Chanel No. 5: New & Improved?

I’ll openly admit that I had no idea who IFRA was until recently.

I purchase perfume, scented soaps and shampoos on a regular basis. And, like all of you, I also buy fragrance in forms the general public does not; Fragrance and essentials oils and others variants.

I never gave a thought to any type of “governing” body regulating fragrances. I just figured if it was being sold on the open market, that it’s legal.

I’m also under the opinion, that certain things may effect my skin adversely; I may be allergic or have reactions to certain ingredients. I then would stop using those ingredients.

Apparently, there is more to it than this. That is where IFRA, International Fragrance Association, comes into the picture.

IFRA: We promote the safe enjoyment of fragrances.

IFRA, the International Fragrance Association, is the official representative body of the fragrance industry worldwide. Its main purpose is to ensure the safety of fragrance materials through a dedicated science program. This focus on fragrance safety helps both the consumer and the environment.

IFRA does don’t make the law. They are a voluntary compliance organization made of up of 90% of the perfume and fragrance manufacturers. You do not have to belong, but if you do, it’s mandatory that you adhere to their standards and practices.

IFRA represents the fragrance industry regional and national associations worldwide. IFRA is the reflection of the industry’s choice to regulate itself and and its activities result in a Code of Practice and safety Standards, which members must adhere to, in order to achieve the objective of protecting consumers’ health and our environment.

Sounds innocent and well intended enough. Bu it seems IFRA  is even more aggressive in issuing safety standards than even the European Union.

“There seems to be a steady build-up of regulatory rules,” said Luca Turin, a scientist and perfume expert at the Massachusetts Institute of Technology.

A mild allergic reaction should not prevent great scents from being preserved, Turin said. After all, “to my knowledge perfume has never killed anyone,” Turin said.

The IFRA says consumer safety is the overwhelming priority.

“It’s not necessary for someone to die before we establish a safety standard,” said Matthias Vey, IFRA’s scientific director. “Skin contact is our biggest concern, and if you are sensitized you can develop a rash, skin redness, itching and swelling.”

I was made aware of IFRA recently in regards to some new regulatory % allowances on usage for different cosmetics and perfumes. This didn’t cause great concern until I read an article today  Allergen Rules May Alter Scents of Great Perfumes.

The article is mainly about how the iconic perfume, Chanel No. 5 may be in jeopardy. The use of natural jasmine will, for the first time, be restricted in all perfumes to 0.7 per cent of the finished product, to ensure that wearers have no allergic reaction to the flower.

This lead to a Google search where I stepped into an intriguing world of perfumer blogs. IFRA has been a hot topic for almost a year now, and there are not too many supporters of IFRA in sight.

This year, some perfume enthusiasts, including the Paris-based fragrance historian Octavian Sever Coifan, had, feared that new regulations from the International Fragrance Association (IFRA), which come into effect next January, would spell the end of Chanel No. 5.

But Jean-Pierre Houri, head of the IFRA, was categorical in his denial.

“Chanel No. 5 will be unaffected by the IFRA restrictions.” And a spokesperson for Chanel said that “Evidently when the new standards were issued we immediately checked the percentages in our finished products and in none of our fragrances is the recommended level exceeded.”

Ocatavian’s response, and I paraphrase:

… any journalist who wants to carry a deep investigation can analyze several samples in an independent lab. The amount of jasmine absolute (if it is 100% or combined with other jasmine absolutes) can be revealed.

And by the way, what other fragrances have today more jasmine absolute than No5 and Joy? If this expensive ingredient is used less than in No5 (that would not be affected), than why did they restrict its use?

I believe that several brands should reflect with a lot of care about their transparency because this mascarade (sic) might have bad effects in the near future if somebody will publish side by side analysis of several perfumes. Remember that formulas are not protected by any law and so “revealing” them to the public by a third part is not a crime.

The point being that, Chanel and other large perfumers have too much at stake. They will never admit to changing their product to comply with new safety standards and IFRA will protect them too. They need the high profile clients to give their organization creedence. So, they both say that the existing recipes and %’s are just fine and meet all standards.

Why doesn’t Chanel, Guerlain and other large companies fight back? From what  I could find, they are afraid of the backlash and possible lawsuits, like the tobacco industry has had to endure.

