How to create a successful business selling perfume
In the past, department stores and specialty stores were the most common places to purchase perfume.
Big brands, designer fragrances, and the all-elusive ‘signature scent’ are what customers love, but the big brand price tags usually turn them away.
But is perfume good business? And is it worth it to open a perfume-selling store?
It is estimated that worldwide perfume sales will reach US$ 40.4 billion in 2022, and the market will expand even further to a staggering 69.7 billion dollars by 2032.
The short answer? Yes, perfume is good business.
Are you the right person to open a perfume business?
It can be very rewarding to become a perfume distributor if you love fragrances and want to be involved in the industry. Due to the increasing number of designers and celebrities contributing their fragrance offerings, there is an opportunity to make a profit from this industry.
But, ultimately the onus is on you, the seller, to keep up with the trends. And, if you want to be trusted and supported by your customers, it is up to you to understand fragrance families and categories, and to be interested in what you sell.
So, how do you start your own perfume distribution business?
1. Test the market
Performing market research in the area in which you intend to operate is the most important part of opening a perfume shop. To test your potential market, buy samples and 30ml perfumes from our top 20 sellers.
Also, go out and see what your competition is doing, who they are marketing to, and look at their pricing strategy.
At Perfumes for Africa, we started by importing only 18 high quality oils. We shared premises with a hair salon, just to test the market. This is how we got to understand our market, what they value, what they want from perfume, and how they want to purchase our products.
The results? We now have over 4,000 clients nationwide, and over 500 perfumes, after ten plus years of building our business.
2. Define your selling strategy
Now that you know what the market wants, and where to find your customers, you need to determine how you will sell your perfumes.
- Are you going to open your own store?
- Are you going to go door-to-door?
- Are you going to empower other people to sell for you?
- Are you going to target the people who work in the businesses and office blocks in the area?
- Are you going to sell in a weekly market?
- Do you want an e-commerce store?
Ultimately, the way that you are going to sell the perfume will determine your selling strategy.
3. Contact the trusted perfume wholesaler: Perfumes for Africa
Contact us and ask to become a distributor. You can buy any amount as we want to help you become successful.
Our online store makes product ordering super-easy. Plus, we take many orders directly via our Whatsapp number. We make it as simple as possible to order and receive products, in most areas in South Africa and Namibia.
Our goal is to supply the perfumes, fragrance oils, creams and any other related products you need, and to source the products your customers want!
4. Set up your payment portal
You might not need this step if you are going to be a cash-only business. However, you can set up a mobile banking app, like Snapscan or Yoco, to take customer payments for your products.
5. Organise your admin
Whether you use a spreadsheet like Excel or Google Sheets, an ERP and accounting system like Sage or Zoho, you need an easy way to keep track of stock, sales, purchases, expenses, and more.
This is the boring side of running a business, and can take up a bit of time. But investing in this straight off the bat will ensure your perfume business runs smoothly, and you never run out of stock. It will also ensure you understand buying trends, overhead costs, profit margins, and more.
6. Diversify your approach and products
Based on our experience helping other clients open their own stores, you must diversify your products / services. You could, for instance, combine a salon and perfume shop. You can share premises until your market grows and each contributes to overhead costs such as rent.
7. Advertise your products
The most important part of advertising is to attract customers until word of mouth starts spreading.
You can start by making A5 leaflets that list your perfumes and contain your company’s details / location.
Select the stores, boutiques and salons you want to offer your perfumes to. Visit local flea markets, craft fairs, and festivals as well. The best way to make sales is to showcase your perfumes at different venues.
8. Invest in growth
Finally, an often overlooked part of building your perfume business slowly is to reinvest part of your profit every month into new products. Expand your perfume product range by taking some of your profit and buying more popular perfumes.
If you do this, you keep your range fresh, and people’s interest piqued. This is good for repeat business and new business.