Himfr.com Analyzes Chinese Perfume Market Development
BEIJING, Nov. 5 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B
search platforms with more than 30 B2B industry websites to its name, analyzes
the development of the Chinese perfume market.
Himfr's analyst says that the fragrance market is worth 25 billion U.S.
dollars as an industry, with more than 300 new products listed each year.
Overseas, fragrances have long been involved in all aspects of life, from
children's educational supplies, to a variety of daily necessities; in some
countries, such as France, perfume is even considered an indispensable basic
necessity. In such a business, full of magical charm, it's not difficult to
see why people love perfume.
People have growing expectations for perfume. In 2006, even for high-end
brands such as Chanel, Estee Lauder and Dior, perfume sales in China were only
about 10 million U.S. dollars, while Europe generated 9 billion U.S. dollars,
the United States4 billion U.S. dollars, and Asia's largest market, Japan, 50
million U.S. dollars. China population accounts for 20 percent of the world
but only one percent of the world's perfume sales, which is hard to imagine.
How can this market be developed? The final consensus is that we must
break down the old barriers that have impeded the growth of the fragrance
market and help generate a demand for fragrances among Chinese consumers.
First, price barriers must be broken. Perfume must evolve from an imported
luxury good to a part of daily life. Consumers have started to distinguish
good perfume from bad, and prefer high quality, but for most consumers,
perfume is still considered a luxury good. Chanel, Dior
(http://www.himfr.com/buy-CHRISTIAN_DIOR/ ) and other international perfume
brands cost about 500 - 1000 RMB yuan for a 50 mL bottle, which is expensive
even for white-collar workers. Price is still an important impediment to
product penetration, and how to balance brand value and price and create truly
highly cost-effective fragrance products that may directly stimulate larger
consumer demand are questions perfume-makers must answer in order to achieve
market penetration and scale upgrading.
Second, the main obstacles must be overcome: in the current market
situation, the analyst analyzes that the largest consumer group of fragrance
products is 30-50 year old middle-aged women. Because consumers in this age
group have a higher income, consumption can be more of an option. But from
another angle we can see that the fragrance market is in fact far from mature;
due to the impact of consumer attitudes, there is an emerging group of
consumers. For example, for the men's fragrance market, China's culture places
value on subtlety, and Chinese men generally prefer a light perfume, so with
the great volume of cologne fragrances, one can expect China's culture to
influence men's fragrances of choice.
Third, design barriers must be broken: the latest design concepts from top
designers and the latest production process are often used at the
international level in the packaging of the best and most established perfumes
and cosmetics. This is important for the overall creativity and product
development capabilities of enterprises. In contrast, many of the smaller
Chinese-made perfumes imitate top perfume packaging, bottle type, color and
scent. Some manufacturers use low-cost scent in their raw materials to reduce
costs, and cannot guarantee the quality of the products, so they have a hard
time establishing brand recognition.
No one doubts the Chinese market has great potential. Himfr's analyst
predicts that by 2010, China will have 25 million consumers with the ability
to purchase luxury goods, and total spending will reach 200 billion yuan.
