“China with a population of 1.4 billion, Givaudan has not yet enabled more consumers in China to use products like perfume, which means we have more and more opportunities. With the development of the market and the advancement of urbanization, we believe that product circulation will become more and more convenient, and consumers will have more habits of using this wonderful product, perfume.”Gilles Andrier, CEO of Givaudan, said
Recently, in the vibrant and multicultural city of Shanghai, Givaudan’s new perfume creative center “L’Appartement 125” was officially unveiled. This perfume innovation base is not only an important step in Givaudan’s global strategic layout, but also a witness to its deep cultivation of the Chinese market and the promotion of co-creation with local brands.
With the completion of the project, it also signifies that Givaudan will seamlessly integrate tradition and modernity, technology and art, and open a new chapter in providing more innovative and differentiated perfume solutions for Chinese customers.
The New Creative Center Settles in “L’Appartement 125”
The new creative center “L’Appartement 125” lands in Shanghai, a city that retains historical charm while leading modern trends. The globally renowned perfume giant Givaudan has chosen to establish an advanced perfume creative center in the city center – “L’Appartement 125.” It is understood that L’Appartement 125 is located in the bustling commercial area of the former French Concession in Shanghai, meticulously crafted by the renowned Chinese designer Ma Wen. Whether in the selection of natural materials or the tech-savvy layout, every detail seems to speak of the infinite possibilities of the world of perfumes.
At the opening ceremony, Gilles Andrier stated, “Since entering the Chinese market in 1988, Givaudan has witnessed remarkable growth and transformation. China is not only a key market for us but also an important source of inspiration and innovation. The profound and unique culture of China and the ever-changing consumer preferences inspire us to create fragrances that deeply resonate with Chinese consumers. Through L’Appartement 125, we will unlock more growth potential in the field of perfumes.”
Stepping into L’Appartement 125, one is greeted with a unique blend of traditional Chinese aesthetics and modernity. Features such as fragrance interactive installations on the walls, well-equipped laboratories, and subtly arranged sensory gardens allow customers to engage with fragrances in an innovative way, making the entire creative process both enjoyable and educational. It can be said that the unique and forward-thinking design combines Western perfumery expertise with Eastern delicate emotions, sparking immersive olfactory imagination.
Xavier Renard, President of Givaudan’s Fragrances and Beauty Department, mentioned at the opening ceremony, “The design of L’Appartement 125 embodies the essence that Givaudan follows – an intangible dialogue between modernity and tradition. This creative center demonstrates our commitment to innovation and collaboration, where our perfumers and clients can together create perfumes that tell unique stories. A perfume team led by the talented perfumer Jasmine Liu will be based in Shanghai, maintaining close collaboration with our global perfume team. We believe that these collaborations will inspire new creativity and concepts, driving continuous progress in perfume creativity and success stories.”
As part of the Givaudan 2025 strategy, L’Appartement 125 aims to become a leader in the high-end perfume market segment in China. This creative center will not only serve Chinese brands but also attract other clients by sharing in-depth insights into the latest trends in the Chinese market, including the growth of personalized and premium perfume demands. Li Yaling, President of Givaudan Fragrances and Beauty Department for Greater China and Korea, stated, “With the unveiling of L’Appartement 125, we are pleased to offer a comprehensive end-to-end fragrance creation solution to meet the evolving needs of Chinese consumers.”
Furthermore, through workshops, training courses, and perfume exhibitions, L’Appartement 125 will further solidify Givaudan’s leading position in the perfume industry. By interacting with local talents and driving innovation, Givaudan will also create a vibrant community of perfume creators. L’Appartement 125 is not only an important milestone in Givaudan’s development journey but also an innovative commitment to creating fragrances beloved by Chinese consumers.
In the first few months of this year, the revenue from fragrances and beauty reached over $30 billion.
Public records show that Givaudan is a globally renowned enterprise in the fragrance and beauty, flavor, and health industries, with its headquarters in Geneva, Switzerland. Its heritage in fragrance creation spans over 250 years. By the end of the 2023 fiscal year, Givaudan had 16,260 employees globally and achieved sales of 6.9 billion Swiss francs. According to Givaudan’s latest financial report, during the period from January to September 2024, the company’s sales reached 5.644 billion Swiss francs, a 13% year-on-year increase. When calculated in Swiss francs, this year-on-year growth also reached 7.2%.
