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How Givaudan’s New Shanghai Fragrance Center Is Poised to Win Over China’s Perfume Market

Published December 15, 2024
Published December 15, 2024
Givaudan

Global fragrance leader Givaudan launched a new creative fragrance hub L’Appartement 125 in Shanghai’s historic French Concession—a move that underscores its ambitious drive to capture the growing Chinese perfume market.

“This center is a testament to our dedication to innovation and partnership,” said Xavier Renard, global head of fine fragrance at Givaudan. “It provides a space where our perfumers and clients can collaborate to craft fragrances that tell unique stories.” Leading the charge is Jasmine Liu, a talented perfumer, heading a local team in Shanghai that remains closely connected with Givaudan’s global fragrance network.

Designed by acclaimed Chinese designer Ma Wen, the space at 125 Yongfu Li marries modern fragrance technology with traditional Chinese aesthetics. Natural materials and elements inspired by Chinese artistry blend with a minimalist, sensory-rich environment, fostering creativity and collaboration. With a fully equipped lab, an interactive fragrance wall, and a sensory garden, the center is built to encourage dynamic partnerships between Givaudan’s perfumers and Chinese brands, pushing the boundaries of fragrance innovation.

Givaudan’s decision to invest in L’Appartement 125, even amid economic challenges, boils down to one critical reason: “proximity to the market.”

In an exclusive interview with the Givaudan leadership team, BeautyMatter dives into how the new Shanghai Fragrance Center reflects the company’s localization strategy and its commitment to maximizing the potential of the emerging fragrance market.

Forging Closer Connections with Local Brands

“Proximity” for Givaudan means getting closer to Chinese clients. “Many of our clients are located right around L’Appartement 125,” explained Yaling Li, President of Fragrance and Beauty, Greater China and Korea.. “By relocating our fragrance lab here, we’re bringing our creative space closer to our clients, making it easier to meet and co-create.”

For Givaudan CEO Gilles Andrier, Shanghai offers a unique energy. “It’s a place where East meets West, where trends from around the world converge, creating a fertile ground for innovation,” he shared. In recent years, Givaudan has established partnerships with a rising wave of Chinese fragrance brands. “When I revisited China last year, I was struck by the explosion of local perfume brands that have emerged over the past four years. They’re no longer following the mainstream but embracing their own bold, unique identities. This shift solidified our decision to set up an innovation center in China,” he said.

The center’s immersive lab space is not just an office but a transformative “bridge” for co-creation. It enables Givaudan to better understand local brands’ needs while inviting them to actively engage in fragrance development and ideation.

Additionally, Givaudan has equipped the center with its AI-powered Carto tool, combining artificial intelligence with data science and microsampling technology. This advanced tool allows perfumers to navigate an intuitive formula space, offering graphical insights and ingredient suggestions that make the formulation process more transparent for clients—ultimately leading to more personalized, bespoke fragrances.

Beyond the creative center, Givaudan has rolled out other initiatives aimed at empowering local brands. In July, it launched the “Little Fragrance Pocket” mini program on WeChat, offering end-to-end fragrance solutions to clients with strong and increasingly fragmented demands. This digital platform is designed to streamline fragrance sourcing and customization, especially for emerging local brands and startups.

“China is not only a key market but also an invaluable source of inspiration and creativity for us.”
By Gilles Andrier, CEO, Givaudan

Understanding China’s Fragrance Consumers

Givaudan’s center in Shanghai doesn’t just serve local brands; it’s also a resource for global clients seeking insights into China’s evolving fragrance trends, including the rising demand for personalized and luxury perfumes.

Unlike simply following established trends, L’Appartement 125 is focused on anticipating future scents that will resonate with Chinese consumers and sharing these insights globally.

“This requires a deep understanding of emotions, aesthetics, and values,” noted Andrier. “It’s about meaningful, face-to-face interactions between our perfumers and consumers.” Perfumer Shyamala Maisondieu echoed this, emphasizing that her understanding of local tastes comes from daily life experiences. “To understand the pulse of the market, I immerse myself in the environment and engage directly with consumers,” she shared.

Liu offered additional insight, highlighting that young Chinese consumers now view fragrance as a form of personal expression. “There’s a strong demand for niche scents that reflect individuality,” she explained. “Woody and musky notes are trending, moving away from traditional floral preferences.”

In response to this rise in Eastern aesthetics, Givaudan has launched the “House of Naturals” initiative, collaborating with local farms to develop fragrances rooted in Chinese ingredients. “Leveraging local resources enhances our connection to the market and resonates more deeply with Chinese consumers,” said Renard. Givaudan also plans to continue recruiting and training local perfumers to bring fresh, culturally informed perspectives to the fragrance creation process.

A Steady Commitment to the Chinese Market

Despite the economic headwinds, China’s fragrance market continues to show robust growth. According to Euromonitor, China’s fragrance market grew by 15% in 2023, with an annual growth rate projected at 10% from 2022 to 2028.

Andrier is confident in China’s potential. “We’ve been pleasantly surprised to see a strong appetite for fragrance among Chinese consumers, especially the younger generation,” he said. “This growing demand represents a tremendous opportunity.” In fact, Givaudan’s China fragrance and beauty business recorded a remarkable 23% growth in the first three quarters of this year.

As the creator behind iconic scents like Hermès’s Eau d’Orange Verte and Yves Saint Laurent’s Opium, Givaudan—a company with over 250 years of heritage—has established creative hubs in key cities worldwide, including Paris, New York, São Paulo, Dubai, Singapore, and now Shanghai. The company also operates perfume schools in Paris and Singapore and boasts a global team of 40 fine fragrance perfumers, serving an array of clients from luxury brands to independent labels. This extensive network enables Givaudan to seize the fast-growing opportunities in China.

Givaudan’s longstanding focus on China has allowed it to gain a deep understanding of the market’s nuances. Since entering China in 1988, the company has expanded its local presence, including a new molecule research center in Shanghai’s Zhangjiang district, the only one of its kind outside Switzerland, and a fragrance factory in Changzhou. In 2021, Givaudan partnered with Tmall to establish the T-Lab Source Innovation Lab and joined Alibaba’s B2B platform 1688, tapping into China’s digital fragrance opportunities.

These initiatives are part of Givaudan’s 2025 strategy to “capitalize on mature market opportunities and expand leadership in high-growth markets, particularly in China.”

With the launch of L’Appartement 125, Givaudan’s commitment to China has elevated from merely a commercial market to a strategic innovation hub. As Andrier expressed, “China is not only a key market but also an invaluable source of inspiration and creativity for us.”