What does perfume have that makes it a valuable resource for brands in times of uncertainty? In addition to its weight as an industry and its ability to adapt to different situations in the market, it has, above all, the favor of consumers who, regardless of the moment they are in, continue to be seduced by the variety, personalization, and innovation that the sector showcases.
Perfumes have something unique and undeniably effective: their contribution to improving the quality of life of society and consumers. They generate well-being, motivation, excitement, and inspiration… We all want to feel special, to take refuge in an accessible, attractive, and changing product. And that effect, it is not that it is priceless, it is that it is gladly paid for.
The shopping experience must be round, innovative, and personalized.
How is all this intangible value translated? In one term: ‘resilient’. There is no product that captures the ups and downs of the market so well; and that has as many options at its fingertips to remain essential, as fragrances. Recognizing these intangible values, which mark the life of a perfume and link us to them, is the first step to being better positioned in the market.
There are two aspects that consumers demand from perfume: personalization and novelty. Maintaining these standards and making them fit with the demands of the market is the main challenge for the perfumery sector.
And to continue being so seductive… What challenges will the perfumery sector have to overcome in 2023?
Will prices be balanced? If there is something that characterizes perfume, it is that it navigates all types, moving in various price categories, focused on the mass market, luxury, niche… It has a product for each target, which makes it easier to navigate a situation of economic uncertainty. After a first attempt to accumulate stocks to avoid the unexpected rise in prices -in terms of raw materials- companies have seen how the product has continued to sell with motivated consumers. Here, the challenge to finding that balance lies in sharing efforts and processes and seeking stability in the manufacturing and pre-production of a fragrance. Having specialized companies that offer a full service to those who entrust part of the process or its entirety helps control and homogenize costs and results.
Sustainability. The challenge is to demonstrate what is sustainable and what is not to achieve that conscious shopping experience for the consumer. Everyone talks about sustainability; everyone cares about it, but do we know what it is, or do we stay on the surface? The sensitivity that exists in society is reflected in the manufacturing of a product with all the guarantees and certifications. Thus, with data, the consumer can be convinced that they are already making purchasing decisions influenced by the impact of responsible and committed purchases on the environment. Because this path has no return. In fact, the desire to aspire to a more sustainable, organic, natural product is on the rise and in the mind of the consumer and has led many companies to make decisions such as the use of terms such as ‘cruelty-free’… There are thousands of options on which each brand will have to make decisions: packaging, labeling, the production process, and raw materials…
Innovation: The perfumery and cosmetics sector is one of the industries that invests the most in innovation within the fast-moving consumer goods sector. Here, the challenge is to continue offering olfactory novelties, but accompanied by innovation. For example, new labeling, regulations, or the adaptation of a sensory experience from the base when presenting the product, such as odor-sensitive labels. A good product is key, and its label must accompany it and be in line with it; be its best ally so that it can capture the consumer’s attention. Its design, brand creation, and packaging, whenever necessary, must be taken into account in order for the product to be competitive in the market and add value to personalization.
New forms of outsourcing: the externalization of part of the processes, which involves finding a trusted ally in the sector for national and international brands and distributors, offering a personalized service for creating and developing fragrances. For example, a company specialized in contract manufacturing, which is increasingly necessary due to the situation that the industry sector is experiencing in Europe.
If you are wondering if it is a good time to launch a perfume for your brand, the answer is here.
