Sino-report
Home Sign in Research report Data Center Industry News Custom Research About us
Research report:                          Automotive  |  Electronics  |  Mechanical&Automation  |  New Energy  |  Medical  |  Advanced Materials  |  Building Products  |  Transportation  |  Communication  |  Chemical  |  Finance  |  IT Industry  |  Food  |  Home Appliances  |  Forestry  |  Agriculture  |  Textile  |  Culture Industry  |  Consumer goods  |  Others  |
 Home > Industry News > Consumer goods > Text
Luxury firms diversifying into perfumes
Author:sino    Source:Sino-report    Number of clicks :     Update time:2018-07-25 11:55
Designer retailers turn to fragrance to expand consumer reach and find new growth drivers

Designer retailers turn to fragrance to expand consumer reach and find new growth drivers

Perfume is playing an increasingly significant role in the business growth of luxury brands, especially in Asia, fueled by the emerging middle class and millennial consumers who are pursuing high-end lifestyles.

Louis Vuitton had not been involved in the perfume business for 70 years, but returned to the sector in 2016. Last year, the brand's cosmetics and perfume category reported sales revenue of 42.6 billion euros ($49.6 billion), up 13 percent year-on-year. It was one of the company's fastest-growing categories.

Now, the brand sells its perfumes at about 300 stores globally. On its official Chinese website, Louis Vuitton perfume collections carry price tags that range from 2,100 yuan to 4,300 yuan ($310 to $634) each.

"Perfume can help to shape brand images, and some people will become new customers for the brand through buying perfume, even though they don't buy the more expensive bags," he said.

In its 2017 financial year, global perfume producer Inter Parfums Inc netted sales revenue of $591.3 million, growing 13.5 percent year-on-year. Some brands with perfumes not serving as their traditional business, such as Coach, Montblanc, Jimmy Choo and Lanvin, saw their sales of perfumes grow remarkably in the period.

Luxury brands that operate in various segments, such as Chanel, Christian Dior and Givenchy, have been doing well in their cosmetics and perfume businesses. The sales of their classic signature perfume collections occupy the top of the sales list in the market.

Some smaller brands, such as Jo Malone, Diptyque, Annick Goutal and Creed, specifically operate fragrance products and tend to use natural raw materials.

Jo Malone is a successful case that transferred from a niche salon brand to a well-known commercial brand. Currently, it has multiple boutiques in Beijing, Shanghai, Nanjing, Guangzhou, Chengdu and Hangzhou.

"The popularity of niche fragrances shows that modern consumers are worried about the homogeneity of life and mindset, and they would like to show their personalities through distinctive products," Wang said.

"The younger generations of Chinese consumers have been pursuing high-quality and unique lifestyles, and a large number of them choose salon perfumes to show their tastes and characters," he added.

The Estee Lauder Companies Inc acquired Jo Malone in 1999, before it bought perfume brands Le Labo, Frederic Malle and Kilian. Later, those brands launched their boutiques and cooperated with high-end department stores, and they have been popular in the market.

In the 12 months until June 2017, Estee Lauder achieved sales revenue of $11.82 billion, growing 5 percent year-on-year. During the same period, its net profit reached $1.25 billion, climbing 12 percent over the previous year. Fragrance sales rose 10 percent, growing faster than both skincare products and color makeup, according to its earnings report.

In 2017, $8.16 billion worth of perfume was sold in the United States, the largest market, followed by Brazil, Germany, France and the United Kingdom, according to data from Euromonitor, a market research provider.

In the past five years, China has seen its fragrance sales climb continually. Last year, fragrance sales in China reached 6.16 billion yuan, up 15 percent over the previous year, Euromonitor said.

It forecasted that the Chinese fragrance market will keep growing remarkably in the next five years. By 2022, perfume retail sales in China are expected to reach 8.69 billion yuan, growing 41 percent compared to 2017.

Specifically, premium fragrances saw faster sales growth in China than the lower-priced mass-market fragrances available at outlets. In comparison, mass fragrance sales fell in China in the past five years, Euromonitor found.

From 2013 to 2017, sales of premium men's fragrances grew from 621.9 million yuan to 847.6 million yuan in China, expanding 36.6 percent over the five-year period.

In the same period, premium women's fragrances grew from 2.69 billion yuan to 3.87 billion yuan, jumping 43.9 percent in five years, according to the market researcher.

Order Online
Contact Us
Tel: 400-988-9999
Fax:010-82889999
Phone :+8615313587056
Email:Sale@sino-report.com
Email:Cousult@sino-report.com
Online Consultation
MSN :Sino-report@hotmail.com
MSN :Sino-report@foxmail.com
Skype: Please Please
Latest Reports
  More>>
[Consumer goods] Tourism industry opening on agenda
[Consumer goods] Luxury brands eye younger customers
[Consumer goods] New retail to give growth fresh boost
[Consumer goods] Luxury firms diversifying into perfumes
[Consumer goods] Total Retail Sales of Consumer Goods in May 2018
[Consumer goods] Global sheep milk powder market revenue is expected to reach 144.45 million USD by 2025
[Consumer goods] Increasing popularity of convenience products in emerging economies including China, India, and Mexic
[Consumer goods] Water & wastewater treatment equipment market demand will grow owing to its significant usage in
Popular reports
  More>>
Total Retail Sales of Consumer Goods in May 2018
Industry Data
  More>>
China opens market to Kenya's agricultural products
China's publishing industry booming over past 40 years
Industrial Production Operation in July 2018
Total Retail Sales of Consumer Goods in July 2018
National Real Estate Development and Sales in the First Seven Months of 2018
NSDP/SDDS for the People's Republic of China
Market Price of Important Means of Production in Circulation, July 01-10, 2018
In the first five months of 2018, the profits made by industrial enterprises above the designated siz
Purchasing Managers Index for June 2018
Market Price of Important Means of Production in Circulation, June 21-30, 2018
In global EV battery shipments during Jan - Apr 2018, LG Chem and Samsung SDI ranked 4th and 6th
Based on Jan - Apr shipment record, Kia Motors Remain on Top 10 in Global PHEV Power Brands Ranking
Consumer Prices for May 2018
Producer Prices for the Industrial Sector for May 2018
Industrial Production Operation in May 2018
Investment in Fixed Assets for the First Five Months of 2018
National Real Estate Development and Sales in the First Five months of 2018
Producer Prices for the Industrial Sector for April 2018
Stable Performance for the National Economy in April
Total Retail Sales of Consumer Goods in April 2018
Industrial Production Operation in April 2018
National Real Estate Development and Sales in the First four months of 2018
Sales Prices of Residential Buildings in 70 Medium and Large-sized Cities in April 2018
Industrial Profits Increased in the First Four Months of 2018
Industry News
  More>>
Iron and steel sector gains strength
China’s wines take center stage
Machinery manufacturing fair boosts Sino-Russian ties
Medical device manufacturers display their latest technology
Soybean farmers store crops amid hopes of higher prices
Tourism industry opening on agenda
Tech competition eases startups' access to China market
China's excavator sales grow 44.9% in October
China's solid waste imports continue to slump on tightened ban
Delivery orders jump 25.12% to 1.35b on Singles Day
Related Links
Luxury brands eye younger customers

Sitemap       |       Join Us      |       Customer Service       |       About Sino-report
Copyright © 2011-2025 Sino-report Consult Inc.
Sino-report@hotmail.com    Postmaster@sino-report.com
No.18 Zhichun Road, Haidian District. Beijing 100089.China
Information and data contained in this site is for reference only pursuant to operate your own risk
Sino-report