Table of Contents
Overview
-
- What you need to know
- Key issues covered in this Report
- Report scope
Executive Summary
-
- The market
- COVID-19 drags down growth in short term, but long-term outlook remains positive
-
- Figure 1: YSL Beauty fragrance flagship store, China, 2020
-
- Figure 2: Forecast of total value sales of fragrances (adjusted for COVID-19), China, 2014-24
- Impact of COVID-19 on fragrances
- Long-term impact of COVID-19 will be limited
-
- Figure 3: Short, medium and long term impact of COVID-19 on fragrances, May 2020
- Companies and brands
- Foreign players dominate but will face new challenges after COVID-19
-
- Figure 4: Leading manufacturers’ share in value sales of fragrances, China, 2018 and 2019
- The consumer
- Moderate penetration suggests room for growth
-
- Figure 5: Fragranced products purchased in the last six months, January 2020
- Occasional usage still prevails, especially among men
-
- Figure 6: Usage habits of fragrances, by gender, January 2020
- Long years of experience indicates loyalty but usage in need of a boost
-
- Figure 7: Years of using fragrances, January 2020
- The prestige brands need more than a premium image
-
- Figure 8: Correspondence analysis – Brand perceptions, January 2020
- Clean beauty trend has impacted choice of fragrances
-
- Figure 9: Factors worth paying extra for, January 2020
- A fear of over-smelling
-
- Figure 10: Concerns and attitudes towards fragrances, January 2020
- What we think
The Impact of COVID-19 on Fragrances
-
-
- Figure 11: Short, medium and long term impact of COVID-19 on fragrances, May 2020
- Opportunities and Threats
- COVID-19 lockdown has temporarily made fragrances less relevant, but demand will recover as life normalises
- A renewed focus on health fuels demand for natural offerings
- The lockdown accelerates digital transformation
-
- Figure 12: Example of Phlur fragrances, US
- Rising localism challenges foreign brands’ dominance
- What we have seen so far
- Impact on the market
- The market takes short-term hit but long-term impact is limited
-
- Figure 13: Forecast of total value sales of fragrances, China, 2014-24
-
- Figure 14: Forecast of total value sales of fragrances (adjusted for COVID-19), China, 2014-24
- Shifts in consumer behaviour
- Spending on beauty shows encouraging signs of recovery
-
- Figure 15: Changes in spending on BPC, January to May 2020
- Working from home hasn’t become a norm yet
-
- Figure 16: Work location, February to May 2020
- How COVID-19 will affect key consumer segments
- Core users (women in their 30s) are less impacted by financial stress
- Young consumers may slow down product exploration
- Men as occasional users will become even less engaged
- How COVID-19 will reshape the industry
- Competitive landscape will likely shift
- The transformation to a more essential category
- Impact on the marketing mix
- Redefining prestige
- Driving clean offerings
- Catering to local preferences
-
- Figure 17: Examples of RECLASSIFIED fragrances, China, 2019-20
- Enriching online experiences
-
- Figure 18: Example of Virtual Sephora Day livestreaming, China, 2020
- COVID-19: China context
-
- Figure 19: Accumulative confirmed cases of COVID-19 in China, January to May 2020
- Figure 20: Status of returning to work, China, March to May 2020
-
Issues and Insights
-
- Clean beauty expands into fragrances
- The facts
- The implications
-
- Figure 21: Nomenclature psy_cou eau de parfum, US, 2020
- Explore category-blurring opportunities
- The facts
- The implications
-
- Figure 22: Examples of fragrances with a moisturising benefit, US and Japan, 2019-20
- Figure 23: Jo Malone London Lime Basil & Mandarin Scent to Go, US, 2019
-
- Figure 24: Lovillea Juicy Floral Gelly Cologne, Oman, 2019
- Bring more engaging themes into play
- The facts
- The implications
-
- Figure 25: Examples of Maison Margiela Replica fragrances
-
- Figure 26: Examples of Fantasy horoscope-themed fragrances, Vietnam, 2019
The Market – What You Need to Know
-
- A short-term hit in sales is expected from the outbreak of COVID-19
- Positive outlook in the long run
Market Size and Forecast
-
- Market continues to expand alongside premiumisation…
-
- Figure 27: Retail value and annual growth rate of fragrances market, China, 2015-19
- …but will take a hit due to COVID-19 in the short term
-
- Figure 28: Forecast of total value sales of fragrances, China, 2014-24
- Figure 29: Forecast of total value sales of fragrances (adjusted for COVID-19), China, 2014-24
Market Factors
-
- A category far from saturation
-
- Figure 30: Retail market value, spend per capita and growth rate of fragrances, China, South Korea, Japan, UK and US, 2019
- Online channels fuel stronger growth
- The rise of olfactory marketing
- More consumer education in place to guide choices
-
- Figure 31: A review of fragrances for summertime by Sun Shangxiang Scent, China, 2019
- Scented personal care and laundry products pose challenges
-
- Figure 32: Sylvia fragranced laundry liquid, China, 2019
Key Players – What You Need to Know
-
- International companies take the lead
- Local brands gain market share through online channels
- Format/texture innovation continues to expand globally
Market Share
-
- Foreign players maintain market dominance
-
- Figure 33: Leading manufactures’ share in value sales of fragrances, China, 2018 and 2019
- Global leaders take the competition to the upper prestige segment
- Local brands gain market share by avoiding direct competition
Competitive Strategies
-
- The mix of online and offline experiences
-
- Figure 34: Example of Jo Malone London Fragrance Finder
-
- Figure 35: Example of Diptyque immersive fragrance exhibition, China, 2019
- Smell and sound create perfect harmony
-
- Figure 36: Example of Perfect Diary x NetEase Music campaign, China, 2019
- Figure 37: Example of Jo Malone London ‘A Little Happiness’ commercial, China, 2019
- International brands continue to accelerate new product development
-
- Figure 38: New fragrance launches from leading international brands, China, 2019-20
- Local brands leverage IP collaboration to make bestsellers
-
- Figure 39: Scent Library x White Rabbit fragrances, China, 2019
- Figure 40: Boitown x The British Museum fragrances, China, 2019
Who’s Innovating?