In terms of business divisions, Givaudan mainly operates in two major sectors: Fragrances and Beauty, and Flavors and Health. In the first three quarters of 2024, the Fragrances and Beauty division stood out with sales of 2.782 billion Swiss francs, a notable 15.6% year-on-year increase. Moreover, the subunits within this business also showed double-digit growth. Perfume sales increased by 17.8% year-on-year, daily use products by 15.9%, and sales of fragrance ingredients and active beauty products by 10.8%.
“Over the past four years, our Fragrances and Beauty sector has consistently achieved double-digit growth, indicating the resilience and fortune of this industry,” said Gilles Andrier. “You may recall that the perfume market experienced a slight downturn in 2020. However, starting in 2021, we witnessed the ‘lipstick effect’ as consumers, affected by the pandemic-induced mood swings, sought mood-enhancing products. Consequently, the perfume market quickly rebounded and has maintained strong growth over the past three years.”
Gilles Andrier believes one of the key reasons for the resurgence of the perfume market is the increasing maturity of consumer habits in using perfumes in markets such as the Middle East, Latin America, Asia Pacific, and China. “Post-pandemic, we observed China emerging as a center for leading global innovation trends, with consumers increasingly embracing perfume products. In China, not only are young consumers actively embracing perfume products, but the rapid development of e-commerce channels has also played a significant role in promoting this category,” stated Gilles Andrier.
According to the financial report for the third quarter of 2024, Givaudan achieved commendable results in markets worldwide. Sales in Europe increased by 6.3% year-on-year, while South Asia, Africa, and the Middle East saw a 17.9% year-on-year growth in sales. Although North America had a modest 5.1% year-on-year sales increase, Latin America experienced a remarkable 28.9% growth. Furthermore, the Asia Pacific region, including the Chinese market, achieved a 10.1% sales increase year-on-year. It is evident that the Chinese market holds significant importance for Givaudan.
Givaudan currently operates three fragrance/innovation centers, four production facilities, and branch offices in five cities in China, serving a wide range of customers in North, East, Central, and South China. Presently, Givaudan has around 1,100 employees in China. It is clear that the Chinese market is not merely a sales market for Givaudan but also a strategic stronghold full of innovation and growth potential.
Givaudan will collaborate more closely with local brands
According to CHAILEEDO data, the global fragrance market is currently growing at an average compound rate of 7%, while the annual compound growth rate of the fragrance market in China is expected to reach as high as 22.5% between 2021 and 2025, far exceeding the global average growth rate of 7%. According to Euromonitor International data, the compound annual growth rate of the perfume market in China is expected to reach 14.73% between 2023 and 2027, and is expected to surpass 37.1 billion RMB by 2027. This means that whether in fragrances or perfumes, the Chinese market is full of opportunities.
Based on forward-looking insights, the creative center “L’Appartement 125” will serve as a transformative “bridge.” Through “L’Appartement 125,” Givaudan will be able to collaborate more closely with Chinese local brands, fully understand the needs of Chinese consumers, and create perfumes that resonate with the Chinese market. Correspondingly, perfumers play an indispensable role in creating excellent perfume products. It is understood that Givaudan has creative centers in key regions such as Paris, New York, Singapore, and Shanghai, as well as fragrance schools in Paris and Singapore that continuously cultivate perfumery talents, with an international team of 40 perfumers from around the world.
Despite being distributed around the world, through close international collaboration and an open communication mechanism, the Givaudan perfumer team can ensure the diversity and innovation of their product formulations while understanding global and local market demands. Although she works in Paris year-round, in the eyes of Givaudan’s Senior Perfumer Shyamala Maisondieu, the culture and personality presented by the Chinese perfume market are very modern.
“In China, I have come across many excellent niche perfume brands. Over the past few years, I have interacted a lot with Chinese brands, and their tone and aesthetic vision are very high and forward-looking,” Shyamala Maisondieu said. As a perfumer, one must fully understand the emotions and lives of Chinese consumers and the environment they are in, and then formulate fragrances based on these elements. In her view, “musk and woody scents are new trends that Chinese consumers prefer.”
