China's perfume market
This article was originally published in The Rose Sheet
Executive Summary
"China's population accounts for 20% of the world but only 1% of the world's perfume sales, which is hard to imagine," says e-commerce company Himfr Nov. 5. In 2006, Chinese consumers bought about $10 mil. of fragrance, while Europe and the UK did sales of $9 bil. and $4 bil., respectively. Japan alone recorded perfume sales of $50 mil., Beijing-based firm reports. "We must break down the old barriers that have impeded the growth of [China's] fragrance market and help generate a demand for fragrances among Chinese consumers," Himfr says, noting that for most consumers in China, perfume is still considered a luxury, "expensive even for white-collar workers." Price barriers must be removed, the firm asserts. Regardless, Himfr predicts that by 2010, Chinese consumers with the means to purchase luxury goods will number 25 million