Everything You Need To Know To Launch A New Perfume Business
Perfume is having a moment as more people have started collecting fragrances over the past two years. According to recent data, perfume sales were up 45% in the first quarter of 2021, and the global perfume market is expected to reach $47.6 billion by 2027. This growing interest in perfume is also why so many fragrance collectors are traveling to Dubai. The city is famous for its perfume shops, and here, you can find everything from swanky boutiques in malls that boast expensive, niche fragrances to small shops in the Perfume Souk that blend their own takes on popular perfumes.
If there ever was a perfect time to start a perfume business, it would be right now since so many individuals are buying fragrances as a hobby or as a treat. But apart from knowing how to retain customers, there are other things that you should know to ensure the success of your new venture. Here’s everything you need to know to launch a perfume business in your area.
Draft a Business Plan
Creating a business plan is the most important thing that every entrepreneur should do. First, determine what type of perfume business you plan to have. Are you thinking about creating your own scents, or perhaps you’d like to be a distributor of existing fragrances on the market? Once you’ve come to a decision, list down the number of products that you’ll be offering per quarter, startup costs, and financial forecasts which include your desired income and estimated loss.
You’ll also have to register your business and file all the necessary paperwork. You can choose to register your business as a sole proprietorship, a partnership, or an LLC. The later is particularly beneficial for first-time entrepreneurs since it’s inexpensive and enables management flexibility. If you need help with business formation, look into LLC services so you’ll be guided in an informative and straightforward way.
Know Where to Buy Your Raw Materials
If you’re making your own fragrances, you’ll need to know where to get your raw materials. Some basic tools that you’ll need for perfume making include measuring equipment such as glass flasks and beakers, a digital scale, glass and plastic pipettes, testing strips, perfume oil, spring water, perfume bottles, and alcohol. You can get most of these online, and while you can certainly save on some tools, it’s important to get the highest quality oils you can afford.
You can get essential oils from companies like Berje Inc., which is based in New Jersey and has been distributing fragrance oils for over 60 years. There’s also Thailand-based Perfumers World, which not only supplies perfume-making tools and oils, but also provides training to those who would like to know more about the art of perfumery.
Check Out Fragrance Discounters to Resell Perfumes
For those who intend to resell popular perfumes, it’s important to know where you can get genuine products without spending too much. Most designer perfumes in the market, such as those from Gucci, Giorgio Armani, and Dolce and Gabbana retail for $80 to $150, while niche perfumes like the ones from the House of Creed, Francis Kurkdjian, or Parfums de Marly usually go for $300 and up. However, don’t make the mistake of buying your perfumes from department stores or beauty specialty shops such as Sephora or Ulta. That’s a surefire way to go overbudget, and you won’t have wiggle room to adjust the price to get a decent income.
You can get the same perfumes at a cheaper price from fragrance discounters such as FragranceNet, FragranceX, Luckyscent, Perfume.com, or Notino. These businesses operate strictly online, and here, fragrances are usually discounted from 30% to 60%. Most perfume aficionados refer to these collectively as the “grey perfume market” since the fragrances are sold outside regular channels, such as well-established department stores.
The only downside is that you’ll be blindbuying your fragrances, and there’s a chance that you’ll get sent the wrong perfume or the bottles may sustain some damage while in transit. You may consider buying discounted perfumes from places like TJ Maxx, Marshalls, Burlington, or Ross if you prefer to buy your products in person. However, note that they don’t have a wide variety of fragrances, though they’re good places to buy celebrity perfumes such as those by Britney Spears, Sarah Jessica Parker, or Ariana Grande.
Be Familiar with Perfumery Terms
If you’re not a fragrance enthusiast yourself, then it’s time to get familiar with certain perfumery terms, especially if you’ll be dealing directly with your customers. For starters, you’ll need to know about the top, middle, and base notes of your perfumes, as well as longevity and sillage. The notes refer to the ingredients that make up the perfume, while longevity is all about how long one can smell the fragrance on your skin. Sillage, on the other hand, is also sometimes referred to as the scent trail, or how far the perfume can be smelled. You may also want to get some training, whether you’re making your own perfumes or reselling scents. Try enrolling in a perfumery course, or join a perfume club to train your nose.
Opening a perfume shop can be a lucrative business. Consider these tips before opening your own store, and make sure to get as much knowledge as possible before delving into this venture to ensure success and customer satisfaction.