China is one of the fastest-growing fragrance markets in the world. While almost nobody was wearing perfume a few years ago, they have now decided to integrate this product, gesture, and habit in their daily life. From global perfume houses to niche brands, the growth is explosive. The cosmetics market is not driven by skincare or makeup anymore. But by the rising demand on fragrance and perfume in China.
Key Takeaways:
- The perfume market will reach $4.2 billion USD by 2027
- Over 200 million Chinese consumers are passionate about fragrance
- Xiaohongshu is the key platform to push your brand awareness
- Press, influencers, and Weibo are the main tools to push your exposure
- Product registration is mandatory to sell in retailers and perfumeries
Let’s dive in.
Overview of the Fragrance Market in China
Compared to other markets, the fragrance market in China is an emerging market. It is not a mature one yet. Which means you have plenty of opportunities for growth – first come, first served. To give you a clear vision, we’ll make a quick review of the current fragrance market in China.
The Growth of Perfume and Fragrance in China
Last year, China’s fragrance industry was valued at a staggering $2.9 billion USD. According to Jing Daily, the fragrance market is projected to reach $4.2 billion USD by 2027. This explosive growth, driven by a growing middle class and the rising demand for luxury products, makes China an unmissable opportunity for fragrance brands.
According to Mintel, “China’s fragrance industry will grow at a compound annual growth rate (CAGR) of 17% by 2025“. The latest projections forecast an annual revenue of $7.2 billion USD by 2029 for the fragrance market in China. This strong demand has changed the market from “irrelevant” to “essential”. Today, China represents 10% of the global fragrance market. And it is just the beginning.
Over 200 million Chinese consumers are now passionate about fragrance, compared to just 30 million in 2017.
Let’s analyze the Chinese fragrance consumer.
The New Chinese Fragrance Consumer
Gen Z and Millennials are driving much of the growth in the fragrance market. These younger consumers are not only more open to international brands but are also seeking products that reflect their individuality and lifestyle. They are drawn to niche and personalized scents, making them a key segment for marketers aiming to tap into China’s luxury fragrance market.
A few years ago, the majority of Chinese consumers were not wearing perfume. They considered that fragrance was a way to “hide a bad body odor“. It was even seen as negative to be wearing perfume. Since the last 2 years, this dynamic has changed and Chinese consumers are becoming more and more experts in perfume.
When we conducted our focus group, 75% of perfume consumers were wearing perfume only for “special occasions” in 2021. Today, 50% use perfume everyday and 30% use perfume at least 3 days per week. Many consumers now wear it often, invest in different perfumes for different occasions, and some even incorporate it into their daily grooming rituals. This trend marks a shift towards a more fragrance-conscious society, presenting a valuable opportunity for brands looking to connect with the modern Chinese consumer.
But the specificities of the market go even further.
Commercial Fragrance vs Niche Fragrance in China
In the Chinese fragrance market, a clear distinction exists between “商业香” (commercial scents) and “沙龙香” (salon scents), which plays a pivotal role in consumer preferences. Commercial fragrances describe well-known global brands like Dior, Chanel, Guerlain, Yves Saint Laurent, and Gucci. These fragrances, while luxurious, often cater to mainstream tastes and are designed to appeal to a broad audience. Today, the Chinese fragrance market matures. And consumer preferences are shifting away from these mass-market options to niche scents or “salon scents’.
The growing demand for niche perfumes in China highlights a shift toward more individualistic choices. Niche perfumes, which fall under the category of “沙龙香”, are viewed as artisanal creations that offer distinct and complex scents, often crafted by smaller, boutique perfume houses. These fragrances emphasize originality, craftsmanship, and exclusivity. And it strongly resonates with Chinese consumers who are no longer satisfied with the mainstream options.
In China, there is even a saying “宁愿撞衣，不要撞香,” which means “it’s better running into people with the same clothes than running into people with the same scent.” It shows the importance of personal identity and the desire to stand out. Especially when it comes to fragrance.
For brands entering the Chinese market, this shift emphasizes the need to focus on offering unique and personalized fragrance experiences rather than relying on conventional, commercial scents.
Let’s take a closer look at these trends.
Latest Trends for Fragrance in China
The fragrance market is experiencing a shift towards niche perfumes and high-end perfumes. This new consumption model, driven by Millennials and Gen Z, is having a direct impact on their sales in China.