For the Chinese market, Givaudan has a dedicated perfume perfumer, Jasmine Liu, who will also work at the creative center “L’Appartement 125.” According to Jasmine Liu, Givaudan’s main perfume clients in Paris are major conglomerates such as L’Oréal and LVMH, while in the United States, it is mainly Estée Lauder, and in China, it primarily serves niche and high-end perfume brands, such as Salon H. “Chinese consumers have very different preferences for fragrances, seeking more personalized and diverse expressions, with a high demand for originality in scents,” Jasmine Liu believes. Creating fragrances for local Chinese brands requires more creativity and injecting sincere elements while considering fewer overly commercial factors.
“In the past, Chinese consumers may have used perfume more to showcase their status. Nowadays, especially young Chinese consumers, the use of perfume is more about emotional value, emphasizing self-pleasure in expression, leading to a greater demand for niche perfumes. In terms of specific fragrance expressions, unlike traditional floral and fruity scents in the past, woodsy and musky scents now have very loyal consumer groups in China,” Jasmine Liu stated.
Digital strategy closer to the Chinese market
“Over the past four years, China has seen a surge of excellent perfume brands that no longer follow or imitate the styles of foreign mainstream brands, daring to express their own brand personalities,” Xavier Renard also stated, “The Chinese market is undergoing a huge transformation right now. The younger generation no longer uses perfume for others but for self-pleasure and self-expression. Therefore, we are willing to work with local enterprises to develop resources in the opportunity-rich Chinese market.”
It is worth mentioning that in its “2025 Strategy,” Givaudan emphasizes, “Leveraging mature market opportunities to expand its leadership position in high-growth markets, especially in the Chinese market.” As a result, Givaudan has been making frequent moves in the Chinese market in recent years. For example, on October 15, 2020, Givaudan opened a daily fragrance factory in Changzhou, China; on June 3, 2021, Givaudan formed an industry-first partnership with Tmall, a subsidiary of Alibaba Group, to establish the T-Lab Origin Innovation Laboratory, seizing digital opportunities in the Chinese fragrance creation field; in the same year in July, Givaudan opened a B2B flagship store on 1688 to strengthen its e-commerce business development in China, and in the same month, Givaudan also participated in the Series A funding of domestic incubator company Next Beauty to further strengthen its localization in China.
In addition, digital transformation is a key strategy for Givaudan aimed at enhancing the efficiency and precision of perfume creation, while also improving market adaptability and consumer experience. In 2021, Givaudan established a “Digital Space” in Zhangjiang, Shanghai. This is Givaudan’s second global digital innovation center after the digital factory in Paris, supporting business activities in the fragrance and beauty as well as flavor and health departments.
In August 2024, Givaudan launched a one-stop service platform called “Xiao Xiang Nang” tailored for the Chinese market, covering fragrance selection, customized fragrances, flexible ordering, and fast delivery services. Through the “Xiao Xiang Nang” WeChat mini-program, customers can easily purchase fragrances, customize fragrances, and learn about fragrances. Givaudan stated that the purpose of launching this service platform is to “get closer to the Chinese market.”
Furthermore, Givaudan has introduced an AI-driven tool called Carto, which serves perfumers by using science and technology to explore new olfactory frontiers through advanced algorithm analysis. Carto also enables customers to have face-to-face discussions with perfumers in the same space, achieve multiple iterations in a 30-minute workshop, and use micro-sampling robots for instant sampling and prototyping, thus bringing any perfumer’s creation to life.
Building on powerful AI capabilities and data from over 25,000 consumer insights, Givaudan has developed an AI-driven predictive tool called Myrissi™. Developed over a decade and combining Givaudan’s 35 years of expertise in neuroscience, particularly focusing on the role of color in shaping the brain’s perception of fragrances, this cutting-edge tool not only helps Givaudan’s clients with strategic insights but also optimizes the creative and product development processes.
Only by getting closer to local Chinese demands can better consumer solutions be found. Over the past 36 years of entering the Chinese market, by deeply understanding the local market’s culture and consumer preferences, Givaudan has been able to provide fragrances and beauty products that meet China’s unique needs, thereby driving progress and development in the entire industry. With the opening of the “L’Appartement 125” creative center, Givaudan is setting a new benchmark for perfume innovation in China.
