The Rise Of Chinese-Made Colognes: An Emerging Market

China is a major manufacturer of perfumes and colognes, with a large number of wholesale suppliers and factories located in various cities, including Guangzhou, Shenzhen, and Yiwu. The country's perfume market has experienced significant growth due to economic development and changing consumer habits, with fragrances becoming more accessible and affordable to Chinese consumers. This growth has attracted international brands, but Chinese perfume brands are also rising in popularity, especially when it comes to niche fragrances. Some popular Chinese perfume brands include Documents, To Summer, and Scent Library, which are known for their unique scents and marketing strategies that appeal to young Chinese customers.

Chinese Perfume Brands

The Chinese perfume market has witnessed significant growth due to the country's economic development and changing consumer behaviour. Historically, perfumes were considered a luxury item that was out of reach for most people and not widely used in Chinese culture. However, with the increase in beauty product imports from abroad, 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 daily is emerging.

Chinese customers, particularly Gen Z and millennials, are more willing to spend on small luxury products that bring happiness and allow for self-expression. This shift in consumer behaviour has led to a growing demand for luxurious and exotic fragrances, such as floral, citrus, and woody aromas. As a result, Chinese fragrance brands are gaining popularity, especially when it comes to niche fragrances.

• Documents: A high-end fragrance brand that has gained international attention after L'Oréal acquired a minority stake. The brand focuses on oriental aesthetics and creates high-end perfumes featuring Chinese ingredients such as star anise, mugwood, yulan magnolia, and walnut.
• To Summer: A brand that produces plant-based fragrances, known for its modern and innovative approach while paying homage to China's tradition and historical culture. To Summer follows the "Guochao" trend, promoting the country's culture and making it attractive to young customers.
• Scent Library: A brand that evokes nostalgia among customers, especially with memories specific to China. One of its most popular products, LBK perfume, referenced the childhood memory of having to boil water before use.
• Assassina: A brand that offers perfumes in bottles inspired by the Ace of Hearts, with a unique heart shape to empower women. Assassina partners with fragrance companies to create emotional scents.
• Wegoo: A brand that focuses on Asian women as primary clients, creating fragrances from fresh floral and fruity aromas. Each perfume portrays different scenarios, evoking a scene of leisure time spent in a garden.
• Maison Dixsept: A genderless fragrance brand that works with independent perfumers worldwide to integrate artistic creation and emotional connections into its products and customer experiences.

These brands showcase the dynamic nature of the Chinese perfume market, with a growing interest in both western and niche local brands, especially among the younger generations.

History of Scents in China

The history of scents in China is a fascinating one, dating back centuries and playing a significant role in the country's culture and society. Here is a brief overview of the evolution of scents in China:

Ancient China

The use of fragrant products in China can be traced back to ancient times, often influenced by Taoist beliefs. The extraction of a plant's fragrance was thought to liberate the plant's soul, and incense played a crucial role in religious and spiritual practices. Solid incense, powder incense, and incense sticks were commonly used, with fragrances like sandalwood, flowers, and spices being popular.

Imperial China

During the Imperial Court era, scents became even more integral, with incense burners and fragrant oils used by the nobility and imperial concubines. Empress Cixi, for example, was known for her love of jasmine, rose, orange blossom, and honeysuckle fragrances. Incense was also used to infuse clothing and was an essential part of social gatherings.

The Introduction of Buddhism

The advent of Buddhism around the 1st century further shaped China's fragrance culture. Burning incense became a form of reverence for deities, and incense time-keeping devices were introduced in monasteries. The culture of incense spread beyond religious contexts and became a part of daily life for the literati and scholar-officials.

The Cultural Revolution

However, a significant shift occurred during Mao's Cultural Revolution. Perfumes were deemed symbols of "bourgeois decadence" and were made illegal. This disrupted the development of a perfume industry in China, and the use of fragrances declined during this period of poverty and political upheaval.

Modern China

In modern times, the Chinese fragrance market has experienced growth, particularly among younger generations. While international brands still dominate, there is a growing interest in unique and special luxury brands, and Chinese perfume brands are also gaining popularity. Chinese consumers are increasingly seeking customised scents and fragrances that incorporate traditional Chinese ingredients like lotus, bamboo, and mugwort.

