Making room for fragrance
At Isetan Shinjuku, a leading department store known for promoting perfumes, I noticed a special Olfactive Studio pop-up near the high-end fragrance sections of Guerlain, Dior (with their private collections), Byredo, and Jo Malone.
In the new @Cosme store in Harajuku, the top floor is dedicated to fragrances. It features both mainstream and “mega-niche” brands from large groups such as Jo Malone, Lancôme, YSL, and Maison Margiela, as well as Japanese brands from major groups (Baum, from Shiseido; decorté, from Kosé, or Three from Pola) and smaller niche brands (J-Scent, Osaji).
In the impressive new Azabudai Hills mall, the Nose Shop features high-end niche brands, such as Amouage, Essential Parfums, and Laboratorio Olfattivo, and employs knowledgeable advisors.
Finally, Ginza 6, an ultra-luxury shopping destination focused on beauty, includes boutiques for brands like Diptyque, and two Japanese fragrance brands from the Kosé group: Flora Notis (launched by Jill Stuart) and the Kimono line at Décorté.
Given the saturation of the skincare market, it’s clear that beauty retail is creating more space for perfumery. According to Yasuko Yoshioka, representative of the Japan Fragrance Association (JFA) “niche perfumery has emerged over the past decade, driven by a new generation of fragrance lovers who are seeking more than just a fashion accessory. This trend accelerated after the COVID-19 pandemic, fueled by a desire for well-being, the popularity of home fragrance during lockdowns (e.g., Diptyque), and the rise of social media.”
New retail experiences
Large international groups have recognized this opportunity and are investing in large stores or striking standalone boutiques for their established niche brands, such as Buly (LVMH), Byredo (Puig), Maison Margiela (L’Oréal), and Jo Malone (Estée Lauder).
Brands are emphasizing experience, with Jo Malone offering immersive olfactory installations and Le Labo featuring exhibitions of Japanese artists with a Kyoto-style bar. This rich brand content and storytelling are effectively shared on social media.
Other imported brands are entering this specialized distribution channel or leveraging social media. French, Italian, and Anglo-Saxon brands, particularly those from France, benefit from the perception of traditional expertise and a rich history in perfumery, as seen with brands like Caron, Essential Parfums, Nobile 1942, and Ella K.
Evaluating the niche perfumery segment is challenging within a perfume market that, while growing at a healthy 7.7% in 2024, still lags far behind the dominant skincare category. According to Euromonitor, niche perfumery is valued at USD 585 million—roughly 14% of the skincare market and just 2% of the overall beauty market. It is also worth noting that data from the Ministry of Economy, Trade and Industry (METI) does not specifically separate the fast-growing home fragrance segment (such as candles and diffusers) from other perfumed products.
Unique hybrid concepts
So is this a real and profound change in behavior, with new habits for the younger generations? This is a key question for the future, especially as Japanese companies introduce unique fragrance concepts related to skincare and well-being.
Jill Stuart promotes lifestyle collections that “transform the now into happiness,” while Cosmedecorte offers a “kimono” collection based on the concept of “Sumehara” (respecting personal space by wearing a subtle fragrance). Three offers “essential scents” based on essential oils and the benefits of nature, similar to Ayura’s new “Meditation” EDT, which uses incense to promote daily peace.
Shiseido’s Baum extends its skincare line with a fragrance in the “mind care” category, while Sensai offers a fragrance that blends with the skin like pure silk.
Ipsa, an innovative brand from Shiseido, recently launched a “skin fragrance gel,” available in two varieties: “awake” for refreshment and “rest” for relaxation.
For its part, Nose Shop offers a new experience at its scent bar in the trendy Aoyama district, claiming that “you can easily enjoy the scent with a moderate fragrant specification.”
Finally, several innovative Japanese brands with distinctive styles are emphasizing their Japanese roots and traditions, often gaining popularity on social media. Examples include J-Scent, Kitowa, Kohshi, and Osaji, as well as Aiam, Canoma, and Edit(h).
Edit(h) and Osaji have created experiential spaces connected to their ingredients, such as an “incense cocoa” workshop at Kako-a in Kamakura for Osaji and a tea tasting bar for Edit(h).
Not forgetting the K fragrances which are also popular on social media networks: we can cite among others Sisology , Nonfiction, and Tamburins with an amazing boutique in Tokyo among many others (this could be another article!..)
These lines share several characteristics: small container sizes (typically 30-50ml, with a growing trend towards 8-12ml sample sizes), and an expansion into body products (creams, compacts, charms, balms, hand lotions, lip products) and home fragrance (diffusers, candles). Shiro, with its numerous “lifestyle” boutiques and comprehensive fragrance range, exemplifies this trend.
In this field where the borderline between home fragrance and personal fragrances can seem tenuous, two cutting-edge brands — Retaw and @Aroma — have launched perfuming concepts that stand shoulder to shoulder with those of true perfumers, including own stores with a real advice and a very wide product range.
Perhaps precursors of new gestures for a market in gestation and Asian consumers who wish to reconnect with their deep tradition and reclaim their perfume gestures ?
Fragrance preferences are shifting from soft, gentle floral, and citrus scents to ambery, musky, and leathery notes, often incorporating local ingredients like Yuzu, Hinoki, Noi rose, tea, and Kinmokusei (fragrant olive).
So yes Perfume in Japan is becoming a promising and creative market that will have to be reckoned with and watched closely because it could become a pilot for all of Asia…!
The major trends and latest innovations in fragrance development will be presented and discussed at the upcoming Fragrance Innovation Summit on November 26 in Paris.
Detailed program: www.fragranceinnovation.com/en/
AloJapan.com