Starting a refill perfume business has great potential for high profits, thanks to the strong demand for fragrances. This demand is particularly strong among urban dwellers who lead busy lives and need to stay fresh in hot and sunny environments. It's no surprise that the demand for perfumes and fragrances continues to rise.

According to Statista, revenue in Indonesia’s fragrance market is expected to reach USD 56.02 million in 2024. The market is projected to grow at an annual rate (CAGR 2024-2029) of 4.97%, resulting in an estimated market volume of USD 71.38 million by 2029.

Contrary to popular belief, starting a refill perfume business doesn’t always require a large investment. With an estimated capital in the tens of millions of rupiah, you can start your refill perfume business.

Initial Inventory Costs

Here’s a breakdown of the initial inventory costs:

• Perfume Syringes (10 pcs): Rp 25,000
• Permanent Perfume Syringes (2 pcs): Rp 20,000
• Measuring Cups (10, 25, 50, 100 ml): Rp 75,000
• Display Cabinets (3 cabinets for a 3×4 m shop): Rp 4,500,000
• Cashier Table: Rp 500,000
• Wall Display Racks (1×2 m, 4 pcs): Rp 6,000,000
• Banners, Signs, Lights, Fit-Out: Rp 1,000,000

The estimated total cost for these items is Rp 12,120,000.

Initial Raw Material Costs

For the initial raw materials, you can start with approximately 150 bottles of perfume, each containing 100 ml of perfume oil. Here’s a list of the necessary materials and their estimated costs:

• Perfume Oil (150 pcs, 100 ml each): ± Rp 13,000,000
• Aluminum Bottles (150 pcs): Rp 1,500,000
• Prima Absolute Solvent / Ethanol (2 liters): Rp 110,000
• Absolute Cleaner (1 liter): Rp 20,000
• DPG / Solvent (1 liter): Rp 57,000
• Distilled Water (5 liters): Rp 32,500
• Plastic Spray Bottles (20 & 40 ml, 4 dozen): Rp 120,000
• Roll-On Bottles (6 & 10 ml, 10 dozen): Rp 150,000
• Glass Spray Bottles (15 ml, 2 dozen): Rp 110,000
• Glass Spray Bottles (20 ml, 2 dozen): Rp 120,000
• Glass Spray Bottles (30 ml, 2 dozen): Rp 120,000
• Glass Spray Bottles (35 ml, 2 dozen): Rp 120,000
• Glass Spray Bottles (50 ml, 2 dozen): Rp 144,000
• Glass Spray Bottles (60 ml, 2 dozen): Rp 144,000
• Glass Spray Bottles (100 ml, 1 dozen): Rp 96,000
• Waterproof Stickers (150 pcs): Rp 600,000

These materials bring the estimated raw material costs to ± Rp 16,313,500.

In total, your estimated initial investment for inventory and raw materials would be around Rp 28,433,500. This amount can set you up to start a promising refill perfume business with a wide range of products.

Thinking About Starting a Perfume Oil Business? Here’s How!

Perfume has become a staple for many people. A pleasant fragrance can boost confidence, making perfume a daily necessity for some. Both nationally and globally, people view perfume as an essential part of life.

According to a study by Kantar and Stanpa on Spanish citizens, 94.6% of people use perfume regularly, 61% consider perfume very important, and 54.7% use it daily. This research highlights the significance of perfume in people's lives. Additionally, Grand View Research reported that the global perfume market was valued at USD 50.85 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030.

However, nowadays, you don’t need to shop at stores selling branded perfumes to get a great fragrance. Instead, you can simply buy the perfume oils.

If you've visited a perfume shop in a mall or a roadside store selling unbranded perfumes in glass bottles, chances are it's a perfume oil business. Perfume oil is the pure essence or extract of various fragrances. It remains in its original form, without any added ingredients, including alcohol. For example, if you want a fruity scent, you would distill the extract from fruits.

Starting a perfume oil business can also be profitable because it’s affordable, the products are unbranded, the customers are typically from the middle to lower income brackets, the scents are diverse, and the buying frequency is high, although the profit margins are smaller.

Here are some tips to help you start a perfume oil business:

Prepare Business Capital

The first step is to prepare the capital for your perfume oil business. As mentioned, the initial investment isn’t too large, and you can benefit from a wide range of suppliers.

Research and Register as a Supplier of Perfume Oils

Find potential suppliers for your perfume oils. Make a list of potential suppliers and establish relationships with multiple vendors.

Prepare the Location

Set up a place or store to sell your perfume oils. You can start with a 4x4 meter space and design it as attractively as possible.

Promotion

To attract customers, promote your perfume oil business, possibly by offering discounts on the oils.

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