In 2025, China's perfume market is expected to reach 30 billion yuan, and high-end products are the core growth points

Recently, Yingtong Group and Kantar Consumer Index released the "2021 China Perfume Industry Research White Paper" (hereinafter referred to as the "Perfume White Paper 2.0"). According to the "Perfume White Paper 2.0", the compound annual growth rate of China's perfume market in 2015-2020 will reach 14.9%, and it is expected to be 22.5% in the next 5 years, and by 2025, the retail sales of China's perfume market will reach 30 billion yuan.

Wang Wei, vice president of Yingtong Group China, proposed that the core market segment driving the growth of China's perfume market is still high-end perfume, and the market share of high-end perfume brands has increased year by year, from 70% in 2015 to 91% in 2020. With the change of the "gender consciousness" social wave, Chinese perfume lovers are no longer stuck to the traditional "male incense", "female incense" inherent perfume labels, "genderless (neutral)", "male fragrance female incense" has also become a new fashion of incense selection and incense, which is also an important reason why high-end neutral incense can continue to rise in the future.

"Neutral perfume has been growing in the past 5 years, perfume is no longer the trend of following the trend, but more emphasis on self and personalization, user demand for perfume has also made the market more segmented, the national tide VS international big brand, street incense vs niche incense, each segment of the market has different consumers to pay, perfume is no longer monopolized by big brands." Yao Wenzhong, vice president of dezhixin Northeast Asia, a fragrant raw material enterprise, also agreed with this.

Euromonitor data shows that in the past three years, the top ten of China's perfume market share are international brands, but the market share of a single brand has not exceeded 10%, the total of TOP is less than 30%, and the total of TOP10 is about 42%, and the market still contains opportunities. Both capital and cosmetics groups see this opportunity. Only international cosmetics groups such as L'Oréal, Estée Lauder, Puzhi, and Shiseido have introduced 9 internationally renowned perfume brands into China in three years.

At the same time, domestic brands are also warmly sought after by the capital market, and the smell library, RE perfume room, Guanxia, Scentooze three rabbits, etc. have received capital support. Among them, RE Perfume Room has completed three rounds of financing this year alone, and Scentooze Santu has also completed the third round of financing in two years.

"In the West, perfume is a functional product, and you have to spray perfume. But in the East, perfume is an emotional resonance, a carrier of cultural identity, so it is more of a spiritual pursuit and empowerment, which is the biggest difference in attributes. Lin Jing, senior vice president of Yingtong Group, explained, "From the fragrance of the perfume, it may be that the perfume of the West will be more open,the personality will be more distinct, the perfume of the East will be more elegant, more relaxed and pleasant to yourself. However, young consumers, especially in China, are very diverse, they can accept the bold jump of perfumes in the West, but they also love the culture of the East. ”

In the post-epidemic era, the "perfume effect" replaces the "lipstick effect", and the perfume market is expected to usher in a longer golden era of development. It is worth noting that the "Perfume White Paper 2.0" shows that the perfume market channels are becoming more and more diversified, but department stores are still the core channels, accounting for 55% of the overall business share. The share of perfume in e-commerce channels is getting higher and higher, from 17% in 2015 to nearly 30%. Lin Jing, senior vice president of Yingtong Group, also analyzed taozhi and Jingdong as an example, in recent years, the sales distribution of the perfume market of Jingdong and Taoshi is mainly 2:8, and the compound growth rate of the Taozhi perfume industry is relatively higher, surpassing Jingdong by 7%, and in the first half of 2021, the sales proportion of Taoshi channels has further increased, from 80% to 83%.

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