by Terry Johnson
Vice Chairman IPF
Vice Chairman IPF
The current combined total of the US market for perfumes and aromatherapy is about $24 billion, of which Natural Perfumery and Natural Aromatherapy represent less than 10% market share and this number has been shrinking every year.
This should not be a complete surprise, since most perfume sales mainly come from multi-billion dollar synthetic perfume brands supported by multi-billion dollar synthetic chemical company suppliers, and aromatherapy is dominated by two huge companies combining for 75% of aromatherapy’s market share.
How can individual Natural Perfumers and Natural Aromatherapists overcome these powerful forces and increase their market? Here are Five Keys to Your Market Success:
1. Conduct your business with a Beginner’s Mind
However long you have been in business (whether you are just starting out or have been working for 30 years) you need to constantly rethink or confirm the basic fundamentals of your business including your Mission Statement, Vision Statement and Value Proposition. These important business practices represent the value-based foundation upon which you can build your future successful business.
2. Recognize and support the high value essential oil distribution chain community
The International Perfume Foundation is organizing this community through certification of the complete supply chain from growers, producers, schools, Natural Perfumers, Natural Aromatherapists and Perfumotherapists. Only by uniting our community with common values and standards can we hope to successfully compete with these market giants.
3. Keep updating and educating yourself
The world has been and will be continuing to change, which necessitates keeping up-to-date about the latest information on Olfaction, Natural Perfumery, Natural Aromatherapy, Perfumotherapy and Business.
4. Incorporate information and stories from sourcing into your marketing messaging that builds the value of products and services that you provide consumers
Proper sourcing doesn’t just involve finding a dependable supplier of great essential oils. Those things are important, however as important is finding out transparently who grew or processed your sources, how were they grown or processed, and with what sustainable methods? These are questions consumers are asking from other high value industries. Those who incorporate the same values into their products and services within our high value community will increasingly attract educated and informed consumers who demand more but are willing to pay more for value.
5. Increase the engagement within your communities by recognizing what they want
A substantial number of consumers want greater value in the products they purchase. For natural essences this would be the highest value products possible with freedom from GMO, freedom from synthetics and natural and sustainable sources.
How many consumers are out there who recognize value and are willing to pay more for it?
Consider before Starbucks there was no sustainable brewed coffee.
Starbucks created the sustainable brewed coffee market and was able to charge 4 times what brewed coffee sold for at that time. Sustainable brewed coffee is now a $25 billion market in the US and represents 50% market share!
We have the same, if not even greater opportunity in today’s world for significant market share growth in our community!
This should not be a complete surprise, since most perfume sales mainly come from multi-billion dollar synthetic perfume brands supported by multi-billion dollar synthetic chemical company suppliers, and aromatherapy is dominated by two huge companies combining for 75% of aromatherapy’s market share.
How can individual Natural Perfumers and Natural Aromatherapists overcome these powerful forces and increase their market? Here are Five Keys to Your Market Success:
1. Conduct your business with a Beginner’s Mind
However long you have been in business (whether you are just starting out or have been working for 30 years) you need to constantly rethink or confirm the basic fundamentals of your business including your Mission Statement, Vision Statement and Value Proposition. These important business practices represent the value-based foundation upon which you can build your future successful business.
2. Recognize and support the high value essential oil distribution chain community
The International Perfume Foundation is organizing this community through certification of the complete supply chain from growers, producers, schools, Natural Perfumers, Natural Aromatherapists and Perfumotherapists. Only by uniting our community with common values and standards can we hope to successfully compete with these market giants.
3. Keep updating and educating yourself
The world has been and will be continuing to change, which necessitates keeping up-to-date about the latest information on Olfaction, Natural Perfumery, Natural Aromatherapy, Perfumotherapy and Business.
4. Incorporate information and stories from sourcing into your marketing messaging that builds the value of products and services that you provide consumers
Proper sourcing doesn’t just involve finding a dependable supplier of great essential oils. Those things are important, however as important is finding out transparently who grew or processed your sources, how were they grown or processed, and with what sustainable methods? These are questions consumers are asking from other high value industries. Those who incorporate the same values into their products and services within our high value community will increasingly attract educated and informed consumers who demand more but are willing to pay more for value.
5. Increase the engagement within your communities by recognizing what they want
A substantial number of consumers want greater value in the products they purchase. For natural essences this would be the highest value products possible with freedom from GMO, freedom from synthetics and natural and sustainable sources.
How many consumers are out there who recognize value and are willing to pay more for it?
Consider before Starbucks there was no sustainable brewed coffee.
Starbucks created the sustainable brewed coffee market and was able to charge 4 times what brewed coffee sold for at that time. Sustainable brewed coffee is now a $25 billion market in the US and represents 50% market share!
We have the same, if not even greater opportunity in today’s world for significant market share growth in our community!
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