The Rise of Local Brands vs International Brands
The fragrance market in China has been experiencing a notable shift. In 2021, international brands accounted for 85% of body perfume sales, while Chinese brands dominated the home perfume sector, representing 75% of sales. However, the landscape is evolving, and Chinese brands are gaining significant ground in both segments, challenging the long-established global players.
Leading Chinese perfume brands are making a mark with innovative scents that appeal to local tastes. These brands are setting new trends. They combine traditional Chinese elements with modern perfume artistry, creating a unique space in the market.
Among them, we can quote:
- Documents
- To Summer
- Boitown
- Scent Library
- Assassina
- Wegoo
- And more.
Interestingly, some of these homegrown brands have attracted the attention of international groups. The investment shares of L’Oréal into Documents and To Summer signals a growing interest in the potential of Chinese fragrance brands. This trend is a testament to the increasing influence of Chinese fragrance companies, which are not only gaining market share but also becoming key players on the global stage.
This shift is not the only one.
Strong Demand for Unisex and Niche Perfumes
The fragrance market in China is evolving. Today, 50% of young consumers now prefer unisex perfumes. This shift highlights the desire for versatility and personalization in fragrance, moving away from traditional gendered scents. Brands like Byredo and Le Labo are frequently mentioned among this demographic. Why? Because they offer unique, inclusive fragrances that cater to this growing demand.
The rise of niche perfume brands in China is then a direct response to this shift. These brands, often smaller and more exclusive, have tapped into the desire for individuality and quality. The demand for natural, alcohol-free perfumes is also surging, aligning with the Clean Beauty movement. It emphasizes natural ingredients and sustainable practices.
If you want to read more on this topic, you can check my LinkedIn Newsletter “Perfume: How Chinese Consumers Became Perfume Lovers“.
Success of Home Fragrance and Car Diffusers
Chinese consumers are increasingly investing in home fragrance products, with a growing preference for home diffusers. However, the market is expanding as candles are also gaining popularity, especially for gifting. This shift reflects a broader trend of incorporating fragrance into daily life, making these products both functional and decorative.
Car diffusers are also an exciting part of this trend. As small decorative items that bring fragrance to everyday routines, car diffusers are becoming a must-have. Many brands, including Culti and Acqua Di Parma have tapped into this demand. For instance, Culti is now more well-known in China for their car diffusers than their home fragrance. This trend highlights the desire for personalized, fragrant experiences in every corner of consumers’ lives.
Favorite Perfume Ingredients in China
Chinese fragrance consumers are early adopters. The fragrance market in China is not a mature market yet. So, it lacks a deeply established knowledge and expertise on complex perfumes. When it comes to families, there is a clear preference for floral and citrus scents. These lighter, refreshing fragrances align with local tastes, while some consumers are beginning to explore richer, woody notes.
When it comes to fragrance ingredients, Chinese consumers are drawn to familiar and soothing elements like white flowers, amber, and citrus such as orange and lemon. Additionally, tea and mint are popular choices, reflecting a growing desire for fresh, natural aromas. As the market matures, these preferences will likely drive new trends and innovations in fragrance offerings across the country.
With this knowledge about the current fragrance market in China, you’re ready to make your entry.
We’ll share with you the best strategies to market your perfume brand in China.
Let’s dive in.
How to Market your Perfume Brand in China?
This is the top guide if you want to market your brand in China. No matter if you plan to enter the Chinese market or if you are already there, it will help you to increase your brand awareness and improve your local success. You need to work on your Little Red Book, receive press publications, collaborate with KOCs, register your brand and products in China, and combine your online and offline sales with cross-border e-commerce and offline retailers.
I’ll explain you everything.
Engage with your Customers on Xiaohongshu
Xiaohongshu, also called Little Red Book, is a leading social media in China. Especially for fragrance. In 2024, the social media gathered a total of 300 million active users. It has become crucial for boosting fragrance sales, with influencer recommendations driving much of the market’s growth. User-generated content (UGC) and professionally generated content (PGC) featuring influencers are key to shaping consumer decisions.
One standout trend on Xiaohongshu is the #Today’sFragrance# topic, which has garnered over 3.8 billion views and 57 million interactions in just three months. To tap into this, you need to create an Official Account. You can register with an international business license, and produce localized content that aligns with current topics. We recommend to use your lifestyle photos and videos, but localize the copywriting with current Hot Topics. You can build a strong community and drive engagement, ensuring your brand stays relevant in the competitive fragrance market in China.
