The economics behind the fragrance business
Fragrance business is an intricate and highly involved endeavor. What begins in the imagination must go through a complex series of procedures before the final fragrance is ready for market and the consumer.
This requires a wealth of time, commitment and capital. A large percentage of this cost is absorbed by the fragrance supplier.
The supplier is the creative and scientific heart of the fragrance business employing a team of seasoned professionals in perfumery, marketing, evaluation, R&D, regulatory and production. Furthermore, they provide invaluable resources including consumer testing, innovative technologies, industry reports and trend forecasts.
A talented team and superior resources are vital for the development and design of quality fragrances, and quality comes at a premium contributing to the economics behind the fragrance business.
A Wealth of Talent, A Wealth of Information
The best perfume suppliers believe in investing in their people and providing them with all the resources and information they require to create iconic scents. They employ a brilliant team of marketers, research chemists, evaluators and formulators.
The marketing group is constantly researching the competitive landscape to stay in touch with what is hot, developing and evolving across the fragrance spectrum, as well as what is trending in parallel markets i.e. food, fashion and lifestyle. They utilize a multitude of resources including industry reports, market overviews, trend books, global sku tracking, panel testing and olfactive mapping.
Their expertise in trend analysis and forecasting, and thorough tracking of the market, offer clients the in-depth consumer insight which is essential in developing products that will attract their consumers, allow their customer base to connect to the brand in more meaningful ways, and ultimately generate greater brand loyalty and sales growth.
Their understanding of lifestyle and fragrance trends enables them to advise their client on product positioning and design customized concepts in line with the brand, thus identifying further growth opportunities for that brand and fulfilling the client’s vision.
Proficient and highly inventive research chemists, evaluators and product formulators take advantage of innovative delivery systems and a vast, diverse fragrance library to create unique, high performing scents that set the client’s brand apart from those of their competitors.
Additionally, they research and examine a host of natural raw materials and aroma chemicals in order to source only the highest quality ingredients, as well as offer the necessary technological expertise necessary to troubleshoot and ideally, circumvent problems that may arise during the fragrance production process.
The supplier’s team of gifted perfumers is well-versed in the creative and technical aspects of scent creation. Their expansive knowledge base, vivid imagination and passion for fragrance-making enable them to concoct beautiful scents which appeal to the consumers’ senses. Furthermore, this talented team can create tailor-made products customized to their client’s needs and customers, further securing the brand’s chances for success in the marketplace. A team with this much talent costs top dollar, contributing to the fragrance business economics.
The Economics behind Success
The fragrance business carries a multitude of inherent and sometimes hidden fragrance creation cost, which fall largely upon the fragrance supplier. The predominant expense comes from the acquisition of top-level resources and the cultivation of an artistic and scientific team of the highest caliber. Such a powerful combination gives these perfume suppliers the edge needed to create quality, highly performing scents.
Performance translates into profit and success…and for everyone who poured their heart and soul into the project, this is priceless.