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Perfume Business Idea in 2022 | How to Make Awesome Perfume at Home

Today I will give you idea about perfume business. Perfume is such a product that can change one’s mood in an instant. Not only the person who is using the perfume, everyone around him is impressed by the fragrance. Its use in any event or any public place creates attraction. There are a lot of people in the world who never make a day without using perfume. Even many people use different brands of perfume at different events. In India, youngsters finish an average of 1 bottle of perfume per month. It is not a bad thing to start a business on a product that is in high demand. The market for this business is huge.

According to data from www.imarcgroup.com [1], the global perfume market reached USD 32.6 billion in 2020. And it is expected that the market will grow at a CAGR of 6.15% between 2021 and 2026. It is possible to earn a good amount of money from this business just by following the right business strategy. Let’s take a look.

Remember, deodrants and perfume are different in body spray. Deodrants is a gaseous substance while perfume is a liquid, the method of making deodrants is different. This page only discusses perfume business and how to make perfume at home.

image from Pexels

Table of Contents

Who can do the perfume business?

Anyone can do any business in the right way. However, it is necessary to have complete knowledge and ideas about that business, because business means investing money and following some legal rules and regulations and there is a problem if any business does not start with proper knowledge and ideas.

The first thing you need to do in this perfume business is to make it.In order to start a perfume business, you need to have knowledge of chemicals. For this, if you are a student of science stream, then it will be very useful for you.

And if you aren’t, you can hire a perfume expert chemist to create and take care of the chemical composition of your perfume. But for this you have to have a good budget. If you do not have much budget, you can do your own perfume making course from the internet or by joining an institute.

Profit in the perfume business

In the perfume business you can easily keep a profit margin of 50% to 200%. Yes, that’s right the customer is ready to value the product that’s important to them. And in this case fragrance is the most important thing.

If you can market a perfume that is absolutely soothing, unique and has a long lasting scent then the customer will buy your product more than once.

Suppose a complete ready-made perfume bottle (with full packaging) costs a total of Rs 50. If you keep 100% profit margin in it, then your profit is 50 rupees and taking the profit margin of distributor and retailer, the MRP (maximum retail price, the price at which the average customer will buy your product) of your product goes 149 rupees(as per indian market). This is a very common price for indian people who are addicted to perfume. If the quality of your perfume is good, the customer will not hesitate to buy even at a higher price.

Everything you need to start this business
To start a perfume business you need –

To start a perfume business you need –

  • Raw materials;
  • Some workers;
  • Perfume making machine (automatic or semi-automatic);
  • Bottles of perfume, spray mechanism;
  • A proper place or factory;
  • Some licenses.

Raw materials for the perfume business

There are many ways to make perfume. Different companies make perfumes according to the opinions of their perfume experts using different chemicals and by analyzing natural substances.

But the main 7 raw materials for making perfume are –

  1. Carrier Oil.
  2. Essential Oil. – It is the main ingredient in perfumery
  3. Alcohol. – Odorless alcohol is needed to mix all the essential oils and it enhances the aroma.
  4. Fixative. – It helps to preserve all the ingredients and blends of the perfume and does not let it go bad.
  5. Spray mechanism. – This is a small mechanism for spraying perfume.
  6. Packaging material

Total investment of starting this business

If you want to start a business with more capital, it will cost at least 10 lakh rupees.

If you want to start a business in a domestic way with less capital, it will cost at least 5 to 10 thousand rupees.

Required workers

If you want to do business on a large scale, then you can keep the number of workers as needed according to your different divisions.

And if your budget is low and you want to make homemade perfumes and sell them in the market, then 2-3 employees are enough in the beginning.

Machinery

There is no need for such a machine if you start your business on a low budget.

Only oils, blending equipment and a system of filling perfumes in bottles are enough.

And if you have a big budget, you can use big machines. These machines include chemical mixing machines, perfume filling machines, packaging machines or complete perfume making machines.

These machines are semi-automatic or automatic. Automatic machines cost more than semi-automatic machines.

The cost of all kinds of machines can be around 5-6 lakh rupees.

To see the machines click here.

Choosing the right place

Starting this business on a big budget requires an area of at least 1500 square feet to 2000 square feet.

Moreover, if you want to start a perfume business at home on a low budget, a fairly 2 medium room-like space is enough.

Remember, in the case of a big budget business, the place you choose should have a good electricity system. Many machines will use a lot of electricity.

There is no need for such electric on a low budget start up.

How to start a perfume business at home with little capital

For a long time, you have been reading that it is possible to trade perfumes from home with less capital, but how? No more waiting!

Before you can do that, you need to know why you will make perfume at home, the advantages and disadvantages.

Why start at home?

There may be two reasons for this.

First of all, you don’t have much budget to start a business, you want to start with little capital.

