Monday, April 15, 2024

How to start perfume oil business in Nigeria

The perfume oil business in Nigeria is a profitable small business idea that anyone can start regardless of location.

The business is very easy to start, as you can start even as a student.

Since everybody wants to smell nice at work, events, conferences, get-together parties, and even at home, a lot of Nigerians can’t do without perfume. So, the high demand for fragrance attracts entrepreneurs, as there’s a lot of money to be made.

The profit margin of selling fragrance is high, and you can make sales almost every day operating the business. However, if you don’t know how to go about starting, sales are not guaranteed, and neither will you make the most profits.

That is why we’ve come up with this post on how to start a perfume oil business in Nigeria to show you all you need to get started.

From the cost of starting, and profitability, to how to buy and how to sell for massive profits you’ll learn everything about the perfume business in Nigeria.

Starting a perfume oil business in Nigeria

The perfume oil business involves the purchase of perfume from suppliers and reselling to final consumers. If you have a huge startup capital, you can also start the business as a supplier where you’ll purchase perfume in bulk from brands/companies, and then sell to retailers at wholesale prices.

This business is very easy to start, as in some cases you don’t even need a shop. You can start a perfume business as a student, worker, job seeker, and even a stay-at-home mom, as the product is very easy to market.

Perfume can be sold using just a bag, or renting a small shop. You can also leverage technology, by selling your perfume online without having to leave your home.

Whether you have a small capital, or you are able to start on a large scale, there’s a lot of money to be made selling fragrance in Nigeria.

Is the perfume oil business profitable?

Yes, the perfume oil business is profitable in Nigeria. Due to the high and increasing demand for the product, sellers make a lot of sales daily, weekly and monthly.

Although the profit margin of perfume oil is massive, sales also determine the profits you’ll make. The more sales you drive, the more revenue, and the more profits will be made.

Also, the profitability of this business depends on your location, where you buy from, and how you sell. For example, perfume may cost a lot more in cities like Abuja, and Lagos than in places like a suburb area in Edo State.

Also, the profitability of a perfume oil business depends on the brand you sell. If you sell to brands that cost a lot (like N5000 and above) you could make up to 50% ROI and more, as it could just cost N2500 from suppliers.

More so, if you buy from a good supplier that sells at extremely cheap prices, you’ll make a good profit and the profit margin will be huge. With mini importation now gaining ground in Nigeria, you can buy your perfume oil from China at extremely cheap prices, and sell for massive profits in Nigeria.

How much do you need to start a perfume oil business?

The perfume business in Nigeria is usually considered a small-scale business, so it can be started with a little money. However, you may decide to start big, although you’ll need a huge capital.

With as little as N30, 000, you can start a perfume oil business in Nigeria, given that you already have a shop or you don’t need one. However, on a large scale, you would need N500, 000 to millions of Naira to start a fragrance business in Nigeria.
However, you may need way less (about N5000 to N10, 000) to start a perfume oil business in Nigeria if you want to sell low-quality brand fragrances.

Factors to consider on how to start perfume oil business in Nigeria

1. Decide on the type of perfume oil business to start

The first step in starting a perfume oil business is to decide on your mode of operation. Deciding how you want to start depends mainly on how much time and money you’re willing to invest.

There are four ways you can start a perfume oil business in Nigeria. They include starting on a small scale, selling top brands, becoming a dealer, and starting your own perfume brand. The startup capital needed and the profits vary based on the type.

If you have very low capital to start, the first type (starting on a small scale) would be a great option. Here, you’ll be buying tiny perfumes from wholesalers, and reselling to final consumers. You can start this with N5, 000 to N15, 000.

With more capital, (about N100, 000+) you can start the type where you’ll be selling top brands. This type moves fast, as many Nigerians prefer using designer perfumes, making the profit margin huge.

With anything above N500, 000, you can become a dealer of different kinds of perfume, both lower and high-class brands. Here, you’ll need a shop, and also have the ability and time to manage a big business. As a dealer, you’ll be selling at wholesale prices to retailers.

Lastly, if you can invest your time to learn how to make perfume oils, and also have reasonable capital, you can start your own perfume brand.

