Yesterday, Eternal Beauty Holdings Limited (hereinafter referred to as “Eternal Group”) was successfully listed on the Hong Kong Stock Exchange under the stock code 06883.HK. As of press time, Eternal Group was trading at HK$2.58 per share (approximately RMB 2.36 per share), with a total market capitalization of HK$3.44 billion (approximately RMB 3.146 billion).
Poised to Enter the Top 10 Chinese Domestic Beauty Brands
Public information shows that Eternal Group was founded in Hong Kong in 1980 and is a perfume operator with over 30 years of history. According to its prospectus, as of March 31, 2025, Eternal Group had partnerships with 72 external brands, including well-known names such as Hermès, Van Cleef & Arpels, Coach, Albion, and Dolce & Gabbana.
From a financial perspective, in the fiscal years ending March 31 of 2023, 2024, and 2025, Eternal Group generated revenue of RMB 1.699 billion, RMB 1.864 billion, and RMB 2.083 billion, respectively. Net profits over the same periods were approximately RMB 173 million, RMB 206 million, and RMB 227 million. These solid financial results undoubtedly laid a strong foundation for its successful IPO.
Notably, according to CHAILEEDO’s 2024 ranking of the Top 10 Listed Chinese Beauty Companies, the company ranked tenth posted revenue of RMB 2.569 billion. Eternal Group trails by just RMB 486 million. In other words, if the company can sustain its growth, it is well-positioned to break into the top ten Chinese domestic beauty companies.
When it comes to product categories, perfume has long been Eternal Group’s core business and primary revenue source. The prospectus states that as of March 31, 2025, the company had launched perfumes for 52 external brands.
In the fiscal years ending March 31 of 2023, 2024, and 2025, perfume revenue amounted to RMB 1.504 billion, RMB 1.524 billion, and RMB 1.688 billion, accounting for 89.3%, 88.5%, and 81.7% of total revenue, respectively.
In terms of sales volume, Eternal Group sold 6.5 million, 6.7 million, and 7.2 million units of perfume in the same three fiscal years. The increase in sales volume, compared to previous years, was mainly driven by a rise in offline channel purchase orders.
According to the prospectus, based on 2023 retail sales, Eternal Group is the largest perfume brand management company in China (including Hong Kong and Macau). It also ranks as the fourth-largest perfume group in China, with the top three all being French companies.
Beyond perfumes, Eternal Group has gradually expanded into skincare and color cosmetics in recent years.
Financial data shows that color cosmetics have been the fastest-growing category for the company in the past two years, with revenue increasing from RMB 67.93 million in 2023 to RMB 226 million in 2025. Its share of total revenue also rose from 4% in 2023 to 10.9% in 2025. Meanwhile, skincare’s contribution steadily climbed from 5.1% in 2023 to 6.1% in 2024 and 7.3% in 2025.
It is also worth noting that in addition to managing external brands, Eternal Group owns its own brand, Santa Monica, which primarily sells perfumes and eyewear. In 2025, the brand launched two new perfumes. The prospectus also reveals plans to develop home fragrance products under the Santa Monica brand and to launch additional proprietary brands, including one for skincare, in the near future.
Over 8,000 Offline Sales Points
According to its prospectus, Eternal Group operates a comprehensive omnichannel sales and distribution network that includes online platforms—such as social media and e-commerce—as well as offline sales channels, such as shopping malls, department stores, travel retail outlets, and chain cosmetics stores. These channels are either directly operated by Eternal Group or managed by its retail and distribution partners.
For the fiscal year ending March 31, 2025, Eternal Group generated annual revenue of RMB 1.013 billion from retail channels, RMB 633 million from distribution channels, and RMB 431 million from direct sales channels, accounting for 48.6%, 30.4%, and 20.7% of total revenue, respectively.
Retail channels represent the largest portion of Eternal Group’s revenue. Over the past three years, retail channel revenue has steadily increased—from RMB 761 million in 2023, to RMB 845 million in 2024, and to RMB 1.013 billion in 2025—contributing 44.8%, 45.3%, and 48.6% of total revenue, respectively.
This steady growth in the retail segment is closely tied to Eternal Group’s extensive offline presence. As of March 31, 2025, Eternal Group’s products were available in more than 400 cities across China (including Hong Kong and Macau), through over 100 self-operated offline POS (points of sale/retail points) and more than 8,000 POS operated by retail partners.