-
- NPD trends in the Chinese market
- Male segment gains more attention in 2019
-
- Figure 41: Top claims of new fragrance launches, China, 2017-19
- Figure 42: New male fragrance launches, China, 2019
- Botanical/herbal claim on the rise
-
- Figure 43: New fragrance launches with a botanical/herbal claim, China, 2019
- Innovation highlights in overseas markets
- Newer formats/textures continue to evolve
-
- Figure 44: New fragrance launches in solid stick format, France and Russia, 2019
- Figure 45: New tattoo-style fragrance launches, UK, 2019
-
- Figure 46: New fragrance launches in powder and compact format, UK and France, 2019
- Figure 47: New scented accessories launches, France and US, 2019
- Different angles to address consumer need for customisation
-
- Figure 48: Byredo unnamed Eau De Parfum
- Figure 49: Glossier You Eau de Parfum
- Technology inspires innovation
-
- Figure 50: O Boticario Egeo ON Me and You, Brazil, 2019
The Consumer – What You Need to Know
-
- Moderate penetration and irregular usage weaken the market
- Brand types have distinct associations
- Safety concerns and solid interest in natural ingredients shape innovation
Purchase Behaviours
-
- Overall penetration remains low
-
- Figure 51: Fragranced products purchased in the last six months, January 2020
- Scented personal care poses a threat to perfume
- Mini-size perfume has the potential to make a good gift
- Women, 30-39 year olds are primary perfume users
-
- Figure 52: Fragrances purchased in the last six months – ‘for myself’, by age, January 2020
-
- Figure 53: Fragrances purchased in the last six months – ‘for myself’, by gender, January 2020
Usage Habits
-
- Nearly half of respondents only wear fragrances on special occasions
-
- Figure 54: Usage habits of fragrances, by gender, January 2020
-
- Figure 55: Usage habits of fragrances, by years of using fragrances, January 2020
- Consumers start to seek variety after using perfume for three years
-
- Figure 56: Fragrance loyalty, by years of using, January 2020
- Half of consumers touch up throughout the day
-
- Figure 57: Fragrances purchased in the last six months – for myself, by reapplication habit out of home, January 2020
-
- Figure 58: Reapplication habit out of home, by age, January 2020
- Both young and old consumers may wonder how to apply the right amount of perfume
-
- Figure 59: Level of control the right amount of fragrance, by age, January 2020
Years of Use
-
- Most fragrance wearers report long years of using
-
- Figure 60: Years of using fragrances, January 2020
- Women start to use fragrances from an earlier age than men
-
- Figure 61: Years of using fragrances, by gender, January 2020
- Fragrances are not a privilege for tier one city consumers
-
- Figure 62: Years of using fragrances, by city tier, January 2020
Brand Perceptions
-
- Brand type carries well-established associations
-
- Figure 63: Correspondence analysis – Brand perceptions, January 2020
- 30-39 year olds hold more positive attitudes towards range of brands
- Men are more likely to see domestic perfume brands as fun and trendy
-
- Figure 64: Perceptions of domestic perfume brands, by gender, January 2020
- Older consumers view fast fashion brands as unique
-
- Figure 65: Perceptions of fast fashion brands, by age, January 2020
Factors Worth Paying Extra For
-
- High demand for natural ingredients
-
- Figure 66: Factors worth paying extra for, January 2020
- The winning solution is tripartite
-
- Figure 67: Factors that consumers are willing to pay more for – TURF analysis, January 2020
- From a niche brand is not what makes consumers to pay more for
- 25-29 year olds are more likely to buy in the story of perfumers
-
- Figure 68: Factors worth paying extra for – selected factors, by age, January 2020
- More experienced fragrance wearers seek added benefits
-
- Figure 69: Factors worth paying extra for – selected factors, by years of using perfume, January 2020
Concerns and Attitudes towards Fragrances
-
- Consumers pay attention to the safety of ingredients
-
- Figure 70: Concerns and attitudes towards fragrances, January 2020
- There is a fear of over-smelling
- Over-packaging is not a huge concern for Chinese consumers
- Young consumers have more concerns towards fragrances
-
- Figure 71: Concerns and attitudes towards fragrances, by age, January 2020
Appendix – Methodology and Abbreviations
-
- Methodology
- TURF
- Fan chart forecast
- Abbreviations
Back to top