Men's and Women's Fragrances - China - July 2013

INTRODUCTION
Definition
Methodology
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: China men’s and women’s fragrance market forecast, value sales, 2008-18
Companies and brands
Figure 2: China fine fragrance market share, by value (%), 2009-12
The consumer
Figure 3: Frequency of using fragrances and scented products, May 2013
Figure 4: Reasons for using fragrances, May 2013
Figure 5: Occasions for using fragrance, May 2013
Figure 6: Where people have bought fragrances, May 2013
Figure 7: Fragrance purchasing behaviour, May 2013
Figure 8: Attitudes towards fragrances, May 2013
Key issues
Capturing the sophisticated Expert users
Understanding the Chinese consumer’s demand on innovative fragrance products
Multichannel strategy with cutting-edge technology
Dealing with the uncertainties in the gifting market
THE MARKET
Key points
Fine fragrance market overview
Figure 9: The first Chinese version of “eau de cologne” Mingxing Florida water, 2013
Figure 10: China men’s and women’s fragrance market, value sales, 2008-18
Market Forecast: steady growth amid challenges ahead
Figure 11: China men’s and women’s fragrance market forecast, value sales, 2008-18
EU regulations affect fine fragrances formulation
Anti-extravagance campaign poses uncertainties in the fragrance market
The growing spending power and the expanding middle class in China
What it means
COMPANIES AND BRANDS
Key points
Companies and market shares
Figure 12: China fine fragrance market share, by value (%), 2009-12
Figure 13: La Petite Robe Noire‘s press release in Shanghai Bund no 1, July, 2012
Figure 14: Brad Pitt was the first male face of Chanel No 5, 2012
Figure 15: Chanel promotes its Chance range on its Weibo account, 2013
Figure 16: New launches from Hugo Boss and Calvin Klein during 2011-13
Figure 17: Salvatore Ferragamo new fragrance Signorina promotion on China Elle, July, 2013
Dior
Figure 18: J’adore gift-set: L’eau, eau de toilette; eau de parfum and L’Absolu
Figure 19: Miss Dior campaign, 2013
Chanel
Figure 20: Fan group of Coco Mademoiselle Group established In November 2008 on Douban
Lancôme
Figure 21: La Vie Est Belle online campaign, 2013
Burberry
Elizabeth Arden
Figure 22: Green Tea advertising
What it means
THE CONSUMER
Key points
Frequency of using fragrances and scented products
Figure 23: Frequency of using fragrances and scented products, May 2013
Reasons for using fragrances
Figure 24: Reasons for using fragrances, May 2013
Occasions of using fragrances
Figure 25: Occasions when people use fragrances, May 2013
Venues of purchasing fragrances
Figure 26: Venues of purchasing fragrances, May 2013
Purchasing behaviour
Figure 27: Purchasing behaviour, May 2013
Attitudes towards fragrances
Figure 28: Attitudes towards fragrances, May 2013
KEY ISSUE – CAPTURING THE SOPHISTICATED EXPERT USERS
Key points
Five segments
Figure 29: Attitudes towards fragrances, by segment, May 2013
Figure 30: Any agreement with attitudes towards fragrances, MAY 2013
Expert users
Who are they?
Figure 31: Segments, by income, May 2013
Pro-West
Who are they?
Local Follower
Who are they?
Price-Driven
Who are they?
Disengaged
Who are they?
