IFF Unveils Shanghai Creative Center

International Flavors and Fragrances Inc. has recently unveiled the Shanghai Creative Center, a renovation and expansion project near the Hongqiao Airport area.

The 172,000-square-foot space is IFF’s largest in Asia and a facility that’s the most integrated with all the company’s business sectors, which includes food ingredients, flavors, scents, health and biosciences.

More from WWD

China is currently the second-largest market for IFF, according to the company.

The center’s new facilities include a sensory science center, a scent creative center, and more than 20 labs set up for fragrance creation, design, product analysis, consumer insight and more.

Its fine fragrance facilities include a 360-degree multisensorial digital space called “Digital Cube,” which is designed for livestreaming and hosting workshops.

According to Sabrya Meflah, president of IFF’s Fine Fragrance business unit, investing in a new space was a response to accelerated growth in the fine fragrance segment.

“Two years ago, we made the decision to invest and invest heavily, meaning that we wanted to have a space fully dedicated to fine fragrance,” said Meflah.

“There is a real appetite and demand for fine fragrance here — in 2024, there were 100 new brands in the local market, which is huge,” added Meflah.

IFF’s analysis shows that fine fragrance in the local market has only a 3 percent penetration rate, largely driven by the gifting sector. “The shift from giving fragrance as a gift to wearing it hasn’t fully happened yet, especially among Millennials,” explained Meflah.

Meflah said the new creative center will better facilitate collaboration between IFF perfumers and local creatives.

“We want to have the same kind of creative energy as our Atelier du Parfumeur creative center in Grasse, where our perfumers and local creators can collaborate with each other and where we can collaborate with brands,” added Meflah.

To stay relevant in the local market, IFF recently hired its first China-based perfumer, Gwen Gao, a Taiwanese who received her training at The Grasse Institute of Perfumery. Tanguy Guenest, another young “nose,” recently completed a six-month exchange program in Shanghai.

On the ingredient front, the center has been advocating for locally produced palettes such as osmanthus and magnolia.

Known for its citrusy and green notes, the magnolia is mainly produced in southern China, where the company works with local organizations and suppliers to promote the preservation of rare magnolia species and ensure ethical practices.

In terms of market trends, IFF has identified “fragrance with benefits” as another opportunity in the market. “We know that for the Chinese consumer, legacy is very important, as well as ‘China pride’,” explained Meflah, citing findings from the “China Scent Exploration program,” an AI and cultural insights driven initiative.

IFF also identified a need to discover new cultures via scents. “Perfume is a magic medium to communicate an environment, a country, a lifestyle, so there is also an appetite for brands that preserve the uniqueness of its culture. For instance, the brand Amouage is super successful,” said Meflah.

Best of WWD

Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.