Second, you want to make perfume without the use of any complex chemicals.

The convenience of starting it home-based

There are four benefits to starting a perfume business from home.

  • It saves a lot of cost.
  • Contains no harmful chemicals.
  • You can easily change the scent of perfume.
  • It is good for the skin.

The difficulty of starting a business at home

There is no such problem but it may not be possible to make many products at once.

Perfume

Learn step by step how to make perfume at home with less capital
Nothing will be needed except the raw materials mentioned above. Keep a container clean and ready.
(You are given the idea of making perfume in a container that will hold 4 ounces of liquid. You can determine the quantity as per your requirement. You have to determine the quantity correctly otherwise perfume will not be made well.)
Now you will need Carrier Oil. Carrier oils include jojoba oil, olive oil, grape seed oil, etc. Pour 2 to 3 ounces of carrier oil into the container. The more carrier oil you give, the more essential oil you will need.
Now you have to give three notes of Essential Oil. Here note means drops of essential oil. The three notes are base note, middle note and top note respectively. Remember, you have to keep experimenting with new oils of the same note over and over again until you can create the fragrance you like.

Give the base note:

A base note is a note that has a long lasting odor. Drops of essential oils like cinnamon, jasmine, cedarwood, rose, vanilla, clove, etc. are among the base notes. Give 15 drops of oil of your choice

Give middle note:

The middle note is the note whose smell is felt after a few moments of giving perfume to the body. Chamomile, giranium, zooniper, pine, rosemary, ylang-ylang, nutmeg, lavender, cypress, etc. oil make very good middle notes. Give 15 drops of middle note of oil of your choice.

Give top notes:

The top note is the note whose scent is felt at the moment of applying perfume on the body. This is the last note of your perfume. Oils like eucalyptus, lemon, grapefruit, peppermint, spearmint, sage, tea tree, orange etc. make very good top notes. Again give 15 drops top oil of your choice.

Give alcohol:

Odorless alcohol is needed to mix all the essential oils and it enhances the aroma. Vodka is an odorless alcohol.

Give Fixive:

You need to use fixative to keep your perfume lasting and fresh for many days. You can use Vitamin E capsules as a fixative. Pierce the capsule with a sharp object and slowly add the oil to the container.
Then close the lid of the container and shake it well. Check if the perfume is made as per your mind. If so, cover up the mixture for 48 hours and keep it in a dark container to avoid sunlight. Your perfume is ready.
Click on the two sources below to learn more.
Source 1
Source 2
To get the essential oil of your choice click here.

Required licenses to start a perfume business

What licenses are required to start a business depends on the laws of country in which the business originates. You can contact a chatter accountant or a lawyer to know exactly what licenses are required to do a business.

If you are an Indian, the licenses that are usually required in this business are discussed:-

  • Gst
  • Udyam
  • NOC from fire department
  • NOC from pollution control board
  • Factory license
  • Trademark

This business usually requires this licenses. I suggest you get the right information from a lawyer or chatter accountant. Nowadays you can also get a lot of information through the internet.

How to start the business

The first thing you need to do when starting the business is to make perfume. The spray mechanism must be applied to the perfume bottle. You can’t use perfume without it. Then the perfume should be filled in the perfume bottle and packaged and kept ready. You need to get your business licensed. Once the product is ready and licensed, you need to prepare your product for the market. If your business is on a high budget you can have perfume distributors in different cities of the country. Distributors should be located in areas where they can supply to many retailers.

And if you want to start a business on a low budget, you need to find a sales person. Your product should be sold by the sales person at local and other stores where perfume sales are good.

Remember that when launching a new product, the MRP of your product should be such that distributors or local stores get good profit. Only then will they be interested in selling your product to the buyers.

After all, the scent of your perfume needs to be unique so that buyers come again and again to buy your product.

Caution

  • Alcohol and other chemicals used in the perfume business are combustible substances. Beware of fire in this business. Even a small fire due to carelessness can cause a lot of damage.
  • Electric should also be used carefully and cautiously. Sparks generated by electric shot circuits can cause terrible fires.
  • Licensing is very important in any business. This will keep you free from various legal hassles.
  • Use chemicals only on the advice of an expert.

This content is also available in Bengali language.

F.A.Q

How much profit is there in perfume business?

In this business you can easily keep a profit margin of 50% to 200%, even higher if your product is premium with unique fragrance.

How much investment is required to start a perfume line business?

You can start this business from home with a minimum 5 to 10 thousand rupees only.
For a large scale standardize business you need to invest a minimum of 10 lakhs rupees.

What is the main component to make perfumes?

Flowers and essential oil.

What is the market size of perfume business?

It has a huge market size in the worldwide. From an average person to a billionare, all type of people use perfumes.

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