Chinese Cologne: Legitimate Or Not?

The Chinese perfume market is an interesting one, with a history that has been influenced by the country's cultural attitudes, recent chaotic history, and economic growth. During Mao's Cultural Revolution, the use of perfume was illegal, and those who dared to wear scents were punished. This, along with widespread poverty, caused the Chinese perfume industry to evaporate. Today, China is the world's largest perfume manufacturer, but most of its products are sold to other countries, and Chinese-made perfumes are hard to find outside of China.

The Chinese account for 20% of the world's population but only contribute 1% to fragrance sales by value. This is because fragrance is not commonly used in China the way it is in the West. Instead, it is primarily purchased as a prestige item by the fashionable Chinese elite. Chanel, Dior, Calvin Klein, Hugo Boss, and L'Oréal China are among the top-selling brands in the country.

While there are some local Chinese fragrance brands, such as Re Classified, Fukudo, Wegoo, and Maison Dixsept, they cater mostly to the experimental Gen Z crowd. The lack of a longstanding perfume culture in China and the association of fragrance with bourgeois decadence during the Cultural Revolution may have contributed to the dominance of Western brands in the Chinese market.

However, things may be changing. The Chinese fragrance market is evolving, with new olfactive trends and a growing interest in both international and domestic offerings. Local consumers are driving this evolution, with Gen Z in particular propelling the rise of niche high-end fragrances and dictating the rules of the market. As the Chinese market continues to grow and make up an increasingly large ratio of the international market, brands must adapt to stay relevant and competitive.

Chinese consumers' evolving preferences for fragrances

Chinese consumers' preferences for fragrances are evolving, with a growing interest in both international and domestic fragrance brands. While the Chinese market for fragrances was previously limited by a lack of interest from consumers and a small number of local brands, it has recently become more dynamic, with consumers experimenting with new scents. This shift in preferences is particularly noticeable among Gen Z, who are driving the demand for fragrances in China and have a preference for niche, high-end fragrances.

From Floral and Lemony Scents to Woody, Maritime, and Herbal Notes

Floral and lemony fragrances were once popular in China, with Atelier Cologne's citrusy scents, such as Oolong Infini and Orange Sanguine, being particularly coveted in 2015. However, Chinese consumers' preferences have evolved, and they now favour woody, maritime, and herbal notes. This shift may be due to the increasing popularity of gender-neutral fragrances, which have the highest compound annual growth rate.

From International Brands to Domestic Offerings

While international brands like Chanel, Dior, and Calvin Klein initially dominated the Chinese fragrance market, domestic brands are now gaining traction, especially among younger consumers. Local brands that have gained popularity include Documents, a high-end fragrance brand that has collaborated with Givaudan, and To Summer, a homegrown player that offers niche fragrances. Chinese consumers are also increasingly interested in "China scent," or fragrances that incorporate traditional Chinese perfume elements such as bamboo, plum flower, and the smell of sweet Osmanthus.

From Daily Necessity to Luxury Symbol

Unlike in Western markets, fragrances in China are not considered a daily necessity. This perception gives fragrances greater significance in the eyes of Chinese consumers, who view them as a form of self-expression and a status symbol. As a result, high-end perfumes have become luxury symbols, with floral fragrances like Chanel's Chance and Yves Saint Laurent's Libre being bestsellers on Tmall.

From Offline to Online Sales

The fragrance shopping journey in China typically begins with online recommendations and ends with purchases on e-commerce platforms. This shift to online sales has led to the decline of traditional perfume counters, which are being replaced by spacious, immersive experiential stores. Additionally, brands are offering free scent samples posted to consumers' homes, further driving the integration of fragrances into consumers' daily routines.

The growth of the Chinese fragrance market

The Chinese fragrance market is experiencing a period of unprecedented growth, outpacing the global fragrance industry. With a compound annual growth rate (CAGR) of 21.4% over the last five years and a projected CAGR of 17% in the next five years, the sector is showing no signs of slowing down. By 2023, China's share in the worldwide scent market is expected to reach US$1.26 billion, with an annual growth rate of 3.62% (CAGR 2024-2028). This dynamic growth is driven by several factors, including China's emerging middle class, changes in consumer behaviour, product innovation, and portfolio expansion by local and international brands.

Factors Driving Market Growth

One of the key factors contributing to the growth of the Chinese fragrance market is the country's emerging middle class, who have an increasing disposable income that allows them to indulge in luxury products such as fragrances. Additionally, changes in Chinese consumer behaviour have played a pivotal role in propelling market expansion. Today's consumers are becoming more knowledgeable about perfumes and their preferences; they are eager to experiment with new scents and personalised fragrances. This shift in consumer behaviour has led to a growing interest in both personal and home fragrances, particularly among Gen Z, who enjoy experimenting with different scents.

