China's perfume market is on a strong growth trajectory, taking it to a total retail sales value of 24.9 billion yuan ($3.5 billion) last year — with analysts predicting it will surpass 33.9 billion yuan by 2028, achieving a compound annual growth rate of 8 percent.

At the heart of the surge is Shanghai, which has established itself as the nation's fashion consumption hub, thanks to its robust headquarters economy, pioneering commercial innovations and supportive first-launch policies.

From an industry perspective, Shanghai has become the preferred gateway for global luxury and cosmetics giants entering China. The city hosts the Chinese headquarters of leading international companies — and in recent years, it's attracted upstream and downstream players to deepen their investments and local operations.

In 2023, US-based fragrance and flavor leader International Flavors & Fragrances Inc launched its largest creative center in Asia in Shanghai, with an investment of nearly 100 million yuan.

Meanwhile, Swiss fragrance powerhouse Givaudan operates a perfume creativity center in Xuhui district's Yongfuli area, focusing on fragrances tailored specifically for the Chinese market.

On the consumer side, Shanghai's continuous commercial innovation is fueling perfume spending. In April, French haute perfumery brand Parfums de Marly opened its first global theme pop-up store in the chic Xintiandi area. The pop-up attracted over a thousand daily visitors and drove significant sales growth.

Similarly, Chinese retail brand Perfume Box launched its first national flagship store in Shanghai, introducing experiential concepts such as "emotional scent testing" to reimagine retail perfume.

Shanghai's first-launch economic policies are further accelerating the connection between brands and consumers.

During the 2025 Fine Products Debut Season and the "First in Shanghai" event series, the 29th China Beauty Expo hosted the Global Beauty Festival. The program showcased new cosmetics and perfumes, cutting-edge technologies and innovative projects.

By integrating online social platforms, cross-border e-commerce and duty-free channels, the event enabled consumers to experience and purchase products simultaneously.

British perfume brand Perfumer H and European fragrance leader Byredo were among those choosing Shanghai for their new product debuts.

Sources: Shanghai Observer, Official WeChat accounts of the publicity department of the CPC Huangpu district committee at "shhuangpu", IFF, CBE