China’s Great Fragrance Opportunity | Vogue Business

What worries Zhai most is the impact that “China’s speed” can have on the perfume industry’s slow trading style. “The development of the domestic market and the speed at which new generations of products are launched is too fast – local brands do not have time to do proper research and development. It will be a difficult obstacle to overcome, ”she said.

Challenges ahead

The production of perfume is more difficult for small players. Ten-year-old brand Fu-xiang Wang announced its closure in 2019, dealing a blow to China’s perfume industry. In a statement, the brand said, “Although the awareness of Fu-xiang Wang has increased, since March or April, the supply could not meet the demand and the goods could only be supplied in quantities. limited each week. “

“Compared to makeup and skin care products, the fragrance volume is very low – it’s hard to reach the scale of a Huaxizi or a perfect diary so quickly,” says Li Le, founder of ‘Uttori. “It’s an unnecessary product, so awareness of domestic consumers is still in its infancy. They have to try new things, they have not yet established stable habits regarding their consumption.

Cultivating consumer confidence takes time, and it is not easy for niche fragrances to resolve the contradictions of supply and demand. This means that the products in the store should keep in mind the maxim that “slow work brings good results”. Independent perfumer Yili says that when he started his brand, although he contacted every fragrance company he could find, none were able to fulfill his order. To Summer encountered a similar dilemma. Co-founder Shen Li says, “To Summer is made from scented stones and the stones are shipped all over the world. So far, no factory in China can help us build a smooth supply chain, which is the reason for our limited sales. “

Compared to Fu-xiang Wang, To Summer and similar companies are in a better position, with more social media available to help build community, as well as the ability to make sales directly on WeChat mini-programs. The relative ease of distribution also gives the brand a chance to focus more effort on polishing the actual product. However, to succeed in this era, a perfume brand will have to seize the opportunities, go deeper into the improvement of its products and above all cultivate the confidence of consumers.

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