Increase your Exposure with Weibo
Weibo is a key social media for exposure and visibility. In 2024, there are 582 monthly active users (MAU) on the platform. It is a social media used on a daily basis, pretty similar to X. Indeed, Weibo counts 257 million active daily users – the same as X (the former Twitter). This strong audience is essential to boost your audience and your visibility.
You will need to create an Official Account by filling out several administrative papers. Once you access your account, you will need to pay Annual Fees to the social platform. Be careful, the fees are much higher on Weibo than on Little Red Book, reaching approximately 1,000€ per year. Your content on Weibo can be the same as Little Red Book, you may just adapt your hashtags and hot topics depending on the current campaigns on Weibo. We recommend to work advertising campaigns to push the exposure of the brand by leveraging the different advertising tools inside the platform.
Collaborate with KOCs and Perfume Influencers
In the fragrance market in China, influencers play a pivotal role in promoting perfume brands. Many experts, including those who collect a variety of perfumes and brands, share their recommendations with loyal audiences. You will need to collaborate with Key Opinion Consumers (KOCs). They are small influencers, yet they produce highly authentic content that resonates deeply with their followers.
For a successful campaign, you need to design creative campaigns that tap into the power of KOCs. You need to prepare a brief that includes your product introduction and marketing angle. Crafting a well-thought-out brief and collaborating with the right KOCs will allow you to connect more effectively with your target audience. But above all, you can build lasting engagement.
Start selling on Cross Border E-Commerce
To enter the fragrance market in China, registering your brand is essential. If your brand isn’t registered yet, you can still sell via cross-border e-commerce, a special model that allows you to operate without a local entity. Platforms like Tmall, JingDong, RED, and Douyin are ideal for this approach. They provide an integrated CBEC service. This is a gateway to the vast Chinese market.
Setting up a store requires a thorough process, including a brand audit and submission of various documents. It’s important to partner with local experts, as registrations can be refused without the right support. Once approved, you can design your store, create product pages, and tailor your pricing strategy. This setup allows you to test your retail price and identify your best sellers, helping you refine your strategy before registering your products.
Discover our work in RED Store operations.
Register your Brand and Products in China
For long-term growth in the fragrance market in China, it’s essential to register your Chinese company and products. Each SKU must be registered with tests. Also, Chinese labels need to be created. It is mandatory to have a Chinese entity and Chinese labels for perfume brands to sell offline. Usually, the entire process can take 12 to 18 months.
Working with a legal advisor is crucial for navigating company and product registration, while a local accounting team ensures compliance. While some brands opt for distributors, they risk losing product ownership. It’s generally better to register your brand independently and collaborate with an agent to maintain control and streamline the process. This way, you keep your ownership and control your brand image.
Create Offline Experience with Retailers and Perfumeries
Opening offline is key to creating a seamless O2O (Online to Offline) experience in the fragrance market. Allowing Chinese consumers to smell and feel your perfume, touch the packaging, and discovering your brand before purchasing builds trust and drives higher sales. Perfumery counters and department stores are perfect environments to engage customers. They enhance their purchasing journey. And they can even convert to purchase on your Online store.
To succeed offline, you need to work with a local agent who has a strong network in China. They will help introduce your brand to local perfumeries and department stores, securing the best locations for your products. Additionally, they should focus on popup stores and events to create buzz. Ensure proper training for sales teams so they can effectively communicate your brand’s values and product details, creating an exceptional in-store experience for consumers.
Partner with a Fragrance Expert in China
Finally, you need a local partner expert in fragrance.
The majority of brands decided to work with distributors and are now stuck in 5-year contract with no sales. Just because it seemed easier. But as often, if it is easy, it is not right. A long-term and successful development on the Chinese market takes time. But with the right strategies and partners, you could build your success and reach breakeven in a few months… while remaining independent.
I gathered my experience at LVMH Fragrance Brands and Guerlain to serve niche perfume brands. I created AB ADVISORY to make your development smoother, faster, and easier. We understand, love, and support Western fragrance and perfume brands in their marketing and sales development in China. Because we come from this sector. Hope we’ll work together!
