Taiwan Crowdfunding Outpaces the Rest of the World
Kickstarter and the international crowdfunding market peaked in 2015, but Taiwan has enjoyed skyrocketing growth in the last three years.
While crowdfunding in the US and elsewhere somewhat plateaued in 2015, the Taiwan market has grown at breakneck speed. Big campaigns regularly make the mainstream media and raise millions in US dollars.
According to data from the Taiwan crowdfunding analytics site BackTail, the total amount raised through crowdfunding in Taiwan in 2021, was NT$ 3.3 billion (US$ 110 million), which was 1.6 times higher than the 2019 total of NT$ 1.7 billion (US$ 56.4 million). Over the same period, the US market has seen negligible growth and even dropped by 7.8% in 2020 from the previous year.
One reason may be that Taiwanese backers are also seemingly more passionate. 42.7% of first-time backers on the local platform, ZecZec, will back more than one campaign, nearly 10% higher than Kickstarter, which has a repeat backer rate of 33.7%.
This article takes a look at some of the reasons that crowdfunding in Taiwan is so relatively buoyant. Thanks to ZecZec Senior Project Manager, Leah Han, who was so gracious to give her veteran insights on the Taiwan crowdfunding industry.
The Reasons for the Recent Success of Crowdfunding in Taiwan
Taiwan was Late to the Party
The boom period for KickStarter and international crowdfunding was in the Mid-2010’s, especially around 2014-2016. This is the period of blockbuster hit campaigns, such as the Baubax Travel Jacket or the board game, Exploding Kittens. In 2015, nearly 77,500 projects were registered on Kickstarter, an all-time peak for the platform.
Since then a ‘crowdfunding malaise’ hit the international market, which can be attributed in part to a level of disappointment for projects not meeting expectations, either by missing release dates, poor quality products or just running off with the cash.
Crowdfunding in Taiwan caught on relatively late. Data from FINDIT shows that Taiwanese crowdfunding only really hit full steam in 2018 when the number of projects on combined crowdfunding platforms in Taiwan rocketed 39% from the previous year. In 2021, 1135 projects were featured on Taiwanese platforms, nearly double the 634 in 2015.
ZecZec’s, Leah Han, has noticed a snowball effect from the exposure of really successful recent projects being picked up by the mainstream media and then going viral.
Made in Taiwan & Made for Taiwan
60% of the Most Backed Projects Originate Locally from Taiwan
Another reason for the relative vitality of crowdfunding in Taiwan is that many of the most successful and backed projects are from Taiwanese creators who understand the needs of the local market.
In 2021, data from Crowdwatch shows that 60% of the most backed projects on crowdfunding platforms are domestic ones from Taiwan.
Taiwanese creators have not only excelled in matching local whims but moreover are really great at producing really high-quality products. One reason for this is that many are made in Taiwan by local manufacturers, often directly from the factory itself. Manufacturing is usually the biggest stumbling block for crowdfunding projects overseas, and the reason for missed targets, so this is a clear advantage to creators in Taiwan.
Meeting Rise in Taiwanese Identity
Not only are Taiwanese projects succeeding by capturing local tastes, but they also are often capitalizing on a stronger sense of national identity among younger Taiwanese, a byproduct of changing political environment.
One prominent case and one of the most successful campaigns on ZecZec was ‘This Attack Comes From Taiwan’, a protest towards Taiwan being excluded from the World Health Organization. Taiwanese netizens crowdfunded a PR campaign that pushed the message and hashtag “Taiwan Can Help”, which culminated in a full-page advertisement in the New York Times. The campaign raised NT$ 19.5 Million(US$ 610,000) and had over fifteen thousand backers
Other examples of campaigns that have been successful because of growth in the importance of Taiwanese identity and culture, include Kóng Sánn Siâu, a card game that helps people practice Taiwanese, the local language that has been suppressed. Other campaigns that teach about Taiwan’s history, geography, and food culture have been similarly successful.
Who Backs Crowdfunding Campaigns in Taiwan and Why?
According to data from ZecZec, those aged 35-44 are most likely to back a campaign(33% of backers) followed by 45-55(22%) and 25-30 (20%). The gender split is quite equal, with males accounting for 53% and females 47%.
Leah Han delineated some reasons that make the Taiwanese want to back a campaign:
A Strong Narrative: Taiwanese backers are enticed by compelling storytelling, whether through words or visuals. Projects that show how they can solve actual life problems in Taiwan often do really well. For example, Taiwan is extremely hot in the summer, and people are always looking for products that help them to deal with this problem.
Uniqueness: Taiwanese backers want to be wowed, they want to see something they can’t find elsewhere
Aid Self-Expression: Taiwanese are looking for products that can help them express their own unique identity or sense of taste. These can be anything from an innovative backpack to a stylish umbrella.
Current Crowdfunding Trends in Taiwan
Enthusiasm for crowdfunding is not waning in Taiwan, and the market grew by nearly 33% from 2020 to 2021. However, as the data from FindIt shows, much crowdfunding activity is concentrated in a few categories.
Leah Han gave her observations on what have been the main crowdfunding trends in the last year
Calendars and Planners
Beautifully presented yearly calendars and planners have been a breakaway success on Taiwanese crowdfunding platforms. There were 60 of these types of campaigns launched in Taiwan in 2021. One reason given for the success of these projects is that they are commonly popular for gifting. Themes vary and include astrology, history, and food.
The most successful of these campaigns was by astrology expert and podcaster, Jessie Tang, which was the most-backed project in 2022. Her 2023 planner is trending to replicate this achievement in 2023.
Kol Backed Campaigns
Local celebrities using their IP to launch their own brands and products on Taiwan crowdfunding platforms has been a common phenomenon in the last two years. Examples include the aforementioned Jessie Tang Calendar and the line of ‘Astronaut Vitamins’ released by influencer Li Ke Tai Tai.
Ideal and Safe Home
Home-focused projects have been popular due to the COVID pandemic cooping people up inside for considerable periods of time. These changed the way people felt about their living environments. Taiwanese now prioritize spending money on making their homes tasteful, comfortable, and enjoyable to spend time in. Cool home appliance campaigns regularly raise the most money(the best-performing category in 2021), with gadgets, cleaning, kitchenware, and homeware product campaigns also doing well.
Taiwanese are very cautious when it comes to the pandemic and COVID protection products have been successful since 2020. See the success of the POIEMA ONE TPA Air Purifier, which in 2021 raised NT$ 113 Million(US$ 3.5 Million), the second-highest amount for a project in the year.
Key Takeaways
Expect Continued Crowdfunding Growth in 2023: Since 2019, the funds raised on Taiwanese crowdfunding Platforms have nearly doubled and exposure for marquee campaigns in the mainstream media is common. Nowhere in the world has had such a buoyant crowdfunding market in 2022, and signs are for continued growth in the next year.
Taiwan’s Idiosyncracies are Also a Secret of Its Success: Crowdfunding became popular in Taiwan later than in other markets, so the enthusiasm is still there. Local campaigns are extremely well-tailored to Taiwanese tastes and also the current political landscape in which Taiwanese identity is valued. Most projects being manufactured in Taiwan means that they rarely miss time targets and quality is well-regulated.
Sizeable Potential for Foreign Projects in Taiwan: Crowdfunding is a great stepping-stone to the Taiwan market and connecting with Taiwanese consumers. But as mentioned, the market is extremely idiosyncratic, which creates barriers to entry for non-Taiwanese companies. ZecZec recommends partnering with a local distributor or agency that can evaluate the suitability of your product for the markets, help to localize your campaign, and also handle Taiwan’s complex import and advertising laws.