How to Start Your Own Perfume Shop

Alice Tuffery, writer

Published at 18/11/2018, Updated on 04/05/2022 , Reading time: 6 min

How to Start Your Own Perfume Shop — Photo © perfume-online-shop.jpg

Whether you’ve always wanted to launch a perfume shop, or you’ve never even considered it, you can find out all you need to know about the fragrance industry right here.

Becoming a franchisee in a perfume business can be an exciting prospect. There is a variety of different franchises operating in the fragrance market, each specialising in a particular niche. Let’s take a look at why you should consider launching your own perfume shop.

Why creating a perfume franchise unit is a great idea

1. Perfume sales are on the up

In the UK, the perfume and cosmetics industry employs more than 15,000 people. Right now, it’s worth £5 billion, having grown 1.3 percent every year since 2014 (IBISWorld). Worldwide, the fragrance sector generates an impressive revenue. Market experts believe it will be worth almost £42 billion by 2024 (Statista).

2. Customers often prefer dedicated perfume shops to huge beauty stores

Fragrances are often sold through large retailers who offer a diverse range of products. Because of their huge selection of items, customers may perceive these stores to have less specialised knowledge or lower quality perfumes. By opening a dedicated perfume shop, you can introduce yourself as a specialist fragrance retailer with plenty of expertise.

Once you’re up and running, you could focus your attention on becoming a respected, trend-conscious store. You’re likely to see success by creating or joining a business with a distinct personality, strong social media presence and finger on the pulse when it comes to customer demand.

3. Sell online (and work from home)

There are a number of benefits when it comes to operating an online perfume shop. You can not only offer a convenient service for customers, but also work from home and lower the overheads you would have if you rented a ‘brick and mortar’ store. It’s a great option if you’re looking for a way to safeguard your business for the future, as more and more consumers head online to make purchases.

Starting an online perfume shop is a challenging but rewarding process. While perfume is typically a product consumers buy in person, an intelligent businessperson should be able to launch an online platform offering customers an alternative shopping experience.

Did you know? Analysts expect the fragrance industry to be worth over £42 billion by 2024.

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Top tips for starting a perfume franchise unit

1. Examine the market

One of the first steps in any due diligence process is to look into your target market and assess whether there would be room for your business. Investigate the market conditions and whether other perfume businesses are thriving or struggling. You’ll also need to work out whether there are any obstacles to business growth. If other perfume companies are failing, how can you avoid the problems they’ve experienced?

For a thorough understanding of the industry, you could also look at the perfume sector’s regulatory bodies. Ask yourself: Will any of these rules impact my business in the future? If you’re planning on launching an online perfume shop, you may also want to think about how digital trends could affect it and how customers will find your site.

2. Scout out the competition

This is one of the most vital steps; there’s no point in launching a business that will be in direct competition with an established, popular brand already benefitting from a large, loyal customer base. You’ll spend a considerable amount of time and resources attempting to convert customers to your business – and there’s no guarantee this expensive tactic will even work.

You must distinguish yourself from the competition, and if you are an online retailer without a physical store-front to attract passers-by, you’ll need to rely on a strong brand identity. The best thing you can do is find a niche and build a client base on it. This tactic can work brilliantly in the fragrance sector.

3. Research your potential customer base

Every business owner needs to understand their customers. Consumer demand and trends are always changing in the perfume sector, so you’ll need to stay on top of them if you’re to sell effectively.

Do perfume shoppers predominantly buy fragrances for themselves or as a gift for someone else? Do they only make a purchase when they find their favourite scent at a discounted price? What makes them choose one perfume over another when shopping online?

You can then use the answers to these questions to inform your decision when it comes to choosing the franchise you join, or the type of independent business you launch.

4. Make financial calculations

As a business owner, you need to be confident your venture will turn a profit. Unless you’ve got large amounts of capital, you’ll have to borrow money and convince your lender they’ll get their money back. To do this, you’ll need to work out what expenses you’ll have, what sales figures you’re likely to achieve and how much profit you’ll generate.

When you join a perfume franchise, the franchisor should be able to help you with these financial calculations. If they’ve been in the business a while, they’ll have helped other investors build up successful retail businesses under their branding, so they’ll know how your unit is likely to perform.

5. Get help from legal and financial advisors

The paperwork involved in joining a franchise can be complicated, so we recommend you visit a specialist franchise solicitor and/or financial advisor before you commit to a perfume shop franchise. They’ll be able to review the documents with you and let you know if there’s any aspect you should be wary of. Then, you can put pen to paper knowing you’ve made an informed decision, and there won’t be any nasty surprises further down the line.

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Our perfume shop franchise opportunity

Arabian Oud is a fantastic fragrance shop franchise offering a 10-year contract.

Arabian Oud

This perfume franchise has over 35 years of industry experience and over 900 stores in more than 35 countries. The franchise brands itself as an alternative to western stores like The Perfume Shop, and has seen success, producing 35 million bottles yearly. Because it offers something unique and innovative, it has been able to grow alongside some of the biggest global perfume brands.

Arabian Oud is also the first Arabic member of the Fragrance Foundation and has been mentioned in the Fragrances of the World handbook. It vows to respect different cultures and abide by the founders’ promise to only use natural materials that don’t harm the environment.

Becoming an Arabian Oud franchisee: The perfume franchise is on the lookout for savvy entrepreneurs who are passionate about fragrance and are business minded. The brand offers a franchise package which lasts 10 years. To learn more, visit Arabian Oud's profile page.
How much you need to invest: The franchise fees and initial costs vary depending on the territory you operate in. Arabian Oud suggests that potential franchisees should contact them directly to discuss franchise costs and the application process.
What you get for your investment: Franchisees will be referred to as ‘area developers’ and given the right to use the brand name as well as associated trademarks. The company will provide comprehensive training to get the franchisees up to speed with the company’s ethos and operational system, and support will be given in business management and marketing. Of course, product training will be provided so franchisees will have expertise on the perfume collections.

Become a perfume shop franchisee today!

As you can see, there are loads of advantages to starting a perfume shop business, particularly if it has its own niche and operates online. If you’d like to learn more about joining a franchise in the beauty industry, take a look at our other thriving franchises waiting for investors to get in touch.