Puig invests in Scent Library, a Chinese perfume brand – WWD
PARIS – Puig said it has invested in Scent Library, a Chinese fragrance brand. The terms were not disclosed.
âScent Library intends to use the profits thus collected for the development of perfume products related to authentic Chinese culture; to the creation of a deep and immersive consumer experience at all points of contact; to the optimization and integration of the brand’s international supply chain and the continued staffing of a high-level team, âthe company said in a statement.
âThe partnership with Scent Library was a very attractive opportunity to participate in the development of the Chinese perfume market with a company based in China and a team founded in China,â said Marc Puig, CEO of Puig.
The perfume market in China is booming, and Western beauty product manufacturers are quickly establishing themselves in the country. Perfume remained unpopular for many years after the Cultural Revolution of the 1960s in China, but there is now a significant resurgence of interest in perfume there, especially among younger consumers.
Retail sales of perfumes in China reached $ 1.43 billion last year, and are expected to increase 25.5% to $ 1.97 billion in 2021, then to around $ 2.44 billion in 2022, according to Euromonitor International.
Scent Library was launched in Beijing in 2009 and introduced scent products based on contemporary Chinese culture from 2015. It was co-founded by Roseline Lou and John Han.
Scent Library’s offering includes perfumes, body care and room scents. The brand operates around 80 brick and mortar doors in Chinese shopping malls and malls. It also works online.
Scent Library expects the Chinese perfume market to be booming.
âResearch data shows that the Chinese perfume market is only 2.5% of the world market, but the average annual growth rate is over 25%,â Lou said in the statement. âTherefore, we firmly believe that we can make a significant contribution. “
He already did. In 2017, the brand launched LBK Water, of which 400,000 units were sold in one month and 1 million units in the year.
Two years later, Scent Library launched the Milk Candy fragrance, co-branded with Chinese confectionery brand White Rabbit. In the first 10 minutes of marketing, 14,000 units were sold. In one month, Milk Candy recorded 1.8 billion views on social networks.
To grow its online business, Scent Library targets Gen-Zers on various e-commerce platforms, social media channels, and apps, such as WeChat, TikTok, and Red, as well as Viya for streaming. On Viya, from 2020 to 2021, Scent Library took second place in the category of Chinese household perfume sales.
Perfume is one of Puig’s main activities. Its fragrance portfolio includes owned brands such as Carolina Herrera, Nina Ricci and Paco Rabanne.
The company, which achieved a turnover of 1.54 billion euros in 2020, also takes minority stakes in companies, like Granado, the oldest pharmacy brand in Brazil.
Over the summer, other Western beauty players moved further into China to gain a foothold in the rapidly growing fragrance market. For example, fragrance and aroma supplier Givaudan has partnered with Alibaba’s Tmall to accelerate fragrance creation and invested in Next Beauty China, an incubator for emerging fragrance and beauty brands. Meanwhile, Shiseido launched three of its fragrance brands on Tmall.
For more information, see:
Givaudan invests in Chinese perfume and beauty incubator Next Beauty
Tmall, Givaudan partner for the accelerated creation of perfumes in China
Shiseido launches three perfume brands on Tmall