How to enter the Taiwanese market

Taiwan was Australia’s seventh largest export destination in 2024, with total exports reaching AUD 20.4 billion. Exports are dominated by coal, natural gas, metals and ores, but Taiwan’s strong consumer markets, advanced technology industry and the growing green economy offer many other opportunities.

Market entry models for exporting goods and services

Choosing an appropriate market entry model is essential for businesses looking to export to Taiwan. Any choice should be informed by factors such as the overarching business strategy, target sector, and business size and maturity. Market entry models frequently evolve over time.

A. Direct exporting

In direct exporting, businesses sell directly to a Taiwanese customer from Australia. Exporting directly to Taiwan requires a significant level of involvement in the export process, including market research, marketing, distribution, sales, product registration and approval, import-export licensing and receivables.

Direct exporting has some advantages, including:

• Greater control of commercial processes, including sales
• Better margins, as middlemen are avoided
• More direct customer relationships

While there are advantages, direct exporting may ultimately involve higher establishment costs in Taiwan, as employing dedicated in-house staff and other resources may be necessary to manage the complexities of exporting and sales. Businesses using this model may need to consider ways to offset these costs, including employing an agent or distributor to handle local product registrations, while still maintaining control over other aspects such as marketing and supply chain.

This approach will require businesses to engage with customers regularly to build awareness and understanding of the products they are selling on your behalf. In return, their understanding of the Taiwanese market can be applied to product development, pricing and marketing. Selling directly to local retailers can generally cut commissions, reduce expensive travel and create an effective conduit to market.

B. Agents and distributors

Many Australian firms doing business internationally rely on agents or distributors. The roles of agents and distributors differ, and they can vary across industry. It is therefore critical that roles and responsibilities are clearly defined early in any agreement.

Agents: Agents act as representatives of suppliers and do not take ownership of the products they sell. They are usually paid on a commission basis, which provides an incentive for them to drive sales. Being based in Taiwan, they will often represent several complementary products or services. They can be retained exclusively as the sole agent for a company’s goods or services or as one of several for the exporter.

Distributors: Unlike agents, distributors buy the goods from exporters and then resell them to local retailers or direct consumers. In some cases, a distributor may sell to other wholesalers who then on-sell to retailers or consumers. Distributors may carry complementary and competing lines and usually offer after-sales service. They earn money by adding margins to product prices. Distributor margins are generally higher than agent fees because distributors have costs associated with carrying inventory, marketing and extending credit for customers.

Choosing an agent or distributor: Whether using an agent or distributor, building a close working relationship is essential. Due diligence when selecting an agent or distributor is important – ask for trade references and seek a credit check through a professional agency. It is best to meet any potential agents or distributors in Taiwan; this will give them a chance to demonstrate knowledge of the market and provide an early opportunity to build the relationship.

Time in market is an important consideration when choosing a distributor in Taiwan. As distributors have a high rate of closure, engaging an established distribution business reduces the risk of disruption to a business relationship. On the other hand, established distributors can lack the dynamism of younger companies.

C. Online Sales

Taiwan’s advanced internet and telecommunications infrastructure support a large mobile user base, creating an attractive environment for selling products and services online. Internet use is widespread, with a 96.7 per cent penetration rate. E-commerce is popular in Taiwan, with the average person spending nearly one hour per week shopping online.

Changing consumer preferences have led to sizable growth in Taiwan’s e-commerce market. In 2025 alone, the value of e-commerce platforms grew by nearly 7.9 per cent, to AUD 99.2 billion. In addition to purchases such as electronics and apparel, sales of basic household items are increasing due to improved delivery speed.

Holiday shopping is an important feature of the Taiwanese consumer market. November 11 (11/11) is known as “Singles’ Day”, an informal shopping holiday when young, single people celebrate their relationship status by purchasing gifts for themselves. Other popular shopping events in Taiwan include Double Twelve, 618 Festival and the Taiwan-Matsu Joint Online Shopping Festival. Taiwanese consumers are also embracing Western shopping events such as Christmas and Black Friday to take advantage of online deals.

Figure 2: E-commerce spending on consumer goods (2025), AUD billion

Accessing digital consumers: In 2025, 52 per cent of Taiwanese consumers reported making purchases online every week. Both business-to-business and business-to-consumer commerce is prevalent, and many online retail platforms service these channels. Top product categories include fashion, electronics, food and beverages (Figure 2).