Here, you’ll be manufacturing perfume oils with different scents, and then selling to dealers, and possibly retailers too. You would need N1, 000,000 and above to get started, as you’ll need to register the business, start a company, and account for workers.

With all the modes of operation listed above, now, just sit down and pick the most suitable one for you.

2. Do your research

After deciding the type of perfume oil business you want to start, the next thing is to carry out market research on it. Before starting, you’ll need to know how the business works in your area, find out about the best-selling brands, research your target audience, know the best marketing strategies, and also get to understand the day-to-day activities of the business.

Doing this, you’ll need to find and create a business rapport with someone already in the business, and let them guide you. If you’re starting as a dealer, you’ll need to research the requirements to work with top fragrance brands.

While if you want to start your own perfume brand, you’ll need to learn how to make perfumes, and also know all the required registration to start such a company in Nigeria.

3. Arrange for capital
After doing your research about the type of perfume oil business you want to start, the next thing is to get the money required. If you’re starting small, you can always save up to start a perfume oil business in Nigeria.

However, if you don’t have a small bank account, but want to start on a large scale, you can seek assistance from friends and family through business partnerships or loans.

4. Source suppliers
With your money now ready, the next thing is to find suppliers from whom you’ll be buying from and selling for profits. Depending on your mode of operation, there are different ways of sourcing fragrance suppliers in Nigeria.

If you’re starting on a small scale (selling lower brands), you can buy fragrances from big cosmetics shops, or perfume oil dealers which can be found in open markets. They do offer wholesale prices for retailers, so they can also make profits.

As a wholesaler, your supplier would be perfume oil distributors/dealers. Those people get fragrance directly from manufacturers and then supply to wholesalers and retailers.

If you’re looking to operate as a dealer, you’ll need to find perfume oil brands/companies that you’ll work with to get the goods. There are a few of them in Nigeria, Lagos to be precise. Just find a way of contacting them and apply as a dealer or distributor.

A new way of sourcing fragrance suppliers in Nigeria is to incorporate the mini importation business model. Here, you can find suppliers on websites like Alibaba and Aliexpress, then order the products from China at cheap prices, which usually come with a massive profit margin when finally sold off in Nigeria.

5. Start selling
Once you’ve gotten a supplier and have your goods delivered to you, the next thing is to start selling. Depending on the type, the selling method could differ.

Starting on a small scale, you can sell your perfume oil without a shop. You just need a bag, then walk to people (students, office workers, teachers) then show them your products, and sell them one by one.

However, as a wholesaler or dealer, you may need a shop where your goods will be displayed. The best places to find a shop and start selling as a fragrance wholesaler or dealer would be an open market or busy areas.

You can also combine the perfume oil business with the cosmetics business to start selling. Just make sure that you sell at cheap prices that will attract customers.

6. Promote your business
Just like every other business, marketing is one thing that must not be underestimated in a perfume oil business in Nigeria. This is because good marketing drives more sales.

Here are some of the best ways to promote a perfume oil business in Nigeria.

Advertise and sell on social media
Social media is a great way of reaching a wider audience, even out of your geographical location. You can leverage social media in promoting your fragrance.
This can be done by posting your products on Facebook groups, and also creating a page for your business on Facebook, Instagram, Twitter, and TikTok. You can also post your products on WhatsApp status to drive sales. Also, encourage your friends to help you repost to their feed and status to reach a wider audience.

Leverage on word-of-mouth
Word-of-mouth advertisements could help you drive a lot of sales, especially at the start. This involves showing your friends, family, neighbours, and the like, your product, and encouraging them to buy.

Also tell them to recommend the products to their friends, family, and neighbours. This will help you in the long run, as you’re not only promoting your business but creating awareness and a loyal fan base.

Sell on ecommerce sites
Websites like Jumia, Jiji, and Konga allow you to list your products and drive unlimited sales. Since those sites already have a lot of recognition, millions of buyers visit the sites every month, so you can quickly make sales if you sell your products there, although, you’ll be charged a certain percentage on every sale.

Conclusion

The fragrance oil business in Nigeria is a very lucrative one to look into, as you can get started regardless of your capital, location, and gender. With this post on how to start a perfume oil business in Nigeria, I believe you’ve gotten the tips and beginner guide you’re looking for.

Source@nairarush.com.ng

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