Interparfums sets its sights on China

On Wednesday, February 28, the French specialist in licensed perfumes, Interparfums (known for its licenses with Montblanc, Lacoste, among other brands), presented its annual results at the Pavillon Gabriel in Paris. On this occasion, Renaud Boisson, CEO of Interparfums for the Asia-Pacific region, outlined the group’s strategic vision for the perfume market in Asia, with a particular emphasis on China.

Over the past year, China has affected the performance of global beauty conglomerates due to the country’s recent economic deceleration. However, despite adjustments in consumer spending habits and a growing preference for local brands – especially within the beauty sector – China continues to be a priority market for Interparfums.

In fiscal year 2023, Interparfums recorded a turnover of 108 million euros in the Asia-Pacific region, marking a 17% increase. Looking ahead to 2024, the group is setting its sights on achieving sales totalling 122 million euros. In 2023, China, including Hong Kong, accounted for 21% of regional sales, equating to approximately 22 million euros. “In 2024, we anticipate a revenue of 30 million euros from the Chinese market,” stated Renaud Boisson.

Interparfums thus demonstrates measured aspirations, especially considering that the perfume industry in China is still in its infancy. Indeed, the perfume segment constitutes a mere 4% of total beauty sales in China, in stark contrast to the 55% share observed in France. Nevertheless, there exists an unmistakable enthusiasm for perfumery, particularly for niche creations, which accounted for 21% of the Chinese perfume market in 2022.

Embracing the niche perfume trend

Renaud Boisson highlighted, “With Van Cleef and its ‘Extraordinary Collection’, we align ourselves with the niche brand trend,” noting Van Cleef’s contribution of 10% to Interparfums’ sales in China. Currently, the company’s three leading brands in the Chinese market are Coach, Montblanc, “which still has a long way to go in China,” according to Boisson, and Jimmy Choo.

In the near future, similar to Coty’s recent introduction of its fragrance label, Infiniment Coty Paris, Interparfums is poised to unveil its own line of scents. This niche brand, whose name remains undisclosed, will primarily be distributed across Asia.

Boisson also acknowledged the distinctive characteristics of distribution channels in China. In 2022, 43% of perfume sales were conducted online, facilitated by platforms such as T-Mall and TikTok—an increase from 29% in 2019, pre-Covid era. Conversely, the prevalence of perfume boutiques is on the decline; in 2022, they accounted for 29% of perfume sales in China, down from 45% in 2019. Noteworthy, however, is the rise of branded boutiques, representing 20% of distribution sales in 2022, up from 15% in 2019.

In 2022, Interparfums generated 73% of its sales through online channels in China, with only 4% through branded boutiques—a format the group is particularly developing with Van Cleef.

In 2022, the Asia-Pacific region accounted for 42% of global perfume, skincare, and cosmetics sales, with China contributing 13%. By comparison, North America and Europe accounted for 22% and 19% of the global beauty market, respectively. According to a McKinsey study, the Chinese perfume market is expected to experience an annual growth rate of 35% until 2026, with the Asia-Pacific region forecasted to achieve a growth rate of 28%.