Group 1 - The endorsement marketing market is experiencing a structural adjustment and emotional marketing, with a 5.4% year-on-year increase in the number of endorsers from January to May 2025 [1][18] - The beauty and skincare industry leads with a 35% increase in the number of endorsers, while the commercial/service industry sees a 38.5% growth, marking it as the fastest-growing sector [1][18] - Top entertainers like Xiao Zhan, Bai Lu, and Di Li Re Ba maintain high commercial value due to popular works, while emerging actors like Zhai Xiao Wen see significant value increases from trending series [1][11] Group 2 - The proportion of mid and lower-tier endorsers has increased by 8 percentage points, with B and C category stars primarily being film and television actors, making up 58% of endorsements [2][34] - Brands are increasingly building "endorser matrices," with platforms like Taobao and Tmall adding over 10 endorsers, and short drama actors gaining traction through flexible short-term collaborations [2][38] - Emotional marketing is driving brands to focus on precise emotional engagement, with campaigns like Atour Planet's collaboration with Niao Niao resonating with "low-energy" consumers [2][18] Group 3 - The endorsement market continues to recover, with a 5.4% increase in the number of endorsers and a 1.4% increase in brand endorsements from January to May 2025 [18] - The entertainment sector, particularly film actors, musicians, and idol artists, sees the highest growth in new endorsements and brand collaborations [19][34] - The number of endorsements for top sports stars has doubled, despite a 31% decline in overall endorsements in non-Olympic years, indicating a concentration of value among leading athletes [25][26] Group 4 - The trend of brands pursuing popular stars during the airing of their works has led to a noticeable increase in new business collaborations [20] - The endorsement landscape is shifting towards short-term collaborations with mid-tier stars, as brands focus on cost efficiency [24][34] - The rise of short drama actors as a new force in endorsements is evident, with over 15 brands collaborating with them in early 2025 [38][39]

Core Insights - The high-end beauty market in China has seen a decline of over 20 billion in the past four years, while the perfume segment is emerging as a growth area for major beauty brands [3][22] - Perfume possesses a unique dual identity as both a luxury and emotional product, allowing it to maintain resilience during economic fluctuations [3][6] - The compound annual growth rate (CAGR) for the perfume industry from 2018 to 2023 is 15%, with a slight expected decline to 14% in 2024, still outperforming other beauty categories [3][6] Market Dynamics - Despite the optimistic outlook for the perfume market, the penetration rate remains low, indicating significant untapped demand among Chinese consumers for high-quality and emotionally resonant fragrances [6][10] - The shift in consumer perception is moving from "logo worship" to "cultural resonance," where the narrative behind a fragrance plays a crucial role in its appeal [6][10] - The market is characterized by a growing number of "fragrance novices," presenting a vital opportunity for brands to introduce quality products and engage consumers [6][10] Brand Strategy - The company aims to introduce high-quality brands and products that cater to the Chinese market, focusing on balancing brand culture, aesthetics, and product quality [8][12] - The membership system is crucial, with 80% of members being women aged 20-40, who are not only consumers but also influencers of "olfactory experiences" [10][12] - The company has established a diverse brand matrix, including both high-end and mass-market fragrances, to cater to various consumer segments [18][19] Competitive Landscape - The company is the largest perfume brand management firm in mainland China, Hong Kong, and Macau, but faces challenges from international brands seeking to gain market share [13][22] - There is a need for "super localization" in marketing strategies, as international brands often underestimate the unique demands of the Chinese market [13][16] - The company has successfully executed localized marketing campaigns, such as the immersive pop-up store for the French brand Parfums de Marly, showcasing its ability to adapt international brands to local tastes [14][16] Operational Excellence - The company has built a robust operational foundation over nearly four decades, managing over 60 external brands and covering 400 cities in China [18][19] - The focus on a multi-channel strategy has allowed the company to remain resilient during market disruptions, leveraging e-commerce and retail partnerships [17][19] - The introduction of the "PERFUME BOX" retail concept aims to enhance consumer experience by offering a curated selection of fragrances, further solidifying the company's market position [19][22] Long-term Vision - The company emphasizes a long-term perspective, focusing on sustainable brand development rather than short-term sales growth [23][24] - Continuous investment in consumer insights and brand management has created a competitive edge, allowing the company to navigate market fluctuations effectively [23][24] - The commitment to both localization and internationalization positions the company as a leader in the evolving Chinese perfume market, fostering a unique blend of cultural and commercial success [25][26]