--- title: "Northeast Securities: Emotional consumption gives rise to the olfactory economy, and Eastern fragrances reshape the market's new pattern" type: "News" locale: "en" url: "https://longbridge.com/en/news/246590040.md" description: "Northeast Securities released a research report indicating that China's perfume market is undergoing a shift from material consumption to emotional consumption, with an expected market size of 26.1 billion yuan in 2023 and a CAGR of 12.82% from 2023 to 2028. The low penetration rate of perfumes in China is a phase of economic development, and as consumer awareness increases, market share will grow rapidly. The recommended brand is Mao Ge Ping, due to its extensive channel layout and significant product differentiation advantages" datetime: "2025-06-30T03:27:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/246590040.md) - [en](https://longbridge.com/en/news/246590040.md) - [zh-HK](https://longbridge.com/zh-HK/news/246590040.md) --- # Northeast Securities: Emotional consumption gives rise to the olfactory economy, and Eastern fragrances reshape the market's new pattern According to Zhitong Finance APP, Northeast Securities released a research report stating that the Chinese consumer market is in a transition phase from material consumption to emotional consumption. Among them, perfume has a lower entry barrier and a wider range of application scenarios, becoming an important choice for contemporary consumers pursuing emotional value and self-expression. Domestic perfume brands are rapidly rising in line with the trend of national culture, with a strong recommendation for the brand Mao Ge Ping (01318), which has a deep brand heritage, extensive channel layout, and significant differentiation advantages in its perfume products. ## The main points of Northeast Securities are as follows: **Perfume Market: The scale of Chinese perfume reached 26.1 billion yuan in 2023, with an expected CAGR of 12.82% from 2023 to 2028** With the improvement of consumers' awareness and acceptance of perfume, the penetration rate and market scale of Chinese perfume are steadily increasing. In 2023, the scale of perfume in mainland China, Hong Kong, and Macau has reached 26.1 billion yuan, with a CAGR of 12.32% from 2018 to 2023, and an expected CAGR of 12.82% from 2023 to 2028. The market share of the Chinese perfume market in the global market is also rapidly increasing, accounting for 3.68% in 2023, and is expected to reach 5.67% by 2028, demonstrating strong growth momentum. **Market Trend: The low penetration rate of Chinese perfume is a phased phenomenon of economic development, expected to rise rapidly with the emergence of emotional consumption** In 2023, the per capita expenditure on perfume in China is only 16 yuan, far lower than that of the United States (423 yuan), the United Kingdom (406 yuan), South Korea (170 yuan), and Japan (47 yuan). The low penetration rate of perfume in China is not an inevitable result of cultural and religious factors, but rather a phased phenomenon caused by different stages of economic development. Although Europe and the United States have been influenced by religion and culture, leading to an early start and high acceptance of perfume, their development history also confirms the strong correlation between perfume consumption and economic level. Early European and American perfumes were only present in the upper class and for special religious purposes, gradually becoming popular after the Industrial Revolution. Asian countries like Japan and South Korea lacked early perfume education, and only completed their perfume enlightenment during the period of cultural infiltration. It was not until the rapid economic development in the mid-20th century that perfume transformed from a luxury item to a daily consumer good. Currently, China has a basic economic foundation for the prosperity of perfume, and with the increasing emphasis on emotional value, a new generation of consumers is quickly completing the transition from "material consumption" to "emotional consumption." Perfume is expected to shift towards becoming a daily consumer good as its emotional value is explored. **Competitive Landscape: Currently dominated by international brands, Eastern fragrances are actively breaking through** The main participants in the Chinese market are currently Western brands such as Chanel and Dior, which were the first to enter the Chinese market and have occupied consumer minds through long-term marketing. Domestic brands like "Guanxia" and "Wenxian" are breaking the monopoly of Western perfumes through localized fragrance notes and elements, fully integrating Eastern culture with modern design, not only catering to the current trend of national culture but also forming differentiation with international brands, thereby gaining consumer recognition. **Mao Ge Ping: Extending its layout in perfume, differentiation advantages empower category growth** Mao Ge Ping will launch its regular series of perfumes on May 8, 2025, and its differentiation advantages are expected to gradually drive the growth of the category. 1) Positioning: Precisely targeting the blank price range of 300-500 yuan/30ml, positioned higher than traditional domestic products, and offering better cost performance than international brands, primarily targeting the middle class and above, aligning with Mao Ge Ping's existing customer base 2) Fragrance Type: Layout of 13 types of eau de parfum to create a complete fragrance matrix, meeting consumers' needs for fragrance enhancement in multiple scenarios. 3) Brand: Endorsed as "Master of Eastern Makeup," with a recognition stronger than most domestic brands; the fragrance types, designs, and product stories contain elements of Eastern culture that align with the national trend, providing a higher cultural identity compared to international brands. 4) Channels: Perfume acts on the sense of smell, and consumers mainly purchase after trying it offline; Mao Ge Ping has a wide online and offline sales network, providing customers with a one-stop consumption scenario of experience + purchase. **Risk Warning:** Consumption may fall short of expectations; counter layout may not meet expectations; new products may underperform; performance forecasts and valuation judgments may not meet expectations ### Related Stocks - [000686.CN](https://longbridge.com/en/quote/000686.CN.md) - [OCG.US](https://longbridge.com/en/quote/OCG.US.md) ## Related News & Research - [Antwerp diamond sector rejects link between Trump ring and tariff exemption](https://longbridge.com/en/news/295787581.md) - [Yemen's Houthis say they attacked Saudi Aramco refinery in Jazan with two drones](https://longbridge.com/en/news/295819770.md) - [Iran has not decided to resume US talks, says Hormuz shipping depends on US meeting conditions](https://longbridge.com/en/news/295990220.md) - [Iran says Strait of Hormuz is under its control, Fars news reports](https://longbridge.com/en/news/295756738.md) - [WeChat AI Team Details WeLM Models Scaling to 617B Parameters](https://longbridge.com/en/news/295746632.md)