Fragrances in China

PROSPECTS

High-end and personalised products drive growth

The Chinese fragrances category is undergoing significant premiumisation, with the premium segment witnessing dynamic growth at the end of the review period, while mass fragrances experienced decline. With rising purchasing power and an increasing focus on personal grooming and style, Chinese consumers, particularly millennials, are proving increasingly willing to pay for high-end and even luxury fragrances.

Online expansion boosts growth

The expansion of internet retailing is providing a significant boost to fragrances in China, with an enlarged online consumer base and the increased availability of fragrances through e-commerce helping the category to deepen its geographic penetration of the market. Fragrances manufacturers have focused strongly on building online sales, including those of luxury perfume brands.

Women’s products remain dominant

The fragrances market is divided into three categories: fragrances for women, fragrances for men and unisex fragrances. Of these, women’s fragrances is the largest category, dominating both the mass and premium segments.

COMPETITIVE LANDSCAPE

International players consistently strengthen distribution in 2018

Foreign multinational fragrances manufacturers continued to develop their distribution networks in China at the end of the review period. In November 2018, Dior’s global flagship store was officially opened in the Chinese city of Chengdu.

Prevailing trends lead to increasing fragmentation

The upmarket trend in demand and the increasing consumer emphasis on distinctive, personalised products led to an increasingly fragmented fragrances category over the review period. Indeed, the combined share of players that individually registered a value share of less than 0.

Premium brands broaden product lines with new launches

In line with the wave of premiumisation, many high-end brands actively expanded their ranges through the launch of new products in 2018. Yves Saint Laurent launched the new Y men’s fragrance in August 2018, aiming to project a distinctive, modern and youthful image.

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