Multi-brand portfolio to capture the sophistication
Recognise the rising level of sophistication
Figure 32: Reasons for using fragrance, May 2013
Figure 33: Gucci guilty poster on the street of Fuzhou
Figure 34: Education level of Expert users vs all, May 2013
Figure 35: Polarising views on some top-selling fragrances on Douban generate heated discussion, 2012
Opportunity of product extension based on different occasions
Figure 36: Occasions to wear an eau de parfum all vs Expert users, May 2013
Figure 37: Occasions to wear an eau de toilette all vs Expert users, May 2013
Figure 38: Occasions to wear a fragrance, by types, May 2013
Figure 39: Successful product extension of Chanel Chance, 2013
Providing consistent services
Figure 40: Where people buy fragrance, all vs Expert users, May 2013
Figure 41: Examples of in-store fragrance boys, 2012
What it means
KEY ISSUE – UNDERSTANDING DEMAND FOR INNOVATIVE FRAGRANCE PRODUCTS
Key points
The pursuit of uniqueness poses an opportunity to fragrance industry
Figure 42: Selected reasons to use fragrances, May 2013
The relatively weak brand loyalty makes product innovation a necessity
Figure 43: Agreement with selected statements on the attitudes towards fragrances, May 2013
Product innovation for Western fragrance brands
Lighter scents of Western fragrance offerings
Figure 44: Advertisement of Chanel No. 19 Quietly Elegant edition
Figure 45: Agreement with the statement “Fragrances from Western brands are too strong for me”, by demographics, May 2013
Eau de parfum for special occasions
Figure 46: Selected attitudes, by occasion, May 2013
Fragrances reflecting Chinese culture
Scents reflecting Chinese culture
Figure 47: Agreement with the reasons for using fragrances “to feel unique”, by attitudes, May 2013
Figure 48: Agreement with the statement “I would be interested in fragrances that reflect Chinese culture”, by level of education, May 2013
Figure 49: Lianyi fragrance from Herborist
Figure 50: Elizabeth Arden Green Tea lavender fragrance
Packaging reflecting Chinese culture
Figure 51: Agreement with the statement ‘I would be interested in fragrances that reflect Chinese culture’, May 2013
Figure 52: Liz Claiborne’s Lucky Six
Figure 53: Different application tools for perfume balm reflecting Chinese culture
Figure 54: Packaging materials of fragrances in China, July 2013
Branding reflecting Chinese culture
Figure 55: Ads for Liushen floral water in 2012
Figure 56: Brand history of Shanghai Vive
Figure 57: Ye Shanghai Legend fragrance from Shanghai Vive
What it means
KEY ISSUE – MULTICHANNEL STRATEGY WITH CUTTING-EDGE TECHNOLOGY
Key points
Figure 58: Venues of purchasing fragrances, May 2013
Figure 59: Gucci Guilty fragrance trial sample online application Douban
Offering e-commerce and building CRM programme
Figure 60: Three different online retailers offer Dior fragrance
Figure 61: Venues of purchasing fragrances, May 2013
Building multichannel strategy with cutting-edge technology
What it means
KEY ISSUE – DEALING WITH THE UNCERTAINTIES IN GIFT GIVING MARKET
Key points
Gift-giving market in China
Fragrances: A popular gift in China
Anti-extravagance campaign
Young consumers with higher income and stronger education background in China are more drawn to fragrances as gifts
Figure 62: Agreement with the statement “I usually buy fragrance products as gifts”, by demographics, May 2013
Figure 63: Agreement with the statement “I am familiar with leading Western brands”, by education, May 2013
Leading designer brands are considered as suitable gifts for high earners
Figure 64: Selected attitudes towards fragrances, May 2013
Enhancing purchase experiences to combat the threat posed by overseas shopping
Figure 65: A Chinese customer shopping at a duty-free shop
Figure 66: Selected venues of purchasing fragrances, May 2013
Trial before buying fragrances as gifts
Figure 67: Agreement with the statement “The fragrance scent is just as important whether I buy for myself or as a gift for someone else”, by age and gender, May 2013
Figure 68: Agreement with the statement “The fragrance scent is just as important whether I buy for myself or as a gift for someone else”, by city tier, May 2013
Trial-focused campaigns to attract prospective consumers and maintain the existing consumer base
Figure 69: Burberry’s campaign focusing on trial and experiences of its fragrance products
Making the trial packages of fragrances a new product line for gift giving
Figure 70: Free trial packages of Chanel No 19 being sold on Taobao
Figure 71: Examples of mini fragrance packages by Mary Kay, Dior and Chloé
Figure 72: Biotherm limited edition on Chinese valentine “Qixi”
What it means
APPENDIX
Frequency of using fragrances and scented products
Figure 73: Frequency of using fragrances and scented products, May 2013
Figure 74: Most popular frequency of using fragrances, by demographics, May 2013
Figure 75: Next most popular frequency of using fragrances, by demographics, May 2013
Figure 76: Most popular frequency of using scented products, by demographics, May 2013
Figure 77: Next most popular frequency of using scented products, by demographics, May 2013
