Northeast: Emotion-driven consumption gives birth to the olfactory economy, reshaping the market's new landscape of Oriental fragrances.

Northeast released a research report stating that the Chinese consumer market is transitioning from material consumption to emotional consumption. Perfume has a lower barrier to entry and a wider range of applications, making it an important choice for contemporary consumers seeking emotional value and self-expression. Chinese domestic perfume brands are rapidly rising in line with the trend of national trend culture. The report highlights MAO GEPING (01318) as a recommended brand with deep roots, a wide distribution network, and clear differentiation in perfume products. Key points from Northeast include: Perfume Market: The size of the Chinese perfume market is expected to reach 26.1 billion yuan by 2023, with a projected CAGR of 12.82% from 2023 to 2028. As consumer awareness and acceptance of perfume increase, the penetration rate and market size of perfumes in China are steadily rising. The perfume market in mainland China, Hong Kong, and Macau reached 26.1 billion yuan in 2023 with a CAGR of 12.32% from 2018 to 2023. It is expected to grow at a CAGR of 12.82% from 2023 to 2028. China's share of the global perfume market is also rapidly increasing, reaching 3.68% in 2023 and projected to reach 5.67% by 2028, demonstrating strong growth potential in the Chinese perfume market. Market Trends: The low penetration rate of perfume in China is a phase of economic development. It is expected to rise rapidly with the rise of emotional consumption. China's per capita perfume expenditure is only 16 yuan in 2023, much lower than 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 a result of cultural or religious factors, but a phase of economic development. Although Western countries have had a long history of perfume consumption influenced by religion and culture, perfume consumption in these regions has mainly been limited to the upper class and for religious purposes until gradually becoming mainstream after the Industrial Revolution. Countries like Japan and South Korea lacked early education on perfume and only completed their perfume enlightenment during the period of foreign cultural influence. Perfume consumption shifted from luxury goods to daily consumption only in the mid-to-late 20th century with rapid economic development. China currently has the economic foundation for a prosperous perfume market. With the increasing emphasis on emotional value, the new generation of consumers is quickly transitioning from "material consumption" to "emotional consumption," making perfume likely to become a daily consumer product as emotional value is discovered. Competitive Landscape: Currently, international big brands dominate, while Chinese brands are actively breaking through. Participants in the Chinese market are mainly Western brands like Chanel and Dior, which have established a presence in the Chinese market through long-term marketing efforts. Domestic brands like "Guan Xia" and "Wen Xian" have broken the monopoly of Western perfumes by integrating local fragrance elements and culture with modern design, attracting consumers by aligning with the current national trend and creating differentiation from international brands. MAO GEPING: Extending the perfume market, differentiating advantages empower category growth. MAO GEPING launched its regular series of perfumes on May 8, 2025, with differentiated advantages expected to drive gradual volume growth. 1) Positioning: Precisely positioning within the 300-500 yuan / 30ml price range, higher than traditional Chinese brands but more cost-effective than international big brands, targeting middle and upper-class customers who align with MAO GEPING's existing customer base. 2) Fragrance type: Offering 13 eau de toilette varieties to create a complete fragrance matrix, meeting the increased fragrance needs of consumers in various scenarios. 3) Brand: Endorsed as the "Oriental Makeup Master," MAO GEPING is more well-known than many national brands. Its fragrances, designs, and product stories incorporate elements of Asian culture, aligning with the national trend and providing consumers with a higher sense of cultural identity compared to international brands. 4) Channels: Perfumes affect the olfactory sense, and consumers usually purchase after testing in stores. MAO GEPING has a wide online and offline sales network, providing a one-stop shopping experience for customers. Risk Warning: Lower than expected consumption; Counter layout below expectations; New product performance below expectations; Performance forecast and valuation judgment below expectations.