Family-owned fragrance and beauty owner Puig has made a strategic move with an investment in Chinese fragrance brand Scent Library.
According to sources, the Series B round raised US$10m, however, the official investment total has not been disclosed.
Also a retailer and distributor of niche fragrances in the Greater China area, Scent Library stocks fragrances from Demeter, Mor Cosmetics and Six Scents with nearly 80 destinations across the country.
The Beijing-based company has been tapping into China’s burgeoning domestic fragrance market since 2009, with product lines offering perfumes, home fragrances and body care.
In a statement to Cosmetics Business, Puig said: “It is with great excitement that we inform you that Puig has made a minority investment in Scent Library, a leading Chinese beauty brand.
“This partnering is a very appealing opportunity for our company to participate in the development of the Chinese fragrance market with a Chinese based Company and a Chinese founded team.”
The move by the Spanish beauty giant, of which fragrance is a core part of its business, can be seen as a strategic one, given China’s impending impact in the fragrance market.
Today, China’s fragrance consumption only accounts for 2.5% of the global market, despite containing 20% of the world’s population; but that is all set to change within the next decade.
A report by iResearch tipped that China’s fragrance market is to become the world’s second largest fragrance market with spending spiralling from $867m in 2017 to $1.7bn in 2020.
China has been a point of interest over the last few years for Puig competitor Coty.
Along with the US, China was a standout market for the cosmetics conglomerate, helmed by Sue Nabi, for year-on-year growth in Q4.
Operations outperformed other markets in the prestige beauty category with triple-digit growth, and for fiscal year 2021 it saw a double-digit increase in revenues.
Going forward, the team intends to accelerate its operations in the market further, leaning on China’s growing interest in its beauty potential.