An economic downturn is a daunting experience for any small business. It’s during times like these when companies need to focus on creating value, cutting costs, and finding new ways to remain competitive. With the right strategies and creative approaches, certain businesses can become recession-proof. By leveraging their existing resources and exploring new opportunities, fragrance and beauty brands in particular can stay afloat during difficult times and come out stronger than before. In fact, businesses that produce small luxuries such as candles, scented soap, and other fragranced products perform well even amid economic uncertainty.
This is because consumers turn to luxuries like cosmetics and fragrances as a way to cope with the stress and anxiety that comes with economic challenges. Consumers splurge on products that make them feel good about themselves. And this is reflected in the sales figures for fragrances and home decor, which have seen a significant increase over the last quarter of 2022.
Sales are booming, not just in stores but also online. The desire for self-care is driving this record-breaking surge, and the trend is expected to continue as supported by “the lipstick effect”. As more consumers turn to fragrances for solace and comfort, small businesses can easily reap the benefits.
Mature Your E-commerce Presence
In this digital age, having a website for a fragrance-based business is essential to reach a diverse range of customers and generate sales. Having a strong online presence allows small businesses to showcase products uniquely, while building relationships with potential customers, increasing brand awareness, and establishing credibility. A website helps build sales funnels, promote discounts, and reach people directly in their inboxes with a personable touch. It’s also a phenomenal way to maximize the digital footprint with contact information for campaigns, reviews, and referrals.
Make New Friends
Though it may seem counterintuitive, small businesses should not view one another as competitors, but instead as potential partners. This is especially true since products from fragrance brands are being added to larger assortments from larger businesses. By working together, these businesses can benefit from one another’s strengths and resources to reach a larger audience and increase sales. For example, a fragrance oil business like ours takes advantage of collaborating with soap and candle businesses to diversify products and boost sales. This strategy allows both businesses to leverage each other’s customer base, which in turn results in more sales for both parties. Additionally, it can help build relationships between the two companies that can be beneficial for future collaborations.
Guerrilla Marketing
The digital age is upon us, and guerrilla marketing is more prominent than ever before. It has grown to become an effective and cost-efficient way for businesses to spread the word about their products. It involves unconventional marketing techniques such as pop-up shops, viral challenges, flash mobs, street art, and surprise events that generate buzz and draw attention to a brand. With guerrilla marketing, candle businesses, for example, can reach potential customers in a more creative way than traditional media channels.
The biggest advantage of guerrilla marketing allows businesses to target specific demographics cost-effectively. This involves using tactics such as location-based campaigns or social media campaigns as a foolproof way to reach a desired audience without breaking the bank. Moreover, guerrilla marketing helps businesses build relationships and create repeat customers by creating a unique experience that resonates with them.
Improve and Evolve
Fragrance is an ever-evolving industry, with new trends and innovations appearing every day. To stay ahead of the competition, it's important to find time to improve and evolve each product line–promoting relevancy and urgency. By researching the latest trends in the industry, experimenting with different scents and materials, and looking for ways to make collections stand out from the crowd, these products remain competitive in a constantly changing market. With a little bit of effort and creativity, businesses can churn out new fragrance-related products that will keep customers coming back for more.
We’re always here to help keep you informed on the latest and greatest, so be sure to download our free trend report: Candle Trends 2023 here.
Bite-Sized Business
Offering mini versions of products is a tried and true method of maintaining and increasing sales. Candles, and soaps, do especially well in smaller versions. Mini products make it easier for customers to purchase guilt-free during times of economic recession. During such times, consumers are often more conscious about their spending.
To make it easier for customers to purchase without shame, offering smaller sample products is a great way to help them save money while still enjoying the same quality product. Mini candles and mini soaps provide the same aromas and fragrances as regular-sized candles but at a fraction of the cost.
It’s also cost-effective for small businesses because they do not need as much fragrance oil and other materials for production. It’s a win-win! This way, customers can enjoy the same luxury without feeling guilty about their spending. Furthermore, mini products are great for customers who want to sample different scents before committing to regularly buying full-sized candles.
Recession-proof Recap
Even with the economic recession, many businesses are still thriving. Even post-pandemic, candle sales are reaching upwards of $300 million in revenue. This industry has been one of the few bright spots during a recession, especially as an affordable indulgence.
Despite the economic downturn, self-care businesses have continued to thrive and remain profitable.
This is due to a combination of factors, including increased demand for comforting home decor items, a shift towards self-care and relaxation, and the convenience of online shopping. These factors have enabled many candle businesses to stay afloat during these difficult times and even expand their operations. It is clear that even in times of recession, candles can still be a successful business venture.
Small business is a cutthroat career, so it’s important to face challenges head-on. Stay on top of the game with out-of-the-box marketing, collaborations, and new product variations.