global buyers cautious, hesitant when restocking in anticipation to see if prices will drop deeper in the short term, the MOEA indicates.

For January-June, cumulative turnover by the wholesaler sector totaled NT$4.814 trillion (US$152.82 billion), representing a 2.9 percent drop over the same period of last year, as shown by the MOEA's report.

Turnover by Taiwan's Wholesale Sector in June 2015 by Product Category
Product Category June Turnover MoM Growth Rate YoY Growth Rate Jan.-Jun. Turnover YoY Growth Rate
Machinery & Electronic Devices
NT$343.5 Bn.
4.5%
-7.8%
NT$1.9633 Tr.
-3.9%
Food, Beverage and Cigarettes
NT$73.7 Bn.
3.6%
-1.6%
NT$435.7 Bn.
-1.6%
Building Materials
NT$65.3 Bn.
1.8%
-7.2%
NT$389.7 Bn.
-5.8%
Household Appliances
NT$64.8 Bn.
5.6%
-1.0%
NT$379.9 Bn.
0.9%
Auto & Motor Parts
NT$57.0 Bn.
9.7%
2.1%
NT$312.2 Bn.
-3.5%
Miscellaneous Commodities
NT$52.6 Bn.
3.9%
-2.3%
NT$306.9 Bn.
-2.4%
Clothing
NT$42.9 Bn.
-3.5%
0.7%
NT$264.7 Bn.
1.5%
Chemicals
NT$33.3 Bn.
-4.0%
-10.5%
NT$205.3 Bn.
-5.0%
Others
NT$93.9 Bn.
2.9%
1.2%
NT$556.5 Bn.
-2.0%
Total NT$826.9 Bn. 3.6% -4.5% NT$4.8141 Tr. -2.9%
Source: Department of Statistics, Ministry of Economic Affairs

Meanwhile, the retail sector posted turnover of NT$334.3 billion (US$10.61 billion) in June, inching up 0.4 percent YoY, including NT$91.3 billion (US$2.89 billion) by local department stores, supermarkets, convenience stores and shopping mall operators, up 3.9 percent YoY, mostly due to relatively more robust consumption during summer sales and the Dragon Boat Festival, which traditionally calls for more spending on gifts, dining out and returning home for family gathering.

Retailers of food & beverage and cigarettes, ICT (information and communication technology)-based devices and white goods, pharmacy & cosmetic products, and auto & motor parts witnessed turnover up 3.9 percent, 3.0 percent, 2.9 percent, and 2.7 percent, respectively, YoY, whereas those of fuel and gas suffered a drastic drop of 21.2 percent in turnover of NT$21.1 billion (US$664.65 million), mainly due to relatively lower international crude oil prices, the MOEA notes.

Total revenue racked up by the retail sector during January-June was NT$1.971 trillion (US$62.57 billion), up 1.1 percent YoY.

Turnover by Taiwan's Retail Sector in June 2015 by Product Category
Product Category June Turnover MoM Growth Rate YoY Growth Rate Jan.-Jun. Turnover YoY Growth Rate
Miscellaneous Commodities
NT$91.3 Bn.
-5.2%
3.9%
NT$554.1 Bn.
4.8%
Auto & Motor Parts
NT$55.7 Bn.
15.4%
2.7%
NT$296.2 Bn.
4.2%
Food, Beverage and Cigarettes
NT$38.8 Bn.
0.7%
3.0%
NT$232.6 Bn.
2.0%
ICT Devices and Household Appliances
NT$30.2 Bn.
2.5%
2.9%
NT$179.9 Bn.
1.9%
Furnishing Supplies
NT$24.1 Bn.
-3.3%
-2.6%
NT$149.6 Bn.
0.9%
Pharmacy and Cosmetic Products
NT$16.1 Bn.
4.9%
2.9%
NT$90.3 Bn.
3.6%
Fuel & Gas
NT$21.1 Bn.
2.8%
-21.2%
NT$117.1 Bn.
-24.3%
Others
NT$57.1 Bn.
-2.9%
0.4%
NT$351.7 Bn.
3.0%
Total NT$334.3 Bn. 0.7% 0.4% NT$1.9715 Tr. 1.1%
Source: Department of Statistics, Ministry of Economic Affairs

On another front, the food service sector generated turnover of NT$35.6 billion (US$1.13 billion) as a whole in June, edging up 0.9 percent over a year ago, including NT$30 billion (US$952.38 million) by restaurant operators and NT$4 billion (US$126.98 million) by beverage vendors, respectively up 0.5 percent and 4.2 percent, to which the MOEA ascribes the following factors: surging demand for food services during the three-day Dragon Boat Festival weekend, which effectively offset the negative impact of some restaurant chain operators' brand restructuring in the month; and beverage vendors' increasing store numbers to boost sales amid hot weather.

The sector finished the first half of this year with turnover of NT$212.9 (US$6.75 billion), up 2.2 percent YoY.

In summary, the MOEA reports that the overall turnover by the abovementioned business sectors from January through June totaled NT$6.998 trillion (US$222.15 billion), shrinking by 1.6 percent from a year ago.


Turnover of Miscellaneous Retailers in June 2015 

June Turnover MoM Growth Rate YoY Growth Rate Jan.-Jun. Turnover YoY Growth Rate
Department Stores
NT$22.5 Bn.
-14.4%
6.3%
NT$147.6 Bn.
6.7%
Supermarkets
NT$14.6 Bn.
-1.3%
6.1%
NT$85.1 Bn.
7.8%
Convenience Stores
NT$25.8 Bn.
0.7%
4.1%
NT$144.7 Bn.
1.5%
Shopping Malls
NT$14.2 Bn.
-3.8%
-0.1%
NT$90.0 Bn.
4.3%
Others
NT$14.2 Bn.
-4.6%
1.8%
NT$86.7 Bn.
4.8%
Total NT$91.3 Bn. -5.2% 3.9% NT$554.1 Bn. 4.8%
Source: Department of Statistics, Ministry of Economic Affairs

As to sales in July, the MOEA states that turnover by local businesses is expected to have soared significantly compared to that in June for a couple of reasons, including the wrap-up of 2015 Taipei Multimedia Show, held July 3-6 at TWTC Exhibition Hall 1 in Taipei; and the steady record-setting temperatures during the month, which are likely to have further driven consumer demand for food and beverage, household appliance as air-conditioners and fans, among others.

Contrasting the upbeat sales for local retailers and food service providers in July, the MOEA says that market prospects for wholesalers may remain grim, primarily because of lingering price drops of steel and crude oil worldwide, as well as the continuously sagging wholesale distribution business with Japanese customers.


Industry Reports

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...


An Alliance Between Ford and VW Could be Announced as Early as Next Year</h2>

An Alliance Between Ford and VW Could be Announced as Early as Next Year

Dec 11, 2018

There is news of a far-reaching alliance between Ford Motor and Volkswagen, according to those familiar to the matter, reported CNBC. The two world’s largest automakers plan to announce the alliance next January, a partnership that would encompass sharing assembly plants in the U.S. to avoid new the wave of tariffs, joint marketing and distribution as well as product development, possibly on t...



Industry In-Focus

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...