Uncategorized

Dynamic Shift in the Fragrance Industry: Has your company been left behind?

Dynamic Shift in the Fragrance Industry

More and more companies are adding Fragrance R&D capabilities to improve sustainability and their brand image, while improving gross profits.

The old way:

Many large manufacturers have one or two experts who are the “noses” for a product line, and they have total and absolute control over that line, but their power doesn’t stop there. They often overrule other departments including supply chain and even mid-Sr. level management. They are in full control internally, however, they only have perceived control over the fragrance houses.  They write very detailed fragrance briefs, listing feelings and emotions, and demographics, but many lack true chemistry & substance. This is of course no fault of theirs, it’s just the way thing have been done. They declare all banned ingredients, yet they rely on the expertise of the fragrance house for ingredient selection, sustainability, local content, etc. They receive and reject samples at will, until they are satisfied with the aroma, yet they are not advised of all of the ingredients within.

The Shift:

  • Company’s today spec. in approved ingredient lists (typically 1700 ingredients) approved by their in-house chemists that are sustainable, and help live up to the company’s mission. This list is provided to the fragrance house(s) to use to create or re-create more sustainable aromas.
  • Eliminating captives: Replacing one chemical such as lyral, shouldn’t mean that 100 new chemicals need to be added for this 1 chemical substitution, and cost 2-3 times more.
  • Company’s today are taking a leading role and now actively controlling the process rather than following. All departments are now actively involved in fragrance selection, from leadership, R&D, supply chain, to logistics, to environmental protection, eliminating silos.
  • Some companies are choosing total control and compounding their own fragrances, while others, are controlling all ingredients their supply house can use in the name of sustainability & transparency.
  • Aroma-Tune, the industry standard used to compare ingredients, odor strength, evaporation rates, solubility, price, etc. It is also the first beginner friendly fragrance creation app with 30,000 formulas included.

Reasons for this shift:

  • Transparency, Sustainability, & Living up to the company’s mission.
  • If there is only one or two sources for fragrances, it is more difficult for the buyer to ensure that they are keeping their company competitive.
  • In periods of tight supply, the buyer may be at a disadvantage in being able to ask other suppliers to accept orders. Knowing all ingredients will allow the company to source and/or compound in country, on-site, and on-demand.
  • Other suppliers may lose interest in trying to compete for the business if they see that one or two companies have all of their business.
  • Buyers may be facing a real risk if the fragrance house has a catastrophic event, gets bought by a buyer’s competitor, or has financial problems.

We are Innosol, Inc., creators of Aroma-Tune, the first beginner friendly fragrance creation software, that gives you back control over one of your largest category spends.

We welcome all who want to take back control over their Fragrance R&D expenditures and partner or collaborate with Innosol, Inc.

The introduction of Aroma-Tune makes it easy for CPG’s to get a firm grasp on fragrance composition and material selection.

Leave a Reply

Your email address will not be published.