Swiss perfumery sets sights on China’s US$1.5 billion market dominated by Chanel, Dior, Estee Lauder

Geneva-based Firmenich is opening a new customer experience studio in Guangzhou to get closer to consumers

Mainland consumers spent US$1.5 billion on perfumes in 2020, or 3.4 per cent of the global fragrance market

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Shoppers and visitors crowd the famous Dongmen Pedestrian Street in Shenzhen. Photo: Shutterstock

Published: 10:00am, 26 Sep 2021

Shanghai native Jessie Zhang wants more than just a fragrance that smells good. Perfume, in her view, “conveys a message about what kind of person you are, your mood, and usually can be paired with the outfit.”

The 24-year-old university graduate is part of a trend in China where consumers want to stand apart from the crowd in their choices. They are also providing exciting opportunities for small and large businesses to prosper in the US$1.5 billion mainland market dominated by industry giants like Chanel, Dior and Estee Lauder.

“Chinese consumers want to be seen as individuals, they have less of a need of the previous generations to belong and to be standardised,” said Ilaria Resta, president of perfumery at Geneva-based Firmenich. “China is becoming the source of inspiration and the source of focus for fragrance development.”

Ilaria Resta, president of perfumery at Geneva-based Firmenich. Photo: Handout

The 125-year-old family-owned group specialises in research, creation and manufacture of perfumes for its customers. It also creates flavours and ingredients used in the food industry. It saw double-digit revenue growth in key markets including China when its sales rose 4.7 per cent to US$4.6 billion in the year to June 30.

To get close to the mainland Chinese market, it is opening a new “customer experience studio” on Sunday in Guangzhou, the capital of southern Guangdong province. The space will allow employees to collaborate on new fragrances and tastes with industry influencers, consumers and clients.