Perfume: How Chinese Consumers Became Fragrance Lovers

This is something unexpected, something that the beauty world didn’t see coming. When I was at LVMH , it was clear that Perfume was far behind Skincare and Makeup in terms of sales share. Very few Chinese consumers were wearing perfume, and when they did, it was with “easy” scents focusing on rose or floral scents.

Today, perfume is everywhere from retailers to department stores. You can’t walk inside an SKP, K11, or Lane Crawford without passing by a perfume booth. And the Chinese consumer is becoming more and more educated, navigating the world of scents towards more technical fragrances like orange and marine.  

This massive change occurred in less than 3 years.

In the blink of an eye, we witnessed the birth of the most dynamic market for perfumery.

The market revenue is forecasted to double in 3 years, planned to surge to $5.15 billion USD by 2026.

I’m an expert in the perfume and home fragrance market, I will be a speaker in Luxe Pack Shanghai on April 10th at 3pm related to storytelling in the perfume industry “Crafting Fragrant Narratives: Bridging Tradition and Innovation in Niche Perfumery”. If you would like to attend, drop me a message.

Now, let’s dive in this new El Dorado.

From Losing Face to Showing Unique Personality

For a long time, perfume had a bad reputation among the local population. Incense and home diffusers were often used to purify the air and honor the gods and goddesses, but body perfume was not a thing. The main reason is the Cultural Revolution that occurred in China.

At that time, the Maoist doctrine declared wearing perfume to be decadent. It even became illegal at one point and, consequently, the traditional Chinese perfume industry was pretty much ended after 1967.

As we say – habits die hard.

After this period, few Chinese people were wearing body perfume. The decadent image remained and transformed into a new consideration: people who wear perfume are trying to hide their bad body smell. For a long time, the fact of wearing perfume was linked to poor hygiene. A way to lose face (丢脸) for the majority of local people, losing their social status or reputation. 

From the early 2000s to today, the market evolved fast. At the beginning of the century, Chinese consumers used to wear body perfume 1 time per week only or for great occasions. At that time, a great occasion was a business dinner or a romantic date. Today, when we interview Chinese consumers for our projects, the answer is astonishing: some wear perfume every day.

I feel Tier-1 cities are driving this trend. Especially Shanghainese women who wear perfume every day and tend to change perfumes based on occasions (work, sport, leisure). The success of niche perfumery is evident, Chinese consumers see the perfume as a way to show their own taste, personality, and identity.

A new way to stand out from the 1.4 billion population.

Niche Perfumery and Guochao Drive the Market

The dynamic perfume market is driven by niche perfumery and local perfumery. In 2021, international brands represented 85% of body perfume sales while Chinese brands represented 75% of home perfume sales. Understanding this industry landscape will help you navigate between your product lines, between body and home perfume.

When you look at your local competition, you must consider Chinese brands along with international brands. They have the local know-how, the national pride (Guochao), and the emotional bond with the local audience. Their scents create emotions and revive childhood memories while using local symbols that enhance the beauty of Chinese culture.

Among the leading Chinese perfume brands you can find:

• Boitown
• To Summer
• Documents
• Scent Library
• Assassina
• Wegoo

On the other side, Chinese consumers favor niche perfumes over luxury brand perfumes. When you dive into the Chinese market, you need to understand the difference between 商业香 (commercial scents) and 沙龙香 (salon scents). For Chinese consumers, brands like Parfums Christian Dior , CHANEL , Guerlain , Yves Saint Laurent Beauty , and Gucci ends in the “commercial scents” category as it suits most people’s tastes. And it’s not what current consumers are looking for.

On Chinese social media, there is even a saying “宁愿撞衣，不要撞香” which means “it is better running into people with the same clothes than running into people with the same scent”.

Today, Chinese consumers want to feel and be different. The salon scents are offering this opportunity with brands like Penhaligon's , Diptyque Paris , BYREDO , Serge Lutens , Maison Margiela , and Editions de Parfums Frédéric Malle . For Chinese consumers, these brands are professional fragrance brands that will use better ingredients, matching stronger personalities.

This is a new emerging market for perfume brands.

While other mature markets are stagnating, the Chinese market is offering exceptional growth with plenty of opportunities for niche brands, home perfumery brands, and smaller brands. This is the new El Dorado, for brands that will know how to navigate this complex market. This is the HOW that matters today. From social media to distribution, you need to come up with a plan.

It’s not about selling your products in China.

It’s about building your brand in China for long-term sales and success.

Let’s follow the sweet fragrance of perfume opportunities!

IF YOU WANT TO GO FURTHER

Whether it is to answer a simple question, support your next strategy in China, or answer press inquiries all around the world:

Contact: Anaïs Bournonville. Available via email at anais@reverse-group.com or via WhatsApp at +33 6 42 58 51 16

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