In a previous interview with CHAILEEDO, Eternal Group CEO Lin Jing remarked, “The offline retail partner channel helps Eternal further drive perfume demand and experience into lower-tier cities—Tier 3, 4, 5 and beyond—which is key to improving our market penetration in China.”
In addition, according to data from Frost & Sullivan, Eternal Group has established a strong presence across virtually all major online platforms in China, including Tmall, JD.com, Douyin, Kuaishou, and Xiaohongshu. The company has also created its own retail brand “Perfume Box”, forming a full-fledged omnichannel retail ecosystem.
Currently, Eternal Group operates five Shifen Qi He physical stores in cities such as Shanghai, Kunming, Shenzhen, and Foshan, along with four online storefronts on platforms like Tmall, WeChat Mall, and Xiaohongshu. These outlets collectively offer over 2,000 fragrance SKUs from 55 brands.
According to the prospectus, for the fiscal years ending March 31 of 2023, 2024, and 2025, offline Shifen Qi He stores generated revenue of RMB 1 million, RMB 2.3 million, and RMB 2.2 million, with gross margins of 66.1%, 71.7%, and 75.7%, respectively. During the same period, online stores generated revenue of RMB 16 million, RMB 15.2 million, and RMB 11.5 million, with gross margins of 59.2%, 57.9%, and 70.8%, respectively.
Eternal Group stated, “A portion of the funds raised from this IPO will be used to develop and expand our self-operated retail channels, including scaling both online and offline Perfume Box stores and other self-operated outlets and counters.” This strategy is expected to further accelerate the implementation of Eternal Group’s omnichannel retail approach and drive sustained business growth.
China’s Fragrance Market Still Holds Untapped Potential
According to Euromonitor projections, the global fragrance market is expected to exceed USD 79.296 billion by 2027. Between 2023 and 2027, China’s perfume market is forecast to grow at a compound annual growth rate (CAGR) of 14.73%, reaching RMB 37 billion by 2027.
In addition, data from iiMedia Research shows that while the perfume market penetration rate in the U.S. and Europe stands at 50% and 42% respectively, China’s penetration rate remains at just 5%. This suggests that the Chinese fragrance market still has vast room for development and untapped potential.
A look at top-selling fragrance rankings on major e-commerce platforms such as Tmall and JD.com reveals a strong dominance of international brands. Products from YSL, Dior, Chanel, and Jo Malone frequently occupy the top spots. YSL’s Libre, for example, held the No. 1 position on Tmall’s fragrance bestseller list for three consecutive weeks, with Jo Malone and Chanel consistently ranking in the top three as well—highlighting the strong foothold foreign brands maintain in the Chinese market.
However, on Douyin (TikTok China), although foreign brands still account for a significant share, Chinese domestic brands such as Buding Suo, Furori, and Gugou have emerged as strong contenders. Notably, Buding Suo and Furori have each surpassed RMB 100 million in GMV (with “100 million+” being the platform’s highest visible metric), making them the only two Chinese domestic fragrance brands to achieve this milestone on the platform.
CHAILEEDO also observed a rising trend among fragrance brands expanding into offline retail. Many are opening their first physical stores in Shanghai—a testament to the city’s strategic importance. For instance, in late May, AMOUAGE opened its first flagship store in Asia Pacific at Zhangyuan, Shanghai. In April, Perfumer H launched its first mainland China store in Jing’an, and earlier in January, The Beast opened its first Chinese perfume workshop store in Xintiandi. These moves illustrate growing interest from international brands in China’s fragrance market, further underscoring its growth potential.
A seasoned fragrance critic told CHAILEEDO, “China’s fragrance market has long been dominated by foreign brands, but Chinese domestic players like To Summer and DOCUMENTS have started to break through. More local brands are now entering the fragrance sector, but the road ahead remains long for Chinese domestic perfumes.”
Eternal Group CEO Lin Jing also told CHAILEEDO earlier this year that perfume is a market that requires education—and educating the market will take a long time, possibly 10 to 20 years. “But as the younger generation of consumers matures, the breadth and depth of demand for fragrances in China will inevitably expand. The Chinese fragrance market is now entering a new phase of structural growth, and we are confident in its long-term potential.”
