Perfume Markets in China, Not Just Knockoffs Anymore

Most imitation perfumes are made either in China or in its regional rival India. But more and more Chinese companies are vying for a bigger slice in the perfume industry. For crying out loud these people make the top-tier consumer electronics, how hard it is to blend some perfumes. Just do a quick online search and you will run into too many Chinese wholesalers and manufacturer hoping to get you to buy their products.

China’s demand for perfume has grown at a fast pace in the past decade. In the next five years, both production and demand will continue to grow. This is one of China’s economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants.

With perfume sales in much of the rest of the world slowing or declining, the industry, primarily based in Paris and New York, hopes for significant growth in China. The market there remains small, though sales are rising exponentially. Nobody knows the exact growth rate, but Patrick de Lambilly, the vice president for Asia for Coty, says, “You can see 20, 30, and 40 percent a year.”

China's perfume market has been evolving at a fast pace over the previous ten years. This trend will likely continue in the coming five year time horizon, with both production and demand set to keep on posting elevated CAGRs. Factors favoring growth within the national perfume market include the growing scale and tempo of China's urbanization, heightened propensity to spending and greater stress set on personal look and grooming.

The study provides an in-depth assessment of business trends and investment opportunities in China, industry development, supply and demand equilibrium, perfume consumption (by market), industry capacity and structure, distribution channels and manifold market participants. Historical data (2002, 2007 and 2012) and long-run forecasts through to 2017 and 2022 are presented, as well as the leading domestic producers are profiled in the research.

To add to the uncertainty, many in the business say the concept of perfume is so new that a lot of Chinese consumers are, in fact, not buying a perfume but rather the brand to which a bottle of perfume happens to be attached. “China is about brand, brand, brand,” Mr. de Chaudenay said.