Companies from home and abroad are tapping into the pontential of the frangance market in China, Which is now booming in China. a reporter from China Daily reported in Shanghai on January 2020.
The boom of perfume market in China 2020
In China, perfume is viewed as entry-level luxury and when consumers decide to spend money, they prefer to opt for a more visible product such as bags, shoes or jewelry. Consequently, perfume’s first-time buyers are elder than in Western countries and start to buy in their mid-to-late 20s, as when they are obtaining a comfortable income.
In 2018, the growth of the luxury market was 20% and the perfume market grown by 15%. However, the perfume market has a great potential in China. Women start to get interested in perfume by testing perfumes in shops, reading reviews online and learning about the different types of perfume. Therefore, the potential is highest for branded perfumes because consumers are reassured by brands they know and trust. For example, Chanel no.5 has a strong success because it is an iconic perfume, a well-known brand and a safe choice.
“Fragrance consumers in China are expanding rapidly from women to both men and women, and the market scale is projected to reach 23.3 billion yuan (US$3.28 billion),” a researcher with the Shenzhen-based Qianzhan Industry Research Institute said.
Moreover, gifting is one of the largest segments of the perfume market that can help brands to growth. Indeed, 70% of the perfumes are bought to be offered. In China, building good relationship is important and gift are essential.
In China, the most popular brands of perfumes are Chanel, Dior and Lancôme. During the decision-making process, the brand ranks at 1st position while the smell of the perfume stays at the second position.
South and west, women are attracted to more fruity scents while in the North, they will be attracted by herbaceous and mineral scents. To ensure success in selling these products, the brand must take into account these differences and adapt to the local market.
Zoom on perfumes for men in China
Chinese men more and more want to daily use perfume. Last year, masculine perfumes market increased by 20%. Even if in China the word perfume is often associated with feminine connotations, young Chinese masculine consumers forget their conservative traditions and prefer the individual expression. They are curious about perfumes and many perfumes companies already launched specific brands for men.
Marketing Strategies to market your Perfumes in China
The rapid growth of the perfume market has attracted many companies. A good digital strategy is essential to dominate the market in China.
A website in Chinese is necessary to enter a market and realize branding. This is an efficient solution to increase the popularity of your perfumes, influence consumers with content and design, and develop the image of your company in the country. Moreover, having a website written in mandarin is essential. Chinese consumers spend more than 40% of their daily life on Internet and these internet users trust more Chinese website than English website. The website should focus on the experience of the user while being informative. Good visibility on the Chinese internet allows the brand to assert its position in the market of perfumery.
The development of new technologies and the increased use of smartphones and tablets allowed an explosive growth of the ecommerce in China. One of the best Chinese e-commerce platform is Tmall which is part of Alibaba group led by Jack Ma. This is definitely the largest B2C platform in China, it offers a wide a selection of affordable products and decent logistics and attracts value-conscious shoppers. Contrary to its competitor Taobao, the company has made arrangements to ensure that products sold on Tmall are authentic. Known as the “Amazon of China”, JD.com is also one the main B2C e-commerce platforms and is Tmall’s biggest rival. Consequently, using e-commerce platforms to develop your business is a must to efficiently enter the perfume market.
China is the world largest connected country: more than 90% of Chinese people have an account on at least one Chinese social network. Wechat is the social media the most used in China and, regardless of the size of your company, it is an essential media to develop your marketing strategy in the country. WeChat campaigns are the most effective way to increase engagement in China on the nation’s number one social media tool. WeChat store gives numerous possibilities to International brands to reach Chinese consumers effectively Possibilities ranges from Branding to campaigning and easy payment methods. By promoting your perfume on social media, you can build a community surround your company, reach your target, get feedback and create a friendlier company image.
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