What is the real potential of the Chinese market for fragrances?
Against the backdrop of an economic slowdown widely reported by the media, the downturn in the luxury goods industry, the real estate crisis, deflation and the collapse of stock market prices are worrying signals that may lead us to question China's potential.
However, perfume is not [only] luxury, and cannot be considered as such... It is a sector that remains particularly resilient in the current economic climate.
What's more, there are 260 million (!) Genz people in China today, still eager to explore perfume; and penetration (5%) remains well below Western rates, for a purchasing power higher than their Western peers. Which brands can break free from such a reserve of growth?
Today's market may be more competitive and difficult, but the demand is there. But the Chinese perfume market is highly specific and volatile, and needs to be understood in ever finer detail if it is to make a lasting place for itself...
Here's what we've learned.
