The perfume industry is an industry with a long history, from the first simple fragrances to the current complex formulations, perfume has become an indispensable part of people's daily lives. However, as the market continues to change and consumer needs continue to upgrade, the perfume industry will also continue to innovate and develop.
First, the current situation of the perfume industry
At present, the perfume industry has entered a stage of rapid development. The global perfume market is expanding, and so is the consumer demand for perfumes. At the same time, with the continuous advancement of technology and the continuous improvement of consumers' requirements for quality, the quality and safety of the perfume industry have also received more attention.
In the perfume market, there are many brands and products emerging one after another, and the competition is fierce. Some international brands dominate the market with their brand advantages and high-quality product quality, while some emerging brands continue to expand their market share through innovation and differentiation strategies.
Although the international beauty market has cooled significantly since the second half of last year, high-end salon perfumes are one of the few categories that have performed well. However, in 2023, the slowdown in domestic beauty consumption is becoming increasingly obvious, and even the luxury market, which represents high-end consumption, has begun to show a downward trend. The market will continue to pay attention to whether the high-premium emotional consumer goods category of perfume can play the effect of the "lipstick index".
Perfumes, made from fragrances dissolved in ethanol, may add trace amounts of pigments, antioxidants, fungicides, glycerin, surfactants and other additives as needed. Its fragrant and rich fragrance is sprayed on the placket, handkerchief and hairline, and can exude a pleasant fragrance, which is one of the important cosmetics. In short, perfumes, essences and fragrances are volatile substances with aroma and fragrance, which can be perceived by people's sense of smell or taste, and are designed to achieve the purpose of making people loved, spiritually pleasant and enriching people's material and cultural life.
Analyzing the competition pattern of the perfume industry and the current situation of market supply and demand, we find that there is a complete perfume industry chain in China, but the overall brand effect is low. The upstream of the industrial chain is mainly a producer of raw materials, which is stableMidstream manufacturing includes both in-house and contract manufacturing;In the downstream, consumers are reached through online and offline sales channels, and the proportion of online continues to grow.
At present, the domestic perfume market is still dominated by female users, and the average age of women using perfume for the first time in first- and second-tier cities is about 21 years old. Male demand is at a rapid pace. As perfume users become more sticky, the frequency of use changes from occasional to frequent. Data shows that in 2021, more than 9% of perfume consumers in China will use it more than three days a week. Usage scenarios are also becoming more and more routine, such as going to work, school, and parties. When choosing a perfume, consumers mainly pay attention to factors such as the fragrance time, the taste of the perfume and the layering.
Personal luxury goods mainly include bags, clothing, fragrances, accessories, jewelry and watches. In the global luxury market in 2022, the size of the personal luxury goods market reached US$408.1 billion, with a growth rate of 9%, accounting for 34% of all luxury categories. As the penetration rate of domestic luxury goods continues to increase, high-end perfumes are expected to continue to increase as one of them. China has long become one of the most important spice countries in the world, with an output of more than 2,000 tons in 2021, which is an important market for the global fragrance and flavor industry, and plays a key role in the stable supply of the perfume industry. In terms of perfume designers, they are mainly divided into brand designers and independent designers, among which well-known foreign designers occupy the mainstream.
Second, the market scale of the perfume industry continues to expand
In recent years, the domestic perfume market has continued to expand, mainly driven by high-end perfumes. According to the data, the retail sales of perfume in China in 2020 will be 10.9 billion yuan, and the growth rate will decline due to the decline in foreign trade affected by the epidemic, an increase of 11% compared with 20192%。In 2021, China's perfume production and demand will reach 3180,000 tons and 2760,000 tons, with a market size of 34.2 billion yuan. Among them, women's perfumes account for more than 70%, while men's perfumes account for only 257%。However, in 2022, due to the reduction of the overall retail scale of cosmetics and the impact of the epidemic, China's perfume production and sales will decline to varying degrees, and the market size will drop to 33.5 billion yuan.
In terms of the main ingredients of perfumes, including natural and synthetic fragrances, its raw materials ** are wide, such as plants, flowers, wood, fruits, etc. In recent years, China's flavor and fragrance production has grown steadily, providing abundant raw materials for the development of the perfume industry. With the rapid development of China's perfume market, it has attracted the favor of a large number of investors, and investment and financing events have occurred frequently.
With the improvement of perfume user stickiness, consumers are increasingly pursuing brand effect, and the proportion of high-end perfumes continues to increase. Data shows that from 2015 to 2020, the proportion of high-end perfume in China increased from 70% to 91%. In the context of the continuous expansion of the perfume industry, the scale of mass perfume continues to decline. In addition, at present, domestic perfume brands as a whole are still in the middle and low-end, and the difficulty of domestic enterprises to break through continues to increase. In terms of changes in the market concentration of China's perfume industry, the current domestic perfume market concentration is low, with CR10 accounting for about 42%, and all of them are international brands, such as Dior, Chanel and YSL.
There is still a certain gap between domestic brands and international brands. In addition to the late development of the overall cosmetics industry and the technological gap, the international brand layout is early, and gradually improves user stickiness, and the brand awareness is deeply rooted in the hearts of the people. With the continuous advancement of the high-end trend, the market concentration will be further enhanced. However, domestic enterprises still have a certain competitiveness, such as smell library, etc., have occupied a certain brand reputation. However, overall, the market share of domestic brands accounts for only 30%, of which 75% are dedicated to building domestic brand products, and the rest are occupied by small factories engaged in domestic packaging and "three no" perfumes.
In the future, the sales channels of China's perfume market will continue to change. With the continuous development of the domestic e-commerce industry and the drive of live e-commerce, the trend of online perfume sales will continue to advance. Data shows that the proportion of perfume e-commerce channels in China has increased from 11% in 2015 to 26% in 2020. At the same time, the proportion of modern retail, grocery stores and direct sales continues to decline. In the future, the online sales model may continue to squeeze the share of other sales channels and become the dominant sales model.
Third, the development trend of the perfume industry
As the high-end perfume market is dominated by international brands, domestic brands should be more clear about their brand positioning and strive to create differentiation. We can find inspiration from traditional Chinese culture, regional characteristics, ethnic customs, etc., to create perfume products with unique charm to attract consumers.
Technology is one of the core competencies of perfume brands. Domestic brands should increase investment in technology research and development to improve the quality and experience of perfumes. For example, we can study how to improve the fragrance retention time and improve the layering of perfume to meet consumers' pursuit of perfume quality.
In terms of marketing strategy, domestic brands can make full use of emerging channels such as social networking and live e-commerce for brand promotion and product marketing. By cooperating with Internet celebrities and celebrities, we can create popular products and improve brand awareness and reputation. At the same time, expand online sales channels, such as e-commerce platforms, social **, etc., to reduce dependence on traditional retail channels and improve sales efficiency.
Quality is the lifeblood of a brand. Domestic brands should establish a sound quality management system to ensure the stable and reliable quality of perfume products. At the same time, strengthen brand building, enhance brand image and brand value. By participating in international perfume exhibitions, holding brand launches and other activities, we will demonstrate the strength and product charm of the brand and enhance the influence of the brand in the international market.