On January 24, Jing Daily hosted the “Crafting Cultural Authenticity: Fragrance Brand Innovations in China'” panel at Sinan Salon in Shanghai, moderated by Deputy Publisher Charlie Gu and Managing Editor of Jing Daily China Agnes Wu. Attended by leading figures in China’s thriving fragrance market, the seminar spotlighted the rise of up-and-coming domestic perfume brands and explored how these labels are succeeding in preserving their unique cultural identity while innovating to cater to the country’s dynamic consumer trends. Driving forces behind the boom The booming fragrance market is the result of China’s developing economy and evolving consumer tastes. Although only 5 percent of the Chinese population wears scent today, that number grew at an annual compound rate of nearly 15 percent from 2015 to 2020, according to Kantar. Olivier Viejo, Vice President of Fine Fragrance APAC at Firmenich, says: “As people’s desire for fragrance continues to increase, it sends an important signal to the fragrance industry: Consumers are increasingly integrating fragrance into their daily lives.” Ellie Wang, founder of R2W Brand Management Company, emphasizes the importance of integrating perfumes into life’s occasions and various festivals. “This shifts consumers’ attitude from only picking one kind of fragrance and prompts them to choose fragrances according to different seasons and scenarios,” she says. As consumers are increasingly exposed to fragrances, their expectations for scents and the vibes created by brands are rising. “Nowadays, sophisticated Chinese consumers not only seek captivating narratives and exquisite packaging but also unparalleled product quality and distinctive scents,” adds Wang. “Nowadays, sophisticated Chinese consumers not only seek captivating narratives and exquisite packaging but also unparalleled product quality and distinctive scents.” With the rapid development of e-commerce and social platforms, KOLs have become an important bridge between brands and consumers. “The terminology used by perfume brands in their marketing promotions is not in everyday language. As bloggers, we have to find ways to make perfumes accessible to the public in an easy-to-understand way,” says Beijing-based perfume influencer Oliver Walsh. As the market continues to grow, it has become increasingly evident that meeting consumer demands with professionalism and innovation will be paramount in shaping the industry’s trajectory in 2024. Wang says it is crucial for brands to respond to consumers more “professionally.” The first step is the professionalization of channels. She looks forward to seeing more offline spaces providing immersive fragrance experiences, where consumers can learn more about the industry and scents. This multifaceted evolution underscores the vibrancy of China’s fragrance market, poised at the intersection of tradition and modernity, aspiration and authenticity. How Chinese fragrance brands can build awareness A roster of domestic brands has emerged in China. They are grappling with the challenge of differentiation in an increasingly competitive landscape. “Each brand is actually a ‘person’ with its own personality and attitude. In the era of social media, individuals are brands, and brands are individuals. The stories and values of the founders and teams behind the brands can emotionally resonate with consumers,” says Lin Zhang, founder of Live in Notes, a fragrance label established in 2023. Matthieu Rochette-Schneider, general manager of CentDegrees China, concurs: “When building a perfume brand, it is crucial to integrate the founder’s unique personality into the brand.” Though domestic brands excel in visual appeal, marketing, and service provision, Zhang believes there's room for growth in terms of olfactory aesthetics that align more closely with international standards. "In the future, I hope that not only Chinese perfumes will go international but also more French perfumes will enter the Chinese market, opening up new opportunities through co-creation and dialogue,” says Rochette-Schneider. Balancing globalization and localization Over the past decade, the perfume landscape in China has been on a transformative journey. Cai Yuang, a senior fragrance expert, reflects on the evolution of the market, pointing out that just 16 years ago, perfumes lingered on the fringes of consumption. With the gradual influx of international brands, the local perfume scene has burgeoned. Meanwhile, there's been a perceptible shift in Chinese consumers’ attitudes towards perfumes, transitioning from brand loyalty to embracing a spectrum of choices. This diversification is attributable to the growing popularity of niche global brands, catalyzing interest not only in traditional perfumes but also in home fragrances, body scents, and air fresheners, says Cai. For Ni Lishi, founder of Chinese fragrance label Melt Season, unlocking the brand's cultural essence is paramount. “Delving into the profound depths of Chinese culture and articulating it into accessible forms enriches a brand’s narrative and significance.” A blend of understanding and adaptation is required to successfully navigate the nuanced dynamics of the Chinese market. International brands must delve deeper into local preferences, while Chinese brands venturing abroad must become cultural sensitive. This sentiment is shared by Gu, who noted that internationalization and localization are not contradictory but multidimensional, which means brands need to approach different markets flexibly. As perfume brands delve into regional cultures and deepen their brand narratives, cross-cultural exchanges will dismantle market barriers, paving the way for Chinese fragrances to shine on the global stage.