Do you love the world of perfume and cosmetics? Would you like to make a living from your passion and share it with your customers, but you don't know how to go about opening a perfume store?

Good news: in this article, you will find information on each of the major steps to take to open a perfume store or start a perfume retail kiosk in the shopping mall, as well as an analysis of the sector in Europe and the same in the USA, and valuable advice for writing a business plan for a perfume store.

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#1. Carry out the market research of a perfume shop

The very dynamic perfume business is resisting the crisis.

Symbol of excellence and French chic, the perfume market is doing wonderfully in France. In continuous growth for 15 years, the perfume-cosmetics sector now employs more than 150,000 people.

The perfume sector has experienced a new dynamic in France since the beginning of the 2000s, driven by increased household consumption of perfumes and cosmetics, both in value and in volume. This strong trend can be explained in particular by the development of a male clientele and the importance of consuming perfume and cosmetic products by seniors, all driven by a real sociological evolution that favors well-being and quiet life.

The typology and trends of the perfume-cosmetics market

Before opening your perfume store and kiosks, you have to keep in mind that the perfume cosmetics market is essentially made up of large groups and chains representing almost the entire market.

The organization of the perfume market is largely dominated by selective distribution. Independents or large retailers distribute one or more brands after the distributor has signed a contract.

Large chains and brands such as Sephora, Marionnaud, Nocibé, and department stores should maintain strong pressure in the coming years, further intensifying market concentration and leading to gradual disappearance. Isolated independents.

In addition, drugstore and internet sales now compete strongly with perfumeries and are therefore players to be taken seriously.

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#2. Open a perfume store: independent or franchisee?

One of the big questions to ask yourself when carrying out your perfume market research is that of the concept of your perfume shop: which products, which brands, which know-how do you want to highlight and promote? What will differentiate you from the existing offer?

One of the most important elements is opening an independent perfume store or, conversely, opening a franchised perfume store.

Given the ultra-competitive nature of the sector, and the size of the initial investment, opening a franchised perfume store appears to be the least risky option.

By opting for the franchise, you will benefit from many advantages:

  • Economies of scale and advantageous pricing conditions
  • Support and training: management tools, advertising campaigns, etc.
  • Brand awareness among your future potential customers

If this option interests you, know that Passion Beauté, Graines de pastel, or Beauty Sucess are looking for entrepreneurs wishing to open a franchise brand in the perfume-cosmetics sector.

You can, of course, also take over an existing perfume store, which will allow you to benefit from a current clientele and agreements already negotiated with suppliers.

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#3. Finding a location for your perfume store

The location of your perfume store is a key element in the success of your project. Indeed, the area of your premises will have a major impact on your turnover potential.

We will surely favor a very busy place, ensuring high visibility. A downtown shopping district seems ideal, but it may also be a good idea to open your perfume kiosk in a shopping center with a high density of potential customers.

Finally, if you want to save on rent or purchase premises, you can opt for a less busy area, but the communication effort to make yourself known will then be all the more important.

#4. What legal structure to create a perfume store?

The legal status is an important element of your business creation since it will have repercussions, particularly on the method of taxation of the company and the social regime of the manager (s).

You will have to choose the most suitable status for your perfume store, considering your situation (number of partners, amount to invest, etc.).

#5. The Staff and material need to open a perfume shop.

Once the market research has been done, your concept carefully considered, the location found, and the legal status of your business established, it is then time to look into the investments necessary to launch your perfume store.

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The material needs specific to the opening of a perfumery.

You will need to buy all the elements necessary for the layout of your point of sale (cash register and payment terminal, displays, furniture, decorative pieces, etc.), as well as the computer equipment necessary for the management and the stock of departure.

Opt for the creation of independent perfumery. It may also be interesting to have a website created to attract new customers to the store (showcase site) or retain existing customers (e-commerce site).

The staff needs for a perfume store

You will also need to think about your staffing needs. For a strong advisory dimension, it is recommended to hire Staff with an affinity with the world of beauty, or even with a diploma of the beautician.

The choice of personnel is a crucial element in the opening of perfumery because the quality of listening, the reception, the advice, the pedagogy are an integral part of the purchase of perfumes and cosmetics.

The quality of the advice given by your salespeople is also a good way to differentiate yourself from the competition.

Support functions: a factor to take into account when opening a perfume store

Finally, you will also have to subscribe to ancillary services such as professional insurance or the use of the benefits of a chartered accountant for the financial management aspects of your store.

To best quantify these different expenses, ask for quotes from professionals.

#6. The marketing plan of a perfume store

After defining your human and material needs necessary to open your perfume store, you will need to set up a marketing plan.

A marketing plan is an essential tool for the success of your perfumery. It allows you to plan and quantify the actions to be put in place to develop your clientele by acquiring new clients first and then the loyalty of existing clients of your perfume store.

Think about street marketing which can, when opening, allow you to make yourself known quickly. Contests and promotional offers on social networks are also a way of making oneself known promptly to the general public.

#7. The business plan of a perfumery

Once you have gathered all the elements mentioned in the above parts, the next step is to carry out your perfume business plan.

The business plan must contain a detailed presentation of your activity, including market analysis, the production of the concept, the factors that differentiate you from the competition, and of course, a budget estimate.

An essential document for your fundraising, the business plan of your perfume store must be flawless.

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#8. The search for funding to launch your perfume shop

Once you have your business plan in hand, the last step in setting up a perfume store is to raise the necessary financing for the launch.

The initial investment to open a franchised perfume shop varies between 40,000 and 250,000 € ( Franchise Observatory ).

Many modes of financing exist to raise this sum: equity, bank loan, crowdfunding, help to start a business, etc. 

You wanted to know how to open a perfume store, and we hope that this article has enabled you to see the steps to take. Do not hesitate to let us know if you have any questions.

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