Businesses operating in the personal fragrance industry have been making a killing over the last twelve months. That is in stark contrast to the situation they faced this time last year. One of the largest perfume specialists in the world recently announced they’ve made over $50 million in profits since the launch of their latest scent. As we approach Christmas, it is expected that even more sales will force profits higher than ever before. What is the cause of all this?
Firstly, it’s important to note there is a lot more money floating around at the current time. After the global financial collapse of 2008, people were very hesitant about spending anything. Jobs were not secure, and savings were beginning to dwindle. While we’re not saying that had a huge impact on perfume sales, we do think it made a significant difference. All retailers have suffered over the last few years, but things are starting to look up across the board.
There is no getting away from the fact that people love a bargain. That is one of the main reasons we’ve seen such a monumental increase in sales. After such a bad year in 2013, most perfume manufacturers had no choice but to drop their prices. That did that in the hope of encouraging people to put their hands in their pockets. The strategy seems to have worked. Although prices are back up to where they were before, most people are not more comfortable paying for top quality products.
In the past, anyone who wanted to buy perfume would have headed to their local chemist or body shop. However, thanks to lots of websites growing online, you can now buy it almost anywhere. This expanded distribution is no doubt responsible for the increase in sales in some small part. The world’s largest online retailer Amazon is constantly building new warehouses and employing more staff as their firm gets bigger. That should tell you something about the level of sales they’re making.
Better equipment for mass production
As most perfume manufacturers now have improved equipment available to them, mass producing their product is easier than ever. White Mountain Process Mixing tanks and similar items allow them to meet demand, no matter how high it might get. In the past, perfume companies could only spend a limited amount on marketing. That is because they would have sold out of all their stock overnight. That is no longer the case. Better and cheaper mass production tools mean the companies concerned can make as much product as they like.
So, do we think the market will continue booming into 2015? It certainly looks that way. Materials are becoming cheaper every single day, which means prices should continue to drop over the coming months. Also, more new brands are appearing on the scene and attempting to make their mark all the time. Perhaps you should consider starting your own perfume brand soon? You never know; it could make you rich beyond your wildest dreams.