Cosmed, Taiwan's second largest drug and cosmetics store chain, was founded by President Chain Store eight years ago and has 110 stores nationwide. The health and cosmetics retailer said it wants 200 Cosmed stores in Taiwan, a move that would narrow the gap with Watsons, which boasts 235 stores. Watsons recently agreed to sell products for British-based Boots.
The health and cosmetics sector has vast room for growth in Taiwan, in view of the transformation of consumer patterns in recent years.
"We estimate that Taiwan's drug and cosmetics market value is NT$25 billion in annual sales and that figure may keep growing by more than 20 per cent every year," said Cosmed marketing manager Kenny Hsu.
The company hopes to generate annual sales of NT$2.4 billion this year, an increase of 30 per cent compared to last year.
"The market is currently on its way up the development stage, retailers are targeting mainly the younger generation and the career women, who have stronger purchasing power," said director at Taiwan Chain Store & Franchise Association Shirley Huang.
To stay competitive and help differentiate itself from rivals, the company has been introducing more medical cosmetics brands, such as Nov from Japan and NeoTec from the US. Cosmetics make up to 40 per cent of Cosmed's annual sales.