With buying sparked by either the “Double 11” shopping day or the 2022 FIFA World Cup, Taiwan saw its retail sales and revenue generated by its food and beverage industry increase from a year earlier in November, according to the Ministry of Economic Affairs (MOEA).
Data compiled by the MOEA showed the November retail sales rose 1.4 percent from a year earlier to NT$382.7 billion (US$12.47 billion), marking the 15th consecutive month of a year-on-year increase.
Revenue posted by restaurants, beverage vendors and other food suppliers, meanwhile, hit its November high of NT$76 billion, up 13.3 percent from a year earlier, marking the seventh straight month of year-on-year growth.
Huang Wei-chieh (???), deputy director of the MOEA’s Department of Statistics, said a buying spree in the Double 11 festival, also called Singles’ Day, originating from China and now spreading worldwide, boosted Taiwan’s virtual and postal sales by 9.9 percent from a year earlier to NT$36.5 billion in November.
In addition, the auto industry benefited from its aggressive promotion efforts as well as the arrival of imported cars, which helped it enjoy a 5.2 percent year-on-year increase in sales hitting NT$59.9 billion in November, Huang said.
However, due to a relatively high comparison base over the same period of last year caused by the government-issued shopping vouchers, sales posted by department stores, and hyper markets fell 0.7 percent and 3.2 percent, respectively, from a year earlier to NT$42.2 billion and NT$19.8 billion in November.
Meanwhile, revenue generated by supermarkets and convenience stores rose 3.6 percent and 6.2 percent, respectively, to NT$19.9 billion and NT$32.8 billion.
Huang said the FIFA World Cup from Nov. 20 to Dec. 18 also brought business opportunities to restaurants and beverage shops, which saw sales rise 13.3 percent and 9.8 percent, respectively, from a year earlier to NT$63.3 billion and NT$9.3 billion.
As for catering services, Huang said eased concerns over COVID-19 infections in Taiwan prompted people to gather for meals and boosted sales in the segment by 24.9 percent from a year earlier to NT$3.4 billion in November.
In addition, Huang said, catering service revenue was also pushed up by an increase in airline passengers due to eased border controls.
However, sales posted by the local wholesale industry bucked the upturn in retail sales, falling 8.3 percent from a year earlier to NT$998.1 billion and stopping a 24-month rising streak at a time when the global economy showed signs of weakening, dragging down demand from end-users, Huang said.
Amid inventory adjustments, Huang said, revenue posted by the machinery, building materials and chemical raw materials industries dropped 13.9 percent, 8.0 percent and 20.0 percent, respectively, from a year earlier to NT$413.5 billion, NT$119.4 billion and NT$46.6 billion in November.
In the first 11 months of this year, retail sales rose 7.2 percent from a year earlier to NT$3.88 trillion, revenue posted by the food and beverage industry grew 19.6 percent to NT$778.5 billion, and sales generated by the wholesale industry rose 5.4 percent to NT$11.65 trillion, according to the MOEA.
Huang said retail sales are expected to range between NT$4.26 trillion and NT$4.27 trillion in 2022, up 6.8 percent to 7.1 percent from a year earlier.
Revenue in the food and beverage industry is forecast to range between NT$860.9 billion and NT$863.3 billion, up 18.3 percent to 18.6 percent, while sales in the wholesale industry are expected to range between NT$12.62 trillion and NT$12.65 trillion, up 3.8 percent to 4 percent year-on-year, according to Huang.
While the Directorate General of Budget, Accounting and Statistics (DGBAS) has forecast Taiwan’s economic growth for 2023 at 2.75 percent, slowing from a 3.06 precent increase anticipated for 2022, due to a fall in global demand, Huang said domestic demand is expected to remain stable next year.
However, in the wake of a relatively high comparison base in 2022, growth in retail sales and revenue in the food and beverage industry are likely to moderate in 2023, Huang said.
Source: Focus Taiwan News Channel