On June 1st, during the Shanghai May 5th International Shopping Festival, LSL Group's high-end beauty brand YSL Saint Laurent global flagship store debuted in Shanghai Xintiandi with a perfume theme image.
L'Oreal China President and CEO Fei Bo Rui told the media, including First Financial, that since the opening of the Shanghai 55 Shopping Festival, L'Oreal China has launched the "last season" in support of the shopping festival. In addition to the enthusiastic feedback from consumers, It also unexpectedly boosted the company's business.
According to the L'Oréal Group's first-quarter 2020 performance report, L'Oréal Group's revenue fell 4.8% in the first quarter affected by the new coronary pneumonia epidemic, but the Chinese market grew against the trend and achieved a year-on-year growth of 6.4% during the reporting period.
"From a market perspective, the recent growth rate of perfume categories is very fast, surpassing other categories and the market space will be greater." XSL Xia Chun, general manager of YSL Beauty China, told reporters. Previously, perfumes accounted for only a small sales share compared to makeup and skin care products.
Statistics show that China's population accounts for 20% of the world's population, but only 1% of the global perfume market. This huge gap allows beauty giants such as L'Oreal Group to smell the potential of the perfume market. In addition to increasing the layout of YSL Saint Laurent offline stores, in the relatively niche perfume field, there are also Oulong who also pay attention to offline experience. (Atelier Cologne).
In addition, last year the company also invested heavily in two small designer perfume brands Mugler and Azzaro under Clarins. Chen Jiaqi of L'Oreal China Corporate Communications and Public Affairs pointed out that in addition to becoming closer to the international market in the field of beauty and skin care, Chinese consumers are also closer to the global market structure in the perfume market structure, and the perfume market share will be further expanded.
At present, in the competitive landscape of the perfume market, companies including Coty, Chanel, Guerlain Group, L'Oreal Group, LVMH, Davidoff, Lacoste, Estee Lauder and other companies occupy major global market shares. From the perspective of the more upstream spice market, the global industry presents a high degree of monopoly. Markets are mainly controlled by companies such as IFF and Senxin in the United States, Givaudan and Firmenich in Switzerland, Dezhixin in Germany, Takasago and Hasegawa in Japan, and Mane In the hands of the top ten international fragrance and fragrance companies such as Robertet, and in China, due to the relatively weak perfume consumption concept, the investment of local companies is relatively limited, accounting for only less than 1%, while the market share of leading European companies reaches 47.9% .
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