Although e-commerce adoption among Taiwanese consumers is high, understanding consumer habits and building effective marketing strategies can maximise retail sales online. Most Taiwanese consumers locate products through online brand searches and targeted ads. In addition, over 80 per cent of Taiwanese consumers use social media platforms, presenting another effective advertising strategy.

Search engines: Google dominates online searches in Taiwan, followed by Yahoo, Bing and CocCoc. Approximately two in three Taiwanese consumers use search engines for brand discovery and 27.9 per cent say searching for brands and products is the primary reason for using the internet. In addition to traditional search engines, ChatGPT makes up 83.61% of AI large languagemodels (LLM) web traffic referrals.

Online sellers and marketplaces: Taiwan’s e-commerce market is relatively diverse, with several popular platforms. Momo and Shope have the largest market share, while PChome, Yahoo! Buy and Lativ are other important players. Taiwan has no specific e-commerce laws, but businesses engaging in online sales must adhere to local data protection and security regulations.

Social media: Apps with the highest user penetration in Taiwan are LINE (90.2 per cent), Facebook (81.8 per cent), YouTube (76.8 per cent), Instagram (63.4 per cent), Facebook Messenger (54.9 per cent), TikTok (37.5 per cent), Threads (35.2 per cent), and X (27.6 per cent). In addition to keeping in touch with friends and family, seeing content from brands, finding inspiration for future purchases and researching products are popular reasons for using social media in Taiwan.

Investment environment

Taiwan is very open to foreign investment and remains one of the largest recipients of FDI globally. Taiwan is Australia’s 17^th largest FDI destination, with total investment increasing from AUD 23.0 billion in 2023 to AUD 35.1 billion in 2024.

Taiwan’s investment promotion department, InvesTaiwan, promotes Taiwan as an FDI destination and administers a range of investment incentives. Taiwan’s major investment programs are designed to attract foreign capital, retain domestic businesses and help grow small and medium enterprises. Incentives are concentrated around Taiwan’s “5+2 Innovative Industries” initiative, which includes areas such as smart machinery, biomedicine, Internet of Things, green energy, national defence, advanced agriculture, circular economy and semiconductors.

Taiwan provides both tax incentives and subsidies for foreign businesses. More information is available from InvestTaiwan.

• Tax incentives are available for research and development activities and certain types of technology investments such as those made in smart machinery, 5G infrastructure, capital expenditure, software and hardware. Tax incentives are available in the form of credits for R&D and exemptions for a range of expenses including import duties, undistributed earnings, employee compensation, foreign employment expenses and participation in public infrastructure projects.
• Subsidies may be granted for research and development activities related to critical or innovative technologies. The total value of granted subsidies is up to 50 per cent of the total project budget or AUD 962,310 (NTD 20 million).

Investment rules and regulations

Promoting FDI is a central part of Taiwan’s economic planning because of a public debt ceiling rigidly imposed by the Taiwanese authorities. Taiwan imposes very few restrictions on foreign investments unless they originate from mainland China or Chinese nationals. Chinese investments are not strictly prohibited but are subject to more rigorous screening and restrictive conditions.

Regardless of origin, foreign investments are prohibited in certain industries considered critical to national security or environmental protection, including public utilities, power distribution, mass media and certain types of transportation. A full list of prohibited industries is available from Taiwan’s Ministry of Economic Affairs.

Market entry models for investing

Choosing an appropriate market entry model is essential for businesses looking to invest in Taiwan. A business’ size, sector and growth strategy will help determine which market entry model fits best. Investment models frequently evolve over time as businesses enter and expand in a market. Seek professional advice on the best structure for your business.

A. Representative office

Opening a representative office (RO) can be a useful and economical first step to explore business opportunities in Taiwan. However, representative offices are prohibited from engaging in commercial activities and are not considered separate legal entities.

Representative offices in Taiwan may be useful for foreign businesses looking to establish a buying or selling office in Taiwan, or to provide technical support, training and quality control services locally. Approval to establish an RO is granted by the Ministry of Economic Affairs (MOEA).

