In recent years, due to the rise of "olfactory economy", the scale of perfume market has gradually exped, the competition has become "white hot". The reporter noticed that L'Oreal Group successfully acquired Aesop for approximately RMB 17.3 billion in early April, which is reported to be the largest acquisition by the group so far. At the end of June, the parent company of Gucci, Kaiyun Group, announced the acquisition of perfume br Creed, which was also the first acquisition of Kaiyun Beauty after its establishment.

According to the data of iMedia Consulting, the market size of perfume in China will reach 16.9 billion yuan in 2022, a year-on-year increase of 24.3%, it is expected to reach 30 billion yuan in 2025. The Chinese perfume market, which is still in the "blue sea", will become the main growth place of the global perfume market in the future. For the new generation of consumer groups in China, perfume is gradually replacing lipstick becoming a popular item in cosmetics.

Market: international giants focus on perfume

The frequent acquisitions by international capital cosmetics giants are due to the high growth of high-end perfume market in recent years. From the perspective of sales data, the international perfume company Inter Parfums will increase its revenue by 32% in Q1 2023, its authorized perfume brs Montblanc Jimmy Choo、Karl Lagerfeld、 Baoshilong others have achieved double-digit growth. LVMH Group showed in its 2023Q1 financial report that the perfume beauty department grew rapidly in the first quarter, achieving revenue of about 15.985 billion yuan, up 10% year on year. According to the financial report of Estee Lauder Group, although the net sales of the group in the first quarter of 2023 decreased by 12% compared with the same period of the previous year, the net profit declined, the sales of perfume categories showed an upward trend, with a year-on-year growth of 14%. Among them, the high-end fragrance brs Le Labo Estee Lauder perfume products had double-digit growth.

According to the statistics of Bezex Consulting, the global perfume market size will be 182 billion yuan in 2022, it is estimated that the market size will reach 230.282 billion yuan at a 4.00% growth rate by 2028.

Consumer changes: emphasizing emerging social dems

"I am very satisfied with my new neutral perfume." Doudou, a fashion buyer, is a post-90s generation. Every year, about 20000 yuan is spent on skin care cosmetics, about 3000 yuan is spent on perfume.

There are many perfume consumers like Doudou, who value the social attributes of perfume products most. According to the survey data of Ai Media Consulting, 75.3% of consumers will use perfume at friend gatherings or leisure activities.

Perfume blogger Wang Zi told reporters that whether perfume is "high-end" or not cannot be determined by simple price or br, it is closely related to personal preference understing of fragrance. "As a product dominated by smell, perfume cannot be made into a popular item completely based on the market survey results. It needs to be carried by multiple feelings, so that smell can drive multi-dimensional senses, so that consumers can immerse in the fragrance atmosphere pay for it happily." According to the reporter, Wang Zi spent about 500000 yuan on perfume last year, on the one h for content creation, on the other h for personal interest collection, including valuable antique perfume.

It is worth noting that perfume, as a slow moving consumer product, although the repurchase rate of consumers is relatively low, consumers often have the habit of purchasing multiple single perfume products. According to the survey data of Ai Media, 51.2% of consumers will buy multiple bottles of perfume according to their preferences, 31.5% of consumers will buy new perfume according to whether the price is appropriate.

What is the cost of perfume? About 40%

As a major luxury goods producer, France has been disclosed by the French media about its low cost high profit in the field of perfume. The ex factory cost of perfume is only 15% of the selling price, the advertising marketing expenses ac for 25%, the remaining 60% is profit.

Some domestic insiders also pointed out that the gross profit of perfume is theoretically the same as that of cosmetics, the profit of perfume is even higher. Taking a bottle of perfume worth 100 yuan as an example, the cost acs for less than 40%, which means that generally there will be a profit of 60 yuan in h. If the cost of scientific research development acs for a higher proportion of perfume, the cost may increase by up to 12%15%.

"Blue Ocean": China's perfume market has huge potential

Under the high growth, China's perfume market penetration remains at a low level, which also represents a huge potential space in the future. According to the data of American Industry Research Institute, from 2020 to July 2022, the sales volume of Chinese perfume brs in Taobao Tmall channel was 2.58 billion yuan, acing for 22% of the whole domestic perfume market. New brs such as Wen Xian, Guan Xia, Bing Xili have successfully established themselves. Big factories beauty collection stores such as ByteDance Huamei have also been set up.

The senior person in ge of perfume category of Estee Lauder Group told reporters in an interview that at present, the penetration rate of perfume market in China is about 5%, while that of Europe the United States is 42% 50% respectively. There is obvious room for improvement of perfume market in China. He said: "perfume, as the top of the luxury category of beauty makeup, has constantly improved consumer requirements in recent years. This not only requires product quality, but also puts forward the same high requirements for the appreciation ability, aesthetic preference sales skills of the consumer market."

In his opinion, for the consumer market, the entry price of high-end perfume is more friendly than luxury bags; Compared with the high definition clothing at the top of the same "pyra", the production speed output of perfume can bring more profit space. "After the completion of the initial investment the input stage of the formula cost (including the perfumer, perfuming technology, precious raw materials, packaging design, etc.), in the 'battlefield' of 'invisible intangible' perfume, the battle is about whose br background can st out whose story can move people more," he said.