Le Labo will Open its First Mainland China Store in Shanghai

Estée Lauder set to accelerate its expansion in China to tap into the growing demand for fragrance products.

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The first Le Labo store in mainland China will be located in Shanghai. Le Labo's WeChat official account "LE LABO FRAGRANCES" also released its first announcement.

Established in New York in 2006, in addition to perfume products, Le Labo also provides skin care, body care, hair care, hand sanitizer, body wash, facial cleanser, hair mask and shampoo products. Estée Lauder acquired Le Labo in 2014.

Estée Lauder's financial report shows that in fiscal year 2022, group net sales increased by 9% to $17.737bilion, while net profit decreased by 16% to $2.408 billion. The Fragrance segment is the only one with a double-digit growth rate, with an increase of 30% to $ 2.508 billion, the sales of skin care products increased by 4% to $ 9.886 billion.

Net sales grew across every region and every fragrance brand, led by Jo Malone London, Tom Ford Beauty and Le Labo. Net sales from Le Labo also rose strong double digits with growth in all regions, reflecting the recovery of brick-and-mortar, improved retail traffic, and targeted expanded consumer reach.

Despite the decline in other segments, fragrance segment of Estée Lauder became the only segment delivered growth for the group in the fiscal year of 2022.

Estée Lauder realizes the importance of the fragrance business to the company's performance. Estée Lauder acquired minority stake in British fragrance brand Vyrao in March 2023, through its early-stage venture and incubation arm New Incubation Ventures. Founded by Yasmin Sewell, Vyrao provides a series of unisex fragrances.

The opening of first Le Labo mainland China Store in Shanghai, Estée Lauder is set to accelerate its expansion in China to tap into the growing demand for fragrance products.

According to the data of the 2022 China fragrance Industry Research White Paper released by Eternal, It is estimated that by 2026, the sales of the overall Chinese perfume market will reach 37.13 billion yuan ($ 539 million), and the compound annual growth rate of the market in the next five years will remain at around 22.3%.