Establishing a representative office in Taiwan

B. Branch office

Establishing a branch office (BO) in Taiwan allows a company to operate as a local business. However, branch offices are not treated as independent legal entities. The parent company remains legally responsible for the activities of the branch, but a BO may conduct commercial activities in Taiwan and is required to file tax returns separately from the parent company.

Taiwan requires that BOs reserve a Chinese name, open a bank account and transfer capital prior to commencing operations. Like ROs, BOs must also register with local tax authorities. BOs must also submit regulatory filings as required. For example, BOs must submit value-added tax filings every two months and annual tax returns, regardless of whether any transactions were carried out. Branch offices are not eligible for tax incentives provided by InvesTaiwan.

Establishing a branch office in Taiwan

C. Limited company

Limited companies in Taiwan are treated as separate legal entities. This structure is frequently used to set up small to medium-sized enterprises. Limited companies require only one director and do not require a corporate secretary. There are no nationality or residency requirements for foreign companies, provided that Chinese nationals do not serve as company directors.

Like branch offices, limited companies are required to comply with Taiwanese tax filing procedures. Limited companies are not subject to financial audits unless they have more than 100 local employees, capital contributions over AUD 1.4 million (NTD 30 million) or annual sales revenue over AUD 4.8 million (NTD 100 million).

Establishing a limited company in Taiwan

D. Company limited by shares

In Taiwan, companies limited by shares are best suited to medium to large-sized enterprises looking to establish a long-term presence. Legally, companies limited by shares are treated the same as limited companies and the registration process is similar. While there are still no residency requirements for companies limited by shares, they are required to have at least three directors and a supervisor.

Companies limited by shares must be incorporated by at least one corporate shareholder or two individual shareholders and are required to hold annual shareholder meetings. After the first year of incorporation, shares may be transferred to other individuals.

Establishing a company limited by shares in Taiwan

E. Public-private partnership

A Public-Private Partnership (PPP) is a contractual arrangement between public and private sector entities. PPPs are an integral part of Taiwan’s development, particularly with respect to infrastructure projects, medical facilities and urban renewal.

Private enterprises may either tender an offer for a project proposed by the public sector or initiate their own project and seek public sector involvement. Different PPPs offer varying levels of private involvement ranging from construction-only to build, own and operate models. PPP participation is available to registered companies in Taiwan. A full list of available opportunities can be found through the E-Procurement System.

Success in Taiwan requires foreign businesses to tailor their product or service to the market. This should be based on detailed analysis of consumer trends, price consciousness, branding, marketing and advertising.

Taiwan’s population is growing increasingly urban and per capita disposable income is expected to increase by 10.3 per cent by 2028. Following high consumer saving levels during the COVID-19 pandemic, private consumption is expected to continue growing. In addition to having strong demand for basic consumer goods, Taiwan has a thriving market for luxury goods and premium products.

Growing digitisation and widespread internet access is changing consumer shopping habits and increasing consumption. While e-commerce spending has been rising consistently, many Taiwanese consumers still value the brick-and-mortar shopping experience, particularly for beauty products. Taiwanese consumers increasingly value personal health, environmental sustainability and convenience.

As of 2025, Taiwan’s median disposable income per household sits at AUD 75,842. Household disposable income is expected to continue growing steadily (Figure 3). Catering to demographic trends and changing consumer preferences can help companies stay competitive in the Taiwanese market.

Consumer trends in 2025

Figure 3: Median disposable income per household (2020-2030f), AUD, current prices

Price consciousness

Although household incomes in Taiwan are relatively high and rising steadily, many consumers remain price conscious when it comes to higher-priced Western goods. The concept of cost performance (CP), or how much value a given product provides, is very important to Taiwanese consumers. However, CP isn’t just about price. Taiwanese consumers also value quality and good customer service, meaning that luxury and premium products can sell well with the right branding strategy.

Branding

Branding is critical in the Taiwanese market, where consumers are particularly brand loyal. As in other developed economies, premium high-quality brands are in demand, but Taiwanese consumers are also well-informed about emerging global trends and have an appetite for novelty.

Taiwanese consumers tend to have high expectations of their interactions with a company’s brand. They value brands with a well-defined identity and attentive customer service. Taiwanese consumers also freely share their opinions–positive and negative–about products and services. Gaining customer loyalty is key to achieving success in the Taiwanese market.

