Introduction
Starting a perfume business is a great opportunity for anyone looking to combine interests in science and art. This guide will go through the key things to think about. First, we’ll explain the basics of perfume. Then we’ll cover the important considerations for your business plan relating to your product, packaging, promotion, and IP protections.
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Perfume basics
The intricacies of what perfumes contain is quite complex. Put simply, perfume is a combination of ‘scents’ working together to create a particular lasting fragrance. These underlying scents can be broken down into seven families, as well as into their respective ‘notes’.
Scent families
Perfume can be broken down into all their component scents. In general, there are seven families of scents used in perfumes. These are floral, chypre, amber, fougère, woody, leather, and citrus. You can use floral, chypre and amber scents for more feminine scents. On the other hand, you can use fougère, woody, and leather for more masculine scents. Citrus has been increasingly identified as more gender neutral. These scents can be synthetically reproduced, which is good news for scents derived from endangered animals (e.g. musk). Additionally, some scents can be created through chemical processes and are not found naturally. These are referred to as ‘captives’ and are useful in creating unique fragrances.
Notes
Perfume can also be broken down into three notes: a top note, heart note, and base note. These three notes are typically made up of different scents with different properties. The scents you smell first are in the top note. The main scents which you smell for the whole duration the perfume lasts are in the heart note (hence the name). Finally, the scents you smell last are in the base note; these sit on the skin the longest.
Product
To start a perfume business, of course you need to actually get your hands on the perfume. There are two main ways you can go about it: Sourcing your perfume from fragrance suppliers or creating your perfume from scratch. Additionally, regardless of which avenue you choose, there are some key regulatory requirements you will want to think about.
Sourcing from fragrance suppliers
Your first option is to find a reliable fragrance supplier. The advantage of this is that you won’t need finances for manufacturing processes. If you want to start a business selling other peoples’ perfumes, you should think about perfume wholesalers. However, you can also work with a fragrance supplier to develop your own line.
Creating from scratch
Alternatively, you can create your perfume yourself. The advantage of this is that you can develop unique perfumes in secret and potentially secure intellectual property (‘IP’) rights (see ‘IP Protections’ below). However, you will need the finances for research and development efforts. You will also need to finance manufacturing processes.
Regulatory requirements
If you are importing any of your fragrances or derivative chemicals from overseas suppliers, you need to consider import permits. As a minimum, you need an import permit if you import fully manufactured cosmetic products which are ready for retail-sale with more than 20% animal products. The Department of Agriculture, Water and the Environment defines a cosmetic product to include perfumes. You also need an import permit for the importation of the raw materials or partially manufactured perfumes. Additionally, whether you import fragrances or manufacture your own perfumes, you may need to register your business with the Australian Industrial Chemicals Introduction Scheme (‘AICIS’). They also have additional requirements relating to things like categorisation and reporting.
Packaging
Once you figure out where you want to get your product from, you need to think about packaging. This includes a logo and packaging/bottle design. If you start a company with us, there are some great partner offers which may help you out here. In addition to these design considerations, there are some important labelling requirements you need to be aware of.
Labelling requirements
According to the ACCC, a cosmetic product includes products intended for perfuming the body. The key requirement essentially relates to displaying the ingredients on the packaging. The Cosmetic Goods (Cosmetic) Information Standard 2020 contains the details of these requirements. However, this is a bit of a dense legislative instrument, and you should consider getting legal advice to help with this.
Promotion
So once your product is packaged and ready to go, you need to think about promotion efforts. If you want to start your own website, you will need to consider web design for your online platform. Alternatively, you might want to tap into the power of social media and celebrity endorsements. You also need to think about promotional materials (e.g. advertisements). If you think yourself quite design-savvy, you can do all these things yourself. Alternatively, you may wish to think about outsourcing your work to freelance designers to help you out.
IP Protections
In the perfume industry, the key way of protecting key formulations has been through trade secrets. However, there could be some intellectual property rights you have as well. You may be able to trademark scents, though this does not necessarily mean you can trademark perfume fragrances. Additionally, patents are available for new and inventive captives (see ‘Perfume basics’ above). However, it’s not necessarily available for perfume formulations, and isolations of naturally occurring scents. You may also be able to trademark your logo and business name. In all, IP rights in respect of perfumes aren’t very straightforward, so you should consider contacting IP lawyers to get some legal advice.
Conclusion
In conclusion, starting your own perfume business can be a great opportunity for scientifically and artistically inclined people. To do so, not only should you make a business plan, but there are some key things to think about in terms of your product, packaging, promotion, and protections. This guide has gone through the major points here, but don’t hesitate to consider getting further industry or legal advice.
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