Core Insights - The report highlights the resilience and growth potential of China's perfume and fragrance industry, driven by policy stimulation and internal growth, with significant opportunities emerging in lower-tier cities [10][12][13]. Group 1: Market Overview - The Chinese fragrance market is experiencing a transformation from transactional purchasing to value resonance consumption, emphasizing emotional value and cultural identity [10][23]. - Lower-tier cities are becoming new growth engines, showing higher consumption expenditure growth compared to first-tier cities, indicating a shift in consumer behavior and expectations [10][29]. - The market is characterized by a dual trend of international brands localizing and Chinese brands globalizing, with both adapting to local tastes and cultural narratives [10][31]. Group 2: Consumer Behavior - There is an expansion of interest groups, with over 170 million users on platforms like Xiaohongshu showing interest in fragrances, and more than 40% of consumers selecting scents based on specific scenarios [2][3]. - Male consumers and young consumers in lower-tier cities represent a significant growth opportunity, with male consumption rising to 40.1% [2][3]. - Consumers are increasingly aware of the emotional and cultural significance of fragrances, moving from brand origin recognition to psychological needs [2][3]. Group 3: Product and Channel Dynamics - The product landscape is shifting from single sensory consumption to multi-scenario and emotional expression, with the rise of "addictive scent notes" and the integration of AI in product development [2][3]. - Online and offline channels are coexisting dynamically, with online platforms focusing on content dissemination and conversion, while offline channels serve as core high-end consumption spaces [2][3]. - Different cities require differentiated channel strategies, with international brands focusing on first-tier offline markets and Chinese brands penetrating lower-tier markets through beauty collection stores [2][3]. Group 4: Marketing Trends - Oriental aesthetic marketing is evolving from symbolic representation to value co-creation, with both international and domestic brands deeply exploring Eastern culture [2][3]. - Scenario marketing is focusing on emotional contexts, creating "parallel life scenarios" to enhance consumer engagement [2][3]. - Brands are leveraging IP collaborations to break through traffic challenges and create cultural antibodies, while offline spaces are being upgraded to serve as emotional interaction and cultural dissemination mediums [2][3]. Group 5: Future Outlook - The industry needs to evolve collaboratively in human value, cultural connotation, technological empowerment, and scenario penetration to achieve sustainable growth [2][3]. - The Chinese fragrance market is projected to exceed 33.9 billion yuan by 2028, with a compound annual growth rate of 8% [2][48].