Taiwanese consumers value quality Australian brands and products. Australian wine is highly regarded, as are other food and agricultural items. Austrade’s Nation Brand toolkit provides a range of free branding assets for Australian businesses looking to export products and services.

Marketing

Taiwanese businesses stay apprised of emerging trends in their industry through trade journals and trade shows at home and abroad. Participation in trade shows is an excellent way to promote new brands and products, make local connections and gain market insights.

Many trade shows in Taiwan are arranged between industry associations and the Taiwan External Trade Development Council (TAITRA). TAITRA maintains a list of trade shows, exhibitions and conferences that may be of interest to businesses, both domestic and international. Austrade and Investment NSW in collaboration with the Semiconductor Service Sector Bureau (S3B) also organise trade missions to events such as Computex + InnoVEX and SEMICON Taiwan.

Traditional marketing channels are becoming less effective among Taiwanese consumers. Novel and interactive marketing campaigns such as online polls, Q&As and social media livestreams are more effective at reaching consumers directly. Leveraging social media platforms such as Facebook, YouTube, Instagram, TikTok and LINE can result in higher and more effective ad reach among consumers.

Advertising and media

Digital advertising is extremely important in the Taiwanese market, accounting for 69 per cent of total ad spend by brands in Taiwan. While search engines and word-of-mouth remain the dominant methods of product discovery, social media and web-based advertising are increasingly important ways to interact with consumers.

Smartphone usage is widespread in Taiwan, and older generations are very tech savvy. YouTube, Facebook and Instagram have the highest potential ad reach in Taiwan (Figure 4). Instagram is experiencing the fastest growth in ad reach, and influencers are becoming an increasingly valuable part of digital advertising.

While younger generations and urban populations tend to understand English well, advertising and promotional efforts will be most effective in Chinese. If English is used, it should be done so sparingly.

Taiwan’s advertising regulations can be cumbersome. Many of the rules are designed to prevent false and misleading statements, protect women and children and control the extent to which certain products like alcohol and tobacco can be promoted.

The Radio and Television Broadcasting law requires all commercials be approved by the National Communications Commission and other relevant authorities, if applicable. Although digital advertising is less heavily regulated, Taiwan’s Consumer Protection Act is still robust and should be thoroughly understood by businesses wishing to advertise locally.

Figure 4: Digital advertising audiences in Taiwan (2025)

Digital payments

The payment landscape in Taiwan is comparable to Australia and other developed economies in the region (Figure 5). Around 43 per cent of consumer purchases are made with debit and credit cards for online purchases.

Digital wallets are increasingly popular in Taiwan. 40 per cent of consumers in Taiwan already use smartphones to make purchases with apps such as LINE Pay, Taiwan Pay and Apple Pay.

Figure 5: Payment methods for B2C e-commerce (2026), %

A well-considered market entry strategy should take a systematic approach that supports long-term success. This section distils the factors businesses should consider when formulating an approach to the Taiwanese market into a series of key questions.

Asialink Business provides advisory services and capability training programs to help organisations understand and access opportunities in Asian markets. Should you have questions about any aspect of your Taiwan market entry strategy, please contact us. Austrade’s Taiwan office also provides services and support to Australian businesses with an interest in Taiwan (details can be found in Section 5.2).

Calibrating Ambition

• What is your company’s aspiration for the market?
• What are the challenges and risks you will need to mitigate?

Consumers

• What is the current or potential demand for your product or service in Taiwan?
• Who are the primary customers / consumers for your product or service in the market?
• How will you tailor your product or service to local preferences?

Competitors

• Who are your competitors in the market, and what is their offering?
• How does your product or service compare to competitors on price?

Sales, Brand and Marketing

• What is your unique value proposition for the market?
• What is the ideal mix of marketing and sales channels to reach your target customers?
• Is your marketing strategy aligned with your identified consumer base and value proposition?

Mode of Entry

• What is the right market entry model for your business?
• What are the specific geographies you should target?

Delivery Partners

• Does your team have the right mix of skills and expertise to support your market entry?
• What partnerships will contribute to your business’ success in the market?
• What external advice do you need to commission?

Operating Model

• What changes do you need to make to your business across areas such as operations, HR, finance and IT?

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