Suggestions of warning labels have been made, but I can’t seem to find any clear declaration of viewpoint on that issue. I guess IFRA has been open to that in the past, but it doesn’t seem as though they are open to it for perfumes.

Wow, who knew this was all going on. I found this all very fascinating and, I must say, I feel kind of special being involved and aware of the situation and process. The great perfumers of Paris are having the same issues effect them and their fields of jasmine as I do when I order ingredients for my special concoction of Almond Biscotti fragrance oil.

If you would like to read more, below are links to some great articles and blogs on perfume.

The Independent: The Sweet Smell Of Success

1000 Fragrances: Octavian Sever Coifan: Chanel No. 5 New or Not New, Endangered Fragrances

Legerdenez : The Chanel No. 5 Controversy, Are You Tired Of Hearing About IFRA Yet?

A SKU By Any Other Name…is still a SKU.

The dreaded SKU or Stock Keeping Unit. It can make or break you, whether you have too many or too few.

Have you even thought about SKUs? Do you know what they are? Simply, it’s all your stuff added up.

If you have 8 products that come in 8 scents, you have 64 SKUs. Ack! What!? You say? I have 64 products? But I only have 8 products that come in 8 scents. Same thing? NO. When you break out your product offering into actual SKUs is when the realization of how large your line is and how many $$, sweat and frustration it takes to manage them.

There is not a right or wrong way to manage your SKUs. This is just another thing you now have in common with the multi-billion dollar corporations. I can’t tell you how many SKU management meetings I’ve sat through…zzzzzzzzzzzzzzzzzzz. It may put you to sleep or overwhelm you, in which case you tune out, then fall asleep.

But SKUs are like birthdays, no matter how you figure them, the number is what it is.

SKUs can be your friends, or at least powerful tools. Being a person who thinks of themselves as right-brained person with left-brain leanings (creative with a grounded business sense), I have long contracted arguments with myself, sometimes out loud, about SKUs.

I spent countless hours developing and merchandising the message content and products in my line. All my fragrances are my “babies” handpicked by me and a circle of friends. Let’s face it, some babies turn  out to be not-so-cute. Some babies don’t venture forth out into the world and bring mommy money. Do I throw these babies out with the scented bath water? Yes and no.

What I do is look at each SKU’s value. They’re not always a dollar value. Here are a few scenarios:

1. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying the Coconut Coffee Lotion and Hand Wash.
2. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying Freesia Rose and Tutti-Frutti scents.
3. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, they buy tons of it, as well as my other Bubble Bath Scents. However, I make 20% instead of my usual 50% Profit Margin for other products.
4. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, they buy it.  Not as much as the Freesia Rose or Tutti-Frutti, but more than Lush Blueberry.
5. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying it only for 4th quarter sales.

Yes, that seemed repetitive, your actual comparison will vary in each scenario, a combination of these scenarios or  your own micro-niche scenarios. I was trying to make it as simple as possible so that you could see the forest and the trees. So lets’ go through the possible solutions.

1. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying the Coconut Coffee Lotion and the Body Wash.

Why do you carry the bubble bath? In order to be a well rounded bath and body line? Sounds legitimate. Do you carry the bubble bath in all your scents? Does it sell in your other scents?

• If you never sell the bubble bath – Drop it.
• If you sell it in just certain scents. Just carry those.
• If it’s random what scents the bubble bath sells in, consider making your body wash a 2 or 3-in-1. Body wash, shampoo and bubble bath. Drop the stand alone bubble bath SKUs.

2. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying Freesia Rose and Tutti-Frutti scents.

• Just have the sample for display. Kidding.
• Drop it and just carry what sells.

3. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, they buy tons of it, as well as my other Bubble Bath Scents. However, I make 20% instead of my usual 50% Profit Margin for other products.

I assume you are only making 20% because you have priced the wholesale cost at what the market will bear or have backed out the price from what an acceptable retail price would be.

Have you? Can the market bear a little bit more? Does your packaging or special ingredient or other  niche aspect warrant a larger mark up? Think about it. 25, 35, 50 cents per item makes a difference to your bottom line. Just do the math.