Local and International Brands

The Chinese fragrance market is highly competitive, with numerous well-established local brands. At the same time, global perfume brands are also recognising the opportunities for expansion in the Chinese market. To succeed in this highly competitive market, brands need to focus on niche fragrance marketing and position themselves emotionally, as stories sell emotions rather than products. Additionally, engaging directly with Chinese customers through social media platforms like Weibo, WeChat, or Little Red Book is crucial for brands aiming to increase their visibility and connect with consumers.

Unique Consumer Expectations

Meeting unique Chinese consumer expectations involves adapting brand positioning strategies based on local market conditions. Chinese consumers exhibit lower frequency of use and lower per capita consumption of fragrances compared to their counterparts in Europe and North America. This is because fragrances are not considered a daily necessity in China, leading consumers to attribute greater significance to their usage. As a result, the Chinese market presents unique growth opportunities, especially for premium and luxury fragrances, which are expected to account for 62% of sales in the Chinese fragrance market by 2024.

Scent Economy

The scent economy has expanded beyond fragrances to include body care products, bath products, and even laundry care products. While this expansion drives the flourishing of the scent economy, it also poses certain challenges for the fragrance industry. The growth of the Chinese fragrance market is expected to continue, driven by the emerging middle class, changing consumer behaviour, and the increasing demand for luxury and personalised fragrances. However, brands entering the Chinese market will need to navigate the competition from established local brands and understand the unique consumer expectations around quality and emotional connection to fragrances.

The history of perfume in China

Ancient China

During the pre-Qin period, incense and fragrance were mainly used in therapy and worship. The use of spices and scented oils was common among the royalty, literati, and government officials. Incense was burned to purify rooms and clothes, and spices were used to prevent and treat diseases. This practice continued during the Three Kingdoms period, with the use of fragrances expanding to include medicinal and embalming purposes.

The Wei, Sui, and Song Dynasties

From the Wei Dynasty to the South and North Dynasties, the use of fragrances became more widespread. People had a greater variety of spices at their disposal and a better understanding of their medicinal properties. The fragrance culture truly flourished during the Sui, Tang, and Song Dynasties, with nobility exchanging and comparing their spices. Doctors also became more knowledgeable about the application and species of spices.

The Yuan, Ming, and Qing Dynasties

During these dynasties, the use of fragrances spread to the public, and natural fruits were incorporated into fragrance activities. External therapy with spices, such as moxibustion, became common in clinical practices. The Ming dynasty, in particular, saw the integration of fragrances into almost all aspects of elite social life. It was during this time that the first samples of Chinese incense reached Europe.

The Cultural Revolution

However, the Cultural Revolution under Mao Zedong brought about a drastic change in the fragrance culture. Perfume was deemed a symbol of "bourgeois decadence" and was made illegal. This, coupled with the widespread poverty at the time, led to the decline of the perfume industry in China.

Modern Times

In recent years, there has been a growing interest in personal and home fragrances in China, particularly among the younger generations. While Western brands still dominate the market, there is also a keen appeal for niche local brands. Chinese fragrance companies are gaining attention, and some are collaborating with world-renowned perfumers to create high-end perfumes that cater to the Chinese market.

So, while China's fragrance history has had its ups and downs, it is currently experiencing a period of growth and experimentation, with consumers eager to explore new scents and local brands making their mark in the industry.

Chinese perfume brands

The Chinese perfume market has experienced significant growth due to the country's economic development and changing consumer habits. Perfume was once considered a luxury item that was out of reach for most people and not widely used in Chinese culture. However, as beauty product imports from abroad increased, more people began to use perfume, although mostly for special occasions.

Today, fragrances are becoming more accessible to Chinese consumers, and a culture of using perfume on a daily basis is spreading. Chinese customers are more willing to spend on small luxury products, and this trend is especially evident among Gen Z and millennials, who account for more than 80% of luxury consumers and are the focus of many fragrance brands.

There are several Chinese perfume brands that are gaining popularity, particularly when it comes to niche fragrances. Here are some of the notable ones:

Documents

Documents (闻献) is a Chinese high-end fragrance brand that has gained international attention after L'Oréal acquired a minority stake in the brand, investing more than 1.4 billion USD. The company was founded in 2021 by former Nudake China CEO Zhaoran Meng and has since gained popularity among young Chinese consumers through its signature oriental aesthetics. Documents is known for its "chanku," or "zen and cool" aesthetic and avant-garde store design. It is considered one of the most expensive Chinese perfume brands, focusing on high-end perfumes featuring Chinese ingredients such as star anise, mugwort, yulan magnolia, and walnut. The brand has collaborated with Givaudan on six perfumes, including citrus, floral, woody, and mossy scents.