China's history of scents is rich and diverse, reflecting the country's cultural, religious, and social changes over the centuries. From the ancient use of incense to the modern growth of the perfume industry, scents have played a significant role in shaping China's past and present.

Perfume as a Luxury Item

Perfumes have long been associated with luxury and sophistication. In China, however, the concept of perfume as a luxury item is a relatively new phenomenon. Historically, perfumes were considered a luxury product that was out of reach for most people and not widely used in Chinese culture. This perception is changing, and the Chinese perfume market is experiencing significant growth, driven by economic development and evolving consumer habits.

The Cultural Revolution's Impact

During Mao's Cultural Revolution, perfume was deemed a symbol of "bourgeois decadence" and was made illegal. This ban, coupled with the subsequent period of widespread poverty, led to a decline in the Chinese perfume industry. It wasn't until the late 20th century that perfumes began to regain popularity in China, primarily among the fashionable elite.

The Rise of the Chinese Perfume Market

Today, fragrances are becoming more accessible to Chinese consumers, and a culture of using perfume on a daily basis is emerging. This shift is particularly evident among younger generations, with Gen-Z and millennials accounting for over 80% of luxury consumers in the perfume market. Chinese customers are increasingly willing to spend on small luxury items like perfumes, which are seen as a form of self-expression and a way to enhance one's happiness.

The Appeal of Luxury Perfumes

Luxury perfumes are often associated with perfection, indulgence, and passion. They are likened to "haute perfumery" or "haute couture," reflecting a strive for excellence in every aspect, from the quality of ingredients to the complexity of compositions and the beauty of their bottles. The creation of luxury perfumes involves a unique craftsmanship process, requiring the expertise of talented perfumers who possess a deep understanding of ingredients and their complex blending techniques.

The Art of Luxury Perfume Creation

The process of making luxury perfumes is an intricate and meticulous one. It involves the careful selection and extraction of rare and precious materials, be it natural essences from flowers, plants, barks, resins, or animals, or synthetic ingredients designed to mimic natural scents. Environmental sustainability is also an important consideration, with many luxury perfume brands adopting eco-friendly practices and certifications.

The Olfactory Experience

Luxury perfumes offer a nuanced and complex olfactory experience, with top notes, heart notes, and base notes that gradually unfold and reveal their aura on the skin. This complexity allows for the creation of perfumes with a nuanced palette, radiating a scent that evolves over time. The use of natural and synthetic materials in perfume composition has been a standard practice since the late 19th century, contributing to the depth and longevity of luxury fragrances.

The Individual Signature of Luxury Perfumes

Luxury perfumes are designed to harmonize with the wearer's skin chemistry and reflect their personality. The chosen perfume creates an exceptional trail that becomes a true individual signature, enhancing one's aura and leaving a lasting impression. Finding the right luxury perfume is a personal journey, as the selected scent can literally decode one's most intimate thoughts and desires.

The Dream and Imagination in Luxury Perfumes

Luxury perfumes are also an expression of the perfumer's imagination and passion for scents and aromas. They draw from an infinite "scent library," combining rare and precious materials to create unique olfactory "narrations." Niche perfumes, for example, are often created by independent perfumers who draw inspiration from their personal universe, memories, and experiences, resulting in original and avant-garde fragrances that appeal to connoisseurs seeking intense and unique olfactory experiences.

The Quest for Bespoke Luxury Perfumes

Some perfumers take the concept of luxury even further by offering bespoke perfumes tailored to a single individual. This process involves composing an olfactory portrait that encapsulates the desires and fantasies of the client, resulting in a unique fragrance created in secrecy, much like a haute couture dress. The creation of such bespoke luxury perfumes can take several months and involve the selection of unusual materials, contributing to their high price tag.

The Chinese Perfume Market

Historically, perfumes were considered a luxury item in China and were not widely used in the 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, particularly among Gen-Z and millennials, who account for more than 80% of luxury consumers.