Reassess your line. Are all items bought, or is this your biggest seller? If this is your biggest seller, it can be considered your loss leader, meaning you take less margin in order to gain sales on other items that you make a larger profit on. It also means that even though you take a smaller margin, it’s still acceptable because you are able to buy the supplies in larger quantities with larger discounts.

The trick is to get the sale on the other items. If your orders are mainly made up of bubble bath, then it is not a loss leader…it’s just a loss. If you can get higher margin on other items and average out your orders to carry all the products, then you can also cost-average and look at your margins that way. But this makes for tricky bookeeping.

You may want to:

• Rethink your wholesale cost.
• Buy your base ingredients or product in larger quantities in order to get a lower cost, this translates to a larger profit margin for you.
• Increase the minimum buy on this or all of your products so that you can purchase your base ingredients in larger quantities.
• Reassess your line and costing, find opportunities to mark up product in order to cost-average.

4. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, they buy it.  Not as much as the Freesia Rose or Tutti-Frutti, but more than Lush Blueberry.

Well, Coconut Coffee still qualifies as a good seller in this scenario. However, why do your customers end up buying more of the Freesia Rose  or Tutti-Frutti? Is the Coffee Coconut a close third place or a distant third?  If it is a close third, keep it, especially if your margin is good on it. If your margin is not good, then would anyone care if you dropped it? Would the other top 2 items bring customers into your booth? Think about it. And what’s up with the Lush Blueberry? Do you need it?

5. My fabulous Coconut Coffee Bubble Bath brings customers into my booth, but they end up buying it only for 4th quarter sales.

Then only offer it 4th quarter. Make a big build up marketing it with a limited time frame and quantity. Publicize it on your website, market signage and postcards, etc. You can decide as you go along what “limited” quantity is. The great thing about this is that you  don’t have to worry about freshness of stock or keeping items in inventory year round.

As you can tell, there will be a lot of circular arguments in this process. However, your brain knows this and will kick-out a circular argument, the more it twirls in your head the more the truth will rise to the top. It’s up to you whether you pay attention.

Thinking that it doesn’t really matter to have a few extra scents or products hanging around is just lying to yourself. It’s costing you shelf space, time, effort and thought. It’s costing you money to special order because you didn’t realize you were out and got an order for 6 bottles.

You want to order new labels and have to count the 12 extra SKUs of the 4 products in the 3 scents you don’t really sell; with a minimum run of 100 labels each, that’s 1200 unnecessary labels. Think of the new items you could be adding- but can’t afford to.

Having too many scents or products may also be diluting your Brand Image or message. You may want to re-evaluate your selection of scents and products according to collections, end uses and target market. By doing this, you may trim some of the fat and find that you’re actually missing something. Guess what? Sometimes the problem is not having too many SKUs, it’s not having the right one!

Is it starting to add up?

* The barcode tattoo picture is the cover of one of my favorite books The Jennifer Government.

My Favorite Manifesto

Jonathan Adler is a well-known New York based Interior Designer. His irreverent, kooky and modern twist on design is fun and inspiring.

I came across his Manifesto on the Jonathan Adler website and I loved it! I think you will find it a great lesson in how to communicate your message and not to take yourself too seriously at the same time.

This Manifesto is just the beginning of how well he translates and communicates his vision, message and aesthetic throughout his website. Check out his About Page too.

He recently completed a project designing a life size Malibu Barbie Dream Home and grown up Barbie Accessories for your home- too fun.

Our Manifesto

We believe that your home should make you happy.

We believe that when it comes to decorating, the wife is always right.
Unless the husband is gay.

We believe in carbohydrates and to hell with the puffy consequences.

We believe minimalism is a bummer.

We believe handcrafted tchotchkes are life-enhancing.

We believe tassels are the earrings of the home.

We believe in our muses: David Hicks, Alexander Girard,
Bonnie Cashin. Hans Coper, Gio Ponti, Andy Warhol, Leroy Neiman,
Yves Saint Laurent, and Madonna.

We believe in the innate chicness of red with brown.

We believe in being underdressed or overdressed always.

We believe in infantile, happy emblems like butterflies and hearts.

We believe celebrities should pay full price.

We believe in rustic modernism: Big Sur, A-Frame beach houses,
raw beams, and geodesic dome homes.

