The formula of perfume outsourcing, or the alliance with a third-party perfume manufacturer, allows for creating synergies between two companies to join forces when starting a perfumery project without having to face high costs and with the certainty of obtaining a high-quality fragrance that allows achieving sales success. Is it possible to project the launch of a perfume line at a time when the company is implementing a cost-reduction plan? The answer is yes. We explain how you can carry out your project with Àuria Perfumes.
Revolutionize your business with a perfume without renouncing a cost reduction.
Consumer interest in perfumes has translated into a very notable increase in sales. According to data from specialized consultancies, the FMCG fragrance category grew by 40% in 2022, while the selective climbed by almost 23%, an upward trend that remained stable throughout the year and has no signs of being interrupted in 2023, according to forecasts made by the sector.
“Perfume is a resource for brands in times of uncertainty,” argues Albert Piñol, CEO of Àuria Perfumes, a company with more than a decade of experience as a perfume manufacturer for major national fashion and retail firms, and which in 2022 produced more than 25 million units of women’s, men’s, children’s and unisex perfumes.
Worldwide, but notably in Spain, there is a great attraction for perfumery. The capacity for seduction and empowerment, added to the sensoriality and escapist nature of fragrances, has turned perfume into an object of desire for the consumer, a trend that brands and manufacturers can feed back with honest and innovative perfumery exercises.
Outsourcing the manufacturing process to a third party or outsourcing is no longer so much about reducing costs as it is about introducing new products more efficiently. Moreover, this type of outsourcing reduces the uncertainty faced by companies not only because market share is very sensitive to technological change in this sector, but also because it allows them to overcome the difficulties that the industry is experiencing in Europe more easily.
Despite the good data for the fragrance market, uncertainty looms over the sector, due to the major challenges it faces: inflation, energy costs, rising interest rates, logistical difficulties, etc. How can these challenges be met by working with a third-party manufacturer and contemplating a reduction in costs?
By outsourcing the manufacturing of a perfume line, companies can reduce the risks associated with production, such as interruptions in production, supply of quality raw materials, control of energy costs, etc., factors which, by relying on a third party, do not affect the stability and security of their business.
5 strategies for launching a perfume with a third-party manufacturer while controlling costs
1.- Purchase of raw materials
At Àuria Perfumes we negotiate with suppliers of raw materials and packaging to always obtain the best quality price for our customers.
We have implemented a plan to accumulate stocks of raw materials in order to reduce the impact of rising prices, to which we also add our proximity to the customer, as we work in synergy to ensure stability in the manufacture of the fragrance.
2.- Optimize time to market
By working with a fragrance manufacturer with its own production plant, and large facilities that have been equipped for the production of fragrances and are suitable for automated processes, you are guaranteed that the project will progress in an agile manner and with an optimized time to market to accelerate the launch of the perfume.
Àuria Perfumes has recently invested more than 2 million euros to continue offering customers a quality service, based on innovation and production efficiency: it has created a talented team to lead perfumery projects, implementing new technologies and automated production processes to improve its competencies.
By outsourcing the creation of perfume or any service related to fragrance production to an experienced manufacturer, our customers can leverage our knowledge and skills to improve the quality of the final product.
“A good product is key, and its label must accompany it and go with it: to be its best ally so that it captures the consumer’s attention. Its design, branding, and packaging must be taken into account, whenever required, in order for the product to be competitive in the market, giving value to personalization. Hence, the strategic importance of offering full-service assistance to the client,” reveals Piñol, referring to Àuria Perfumes’ Private Label division, designed to offer a complete service for the creation of tailor-made perfume collections: from the branding and design of the fragrance to the production, packaging, handling, and delivery of the final product.
3.- Production efficiency
One of the priorities of Àuria Perfumes is the efficiency not only of all the production processes of perfume but also that focused on energy saving, which allows for reducing the carbon footprint and reducing energy costs.
In 2022, the company has reduced its energy consumption by 24% with the installation of photovoltaic panels, which translates into a 20% saving on electricity bills, while avoiding the emission of more than 60 tons of CO2 into the atmosphere each year.
Currently, 100% of the energy consumed by the factory is green, both that which it consumes itself with its photovoltaic panels and that which it acquires from the commercialization companies with which it works.
Working under the formula of subcontracting or through an outsourcing model provides our customers with great flexibility, as it allows them to adjust the production of perfumes according to demand without worrying about the organization of supply or storage processes. This makes it easier to optimize their resources and offers an agile response that adapts to market changes.
From Àuria Perfumes we put all the material and human resources to provide the finished product, ready for marketing.
5.- Waste reduction and recycling
For 19 years, the company has been working with an environmental management system that has been certified with the ISO 14001 standard, and since 2013 has held the EMAS (Eco-Management and Audit Scheme) certification. All processes are governed under the commitment to an integrated quality, environmental, occupational health and safety management policy.
Regarding waste, Àuria Perfumes aims to act under the rule of the 5Rs of the circular economy: reduce, reuse, repair, recover and recycle. In this way, raw material purchase costs are reduced while the carbon footprint is lightened.
In addition, production processes are evaluated in order to trigger continuous improvement of environmental performance, thus enabling management systems to be refined to reduce raw material waste and waste.
If you are thinking of launching a fragrance line with a third-party perfume manufacturer, contact us and take the first step to start your project.
Manufacturer of Perfumery and Cosmetics Collections. Àuria Perfumes offers Contract Manufacturing & Full-Service services for third parties.