We were delighted to delve into China's fragrance market as it has a scent of opportunity that is hard to miss! Still relatively small - at about 4-5% of the overall beauty market in China compared to about 40% in Europe, the fragrance sector in the Middle Kingdom is exploding with opportunities for new product development, new customer acquisition, as well as intriguing brand collaborations and lucrative tie-ups. China’s perfume market is projected to grow to £3.7 billion by 2025, a noteworthy increase from £1.5 billion in 2021.  

We were thrilled to be joined by Huang Xuelei, Senior lecturer of China Studies at the University of Edinburgh, Elisa Harca, Co-Founder & Asia CEO Red Ant Asia, Julie Shah, Fragrance Distributor, and Ada Yang, Senior Market Manager China, Molton Brown. 

The conversation covered the scale of the China fragrance market opportunity, the cultural and historical background of fragrance practices in Chinese society, a look at successful UK and Western brands operating in market as well as the emerging Chinese competition. 

Xuelei delved into the cultural aspects of the Chinese market: which modern brands are utilizing today.  While researching her new book, ‘Scents of China: A Modern History of Smell’, she explored the use of scents in China since the Qing Dynasty, the types of plants and flowers used, how they were used and how traditional methods have endured into the modern age.  

Historically, braziers in China were infused with incense in middle class homes, but body fragrances were a much later development of scent practices. Osmanthus while not common in the West is a key fragrance in China, and China’s Gen Zs who nowadays are rediscovering historical practices with a new cultural pride are enjoying teas and coffees flavoured with it. Some of the earliest imported fragrance brands, such as ‘Hazeline Snow’ (an old Burroughs Wellcome -predecessor to GSK - brand) advertised their fragrances in the Chinese market, for example, creating a poster on Chinese silk decorated with floral motifs – unusual in those days.  

Julie Shah covered the timing and geography of selling brands in China, and explained how the appetite for new scents is there if marketed right: 

“In China now, there is ‘Notes Shanghai’, a trade show for the fragrance market, launched last year as an industry first in China…the first day they opened to the public 8,000 people showed up”. 

There is also a trend for young Chinese consumers to move away from larger well-known brands of the established maisons to smaller niche labels. 

Elisa Harca read out the top 20 performing fragrance brands in China's 11.11 shopping festival and noted that ‘To Summer’ has made its debut as a dynamic Chinese-made brand. 

“Interestingly, young brands such as ‘To Summer’ which has a varied Oriental ‘expression’ of fragrance made its debut on last years’ top 20 performers in Double 11, Chinese brands are not seen as niche anymore, you do need a significant marketing budget and strategy to compete in what is an increasingly competitive visual space” 

Elisa highlighted a case study from Creed, who have been hugely successful in their localisation via working with a top Chinese artist and as well as a popular Rapper. 

Ada Yang, from Molton Brown shared with attendees how Molton Brown has created its brand angle within the Chinese market, and how they have positioned their products in China. 

“My view is our consumers are interested in the story behind the perfume or the perfumer, and what was the inspiration for this product, and this conversation starts on the factory floor and spans all the way up to multi-brand stores” 

Consumers are also increasingly mature and sophisticated, no longer just focusing on how long their perfume/smell lasts, but the ingredients, their natural origin/backstory and even concentration of products. 

The conversation then moved onto China’s cultural calendar and how Chinese New Year and Chinese Valentine’s Day are key areas of focus, with consumers having increasing expectations of new product launches alongside culturally relevant holidays.  

Some brands have boldly tied releases to Tomb Sweeping day using floral scents associated with this festival, the Chinese brand ‘Documents’, co-branded with a funeral care brand to launch a ceramic incense burner in the shape of seashell which invited reflections on life and death. 

However, it is vital to be careful with localisation and not every festival should have a product release as you can risk turning customers off with oversaturation of the market. It is also important to get feedback from peers and potential consumers. 

The session was followed by a Q&A and general conversation on trends, such as how the transition of traditional (and prolonged) home fragrance usage (diffusers etc.) has prompted increased interest and indulgence in personal fragrances amongst Chinese consumers. 

Several of the brands in the room talked about the efficiency of concept stores in which tie in culture and history to a product, and how best to achieve this. 

The session closed with the recognition that “Brand China” is growing, and the level of creativity in the country’s fragrance market is exciting, with ample room for competition, the general view is while there are some dynamic and unique Chinese brands gaining momentum, in regards to the finished product, international brands do still have the edge in this space. Key to success in-market is the ability of brands to deliver a unique and enjoyable customer experience to shoppers.  

If you have any consumer enquiries or enquiries related to this event please don’t hesitate to contact us at Antoaneta.Becker@cbbc.org or Celine.Tang@cbbc.org. 

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