Figure 78: Most popular frequency of using eau de parfum, by demographics, May 2013
Figure 79: Next most popular frequency of using eau de parfum, by demographics, May 2013
Figure 80: Most popular frequency of using eau de toilette, by demographics, May 2013
Figure 81: Next most popular frequency of using eau de toilette, by demographics, May 2013
Figure 82: Most popular frequency of using eau de cologne, by demographics, May 2013
Figure 83: Next most popular frequency of using eau de cologne, by demographics, May 2013
Figure 84: Most popular frequency of using scented soap/shower gel, by demographics, May 2013
Figure 85: Next most popular frequency of using scented soap/shower gel, by demographics, May 2013
Figure 86: Most popular frequency of using scented body lotion, by demographics, May 2013
Figure 87: Next most popular frequency of using scented body lotion, by demographics, May 2013
Figure 88: Most popular frequency of using aftershave, by demographics, May 2013
Figure 89: Next most popular frequency of using aftershave, by demographics, May 2013
Figure 90: Most popular frequency of using floral water, by demographics, May 2013
Figure 91: Next most popular frequency of using floral water, by demographics, May 2013
Figure 92: Most popular frequency of using floral water (with mosquito repellent), by demographics, May 2013
Figure 93: Next most popular frequency of using floral water (with mosquito repellent), by demographics, May 2013
Figure 94: Most popular frequency of using deodorants, by demographics, May 2013
Figure 95: Next most popular frequency of using deodorants, by demographics, May 2013
Figure 96: Most popular frequency of using fragrances and scented products, by reasons for using fragrances, May 2013
Figure 97: Next most popular frequency of using fragrances and scented products, by reasons for using fragrances, May 2013
Reasons for using fragrances
Figure 98: Reasons for using fragrances, May 2013
Figure 99: Most popular reasons for using fragrances, by demographics, May 2013
Figure 100: Next most popular reasons for using fragrances, by demographics, May 2013
Figure 101: Reasons for using fragrances, by most popular attitudes towards fragrances (any agree), May 2013
Figure 102: Reasons for using fragrances, by next most popular attitudes towards fragrances (any agree), May 2013
Occasions of using fragrances
Figure 103: Occasions of using fragrances, May 2013
Figure 104: Most popular occasions of using fragrances, by attitudes towards fragrances (any agree), May 2013
Figure 105: Next most popular occasions of using fragrances, by attitudes towards fragrances (any agree), May 2013
Venues of purchasing fragrances
Figure 106: Venues of purchasing fragrances, May 2013
Figure 107: Most popular venues of purchasing fragrances, by demographics, May 2013
Figure 108: Next most popular venues of purchasing fragrances, by demographics, May 2013
Purchasing behaviour
Figure 109: Purchasing behaviour, May 2013
Figure 110: Most popular purchasing behaviour, by demographics, May 2013
Figure 111: Next most popular purchasing behaviour, by demographics, May 2013
Figure 112: Other purchasing behaviour, by demographics, May 2013
Attitudes towards fragrances
Figure 113: Attitudes towards fragrances, May 2013
Figure 114: Agreement with the statement ‘Fragrances from Western brands are too strong for me’, by demographics, May 2013
Figure 115: Agreement with the statement ‘I prefer to buy a fragrance with a long-lasting scent ’, by demographics, May 2013
Figure 116: Agreement with the statement ‘I would be interested in fragrances that reflect Chinese culture’, by demographics, May 2013
Figure 117: Agreement with the statement ‘I prefer to buy fragrances from well-known brands’, by demographics, May 2013
Figure 118: Agreement with the statement ‘I am familiar with leading Western brands’, by demographics, May 2013
Figure 119: Agreement with the statement ‘I am aware of the Chinese fragrance products available’, by demographics, May 2013
Figure 120: Agreement with the statement ‘I tend to buy fragrances from the same brand’, by demographics, May 2013
Figure 121: Agreement with the statement ‘Price is not an issue when I buy fragrances for myself’, by demographics, May 2013
Figure 122: Agreement with the statement ‘I tend to spend more if I buy fragrances as a gift compared with for myself’, by demographics, May 2013
Figure 123: Agreement with the statement ‘It’s worth spending more for designer fragrances’, by demographics, May 2013
Further analysis
Figure 124: Target groups, May 2013
Figure 125: Attitudes towards fragrances (any agree), by target groups, May 2013
Figure 126: Frequency of using fragrances and scented products, by target groups, May 2013
Figure 127: Reasons for using fragrances, by target groups, May 2013
Figure 128: Occasions of using fragrances, by target groups, May 2013
Figure 129: Venues of purchasing fragrances, by target groups, May 2013
Repertoire
Figure 130: Venues of purchasing fragrances, by repertoire of venues of purchasing fragrances, May 2013
Figure 131: Attitudes towards fragrances (any agree), by repertoire of venues of purchasing fragrances, May 2013