In the first part of the investigation, the context was set for Perfume as a gateway to the brand universe for an aspirational, less affluent clientele. But also as a geographic gas pedal and anti-crisis remedy for luxury brands. While uncertainty is gaining ground, the potential of the Chinese market is giving new importance to this market, to the point that many players want to challenge L’Oréal on its own ground.
According to market research firm Euromonitor International, consumers in Western Europe account for the largest share of fragrance purchases worldwide, followed by the United States and Latin America.
Focus on the Chinese market
However, if perfume is the object of desire for luxury brands, it is mainly because of the opportunities it represents in the Chinese market. A retail market estimated at 13.6 billion RMB (2 billion dollars) should grow to 30 billion RMB by 2025. Over the next five years, the market is expected to grow by 22% per year, compared to 15% between 2015 and 2020, according to Kantar. That’s three times the growth rate of the global fragrance market.
But where China has a lot of room for maneuver is in the penetration rate of fragrances in the country. For example, according to a BCG study, only 5% of Chinese wear perfume. A figure to be compared with a population estimated at 1.4 billion in 2022. For comparison, this figure is 42% in Europe and 50% in the United States.
This new craze for perfume is explained by better education of consumers on this product as well as by innovative commercial concepts.
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Featured photo : © Chloé
