What is behind the high price of perfumes

The average price of a perfume in France is almost 63 euros. The cost of the raw materials used for its production does not justify that amount. It is the funds dedicated to sales and promotion, in addition to the pleasant limits, that explain why it is necessary to pay a lot to enter the perfume.

Many people put a perfume bottle under the tree. And among them, some wondered why the price of 10, 20 or 50 cl of colored alcohol is high. The French are very good perfumers: for those who are said to be noble, not sold in hypermarkets, the market was worth 2.2 billion euros in 2018, which makes France in the first European country in terms of rent. In the upper classes, some good successes return, including in first place in 2019 La Vie est belle by Lancôme for women, and Bleu by Chanel for men.

Buy a good deal

The key to these sales? “Accessing the brands that make you dream”, focuses Delphine Dion, professor at Essec Business School. “Buying Dior J’adore is more like buying Dior, buying a part of these luxury brands that we don’t need to be involved in,” he said.

“Our customers sell above all records, it’s a dream”, we see in Lolita Lempicka. “Our romantic world is written by regressive olfactory scents and color as art”.

But dreams are expensive. According to the special firm NPD, the average price of a perfume, in stores, is almost 63 euros compared to 46 euros in 2006. The subject of the real price in each case is restricted, and important things want to direct the work. process, sometimes years.

The sector also produces real raw materials. Therefore, “jasmine is very expensive, thousands of euros per kilo”, underlines for example Marie-Caroline Renault, the general manager of the perfume house Le Couvent.

Precious bottles

However, “there are many natural types that we cannot use because they are prohibited by European regulations, so there are many synthetic types”, said Gachoucha Kretz, professor of marketing at HEC, a professional institution, which shows these things of good quality.

Bottles can represent a tenant. “We rarely use the same standards as many houses”, is the answer in Lolita Lempicka.

But at the heart of spending, promotion and sales in the lion’s share, important when the competition is growing, with 430 new perfumes launched last year in France, to like NPD. If the numbers are hidden, the players of the sector say an ex-factory price that represents about 15% of the final price, and about 40% when the sales costs are added.

“In the business environment of the big houses, what contributes to the price of perfumes in stores are the costs of sales, launch, muses, advertising on TV,” explains Ms. Kretz. Without forgetting the limit of the advertisers, then the shopping areas.

New players may want to opt out of this system

Faced with this, new players are emerging, based on social networks and simply lowering the advertising base. “Everything goes through public relations,” says Céline Verleure, who created Olfactive Studio Parfums in 2011. “Everything that we don’t put in advertising, put We are in the best of spices,” he said.

“We have chosen to tell ourselves that we can use the best quality of raw materials, and this is what assures customers”, explains Marie-Caroline Renault, who explained that a common item “leads to a 50% increase in the price of our spices.

For Maxime Garcia Janin, the founder of Sillages in 2016, a house that offers the ability to customize your perfume online, this is a new development, the website allows you to keep to “media plans and margins very important distributors”. “All that money can be put back into a perfume with natural ingredients,” he said.

“For some people, beauty is a big house, a muse, a thought that is intended. But there is another movement that is gaining momentum, the return to real wealth: fat is a beautiful product that suits me ,” he said.

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