To Summer

To Summer (观夏) produces plant-based fragrances and is known for its modern and innovative approach while paying homage to China's tradition and historical culture. The brand promotes the country's culture and makes it more attractive to young customers by locating its stores in historically valuable buildings and creating products with high-level designs. To Summer specializes in home fragrances and is positioned as a niche brand with slightly lower prices than its international competitors. They have extended their line to include aromatherapy, body care, and perfume products. An important way of attracting customers is through their themed product lines dedicated to traditional festivals, which are offered in limited amounts.

Scent Library

Scent Library (气味图书馆) is known for its ability to evoke nostalgia among customers, especially in relation to images very specific to China. One of its most popular products was the LBK perfume, which stood for "chilled boiled water," reminding many people of their childhood memories of having to boil water before using it. This success led to the expansion of the LBK perfume into a limited-edition line of fragrances. Other popular items include scents inspired by traditional milk candy. In March 2023, the Spanish fragrance and fashion group Puig made an investment in Scent Library, recognizing its potential in the Chinese perfume market.

Assassina

Assassina offers perfumes in bottles inspired by the Ace of Hearts, with a unique heart shape to empower women. The brand partners with the fragrance company Givaudan and domestic fragrance creation expert Shuangma Fragrance to create emotional scents.

Wegoo

Wegoo was founded in 2011 and focuses on Asian women as its primary clients. The brand creates fragrances from fresh floral and fruity aromas, portraying "a scene of leisure time spent together in a garden."

Maison Dixsept

Maison Dixsept is a genderless fragrance brand that works with independent perfumers from all over the world to integrate artistic creation and emotional connection into its products and customer experience.

Shanghai Jahwa United

Shanghai Jahwa United is a company that was formed in 1955 by merging several cosmetics companies, including the Mingxing Fragrant Soap Factory. In 1967, they changed their name to Shanghai Jahwa United and released a new version of Florida Water under the Liushen brand, combining traditional Chinese medicine with modern technology. Liushen has become the best-known brand of flower dew water in China, revered for its ability to soothe mosquito bites and invigorate the mind.

The Chinese perfume consumer

The Chinese perfume market is a growing one, with a report by iResearch showing that the scale of Chinese perfume consumption is growing rapidly, from RMB 6.16 billion (around $867 million) in 2017 to RMB 12.53 billion (around $1.76 billion) in 2020. However, China, which has nearly 20% of the world's population, only accounted for 1% of global perfume sales in 2019. This is because perfume was illegal during Mao's Cultural Revolution, and the habit of wearing fragrances was lost.

The average Chinese person does not usually wear perfume unless they are very image-conscious, such as those who work for international companies or as high-ranking executives. Perfume is often seen as a prestige item, a luxury, or a status symbol, and is bought for this reason rather than for the scent itself.

Chinese consumers are wary of purchasing new items, and will often research them thoroughly online before buying. They are also suspicious of counterfeits and bad quality due to scandals in the market, so it is important for foreign brands to build brand awareness and a good reputation in China.

Chinese consumers also tend to flock towards classic scents like Chanel No 5, or experiment with more niche fragrances from international brands. They are also increasingly interested in local businesses and new brand discovery, and sales of unisex fragrances are on the rise, particularly among Gen Z consumers.

Marketing to the Chinese Perfume Consumer

A digital-oriented strategy is crucial when marketing perfume in China, with a focus on brand awareness, online presence, and convenience. Social media platforms such as WeChat, Weibo, Xiaohongshu/RED, and Douyin are essential for promoting fragrance brands, and e-commerce platforms like Tmall, Jingdong, Pinduoduo, and Kaola play a significant role in sales.

It is important to utilise Chinese culture and nostalgia in marketing strategies, and innovative marketing can be effective in selling perfumes in China. For example, French perfumer Diptyque linked ice cream flavours with fragrances in-store, and Jo Malone London partnered with hotels for afternoon teas.

Selling to the Chinese Perfume Consumer

When selling perfumes in China, it is important to work with Chinese distributors to gain access to physical retail outlets. Perfume distribution channels for China include beauty franchises such as Sephora or Watson's. Foreign brands should also consider selling on Chinese e-commerce platforms such as Tmall, Jingdong, Pinduoduo, and Kaola.

The Future of the Chinese Perfume Consumer

The Chinese perfume market is expected to continue growing, with a projected annual growth rate of 3.58% from 2023 to 2028. The market is also expected to become more gender-balanced, with the men's beauty buying rate in China steadily growing and expected to reach 21.3 billion yuan by 2025.

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