Puig invests in Chinese fragrance brand Scent Library
Catalan luxury group Puig has recently acquired a stake in Chinese fragrance brand Scent Library. The financial details of the operation have not been disclosed, but the deal is proof of the appetite that leading beauty groups have developed for the highly promising Chinese perfume market.
“The partnership with Scent Library is a very attractive opportunity to take part in the development of the Chinese perfume market alongside a China-based company and its local staff,” said Marc Puig, CEO of Puig.
Scent Library was founded in Beijing by Roseline Lou and John Han in 2009. It operates 80 highly experiential stores in China, and sells personal and home fragrances as well as body care products inspired by traditional Chinese medicine, with a modern twist. Thanks to Puig's investment, Scent Library, which in 2017 launched L.B.K. Water, a perfume that sold 400,000 units in one month and 1 million in a year, will boost and optimise its product development capabilities, and develop a global supply chain.
Compared to the skincare and make-up sectors, the fragrance market in China is still in its infancy, largely driven by Millennials. According to iResearch, China currently accounts for only 2.5% of the global fragrance market. However, the Chinese fragrance market has been growing at an annual average rate of over 25% since 2017. By 2030, China is expected to become the world’s second-largest market for perfumery.
Puig, whose sales fell by 24% in 2020, down to €1.537 billion, owing to the Covid-19 crisis, notably features in its portfolio perfume brands like Jean Paul Gaultier, Penhaligon’s and L’Artisan Parfumeur.
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