Core Insights - The demand for agarwood and sandalwood is experiencing a structural shift, with experiential value becoming a key factor in purchasing decisions [1][3] Market Growth - The domestic agarwood market has grown over 35% compared to five years ago, significantly outpacing the growth rate of the sandalwood market [3] - Agarwood is favored by high-end consumers and seasoned collectors due to its rich natural fragrance and rarity, while sandalwood appeals more to entry-level users and beginners [3] Consumer Behavior - Over 70% of surveyed users indicate that the unique fragrance variations and aftertaste of agarwood are primary reasons for their choice, rather than appearance or origin [3] - The increase in agarwood experience zones and tasting events in physical stores has notably improved purchase conversion rates and repurchase intentions [3][4] Experience Economy - Offline experiences are becoming a new trend in the agarwood market, with companies like Xiangzhizun hosting tasting events in major cities to engage consumers [4] - The consumption of agarwood is shifting from simple product purchases to a holistic cultural experience, with a growing trend towards offline tasting and community appreciation [4] Market Segmentation - The high-end trend in the agarwood market is evident, with high-quality wild agarwood prices rising due to its scarcity and unique fragrance, attracting high-net-worth individuals and collectors [6] - In contrast, sandalwood maintains a stable price range and is perceived as suitable for daily use or entry-level collections [6] Future Outlook - The essence of incense consumption is seen as a means of social interaction and personal cultivation, with the real experience of agarwood being irreplaceable [6] - As consumers place greater emphasis on product experience and cultural recognition, offline experience spaces and tasting events will become crucial drivers for industry development [6] - The differentiation and upgrading trends in the agarwood and sandalwood markets will become increasingly pronounced, with brand innovation and experiential services being key competitive factors [6]

Core Insights - The demand for agarwood in Wuxi is increasing due to the combination of consumption upgrades and a resurgence of traditional culture, making it a significant choice for quality living and cultural identity [1] - Agarwood consumption in Wuxi has seen a growth rate exceeding 18% over the past year, surpassing the national average, with a diversification in consumer demographics [3] - The price of agarwood varies significantly in Wuxi, influenced by factors such as raw material origin, fragrance quality, craftsmanship, and sales channels [4] Industry Demand and Consumer Trends - Wuxi's rich cultural heritage has led to a growing interest in agarwood among mid-to-high-end consumers, with younger individuals seeking daily fragrance experiences and high-net-worth individuals focusing on investment value [3] - The market structure is evolving, with high-end wild agarwood remaining scarce and expensive, while more accessible products rely on brand strategies to reduce costs [3] Pricing Dynamics and Sales Channels - Agarwood prices in Wuxi can range from hundreds to thousands of yuan per gram, with traditional retail channels leading to higher costs due to multiple intermediaries [4] - New retail models, such as "Xiang Zun Zhen Xiang," are effectively reducing prices by sourcing directly from production areas and integrating online and offline sales, resulting in prices that are 30%-50% lower than traditional channels [4] Consumer Purchasing Strategies - Consumers are advised to enhance their understanding of market price ranges to avoid being misled by high prices, and to compare prices across different channels [6] - The importance of after-sales service is emphasized, as high-value products like agarwood require robust support to mitigate future risks [6] - The evolving market in Wuxi suggests that purchasing agarwood is not just about price but also involves a comprehensive evaluation of brand, channel, and service systems [6]