Warming Sino-French ties to boost China’s fragrance sector

China and France will see links between the two countries’ fragrance industries broaden and deepen, thanks to new policies and activities being held to celebrate their 60th year of diplomatic ties. A joint statement by the two countries to mark the occasion focuses on promoting economic exchanges, with the cosmetics sector being a key area. On January 27, the Sino-French Perfume Culture Year, composed of events including exhibitions and forums, started with a launch ceremony at the Winland Center, Hangzhou, held in cooperation with creative agency Centdegrés. This initiative “will push forward collaboration between the perfume and beauty industry in France and China,” said Feng Jing, District Head of Gongshu in Hangzhou, at the event. Adam Yu, Chairman of Winland Group, acknowledged the mature perfume industry in France, emphasizing the potential for China to learn and develop from the market, especially in terms of fragrance technology and branding. Echoing this sentiment, Maxime Exler, Senior Perfumer at the French perfumery Maison Mane, emphasized the potential for mutual learning. Also attending the event were Élisabeth de Feydeau, a French perfume historian and writer; David Nitlich, co-founder, president and creative director of Centdegrés; and Matthieu Rochette-Schneider, Centdegrés Greater China general manager. Huge potential in China Perfume penetration is around 5 percent in China, compared to 42 percent in Europe and 50 percent in the US, according to a report by BCG and the French Federation of Beauty Companies. This gap translates into huge growth potential for French fragrance brands. Scent sales in China are forecast to grow at an estimated average compound annual growth rate of 13.4 percent from 2023 to 2027 to reach 22 billion RMB ($3 billion) by 2027. France stands in prime position to benefit. It’s China’s third-largest trading partner in the EU and third-largest source of investment. Meanwhile, China is France's top trading partner in Asia and seventh globally. China has long been a crucial market for French fragrance brands. Import data from the Chinese General Administration of Customs reveals that in 2023, French perfumes accounted for nearly 67 percent of the country’s imported perfumes. Along with the encouraging statistics, Chinese consumers are becoming increasingly sophisticated. “Fragrance is not really considered as part of your identity anymore but more like an adjustment or a tool of transformation," notes Fabien Pacory, Representative of Cahiers d’Art China and Vice President of CCI France Chine. Globalization of Chinese fragrance brands In addition to the opportunities for French fragrance brands in China, warming ties offer new opportunities for Chinese fragrance brands abroad. Laurent Cibot, CEO of Legacy Beauty Group, Barrio International Operations Director, sees the 60th anniversary as an excellent opportunity for French companies to enter the Chinese market and for China to showcase its outstanding perfume brands globally. For instance, the Centdegrés Fragrance Awards, an annual program and ceremony, held last year at the International Perfume Museum in Grasse, showcases fragrances created in China. Participating in such events offers unique opportunities for Chinese brands. Innovation through cultural exchanges China has a rich history of fragrance culture dating back to the Chunqiu period, approximately 770 to 481 BCE. In ancient China, fragrance served both aromatic and ceremonial purposes, acting as a medium for communication with higher powers. Sarah Yang, founder of Chinese fragrance brand Secrets’ Door, underlines the impact of fragrance as a universal language that transcends time, history, and geography. As China’s cultural heritage gains global recognition and collaboration between France and China deepens, the language of perfume emerges as a common ground for cultural exchange. Klaude Chen of Trueast believes that combining the symbolic product of perfume from France with China's 2,000-year-old fragrance culture is a great creative concept. In 2024, a milestone year for both China and France, the fragrance industry stands as a beacon of collaboration. For Rochette-Schneider and Centdegrés, this year opens “a new gate with a new path for China and France to build the next creative thinking of the fragrance industry.” Presented by Centdegrés.

Sectors

Insights

Company

Warming Sino-French ties to boost China’s fragrance sector