Chinese market competition of skin care, makeup, cosmeceutical and washing products are becoming more and more intense, and the professional perfume market will become the next potential growth market and new profit source. In 2010, China is expected to have about 250 million consumers who are able to afford luxury products and the total consumption is forecast to amount to about 29.4 billion. Perfume purchases will become more frequent in the Chinese market.

Currently, the Chinese high-end perfume market is occupied by foreign brands, mainly including Chanel, Lancome, CK, BOSS and Davidoff, etc. Perfumes of Chinese brands, such as Prestige and Nency, etc, mainly establish their presences in the mid-end markets.

Since 2007, mainly due to low popularity, perfumes of Chinese brands have been not accepted by department stores in the first-tier cities and thus began to shift there focus to the second-tier cities, which led to substantial decrease in sales revenue of perfumes of Chinese brands. Represented by Nanjing Prestige and Beijing Nency, perfumes of Chinese brands have been developing new products in the aspects of flavor, bottle types, terminal channel development and cultural implication in order to increase market demand and look for opportunities to enter the high-end market. The annual sales revenue of Prestige S.A.R.L Parfums Nanjing Paris increased from about $2.6 million in 2007 to approximately $14.6 million in 2009. The sales revenue of perfumes of other Chinese brands also increased considerably, though with varying growth rates.

Source: National Bureau of Statistics, China Customs, ACMR Industry Research