Luxury brands face a tension between growth and exclusivity, especially in China. Accessible products and experiences attract new consumers, but excessive accessibility can weaken scarcity, prestige, and perceived value.
Guerlain’s luxury tiering strategy in China, showcased through skincare, fragrance, and customer experiences, sets a precedent for expanding recruitment efforts while maintaining exclusivity for high-value clients.
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China’s luxury market creates space for Guerlain’s tiered strategy
China remains a key player in the luxury industry and is among the fastest-growing luxury markets through 2030, despite uneven performance caused by slower economic growth. Weak consumer confidence, declining property values, increased overseas shopping, and resistance to repeated luxury price increases contributed to an estimated 17% to 19% decline in mainland China’s luxury market in 2024.
Despite the overall decline in the luxury industry, the performance varied across categories. According to Bain’s 2025 Chinese Personal Luxury Goods Market, the luxury beauty segment remains strong, growing by about 4% to 7% in 2025, while other segments such as fashion decreased by 5% to 8%, and leather goods by 8% to 11%. This uneven performance supports a diversified tiering strategy.
Guerlain uses accessible skincare and fragrance collections to recruit consumers, while its premium ranges target clients seeking rarity, craftsmanship, research, and personalized service.
Different consumers require different levels of access
China’s luxury market includes aspirational, affluent, and high-net-worth consumers.
Aspirational buyers are typically younger and more price-sensitive. They often discover brands on social media and enter the luxury market through skincare, fragrance, cosmetics, and accessories. Affluent consumers buy more frequently and expect quality, brand recognition, service, and clear product differentiation. High-net-worth and VIC clients seek scarcity, craftsmanship, personalization, private access, and recognition.
Each group has different expectations of price, product complexity, service, scarcity, and access. Tiering allows brands to serve these groups without offering every consumer the same product or experience.
Digital discovery and service shape luxury tiering
Social commerce plays a central role in luxury discovery in China, with platforms like Douyin, Xiaohongshu, and WeChat facilitating product research, education, and customer engagement. In 2023, 53% of surveyed Chinese luxury consumers reported having purchased luxury products online.
As social commerce rises, the digital environment has intensified competition. Domestic luxury brands are gaining ground through culturally relevant design, digital-first engagement, local supply chains, and sharper positioning.
To stay competitive, international brands must demonstrate cultural relevance and clear value. Chinese consumers now demand transparency about craftsmanship, research, and heritage. Although surface-level localization, celebrity collaborations, and festival-themed packaging can generate attention, they are insufficient to sustain a premium position.
For Guerlain, tiering must be supported by credible distinctions among collections. At higher price tiers, Guerlain must offer stronger research narratives, rarer ingredients, specialized craftsmanship, and more personalized experiences.
Guerlain uses skincare tiering to recruit and retain
Guerlain applies tiering through Abeille Royale and Orchidée Impériale.
Abeille Royale provides the more accessible entry point. Its honey and royal jelly formulations focus on repair, renewal, and anti-aging benefits. This allows the collection to appeal to a broader group of consumers seeking visible performance alongside luxury positioning.
Orchidée Impériale is positioned as a top-tier collection, emphasizing rare orchid ingredients, innovative research, and conservation initiatives through Guerlain’s Orchidarium®. The collection targets consumers who value scientific credibility, exclusivity, and luxury skincare.
Between these two lines, Guerlain can recruit a wider customer base while preserving a more exclusive offer for high-value clients.
Guerlain applies the tiered strategy to fragrance
The Aqua Allegoria line serves as Guerlain’s accessible fragrance tier. Its fresh floral, vibrant citrus, juicy fruity, and herbal scents are suitable for everyday wear and mainstream gifts. Starting at 1,040 RMB for a 75 ml bottle, the collection helps Guerlain attract younger consumers and first-time luxury fragrance buyers, while also boosting distribution and online sales.
L’Art & La Matière targets collectors and high-end clients, starting at 2,000 RMB for a 50 ml bottle. It emphasizes rare ingredients, artistic compositions, fragrance craftsmanship, custom bottle designs, and personalized services.
This creates a clear division of strategic roles for each product line. While Aqua Allegoria recruits and introduces consumers to Guerlain fragrance, L’Art & La Matière protects exclusivity and strengthens the brand’s high-perfumery credentials.
Guerlain also tiers customer experiences
Guerlain’s luxury tiering strategy in China extends beyond products, incorporating experiential luxury marketing as a central element. This includes public discovery experiences and VIC events.
In 2025, Guerlain hosted “An Exploration of Fragrance, since 1828 & Beyond” at Bund One. The museum-style exhibition used interactive displays and scent experiences to introduce visitors to the brand’s heritage and fragrance portfolio, all while lowering consumers’ experiential barriers to trying and discovering luxury fragrances.
Public discovery events and private client experiences perform distinct roles. Public events support awareness and recruitment, while private events reward high-value clients and preserve exclusivity.
Guerlain uses tiering to balance customer recruitment and prestige
Guerlain’s luxury tiering strategy in China shows that luxury tiering is more than a pricing structure; it manages customer acquisition, progression, retention, and exclusivity. Consumers can move from public discovery and accessible purchases toward premium collections, personalized services, and VIC relationships.
This progression depends on credible differences between tiers. Broad entry collections can weaken prestige if they become overexposed, while premium collections will fail if they do not offer visibly superior products and experiences. Guerlain must therefore maintain clear distinctions in ingredients, craftsmanship, research, service, and access while preserving a consistent luxury identity.
Guerlain luxury tiering strategy in China to balance recruitment and prestige
- Despite the broader luxury-market slowdown, beauty remained relatively resilient in 2025, supported by demand for skincare, fragrance, and emotional experiences.
- Guerlain uses a tiered approach to attract new customers while reserving exclusive offerings for high-value clientele. Abeille Royale and Aqua Allegoria offer accessible options for skincare and fragrances, whereas Orchidée Impériale and L’Art & La Matière enhance its prestige through exclusivity, cutting-edge research, artisanal quality, and personalized services.
- Guerlain implements a tiered system into experiential luxury, offering public exhibitions for discovery and exclusive VIC events for retention.
- Guerlain’s tiering strategy creates a progression pathway from public discovery and accessible purchases to premium collections, personalized service, and VIC relationships.
- To ensure that the strategy is successful, accessible and premium tiers must offer clear distinction to maintain a consistent luxury identity.
Author: Ann-Kristin Knoerr, edited by Ming Yii Lai, with additional research by Kyle Gumangan
