L’Oréal’s investment branch in China, Shanghai Meicifang Investment (or Meicifang), has invested a minority stake of more than 10 million RMB (1.4 million USD) in the Chinese fragrance brand Documents. The recent move reflects L’Oréal’s action plan to enhance local cooperation for bigger growth.
Founded in 2021 by former Nudake China Chief Executive Officer Zhaoran Meng, Documents is known for its edgy aesthetic and avant-garde store design. Despite only being in the market for only two years, the brand has quickly established a foothold in the premium niche fragrance market.
Labelled as “the most expensive Chinese perfume brand”, Documents focuses on high-end perfume featuring Chinese ingredients such as star anise, mugwood, yulan magnolia and walnut. Perfume prices range from 850 RMB (122 USD) to 1,750 RMB (253 USD). Currently, the brand operates two stores in Shanghai and one in Beijing’s popular SKP-S shopping mall.
For decades, international names such as Chanel and Dior have dominated China’s fragrance market. Now, niche Chinese fragrances are rising up as younger consumers take an interest in unique scents as well as domestic brands. Documents, in particular, has become all the rage among high-consumption Gen Z and millennials. Of these consumers, Gen Z composes 60-70% of the brand’s clientele.
“Documents is not only an emerging pioneer in the Chinese high-end personalised beauty market, but also a Chinese fragrance brand popular among young Chinese shoppers for its signature oriental aesthetics,” Fabrice Megarbane, president of L’Oréal North Asia and CEO of L’Oréal China, told local media outlets.
Overall, as China’s niche fragrance market continues to grow at lightning speed, L’Oréal secures its goal to expand its influence in the local market by investing in the sought-after brand Documents.