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Fragrances - China - September 2015

Published By :

Mintel

Published Date : Sep 2015

Category :

Fragrances

No. of Pages : N/A

Market growth has been stagnant due to the economic slowdown. FMCG brands in China have seen declining growth and international groups such as L

Table of Content

Introduction

Products covered in this report
Figure 1: Product positioning
Methodology
Abbreviations

Executive Summary

Stagnant growth caused by low usage and slowdown in economy
Figure 2: China fragrance market, value sales, 2010-15
Attracting the Mintropolitans will become the key to maintaining growth
Figure 3: Best -and worst-case forecast of China retail value sales of fragrance, 2010-20
Luxury group brands continue their domination while Coty challenges
Figure 4: China fragrance market share, by value (%), 2014
Low frequency of usage shows the importance of acquiring new buyers for gifting
Figure 5: Purchase in the past 12 months, June 2015
55% of non-buyers are users
Figure 6: Usage repertoire, by Purchase in the past 12 months, June 2015
Smaller packaging to attract the more mass-market consumers
Figure 7: Spend on fragrance, June 2015
Targeting travelling shoppers is critical for the gift-giving market
Figure 8: Purchase channel, by Purchase purpose, June 2015
Go premium when targeting the gift-givers
Figure 9: Purchase motivation, June 2015
Customisation becomes the future
Figure 10: Interest towards fragrance product/service, June 2015
What we think

Issues and Insights

Low frequency of usage and market maturity show the importance of acquiring new buyers for gifting
The facts
The implications
Creating premium packaging for gift-givers
The facts
The implications
Customisation becomes the future
The facts
The implications
Exclusive experience to capitalise on high income earners
The facts
The implications
Figure 11: Grasse-based fragrance house Fragonard, june 2015

Market Size and Forecast

Key points
Market drivers
Say goodbye to the original Chanel No.5
Duty free retailing will become the battlefield to attract Chinese tourists
Import tariff changes will have a positive impact on luxury fragrance brands
Luxury brands need to rethink their pricing strategy against a falling RMB
Stagnant growth caused by low usage and economic slowdown
Figure 12: China fragrance market, value sales, 2010-15
Attracting the Mintropolitans is key to maintaining growth
Figure 13: Best- and worst-case forecast of China retail value sales of fragrance, 2010-20
Forecast methodology

Market Share

Key points
Luxury group brands continue their domination while Coty will challenge
Figure 14: China fragrance market share, by value (%), 2012-14
Figure 15: La Petite Robe Noire Ma Robe Pétales Eau Fraîche, Q1 2015
Figure 16: Burberry Brit Rhythm for Her Eau de Toilette, Q2 2014
Figure 17: Marc Jacobs Daisy Dream, Q4 2014
Figure 18: Frederic Malle Cologne Indélébile with Dominique ropion, Q1 2015

Companies and Brands

Chanel
Recent news
Recent launches
Figure 19: Chanel fragrance launches from 2007-15 (August)
Campaigns
Take your Chance
Figure 20: Chanel Chance Eau Vive Eau de Toilette, Q1 2015
Coty
Recent news
Brand portfolio and major launches
Figure 21: Coty’s fragrance brand portfolio and major launch during 2014
Campaigns
Calvin Klein REVEAL
Figure 22: Calvin Klein Reveal, July 2014
Miu Miu The First Fragrance
L’Oréal
Recent news
Figure 23: Lancôme La Vie est Belle Eau de Parfum, Q3 2012
Brand portfolio and major launches
Figure 24: L’Oréal’s fragrance brand portfolio and major launches during 2014
Campaigns
Black Opium to attract younger generation
Figure 25: Yves Saint Laurent Black Opium Eau de Parfum, q2 2014
LVMH
Recent news
Brand portfolio and major launches
Figure 26: Lvmh’s fragrance brand portfolio and major launch during 2014
Campaigns
The Future is Gold
It’s Miss, Actually
Johnny for Dior
Figure 27: Dior Eau Sauvage, relaunch 2015
Dahlia Divin
Figure 28: Dahlia divin by Givenchy, September 2014

Who’s Innovating?

Key points
Debut launches with big anticipation
First fragrance from Miu Miu
Alaïa Paris, the first perfume by Azzedine Alaïa
Ari by Ariana Grande
New Hermès home fragrance collection
Louis Vuitton debut fragrance (2016)
No ordinary packaging
Spray the Teddy bear
Figure 29: Moschino Toy Eau de Toilette, Q4 2014
Figure 30: Byredo Oliver Peoples fragrance, Q2 2015
A personalised bottle only for you
Figure 31: Guerlain Mon Exclusif Eau de Parfum, August 2015
Experience is all
Point Parfums Digital
The Fragrance Bar

The Consumer – Buying Behaviour

Key points
Low frequency of usage shows the importance of acquiring new buyers for gifting
Figure 32: Purchase in the past 12 months, June 2015
Females are more likely to buy fragrance
Figure 33: Purchase in the past 12 months, by demographics, June 2015
Figure 34: Purchase in the past 12 months, by demographics, June 2015
57% bought fragrance as a gift
Figure 35: Purchase purpose, June 2015
Acquire male buyers on gifting occasions
Figure 36: Purchase purpose, by demographics, June 2015
Figure 37: Dior J'adore Extrait de Parfum, q2 2014

The Consumer – Usage Behaviour

Key points
55% of non-buyers are users, suggesting market maturity
Figure 38: Usage repertoire, June 2015
Figure 39: Usage repertoire, by purchase in the past 12 months, June 2015
Most users switch between 2-3 fragrances
Figure 40: Usage repertoire, June 2015
Shh, a secret scent club
Figure 41: Fragrance– CHAID – Tree output, June 2015
More personalisation experience for loyal users
Figure 42: Le Labo Limette 37 Eau de Parfum

The Consumer – Spending Behaviour

Key points
Smaller packaging to attract the more mass market consumers
Figure 43: Spend on fragrance, June 2015
Innovation in gifting packaging

The Consumer– Channel Usage Behaviour

Key points
Offering immersive in-store experience is still relevant for fragrance
Figure 44: Purchase channel, June 2015 versus 2014
Attracting male shoppers online
Figure 45: Purchase channel, by demographics, June 2015
Targeting travelling shoppers is critical for gift-giving market
Figure 46: Purchase channel, by Purchase purpose, June 2015
Innovative ways to attract new shoppers
Figure 47: Repertoire of purchase channel 2015 versus 2014
Figure 48: Marc Jacobs pop up stores in Covent garden, August 2014

The Consumer – Motivations for Buying Fragrance

Key points
Go premium when targeting at the gift-givers
Figure 49: Purchase motivation, June 2015
Figure 50: purchase motivation, June 2015
Experience is all
Limited fragrance knowledge despite market maturity

The Consumer – Marketing Opportunities

Key points
Customisation becomes the future
Figure 51: Interest in fragrance product/service, June 2015
Figure 52: Interest towards fragrance product/service, by demographics, June 2015
Exclusive experience to capitalise on high income earners
Figure 53: Interest towards fragrance product/service, by demographics, June 2015
Vintage is the new innovation
Figure 54: Hermès Le Jardin de Monsieur Li Eau de Toilette
Figure 55: Different application tools for perfume balm reflecting Chinese culture

The Consumer – Meet the Mintropolitans

Key points
Why Mintropolitans?
Who are they?
Figure 56: Demographic profile of Mintropolitans versus Non-Mintropolitans, by gender, age and personal income
Figure 57: Demographic profile of Mintropolitans versus Non-Mintropolitans, by marital status, city tier and education level
Different ways of premiumisation for the Mintropolitans

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