We believe in Palm Beach style:
Louis chairs, chinoiserie, Lilly Pulitzer, The Breakers circa ‘72.

We believe our designs are award winning even though
they’ve never actually won any.

We believe in Aid to Artisans.

We believe dogs should be allowed in stores and restaurants.

We believe in mantiques – suits of armour,
worn chesterfield sofas, heraldic tapestries.

We believe you should throw out your Blackberry
and go pick some actual blackberries.

We believe colors can’t clash.

We believe in blowing your nest egg on our pots.

We believe our lamps will make you look younger and thinner.

We believe in irreverent luxury.

In This Corner….THE RETAILER!

One of my Showroom owners sends out newsletters to her vendors and reps. I find this so refreshing and enlightening. By sharing her views and links to blogs she follows and articles of interest, I am exposed to an entirely different viewpoint.

Most of the time, I read the content, take note and get on with my day. Then about a month ago, she sent a link to a blog that I cannot get out of my mind…what I really should say is that it got under my skin.

The reason for the link was  innocent and well-intended. It was sent simply to let us all know that buyers were employing new strategies when purchasing during the July Markets. Okay- good to know.

I clicked on the  link. Very interesting….However, another part of the post offended me as a Small Business owner. When I went on to read more of the blog I got more annoyed.

I know- you wanna read it for yourselves.  Don’t worry-  I’ll give you the link, but please indulge me first.

I kept wondering why I was so defensive to this person’s blog. I’m always interested in the opposite viewpoint. As a designer, I have plenty of experience with criticism. As a Small Biz owner, I’m used to taking compliments and critiques ranging from fabulous to nose-crinkling. So what’s the deal with this chick and this blog? I think it’s the tone. Condescending.

I can’t deny that she has tons of experience and is apparently a well-regarded industry expert on Trade Shows. Just don’t mistake this for an objective expert.

The blogger herself states many times throughout her blog that she is decidedly, full-forcedly (word?) and unapologetically on the “SIDE” of the retailer. And oh- she’s on the board of several Trade Show Organizations.

“Side?” “Side?!” My first reaction was to comment on her blog from a Small Biz perspective. Then I thought about a rant-post on this blog about being on the “Side” of the Wholesaler or Small Biz. Then I thought, geez, why are there any “sides?” , and how can I really take her opinions seriously when she is so obviously biased to promote the Trade Show business and their interests.

Okay, I won’t torture you any more. Here is the note my Showroom owner sent:

“A retail consultant and a woman who has been involved in the gift industry for many years, Cinda Baxter, is blogging about the various summer markets.  I don’t always agree with her comments, however I think her remarks on buyer strategies is worth reading at Always Upward: The Blog. “

I must give kudos to Baxter for fully disclosing that she does sit on the board for several interested parties in the area she covers. No crime in that.

So, let me disclose this: I’m a Small Biz owner. I promote small business. There, I said it. And, yes, hopefully, I will profit from it. Here’s the difference, I am not slamming the other side of the aisle. I know I need the Buyers/Retailers. I know I have to do the best job I can to attract their business and even more to keep it.

So- I think I would rather learn what the Retail Buyers need and try to nurture that relationship. But, I’m not a doormat and I’m trying to run a business too.

I’ve made a chart to compare the 2 “sides.” I don’t pretend to know what actually comprises a busy Retailer’s day. I just took some wild guesses, of which I’m sure a few are correct.

Even with the variances, I think we seem more alike than not. The obvious- in business to make money- is a given.The even more obvious, they sell to the general public and we don’t, doesn’t really make much difference. At one time or another we are each buying or selling.

Of course, I’m making this overly simplistic. There’s a lot more to the game/role-playing dynamic.

Depending on the size of the Wholesaler or Buyer, the scenario and attitude of either party can change. But, I’m talking to you, the Small Business owner. We don’t have so much power to wield. We’re usually dealing with small chains or boutiques that may carry up to a couple hundred lines – in the big-picture scheme of things, they’re considered “small” too.

Back to the Always Upward Blog. Let me shock you all and tell you that I think you should follow Cinda’s blog. I think she has a lot of information. Not all of it good. And certainly not unbiased. But still she has the backing or funds to travel to a multitude of  Trade Shows to give you her “insight”, information and opinions that the general Small Biz public may not otherwise be exposed to.

