Start your perfume business in 2025: A simple guide

Start your 2024 perfume business: Research, plan, and brand smartly to stand out and succeed. Simple steps, big impact.

Start your perfume business in india
Start your perfume business in india

Guest Naveen Anvi

8/27/2024

6 min read

The very first step is to spare 10 minutes and look into your past experience to see whether you have left any unfinished business that you started but did not finish due to hurdles or problems you could not resolve. If the answer is yes, then make sure you don’t repeat the mistakes. Now, when you have determined your goals, get the calculator and add some numbers. For example, if you sell your perfume to 2,500 individuals and earn 50 rupees on each bottle, then you will be earning 2,500 * 50 = 125,000 rupees a month. Got some motivation? No? Then increase the numbers. If yes, then start working.

What you need to do is get to know why people should buy your perfume—whether for its fragrance quality, long-lasting quality, the packaging, maybe the super hot marketing strategy, or it could be a collaboration with other brands like gifting your perfume bottle with a company that is selling clothes, bags, or jewelry. You give them your bottle of perfume at a discounted price, and you do the same for them by gifting their products with your perfumes. Anyway, that’s where you need to start, or maybe you have a better strategy.

Now, let’s simplify the strategy: Get to know your market, go online, and read multiple articles on starting your business. If possible, find someone who has been in this business for a long time and make sure he has left this business; ask for his advice and strategies and make him your mentor. Oh! Yes, if you think you know everything or your brain gives you signals that you will be able to learn more on the internet than from someone who has worked in the business like a mentor, then don’t get bluffed.

  1. Industry Research: In simple words, understand the perfume market you are trying to enter and the trends, and yes, your target audience. What is the niche and unique selling point for your perfumes? If you don’t know, then make sure you have a unique selling point; otherwise, it is hard to sell anything, not only perfume.

  2. Business Plan and Time Frame: You know how to create a business plan, right? Okay, then create a detailed business plan covering your goals that you can achieve in a time frame. Make sure you give yourself a bunch of time frames, like for each strategy. For example, if you plan to do the research in five days, then complete it in five days. Market analysis of the market is easier than it was 20 years ago when there weren’t as many details available for free. Check on your competition and keep a sharp eye on them—how they do it and what way they choose for certain patterns to get to success. Of course, the product range must be smaller at the start and increase gradually. Then hit on the pricing part, which is a dangerous zone—too expensive, then fewer buyers; too cheap, then no one buys it, or the ones who do buy it do not know what perfume really means. Lastly, make robust marketing strategies that can give you the boost you need. I mean, just do the blurting, write them down in a yada yada way, and then put them in a commercial way.

  3. Legal Requirements: Now, this is a very important part before you hit the ground. Most people in India start their company first just to become a CEO, but I bet you do not want to be a CEO—that’s very cheap. You just need to start a company when you almost have your product in hand. However, prepare for the paperwork beforehand, and it is a must to know the name of your product and make sure another product isn’t available in the market before you do the legal work.

  4. Supplier Sourcing: If you are thinking you can do all the things on your own, then don’t—I repeat, don’t do it. Just trust the market; it works on private labeling. One example is 7genix, which can help you get the product easily. Focus more on marketing, sales, and brand building, and less on manufacturing.

  5. Product Development: I think just doing some research on the internet will give you some idea of what fragrance you need to ask your private labeler to manufacture for you. For example, go to Amazon and find a fragrance and buy the one with the most likes and reviews. Get inspiration from it, and that’s it—your product for the start is ready.

  6. Branding and Packaging: This is an important part and is an ongoing process. Give at least three days to read more on branding, and I will suggest spending time on minimalist branding with no heavy artwork or strategy. Post about something that is a feeling when someone uses your perfume, like a punchline: “It feels amazing” or maybe “I feel complete,” and then promote it. Don’t just go online and post pictures of your products—that’s a cheap way. Believe me, it is more like praising your own product, which is the cheapest way to promote it. They know you will appreciate your product, and they believe in others' reviews or in someone who they think doesn’t care about selling their product but tends to focus on building it.

  7. Online Presence: I would not say much on it—you will learn slowly. If you don’t have funds, then do it on your own; otherwise, hire someone—it is simple.

  8. Marketing and Sales: Man! You can do it. Just stick to one pattern for a certain time, and if the results are not desirable, then adjust it. Copy the marketing strategy of your successful competitors and put extra effort into refining it and implementing this.

  9. Distribution: Just build it, promote it, and they will buy it. I don’t know if this is important in the beginning because it’s easier than the other parts.

  10. Customer Service: The more weight you put on your customer service—I mean, just treat them like you’re putting yourself in their shoes—then try to respond and take their feedback sincerely. It’s a major part of your strategy that you must put more focus on. Each conversation is important, and that defines how they will take your products. They know your product is new, but just saying, “You know we are new in the market, and with your support, we can improve for better services” will help them understand.

  11. Scaling: It’s a day-one course. Rather, I would say when you just have this idea to start a business, you must envision how big this could be. If you feel right about scaling up and your idea gives you more confidence that it can be scaled up, then go for it. Analyze the stats, and it will be scaled up, so go for it on the first day.

  12. Compliance and Quality Control: Quality control is the most important aspect, but just get the right private labeling company, and you might need to worry less about this part because you can forward each feedback to the manufacturer. And yeah, compliance? You will learn over time.

Advantages of an Online Perfume Business: Sell online, and that’s where most people are buying these days. Seems exaggerated? Yeah, maybe a little bit, but you can’t ignore the online market, and it is a good starting point. Later on, move to the offline market or as your marketing strategy suggests.

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FAQs: Starting a perfume business in India in 2025

1. What is the future of the perfume business in India?
The perfume industry in India is poised for significant growth, driven by increasing consumer awareness, rising disposable income, and a growing interest in personal grooming. The market is expected to expand with the emergence of niche brands, e-commerce growth, and an increasing preference for premium and organic products.

2. Is the perfume business profitable in India?
Yes, the perfume business can be profitable in India if you have a well-defined target market, unique selling points, and a strong brand presence. With the right marketing strategies and product differentiation, there is substantial potential for profit, especially in the growing middle and upper-middle classes.

3. How to start a perfume-making business in India?
To start a perfume-making business in India, begin with market research and developing a business plan. Source high-quality raw materials and decide on your manufacturing process—whether in-house or through private labeling. Build your brand, design packaging, and comply with legal requirements. Launch your product with a robust marketing and distribution strategy.

4. What license is required for a perfume business in India?
Starting a perfume business in India typically requires a trade license from your local municipal authority, GST registration, and a trademark registration for your brand. Depending on the scale, you may also need a factory license if you are manufacturing in-house.

5. How much investment is needed to start a perfume business in India?
The investment required can vary greatly depending on the scale of your business. A small-scale business might start with an investment of ₹2-5 lakhs, while a larger operation could require ₹10 lakhs or more, including costs for raw materials, packaging, marketing, and legal compliance.

6. What are the main challenges in the perfume business in India?
Key challenges include high competition, the need for strong branding, fluctuating raw material prices, and understanding consumer preferences. Additionally, complying with legal regulations and managing distribution can be challenging for new entrants.

7. What are the advantages of selling perfumes online in India?
Selling perfumes online offers several advantages, including access to a broader audience, lower operational costs compared to physical stores, and the ability to easily track and analyze consumer behavior. It also allows for targeted marketing and the opportunity to build a loyal customer base through digital channels.

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