Shanghai Becomes the “Engine” of China’s Perfume Market

### I. The industrial agglomeration effect is significant

As the “leader” of China’s fashion and consumer goods industry, Shanghai has attracted the China headquarters of major global luxury goods and cosmetics groups. In recent years, Shanghai has continuously drawn leading international companies from across the industry’s upstream and downstream sectors to use Shanghai as a “bridgehead” for entering the Chinese market, stepping up their investment and deepening their localized operations. For example, IFF, the U.S.-based fragrance and flavor giant, has opened Asia’s largest innovation center in Shanghai, with an investment of nearly 100 million yuan. The presence of these international giants has not only enhanced Shanghai’s international competitiveness in the perfume industry but has also spurred the growth of local perfume brands.

### II. Vibrant Commercial Innovation

Shanghai’s continuously evolving commercial innovations have injected new vitality into fragrance consumption. For example, during the 2025 National Boutique Debut Season and the “Debut Shanghai” series of events, the 29th China Beauty Expo (CBE) specially launched the “Debut Shanghai—2025 CBE Global Beauty Festival,” which highlighted a batch of new cosmetic and fragrance products, cutting-edge technologies, and innovative projects. In collaboration with online social platforms, cross-border e-commerce channels, and duty-free stores, the event enabled “exhibition-to-sale” immediacy. This innovative business model not only accelerates the time-to-market for new fragrance products but also enhances the shopping experience for consumers.

### III. The first-launch economic policy is effective

Shanghai’s pioneering economic policies have established a “highway” connecting consumers with new fragrance products of all kinds. Thanks to policy guidance and support, Shanghai has become the preferred destination for numerous fragrance brands to launch their new products and limited-edition releases. For instance, British fragrance brand PERFUMER H and Europe’s top fragrance house BYREDO have both chosen Shanghai as the venue for their new product launches, drawing significant consumer attention and driving substantial sales.

### IV. Cultural Export and International Expansion

Shanghai is not only the core driving force behind China’s perfume market but also an important gateway for Chinese fragrance brands to go global. In recent years, Chinese perfume brands have begun to make their mark on the international stage, and Shanghai has emerged as a key base for these brands’ global expansion. For example, the Chinese perfume brand Melt Season, through its participation in the “National Trend Globalization Initiative” led by China Duty Free Group, secured sales opportunities at the duty-free shops in Narita Airport in Japan—marking the first time that a homegrown Chinese fragrance brand has entered the mainstream international duty-free system. Moreover, Shanghai has hosted international exhibitions such as the “Paris-Shanghai Perfume Fair,” providing Chinese perfume brands with platforms for showcasing their products and fostering cross-cultural exchanges, thereby promoting the global dissemination of Chinese fragrance culture.

### V. The consumer market has enormous potential

As one of China’s most economically developed cities, Shanghai boasts a large consumer base with strong purchasing power. As consumers increasingly pursue higher quality of life and seek personalized self-expression, fragrances—being an important component of fashion consumption—are seeing continuously growing demand in the Shanghai market. At the same time, Shanghai consumers demonstrate a high degree of openness toward new brands and new products, providing ample room for innovation and growth in the fragrance market.