I decided to learn from her blog and utilize it as another resource.

Let me leave you with this.  Buyers need new product. Small Businesses are usually the pioneers of new product. Small Businesses need buyers. Of course there are other elements in this circle of retail life, like saleability and profitability. So, let’s just say we need each other and build from there.

Or, as they say in The Godfather, keep your friends close and your  “enemies” closer. Kidding.

Knock-Off, Who’s There?

Imitation is the highest form of flattery. Not.
I think I agree with Coco Chanel: ” Being copied is the ransom of success.”

First let’s define “knock-off” in it’s most technical terms and it’s loosest.

Counterfeit: Handbags and accessories are one of the most lucrative counterfeit import businesses. You’ve seen them, the guy on the street with purses lining a blanket, saying that are real Louis Vuitton, Gucci or Prada. You may have even been in some beautifully appointed shops in Hong Kong, where they serve you tea and show you bags..in the backroom. In some cases, they look very real. Sometimes, even an expert has trouble telling them apart from the real thing. That’s because they just about are the real thing.

A high-end counterfeit operation purchases, has in-house spies, or bribes/blackmails/threatens employees of high-end brands, to steal original, authentic items or patterns. Then they are scanned by computer, detailed out for color, stitch count, construction, branding, fabric, leather etc. All the elements of the purse are copied exactly- or almost. But they aren’t “real” or authentic, because they don’t come from the license holder or legitimate manufacturer. They are counterfeit, as in, ILLEGAL. This is considered IP Theft, Intellectual Property Theft.; an idea or essential elements of an idea that are identified and owned by an entity is the Intellectual Property.

Think again before you think about buying a counterfeit purse. Sure, Gucci will never know, but you will. You would be guilty of purchasing stolen property.

Having someone develop counterfeit items of your line is probably not something that you will have to address. More likely it will be the “knock-off.”

Knock- Off ( impostor): An item is meant to so strongly resemble a popular or high-end item that you visually  may mistake it for the original unless you look closer. The logo initials have changed, the branding elements aren’t exact, the quality is several grades cheaper or just simply tacky. These items are not trying to sell you as being the original, just look-alikes. However, these items can be infringing on trademarks, but that’s not your worry. If you buy these items in a legitimate retail environment, it’s their responsibility to sell the items in good faith that the items are legal for trade. The manufacturer may come under fire and have to pay fines, remove items from shelves, etc., but you have done nothing wrong.

If you are the company that is knocking another company off to capitalize on their popularity, then you are doing something wrong.  You may not be found out. The problem is, you will always be at the mercy of the original company. If you haven’t developed the concept yourself, the life and breath will never be authentic. You will always be the impostor copying what the originator does, hoping they won’t find you out.

Knock -Off  (slang): You pour your heart and soul into developing your label, logo and identifying features into your line. Then you  begin to notice your competitors are beginning to look like you. Not in an obvious way, but in a way that you can tell they were inspired by your line, or knocked-off your line.

Inspired is a funny word, it can mean that something gave you an idea to be influenced by a certain concept or can mean it took you in a totally different direction.  Some people misuse the word inspired when they actually mean heavily influenced by a concept.

You may have already dealt with this in some manner or another. Unless there is too strong of a resemblance in the visual presentation that there may be viable confusion in the marketplace, there is not much you can do.

This is where Coco’s Quote comes in: ” Being copied is the ransom of success.” If  you find yourself being copied, in a non-infringing kind of way, you may begin to feel paranoid or angry. I don’t blame you. What you have to remember is that YOU are the innovator, the creator of your line. You are that one that will make any changes or updates authentic, genuine and cohesive with the aesthetic of your brand. The word ransom is a  double edged sword and can effect you in two ways; On the one side, if you are successful you are copied. If you stop getting copied, then maybe you arent so great and people will judge you by that. On the other side, if you let the idea of being copied hold you ransom and paralyze you, then you’ll never move forward.

So, the obvious lesson here is that it is okay to be inspired by other lines. Inspired should mean to go forth and do your own thing, Not be so heavily influenced by  another brand’s identity that you can’t move without them making a move first. Then you are being held for ransom by someone else’s success.

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