06/07/2020
EXPOSED! Why is branded perfume so expensive?
And where to get your desired perfume at honest prices? (see below)
Being a perfume enthusiast, this is the question I often ask myself, what makes a perfume so darned pricey and yet people still go for it? It seems we are all willing to pay the price; at almost $40 billion in global sales, the perfume industry isn’t hurting, that’s for sure. But it did get me thinking; what’s the real story behind what we pay at the perfume counter?
Just a simple google search, you will be able to identify the reason is actually a combination of three factors:
1. Ingredients – Perfume is made using potent aromatics and other ingredients.
2. Marketing – It can cost millions to launch a product and create awareness around it.
3. Packaging – Perfumes come in unique, highly sophisticated bottles.
Sounds fairly reasonable but let's us look at into this in detail.
FRAGRANCE INGREDIENT
Celebrated French perfumer Jean-Claude Ellena once said that the actual perfume accounts for only 6 percent of the total cost. These days, it seems, even that is a generous estimate. According to Chandler Burr in his book The Perfect Scent: A Year in the Perfume Industry in Paris and New York, “only 3 percent or so of the price in the shop is the smell. The rest is packaging, advertising and margins.” He adds, ”the cheapness of the formula is the main reason why most ‘fine’ perfumes are total crap.”
MARKETING
You can create the most intoxicating scent in the world, but if no one knows about it, they aren’t going to be buying it.
Perhaps it’s not surprising, then, that a big part of what you’re paying for in a bottle of perfume is its marketing. From the elaborate ad campaigns themselves to the magazine, television and billboard placements where they are seen, everything has a price. In his book, Burr quotes Carlos Timiraos, Coty’s VP of Global Marketing at the time, as saying that “the launch will cost you 2 to 3 million dollars at a minimum, then annual advertising and marketing costs tens of millions.”
PERFUME BOTTLES & PACKAGINGS
A scent needs to come in a package that is unique, attractive, represents the brand well, and “feels good” to the person who’s going to be using it. Trine Mork of popular fragrance blog, ScentGourmand, writes that “the weight of the bottle and the quality of the box are important in making customers feel that they have gotten value from their purchase.”
Of course, this adds to the overall cost of production, and ultimately to the price tag in the store.
What else adds to the cost and what is the actual breakdown?
There are a few other, perhaps less obvious, costs that also add to the total.
So, to sum it all up, the breakdown of a RM 244 eau de toilette could look something like this in terms of percentage:
Bottle: 10%
Packaging: 8%
Marketing: 10%
Licensing Fee: 10%
Manufacturer’s overhead: 15%
Retailer’s Overhead: 40%
And the actual perfume: You Guessed It!
That’s right – the very product itself is the least valuable part of the whole equation. We are happily throwing our hard-earned money at companies who have built an enormous, expensive, you might even say bloated industry around a very simple thing: scented water. Considering all this, it seems unfortunate that perfume should be so costly. It’s a pleasure that, in my opinion, should be enjoyed by many more.
REDEFINING LUXURY SCENT
Fortunately, the digital world is quickly changing the equation when it comes to perfume-shopping. We at Fragrancia are able to avoid expenses such as brick-and-mortar retail shops and traditional marketing, so we can keep our overhead costs low. This makes it possible to sell high quality perfumes (with premium ingredients) for a lot less than they would be in a department store or specialty shop, making the world of luxury fragrance that much more accessible.
Full price list here: http://www.wasap.my/60165539610
FRAGRANCIA GUARANTEE
1.All Fragrancia Distributed Perfumes are directly acquired from manufacturer and comes with the importing principal 2.stickers and original batch code.
3.All Perfume Packaging and Bottles are properly examined upon collection from manufacturer's warehouse.
4.All Fragrancia Distributed Perfumes will be branded with a warranty sticker for identification and logistic security purpose.
5.We put in a 90 days return policy for unopened bottle for any reason. No question asked.
Click here to request for our products price list- http://www.wasap.my/60165539610
