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Feb 14, 2023
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Puig launches 'Scent Visualizer' tool on Tmall to seduce Chinese consumers

Translated by
Feb 14, 2023

Puig is strengthening its presence in China. After the pandemic hit, which affected operations in the market for the last few years, the fashion, cosmetics and perfumery company is now taking a step forward in the market. This latest initiative involves the launch of the Spanish group's latest digital technology on the Alibaba-owned e-commerce platform Tmall. Dubbed the 'Scent Visualizer', the tool allows users to "picture, literally, how the perfume smells."

Puig teams up with Tmall - Puig

The growth potential of this initiative is huge. As detailed by Puig and Tmall in a joint statement issued on Tuesday February 14, the Chinese fragrance market maintained a compound annual growth rate of nearly 15% between 2015 and 2020. Over the next five years, this increase is expected to surpass 22%, a percentage three times the rate of the global fragrance market, according to the study 'Kantar & Eternal Fragrance Report 2021'.

With China as a practically unexplored region in the fragrance field, Puig has made it one of its main target markets. The company specifically intends to focus on niche fragrances. According to the aforementioned analysis, only 5% of the Chinese population currently uses perfume. With the remaining 95% of potential customers to seduce, Tmall also saw an opportunity for growth in the fragrance sector and believes that "educating consumers is key to future success".

Motivated by this desire to educate consumers in order to build a new client base, the partnership between the two companies emerged in order to enable users to discover, recognise and visualise aromas, and, ultimately, to begin to create demand for fragrances in China. 

Educating Chinese consumers to encourage them to buy fragrances

In addition, the technology is powered by a visual library of more than 1,400 unique ingredients and a database of 21,500 perfumes. Known as WikiParfum, the online platform was launched by the Spanish group in collaboration with the largest independent guide to fragrance classification 'Fragrances of the World', created in 1984 by perfume historian Michael Edwards. 

"We have specially adapted the fragrance descriptions and visualisations to the Chinese consumer by working hand in hand with Tmall, which has a very impressive consumer-centric and perfume expert team. We expect this first phase to be the beginning of a long-term collaboration which will elevate the fragrance category for China's fragrance lovers," said Puig's vice president of global innovation and new technologies, Camila Tomas.

Launched in China seven weeks ago, the 'Scent Visualizer' tool first featured 25 international fragrance brands that saw a 5% increase on their online GMV (Gross Merchandising Value). Furthermore, as detailed by the two companies, conversion and average transaction value ratios also improved "as consumers made purchase decisions more quickly when they could 'read' the scent and were willing to pay more to appreciate the precious ingredients when those were displayed in a clear and coherent way across brands they like," said Puig.

"As China's fragrance market continues to grow, there is tremendous interest from Chinese consumers in finding out about new fragrances, as well as buying their favourite scents," said Tmall's fragrance category director, Bao Ling.

Currently, the family-owned company operates in the beauty and fashion division with brands such as Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Nina Ricci, Byredo, Penhaligon's, L'Artisan Parfumeur, Kama Ayurveda and Loto del Sur; and has licenses with brands such as Christian Louboutin and Comme des Garçons Parfums; as well as with lifestyle fragrances such as Antonio Banderas, Adolfo Dominguez, and Benetton. Puig also owns the luxury makeup brand Charlotte Tilbury, and is active in the specialised 'Derma' division with Uriage, Apivita, and the joint venture in Isdin.

The Spanish family-owned company recorded sales of €2.59 billion in 2021 and expects its turnover to exceed €3 billion by 2022. By 2025, the company expects the market to account for a quarter of its sales. In 2020, revenues in the region amounted to €100 million, twice as much as in the previous year. The company distributes its products in more than 150 countries and has offices in 29 of them.

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