The encyclopedia · Strategy & Leadership · Strategic decision · 2021–2025
ChunShan, a Shanghai fragrance brand, closed after 4 years — mid-market squeezed
A mid-range Chinese perfume brand founded in 2021 shut down in April 2025, caught between international luxury houses and cheaper domestic competitors.
ChunShan (椿山) · 2025-04-14
What happened
ChunShan (椿山) was a Shanghai-based Chinese fragrance brand founded in 2021, positioning itself in the mid-to-low-end segment of China's rapidly growing perfume market. Its products were priced mostly under 200 yuan, sold through online channels including Tmall, Xiaohongshu, WeChat, and Weibo. The brand targeted young Chinese consumers looking for affordable domestic alternatives to international luxury perfumes.
On April 14, 2025, ChunShan announced via all its official channels that it was suspending operations due to 'company strategic adjustments.' The brand ran a clearance sale from April 14 to 30, with after-sales support continuing until May 14. The closure came after just four years of operation.
ChunShan's failure was part of a broader shakeout in China's domestic fragrance market. International luxury houses — Estée Lauder, L'Oréal, LVMH — were expanding aggressively into China, while mid-range domestic brands struggled with rising online acquisition costs, homogenised product offerings, and the structural disadvantage of competing against brands with decades of equity. Several other Chinese fragrance brands, including Xizi Linglong and Scentooze, also closed in the same period.
Why it happened
- ChunShan operated in the mid-to-low-end segment, where it faced pressure from both international luxury houses above and cheaper domestic competitors below, leaving no profitable position.
- Online customer acquisition costs on platforms like Tmall and Douyin rose sharply, making it unsustainable for a mid-range brand without the scale to negotiate better terms.
- The brand lacked the product differentiation and brand equity to build lasting customer loyalty in a market where international names carried decades of prestige.
- China's domestic fragrance boom attracted many entrants after 2020, but the market consolidated quickly — brands without strong offline presence or distinctive scent profiles were the first to exit.
The lesson
A mid-range fragrance brand in China is squeezed from both sides — international luxury above and cheap domestic below — and without a distinctive product, there is no room to survive.
Aftermath
ChunShan completed its clearance sale by April 30, 2025, and ceased all operations. Its closure was reported alongside Xizi Linglong and Scentooze as examples of the shakeout in China's domestic fragrance market, where international luxury brands continued to expand their presence.
Sources
- Sohu — Founded 4 years, this fragrance brand announces store closure (Chinese, April 2025)
- Jiemian — Chunshan fragrance brand closes after 4 years (Chinese, April 2025)
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