To achieve success in the Chinese perfume market, companies must understand the emotions and cultural resonance of Chinese consumers. Floral, lemony, and woody aromas are the most popular, and 50ml bottles are favoured as they are practical and easily carried around. Chinese consumers also place a great emphasis on sensory experiences, and there is a growing demand for niche and high-end fragrances, resulting in a significant increase in imports.

Online platforms have become a crucial channel for fragrance manufacturers to reach a wider audience and for consumers to purchase perfumes. Up to 70% of Chinese urban consumers have bought perfumes online, followed by brand counters/speciality stores (52%) and beauty product collection stores (27%). Checking online reviews (64%) has surpassed in-store trials (54%) as the most critical stage in the consumer's shopping experience. Social media remains the most popular and trustworthy source of information for young Chinese consumers, especially Xiaohongshu, a platform that 60.8% of Chinese consumers use to learn about perfumes and brands.

In terms of marketing strategies, Chinese perfume brands are emphasising the use of typical Chinese ingredients such as lotus, bamboo, and mugwort to create scents that appeal to local tastes and remind consumers of Chinese literature and culture. The growing sense of national pride among Chinese consumers has led to the emergence of the Guochao trend, which celebrates traditional Chinese culture and style.

While international brands still dominate the Chinese perfume market, homegrown perfumers are gaining popularity, especially when it comes to niche fragrances. Brands such as To Summer and Scent Library are making waves in the local market by using nostalgia and the Guochao trend to appeal to young Chinese customers. Documents, another Chinese brand, has also gained international attention after L'Oréal acquired a minority stake in the company.

Overall, the Chinese perfume market presents a significant opportunity for both international and domestic brands, with room for new companies and the potential for further growth and diversification.

How Perfume is Made in China

The Chinese perfume market has been growing, with revenues seeing a slow growth in the past decade and an expansion of 7.1% in 2022. The market has experienced 60.6% year-on-year growth in the past three years, and the luxury sector is predicted to continue growing in its share of the total revenue.

The Chinese perfume market is supplied by both international and domestic manufacturers. Foreign brands have been entering the market, with companies like Dior, Chanel, and Armani making inroads. However, Chinese perfume brands are also rising in popularity, especially when it comes to niche fragrances. These domestic brands focus on creating unique and China-specific scents, using traditional ingredients like lotus, bamboo, and mugwort, or referencing Chinese culture.

One example of a Chinese perfume brand is Scent Library (气味图书馆), which is known for its ability to evoke nostalgia among customers with scents that reference specific memories, such as the taste of traditional milk candy or boiled water.

Another brand is To Summer (观夏), which produces plant-based fragrances while paying homage to China's traditional culture. They are known for their stylish and minimalist physical stores, often located in historically valuable buildings, supporting their home fragrance concept.

Documents (闻献) is a niche brand that gained international attention after L'Oréal invested over 1.4 billion USD in the company. The brand focuses on high-end perfumes featuring Chinese ingredients such as star anise, mugwood, yulan magnolia, and walnut.

The marketing strategies of Chinese perfume brands often include online shopping and social media, with KOL (Key Opinion Leader) collaborations to reach a wider audience. Offline stores are also crucial, as they allow consumers to try out the scents and provide an opportunity for brands to showcase their image.

In terms of market segmentation, the Chinese fragrance market is divided into Luxury, Prestige/Mid-range, Mass Market, and Fragrance Accessories, each with distinct marketing strategies. The luxury segment is expected to drive approximately 60% of all sales in the fragrance market by 2023.

When it comes to consumer preferences, younger Chinese consumers show a preference for customized fragrances and are willing to pay more for personalized scent profiles, bottle shapes, and packaging. There is also a growing market for men's fragrances in China, with the men's beauty buying rate expected to reach 21.3 billion yuan by 2025.

In conclusion, the Chinese perfume market is growing, driven by economic development and changing consumer habits. Both international and domestic brands are competing in this market, with Chinese brands gaining popularity for their unique, China-specific offerings. The marketing strategies of these brands leverage both online and offline channels, and the luxury segment is expected to continue expanding.

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